Net Asset Value

To:                   Company Announcements
Date:                23 April 2018
Company:          F&C UK Real Estate Investments Limited
LEI:                  231801XRCB89W6XTR23

Subject:           Net Asset Value
 

Net Asset Value

The unaudited net asset value per share of F&C UK Real Estate Investments Limited (“FCRE”) as at 31 March 2018 was 106.8 pence. This represents an increase of 1.8 per cent from the net asset value per share as at 31 December 2017 of 104.9 pence and a NAV total return for the quarter of 3.0 per cent.

The net asset value is based on the external valuation of the Group's property portfolio prepared by Cushman & Wakefield.

The net asset value is calculated under International Financial Reporting Standards ("IFRS").

The net asset value includes all income to 31 March 2018 and is calculated after deduction of all dividends paid prior to that date.  It does not include a provision for the dividend for the quarter to 31 March 2018, which is expected to be paid in June 2018.

Share Price

The share price was 100.0 pence per share at 31 March 2018, which represented a discount of 6.4 per cent to the NAV per share announced above. The share price total return for the quarter was -2.0 per cent.

Breakdown of NAV movement

Set out below is a breakdown of the change to the unaudited net asset value per share calculated under IFRS over the period from 31 December 2017 to 31 March 2018.

	Pence per share	% of opening NAV
Net asset value per share as at 31 December 2017	104.9
Unrealised movement in valuation of property portfolio (including the effect of gearing)	1.9	1.8*
Net asset value per share as at 31 March 2018	106.8	1.8

* The un-geared increase in the valuation of the property portfolio over the quarter to 31 March 2018 was 1.3%.

The net gearing as at 31 March 2018 was 27.7% #

# Bank debt (less net current assets) divided by fair value of investment properties

 

Portfolio Analysis	£m	% of portfolio as at 31 March 2018	% capital value movement  in quarter
Offices	92.6	26.1	0.2
West End	28.2	8.0	-
South East	33.8	9.5	0.1
Rest of UK	30.6	8.6	0.6
Retail	61.5	17.3	(0.3)
West End	8.4	2.4	-
Rest of London	3.8	1.1	(1.9)
South East	18.3	5.1	0.1
Rest of UK	31.0	8.7	(0.5)
Industrial	126.9	35.7	3.5
South East	126.9	35.7	3.5
Retail Warehouse	74.3	20.9	0.5
Rest of London	9.1	2.6	-
Rest of UK	65.2	18.3	0.5
Total Property	355.3	100.0	1.3

Property Purchases and Sales

There were no purchases or sales in the quarter.


 

Summary Balance Sheet

	£m	Pence per share	% of Net Assets
Property Portfolio per Valuation Report	355.3	147.6	138.2
Adjustment for lease incentives	(4.3)	(1.8)	(1.7)
Fair Value of Property Portfolio	351.0	145.8	136.5
Cash	9.4	3.9	3.6
Trade and other receivables	5.1	2.1	2.0
Trade and other payables	(6.2)	(2.6)	(2.4)
Interest-bearing loans	(102.2)	(42.4)	(39.7)
Net Assets at 31 March 2018	257.1	106.8	100.0

The property portfolio will next be valued by an external valuer during June 2018 and the net asset value per share as at 30 June 2018 will be announced in July 2018.
This announcement contains inside information.

Enquiries:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Tel: [phone]
Fax: [phone]

Peter Lowe
Scott Macrae
F&C Investment Business Ltd
Tel: [phone]
Fax: [phone]