NAV Update for the quarter to 31 March 2015

RNS Number : 7111K

Ediston Property Inv Comp PLC

20 April 2015

 



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Ediston Property Investment Company plc

NAV Update for the quarter 1 January 2015 to 31 March 2015

Ediston Property Investment Company plc (the "Company") (LSE: EPIC) announces its Net Asset Value for the quarter ended 31 March 2015.

Quarter 1 Highlights

·     NAV per share at 31 March 2015 of 102.56 pence, an increase of 1.46 per cent on the Company's NAV as at 31 December 2014

·     Fair Value independent valuation of the property portfolio as at 31 March 2015 of £86.3 million, a 2.6 per cent increase on the valuation at 31 December 2014

·     New letting to Babcock Corporate Services Limited in Reading at a rent equating to £29.00/sq. ft., and increasing the rental value of the property

·     Total dividends paid in the quarter of 1.89 pence per share

Net Asset Value

The Company's unaudited NAV per share as at 31 March 2015 was 102.56 pence.  As at 31 March 2015, the Company owned investment properties with a Fair Value of £86.3 million and had cash balances of approximately £13.2 million.

The unaudited NAV of the Company at 31 March 2015 was £97.43 million, or 102.56 pence per share, an increase of 1.46 per cent on the Company's NAV as at 31 December 2014:

	Pence Per Share	£ million
NAV at 31 December 2014	101.08	96.03
Launch costs	(0.09)	(0.09)
Valuation uplift in property portfolio	2.32	2.20
Income earned for the period	1.49	1.41
Expenses for the period	(0.35)	(0.33)
Dividend paid in the period	(1.89)	(1.79)
NAV at 31 March 2015	102.56	97.43

The NAV attributable to the ordinary shares has been calculated under International Financial Reporting Standards. It incorporates the independent portfolio valuation as at 31 March 2015 and income for the quarter, but does not include a provision for any accrued dividend.

Portfolio activity

On 23 February 2015, the Company completed a lease agreement with Babcock Corporate Services Limited for the entire fourth floor at Phoenix, Station Hill, Reading, totalling 10,363 sq ft.  The lease has been guaranteed by Babcock Southern Holdings Limited. The rent payable reflects a rate of £29.00 per sq. ft.   The top floor remains vacant but is income producing under a rental guarantee provided at purchase for a further 18 months.

The Company has also made progress on the letting of other vacant accommodation in the portfolio.  Transactions representing approximately 58% of the rental value of this space have been agreed and are progressing through legals.  Assuming these lettings complete the vacancy rate across the entire portfolio will fall to 8.5% of rental value and will be covered by rental guarantees for approximately a further 18 months.

Dividends

The maiden dividend for the period to 31 December 2014 of 0.9685 pence per share was paid in February.

In addition, further dividends, totalling 0.9166 pence per share, for the period 01 January to 28 February 2015 were paid in February and March 2015. The cumulative amount paid in the first quarter was, therefore, 1.89 pence per share. In the absence of unforeseen circumstances, the Board intends to pay further monthly dividends of 0.4583 pence per share, implying an annualised dividend yield of 5.5%, calculated by reference to the Company's issue price of 100p per share as set out in its October 2014 prospectus.

Post quarter-end activity

A dividend of 0.4583 pence per share will be paid for the month to 31 March 2015.  This dividend went ex-dividend on 16 April 2015 and will be paid on 30 April 2015.

The Company has credit committee approved Heads of Terms from a lender for a long term debt facility and the transaction is progressing through the legal process.   The capital raised under this facility together with existing cash resources will be invested in suitable commercial properties in line with the company's investment criteria.  Terms have been agreed to purchase properties with a value of £33.65 million and these transactions are also progressing through the legal process.

Forthcoming events

The Board expects to publish the financial statements of the Company for the six month period ended 31 March 2015 at the end of May 2015.

The next independent quarterly valuation of the property portfolio will be conducted by Knight Frank as at 30^th June 2015 with the NAV per share at the same date announced in July 2015.

Enquiries:

Will Barnett - Canaccord Genuity, 0207 523 8000

Calum Bruce - Investment Adviser, Ediston Properties Limited, 0131 225 5599

Danny O'Neill - Investment Adviser, Ediston Properties Limited, 0131 225 5599

Martin Cassels - Company Secretary, R&H Fund Services Limited, 0131 524 6140

James Whitmore/Jeremy Carey - Tavistock 020 7920 3150

 

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