Net Asset Value(s)

To:	Company Announcements
Date:	24 April 2017
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 31 March 2017 was 137.4 pence. This represents an increase of 1.4 per cent from the audited NAV per share as at 31 December 2016 of 135.5 pence and a NAV total return for the quarter of 2.5 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 31 March 2017 and is calculated after deduction of all dividends paid prior to that date. As at 31 March 2017, 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 144.7 pence per share at 31 March 2017, which represented a premium of 5.3 per cent to the NAV per share announced above. The share price total return for the quarter was 7.2 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 December 2016 to 31 March 2017 (including the effect of gearing):

	£m	Pence per share	% of opening NAV per share
NAV as at 31 December 2016	1,083.4	135.5
Unrealised increase in valuation of property portfolio *	17.4	2.2	1.6
Movement in fair value of interest rate swap	-	-	-
Other net revenue	9.9	1.2	0.9
Dividends paid	(12.0)	(1.5)	(1.1)
NAV as at 31 March 2017	1,098.7	137.4	1.4

* The ungeared increase in the valuation of the property portfolio over the quarter to 31 March 2017 was 1.4%, after allowing for capital expenditure.

The net gearing at 31 March 2017 was 17.4%.#

# Net gearing: (Borrowings – cash) ÷ total assets (less current liabilities and cash).

Performance

The capital value growth of 1.4% over the quarter compares favourably with the IPD Monthly Index, which recorded capital value growth of 0.9% over the same period.

Positive performance over the quarter was largely attributable to valuation increases in two properties. Site E4, Daventry International Rail Freight Terminal, a modern logistics property had a valuation increase of 20.0% following a lease renewal which was contracted for a new 10 year term certain and an increase in the rent from £1,716,000pa to £1,810,176pa. The valuation of St Christopher’s Place Estate, the Company’s largest property, increased in value by 3.0% over the period due to the contracted rent increasing by 2.9% as a result of new lettings, rent reviews and lease renewal activity.

Portfolio Analysis – Sector Breakdown

	Market Value £m	% of portfolio as at 31 Mar 2017	% unrealised movement  in quarter
Offices	471.0	35.1	0.3
West End	132.6	9.9	(0.1)
South East	132.9	9.9	0.9
Rest of UK	186.8	13.9	0.1
City	18.7	1.4	0.1
Retail	391.5	29.1	2.0
West End	323.6	24.1	2.3
South East	67.9	5.0	0.2
Industrial	224.3	16.7	4.6
South East	51.2	3.8	1.4
Rest of UK	173.1	12.9	5.6
Retail Warehouse	218.9	16.3	0.2
Other	37.6	2.8	0.0
Total Property Portfolio	1,343.3	100.0	1.4

Portfolio Analysis – Geographic Breakdown

	Market Value £m	% of portfolio as at 31 Mar 2017	% unrealised movement  in quarter
West End	456.2	33.9	1.6
South East	355.0	26.4	0.8
Scotland	170.4	12.7	0.1
Midlands	171.8	12.8	4.7
North West	144.5	10.8	1.1
Eastern	26.7	2.0	(1.2)
Rest of London	18.7	1.4	0.5
Total Property Portfolio	1,343.3	100.0	1.4

Top Ten Investments

	Sector
Properties valued in excess of £200 million
London W1, St Christopher’s Place Estate *	Retail
Properties valued between £70 million and £100 million
Newbury, Newbury Retail Park	Retail Warehouse
London SW1, Cassini House, St James’s Street	Office
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
Uxbridge, 3 The Square, Stockley Park Crawley, Leonardo House, Manor Royal	Office Office
Properties valued between £30 million and £40 million
Winchester, Burma Road	Other
Aberdeen, Unit 2 Prime Four Business Park, Kingswells	Office
Aberdeen, Unit 1 Prime Four Business Park, Kingswells	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	1,343.3	168.0	122.3
Adjustment for lease incentives	(18.2)	(2.3)	(1.7)
Fair Value of Property Portfolio	1,325.1	165.7	120.6
Current Debtors	22.2	2.8	2.0
Cash	78.0	9.8	7.1
Current Liabilities	(16.9)	(2.1)	(1.5)
Total Assets (less current liabilities)	1,408.4	176.2	128.2
Non-Current liabilities	(1.6)	(0.2)	(0.1)
Interest-bearing loans	(307.4)	(38.5)	(28.0)
Interest rate swap	(0.7)	(0.1)	(0.1)
Net Assets at 31 March 2017	1,098.7	137.4	100.0

Property Purchases and Sales

There were no purchases or sales in 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 cost of debt is therefore 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 June 2017 and it is expected that the unaudited NAV per share as at 30 June 2017 will be announced in July 2017.

This announcement contains inside information.
Enquiries:
Richard Kirby
BMO REP Asset Management plc
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Winterflood Securities Limited
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