Net Asset Value and Property Acquisition

RNS Number : 7806M

F&C Commercial Property Trust Ld

21 July 2014

 



To:                   Company Announcements

Date:                21 July 2014

Company:        F&C Commercial Property Trust Limited

Subject:           Net Asset Value and Property Acquisition

Net Asset Value

The unaudited net asset value ('NAV') per share of the Group as at 30 June 2014 was 115.1 pence. This represents an increase of 5.7 per cent from the unaudited NAV per share as at 31 March 2014 of 108.9 pence.

The unaudited NAV total return per share for the quarter to 30 June 2014 was 7.1 per cent, compared with a total return of 5.1 per cent from the IPD monthly index.

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 2014 and is calculated after deduction of all dividends paid prior to that date. As at 30 June 2014 no adjustments were required to the NAV in respect of dividends for which the share price had gone ex-dividend.

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 2014 to 30 June 2014 (including the effect of gearing):

	Pence per share	% of opening NAV
NAV per share as at 31 March 2014	108.9
Unrealised increase in valuation of property portfolio *	6.7	6.2
Movement in fair value of interest rate swap	0.1	0.1
Movement in revenue reserve	(0.6)	(0.6)
NAV per share as at 30 June 2014	115.1	5.7

* the ungeared increase in the valuation of the property portfolio over the quarter to 30 June 2014 was 5.0%, after allowing for capital expenditure and property purchases.

The net gearing at 30 June 2014 was 22.3%.#

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

Portfolio Analysis

	Market Value £m	% of portfolio as at 30 June 2014	% unrealised movement  in quarter
Offices	441.8	38.8	5.2
West End	167.5	14.7	7.7
South East	87.5	7.7	1.9
Rest of UK	175.0	15.4	4.8
City	11.8	1.0	3.5
Retail	298.5	26.2	4.2
South East*	284.2	24.9	4.4
Rest of UK	14.3	1.3	1.1
Industrial	160.4	14.0	2.9
South East	16.4	1.4	6.6
Rest of UK	144.0	12.6	2.5
Retail Warehouse	210.4	18.5	6.3
Other	29.0	2.5	2.2
Total Property Portfolio	1,140.1	100.0	5.0

* Includes West End Retail

The next quarterly valuation of the property portfolio will be conducted by CBRE Limited during September 2014 and it is expected that the unaudited NAV per share as at 30 September 2014 will be announced in October 2014.

Property Acquisition

The Company also announces its acquisition of a long leasehold in Unit 1, The Hive,  Liverpool International Business Park, Speke, Liverpool at a price of £11.9 million to reflect a net initial yield of 6.45 per cent. This is a brand new production and distribution warehouse comprising 151,500 sq ft and is let in its entirety to Johnson Controls Automotive (UK) Ltd for a term of 15 years at a passing rent of £812,050 per annum. The lease is subject to a tenant's break in year 10 and is drawn on full repairing and insuring terms. A rent free period has been granted, expiring on 6 October 2014. Johnson Controls manufacture the car seats for the Jaguar Land Rover (JLR) Evoque which is produced at the nearby JLR Halewood plant. This acquisition provides a brand new purpose built warehouse, let to a strong covenant located in an established industrial location which is benefitting from the significant growth and success of the JLR plant at Halewood.

Enquiries:

Richard Kirby

F&C REIT Property Asset Management plc

Tel: [phone]

Graeme Caton

Winterflood Securities Limited

Tel: [phone]

 

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