F&C Commercial Property Trust Ltd - Net Asset Value
PR Newswire
London, October 24
To: Company Announcements
Date: 25 October 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 September 2018 was 141.8 pence. This represents a decrease of 1.0 per cent from the unaudited NAV per share as at 30 June 2018 of 143.2 pence and a NAV total return for the quarter of 0.1 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 September 2018 and is calculated after deduction of all dividends paid prior to that date. As at 30 September 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 139.60 pence per share at 30 September 2018, which represented a discount of 1.6 per cent to the NAV per share announced above. The share price total return for the quarter was -6.4 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 30 June 2018 to 30 September 2018 (including the effect of gearing):
£m | Pence per share | % of opening NAV per share | |
| NAV as at 30 June 2018 | 1,144.9 | 143.2 | |
| Unrealised increase in valuation of property portfolio * | (9.1) | (1.1) | (0.8) |
| Movement in fair value of interest rate swap | 0.2 | 0.0 | 0.0 |
| Other net revenue | 9.4 | 1.2 | 0.8 |
| Dividends paid | (12.0) | (1.5) | (1.0) |
| NAV as at 30 September 2018 | 1,133.4 | 141.8 | (1.0) |
* The ungeared decrease in the valuation of the property portfolio over the quarter to 30 September 2018 was 0.6%, after allowing for capital expenditure.
The net gearing at 30 September 2018 was 20.8%. #
# Net gearing: (Borrowings - cash) ÷ total assets (less current liabilities and cash).
Performance
The capital value of the portfolio decreased by 0.6% over the quarter. The IPD Monthly Index recorded capital value growth of 0.4% over the period.
The largest impact on NAV was due to valuation write downs on the Company's retail warehouses and specifically Newbury Retail Park, Newbury and Solihull Retail Park, Solihull. This quarter both properties were impacted by the Homebase Company Voluntary Arrangement (CVA) and the Administration of Poundworld at Newbury. Asset Management of these assets is focussed on securing revised planning consents for the change of use and division of units and will be a priority for the Manager over the short term.
Portfolio Analysis - Sector Breakdown
| Market Value £m | % of portfolio as at 30 September 2018 | % unrealised movement in quarter | |
| Offices | 533.9 | 36.9 | -0.2 |
| West End | 154.8 | 10.7 | -1.1 |
| South East | 131.6 | 9.1 | -0.3 |
| South West | 32.4 | 2.2 | 1.2 |
| Rest of UK | 194.8 | 13.5 | 0.2 |
| City | 20.3 | 1.4 | 1.4 |
| Retail | 445.2 | 30.8 | 0.1 |
| West End | 344.9 | 23.9 | 0.1 |
| South East | 68.4 | 4.7 | -0.1 |
| Rest of UK | 31.9 | 2.2 | 0.0 |
| Industrial | 255.2 | 17.7 | 2.1 |
| South East | 59.3 | 4.1 | 3.7 |
| Rest of UK | 195.9 | 13.6 | 1.6 |
| Retail Warehouse | 167.6 | 11.6 | -7.4 |
| Other | 43.5 | 3.0 | 0.0 |
| Total Property Portfolio | 1,445.4 | 100.0 | -0.6 |
Portfolio Analysis - Geographic Breakdown
| Market Value £m | % of portfolio as at 30 June 2018 | % unrealised movement in quarter | |
| West End | 499.7 | 34.6 | -0.3 |
| South East | 351.0 | 24.3 | -2.3 |
| Midlands | 175.2 | 12.1 | -2.0 |
| Scotland | 173.6 | 12.0 | 0.0 |
| North West | 163.1 | 11.3 | 2.0 |
| South West | 32.4 | 2.2 | 1.2 |
| Eastern | 30.1 | 2.1 | 2.7 |
| Rest of London | 20.3 | 1.4 | 1.4 |
| Total Property Portfolio | 1,445.4 | 100.0 | -0.6 |
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 | 1,445.4 | 180.8 | 127.6 |
| Adjustment for lease incentives | (21.3) | (2.7) | (1.9) |
| Fair Value of Property Portfolio | 1,424.1 | 178.1 | 125.7 |
| Debtors | 25.8 | 3.2 | 2.3 |
| Cash | 12.5 | 1.6 | 1.1 |
| Interest rate swap | 0.2 | - | - |
| Current Liabilities | (19.4) | (2.4) | (1.7) |
| Total Assets (less current liabilities) | 1,443.2 | 180.5 | 127.4 |
| Non-Current liabilities | (1.9) | (0.2) | (0.2) |
| Interest-bearing loans | (307.9) | (38.5) | (27.2) |
| Net Assets at 30 September 2018 | 1,133.4 | 141.8 | 100.0 |
Property Purchases and Sales
The were no purchases or sales during the quarter.
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 December 2018 and it is expected that the unaudited NAV per share as at 31 December 2018 will be announced in January 2019.
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
