NAV and Announcement of Acquisition

RNS Number : 8448I

UK Commercial Property Trust Ltd

09 July 2013

 



9 July 2013

UK Commercial Property Trust Limited ("the Company")

Increase in Net Asset Value at 30 June 2013 and announcement of acquisition

UK Commercial Property Trust Limited (LSE: UKCM), the largest Guernsey based, UK focused, commercial property trust, announces its unaudited quarterly Net Asset Value ("NAV") as at 30 June 2013 and the acquisition of Newton's Court, Crossways Business Park, Dartford.

Net Asset Value ("NAV")

The unaudited NAV per share as at 30 June 2013 was 68.9 pence*, representing an increase of 0.4% from the unaudited NAV per share as at 31 March 2013 of 68.6 pence. This compares to an IPD balanced monthly index funds capital movement of 0.0% over the same period. The portfolio value increased by 0.4% in the quarter on a like for like basis.

Analysis of Movement in NAV

The following tables provide an analysis of the movement in the unaudited NAV per share for the period from 1 April 2013 to 30 June 2013 and a sector analysis as at 30 June 2013: 

UK Commercial Property Trust Limited	Per  Share (p)	Attributable Assets (£m)
Net assets as at 31 March 2013	68.6	821.9
Unrealised increase in valuation of property portfolio	0.2	2.8
Capital expenditure during the period	(0.1)	(0.8)
Income earned for the period	1.5	18.1
Expenses for the period	(0.5)	(6.8)
Dividend paid on 31 May 2013	(1.3)	(15.7)
Interest rate swaps mark to market revaluation	0.5	5.2
Net assets as at 30 June 2013	68.9	824.7

Sector Analysis

	Portfolio Value as at 30 Jun 2013 (£m)	Exposure as at 30 Jun	Capital Value Shift	Capital Value Shift (£m)
		2013 (%)	(%)
External valuation at 31 March 2013				1,003.6
Retail	511.2	49.9	-0.9	-4.9
High St - South East		9.6	5.0	4.7
High St- Rest of UK		2.6	-2.4	-0.7
Shopping Centres		13.3	-5.8	-8.3
Retail Warehouse		24.4	-0.2	-0.6
Offices	248.0	24.2	2.5	6.1
West End		9.9	5.7	5.4
South East		4.4	2.0	0.9
Rest of UK		9.9	-0.2	-0.2
Industrial	197.5	19.2	1.2	2.4
South East		12.4	1.5	1.8
Rest of UK		6.8	0.8	0.6
Leisure/Other	50.5	4.9	0.0	0.0
Purchase of Newton's Court, Dartford (South East Industrial)	17.9	1.8		17.9
External valuation at 30 June 2013	1025.1	100.0	0.4	1,025.1

*The NAV per share is calculated under International Financial Reporting Standards ("IFRS") and is unaudited. It is based on the external valuation of the Company's direct property portfolio prepared by CBRE Limited. It includes all current period income and is calculated after the deduction of all dividends paid prior to 30 June 2013.  It does not include provision for any unpaid dividends relating to periods prior to 30 June 2013 i.e. the proposed dividend for the period to 30 June 2013.

The NAV per share at 30 June 2013 is based on 1,197,348,858 shares of 25p each, being the total number of shares in issue at that time (excluding 41,445,142 shares held in Treasury).

The EPRA NAV (excluding swap liabilities) is 69.8p (March 2013  - 70.0p).

Gearing

As at 30 June 2013 the Company's gross gearing, measured as gross borrowings (excluding swap liabilities) as a percentage of total assets, was 21.6%, the lowest in the Company's peer group. Net gearing (borrowings (excl swaps) less cash divided by total assets less current liabilities and cash) was 17.0%.

Acquisition

On 19 June 2013 the Company purchased a multi let industrial estate at Newton's Court, Crossways Business Park, Dartford, Kent for £17.9m (excl costs and stamp duty) from existing cash resources at a net initial yield of 6.4%. The property is a high quality, modern industrial estate of 12 units, providing a total gross internal area of 163,720 sq ft (15,245 sqm). The space is let to 10 tenants, including Boots UK Limited, Clear Channel UK Limited, Next Group plc and FedEx UK Limited. There are currently two vacant units on the park totalling 13,278 sq ft (1,234 sqm), which are subject to an 18 month rent, rates and service charge guarantee from the vendor.

The property occupies a prime position within an established business park, adjacent to junction 1A of the M25, in an area with restricted available supply. This restricted supply and improving occupational demand, in addition to asset management potential from letting the vacant space and lease restructuring, is expected to support growing income from the property.

The acquisition is in line with the Company's strategy of increasing exposure to the multi-let industrial sector in the favoured south east region and will provide opportunities for income and capital growth from successful asset management.

Further information will be given in the interim results of the Company for the six months to 30 June 2013 which will be announced on 21 August 2013.

Enquiries

Robert Boag / Graeme McDonald, Ignis Investment Services Limited

Tel: [phone]

Edward Gibson-Watt / Oliver Kenyon, J.P. Morgan Cazenove

Tel: [phone]

Stephanie Highett/Richard Sunderland/Will Henderson, FTI Consulting

Tel: [phone]

The above information is unaudited and has been prepared by Ignis Investment Services Limited.

 

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