F&C Commercial Property Trust Ltd - Net Asset Value
PR Newswire
London, July 20
To: Company Announcements
Date: 23 July 2018
Company: F&C Commercial Property Trust Limited
LEI: 213800A2B1H4ULF3K397
Subject: Net Asset Value
Net Asset Value
The unaudited net asset value ('NAV') per share of the Group as at 30 June 2018 was 143.2 pence. This represents an increase of 0.2 per cent from the unaudited NAV per share as at 31 March 2018 of 142.9 pence and a NAV total return for the quarter of 1.3 per cent.
The NAV has been calculated under International Financial Reporting Standards ('IFRS'). It is based on the external valuation of the Group's direct property portfolio prepared by CBRE Limited.
The NAV includes all income to 30 June 2018 and is calculated after deduction of all dividends paid prior to that date. As at 30 June 2018, no adjustments were required to the NAV in respect of dividends for which the share price had gone ex-dividend.
Share Price
The share price was 150.60 pence per share at 30 June 2018, which represented a premium of 5.2 per cent to the NAV per share announced above. The share price total return for the quarter was 7.6 per cent.
Analysis of Movement in NAV
The following table provides an analysis of the movement in the unaudited NAV per share for the period from 31 March 2018 to 30 June 2018 (including the effect of gearing):
£m | Pence per share | % of opening NAV per share | |
| NAV as at 31 March 2018 | 1,142.4 | 142.9 | |
| Unrealised increase in valuation of property portfolio * | 5.1 | 0.6 | 0.4 |
| Movement in fair value of interest rate swap | (0.2) | 0.0 | 0.0 |
| Other net revenue | 9.6 | 1.2 | 0.8 |
| Dividends paid | (12.0) | (1.5) | (1.0) |
| NAV as at 30 June 2018 | 1,144.9 | 143.2 | 0.2 |
* The ungeared increase in the valuation of the property portfolio over the quarter to 30 June 2018 was 0.4%, after allowing for capital expenditure.
The net gearing at 30 June 2018 was 20.2%. #
# Net gearing: (Borrowings - cash) ÷ total assets (less current liabilities and cash).
Performance
The capital value growth over the quarter was 0.4%. The IPD Monthly Index recorded capital value growth of 0.9% over the period.
At the sector level industrials and offices recorded the highest capital growth in the portfolio with valuations increasing on the back of further yield compression in the industrial and logistics sector and on the progress of asset management activities in the office sector. As widely reported the retail market remains challenging. The Company has no exposure to shopping centres and limited exposure to traditional High Streets. However, the Company's retail warehouses have been affected by Company Voluntary Arrangements ('CVA's'), specifically New Look and Mothercare where rents at Newbury Retail Park have reduced, impacting the Company's rent roll by 0.5%.
The strong performance of the Alternative sector is due to the annual rental uplift being agreed at the purpose built student accommodation block at Winchester and yield compression in the sector for long leased properties.
Portfolio Analysis - Sector Breakdown
| Market Value £m | % of portfolio as at 30 June 2018 | % unrealised movement in quarter | |
| Offices | 532.1 | 36.7 | 1.1 |
| West End | 154.7 | 10.7 | 1.4 |
| South East | 132.0 | 9.1 | 1.3 |
| South West | 32.0 | 2.2 | 1.4 |
| Rest of UK | 193.4 | 13.3 | 0.8 |
| City | 20.0 | 1.4 | -0.1 |
| Retail | 443.9 | 30.6 | 0.0 |
| West End | 343.6 | 23.7 | 0.0 |
| South East | 68.4 | 4.7 | -0.2 |
| Rest of UK | 31.9 | 2.2 | -0.3 |
| Industrial | 249.8 | 17.2 | 1.2 |
| South East | 57.1 | 3.9 | 2.6 |
| Rest of UK | 192.7 | 13.3 | 0.8 |
| Retail Warehouse | 180.7 | 12.5 | -3.1 |
| Other | 43.5 | 3.0 | 6.6 |
| Total Property Portfolio | 1,450.0 | 100.0 | 0.4 |
Portfolio Analysis - Geographic Breakdown
| Market Value £m | % of portfolio as at 30 June 2018 | % unrealised movement in quarter | |
| West End | 498.3 | 34.4 | 0.5 |
| South East | 359.1 | 24.8 | -0.1 |
| Midlands | 178.9 | 12.3 | 0.4 |
| Scotland | 172.6 | 11.9 | 0.1 |
| North West | 159.9 | 11.0 | 1.1 |
| South West | 32.0 | 2.2 | 1.4 |
| Eastern | 29.2 | 2.0 | 2.3 |
| Rest of London | 20.0 | 1.4 | -0.1 |
| Total Property Portfolio | 1,450.0 | 100.0 | 0.4 |
Top Ten Investments
| Sector | |
| Properties valued in excess of £250 million | |
| London W1, St Christopher's Place Estate * | Retail |
| Properties valued between £100 million and £150 million | |
| London SW1, Cassini House, St James's Street | Office |
| Properties valued between £70 million and £100 million | |
| Newbury, Newbury Retail Park | Retail Warehouse |
| Properties valued between £50 million and £70 million | |
| Solihull, Sears Retail Park | Retail Warehouse |
| London SW19, Wimbledon Broadway | Retail |
| Properties valued between £40 million and £50 million | |
| Crawley, Leonardo House, Manor Royal | Office |
| Winchester, Burma Road | Other |
| Manchester, 82 King St | Office |
| Properties valued between £30 million and £40 million | |
| Aberdeen, Unit 2 Prime Four Business Park, Kingswells | Office |
| Uxbridge, 3 The Square, Stockley Park | Office |
*Mixed use property of retail, office and residential space.
Summary Balance Sheet
| £m | Pence per share | % of Net Assets | |
| Property Portfolio per Valuation Report | 1,450.0 | 181.4 | 126.7 |
| Adjustment for lease incentives | (20.9) | (2.7) | (1.7) |
| Fair Value of Property Portfolio | 1,429.1 | 178.7 | 125.0 |
| Debtors | 24.5 | 3.1 | 2.1 |
| Cash | 19.9 | 2.5 | 1.7 |
| Interest rate swap | 0.1 | - | - |
| Current Liabilities | (19.0) | (2.4) | (1.7) |
| Total Assets (less current liabilities) | 1,454.6 | 181.9 | 127.1 |
| Non-Current liabilities | (1.9) | (0.2) | (0.2) |
| Interest-bearing loans | (307.8) | (38.5) | (26.9) |
| Net Assets at 30 June 2018 | 1,144.9 | 143.2 | 100.0 |
Property Purchases and Sales
The Company completed the purchase of Hurricane 47, Estuary Business Park, Liverpool for £3.995 million as well as an adjoining site of 3.6 acres with planning consent for the construction of a 52,000 sq. ft. unit for £1.080 million. Hurricane 47 comprises a 47,462 sq. ft. speculatively developed building, which achieved practical completion in April 2018 and is constructed to a high specification. The Company has entered into a forward commitment to acquire the warehouse to be constructed on completion of the works at an additional sum of £3.382 million. The Company already has an existing property on Estuary Business Park having acquired a warehouse let to Adient Seating in April 2014. The investment provides the Company with an opportunity to generate sustainable income and to benefit from the lack of supply for new buildings and strong occupier demand, both of which are driving up rents in the logistics sector.
Borrowings
The Group's borrowings consist of a £260 million loan with a term to 31 December 2024 and a fixed interest rate of 3.32 per cent per annum. The Group also has a £50 million bank loan with a term to 21 June 2021 on which the interest rate has been fixed, through an interest rate swap of the same notional value and duration, at 2.522 per cent per annum. In addition, the Board has agreed an additional revolving credit facility of £50 million with Barclays over the same period, to be used for ongoing working capital purposes and to provide the Group with the flexibility to acquire further property should the opportunity arise.
The Group's weighted average cost of debt is 3.3 per cent per annum.
Key Information
This statement and further information regarding the Company, including movements in the share price since the end of the period and the Group's most recent annual and interim reports, can be found at the Company's website fccpt.co.uk.
The next quarterly valuation of the property portfolio will be conducted by CBRE Limited during September 2018 and it is expected that the unaudited NAV per share as at 30 September 2018 will be announced in October 2018.
This announcement contains inside information.
Enquiries:
Richard Kirby
BMO REP Asset Management plc
Tel: 0207 499 2244
Graeme Caton
Winterflood Securities Limited
Tel: 0203 100 0268
