F&C UK Real Est. Inv. Net Asset Value(s)
January 31 2019 - 2:00AM
UK Regulatory
TIDMFCRE
To: Company Announcements
Date: 31 January 2019
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 December 2018 was 106.0 pence. This represents a
decrease of 1.2 per cent from the net asset value per share as at 30 September
2018 of 107.3 pence and a NAV total return for the quarter of -0.1 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 December 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 December 2018, which is
expected to be paid in March 2019.
Share Price
The share price was 92.2 pence per share at 31 December 2018, which represented
a discount of 13.0 per cent to the NAV per share announced above. The share
price total return for the quarter was -2.1 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 30 September 2018 to 31
December 2018.
Pence % of
per opening
share NAV
Net asset value per share as at 30 September 2018 107.3
Unrealised movement in valuation of property (1.3) (1.2)*
portfolio (including the effect of gearing)
Movement in revenue reserves - -
Net asset value per share as at 31 December 2018 106.0 (1.2)
* The un-geared decrease in the valuation of the property portfolio over the
quarter to 31 December 2018 was 0.9%.
The net gearing as at 31 December 2018 was 26.3% #
# Bank debt (less net current assets) divided by fair value of investment
properties
Performance
The capital value of the portfolio decreased by 0.9 per cent over the quarter,
compared to the 0.2 per cent fall in the MSCI UK Monthly Index over the same
period. The retail market remains under pressure with the vast majority of
subsectors experiencing falls in valuation over the quarter, reflecting both
ongoing challenges within the occupier markets and weak investor sentiment.
The All Retail index recorded capital falls of 3.3 per cent at the market
level over the quarter. While the Company does not hold any shopping centres or
department stores, this impact was felt across the High Street portfolio with a
3.2 per cent fall in values. The decrease in value in the portfolio's retail
warehouse assets of 1.5 per cent was primarily attributable to the property at
Northfields, Rotherham, let to Homebase which has been subject to a CVA.
The positive capital return derived from the portfolio's Rest of UK Office
segment was as a result of successful asset management initiatives at the
property at Standard Hill, Nottingham. 38 per cent of the portfolio comprises
Industrial assets located within the south east. These assets experienced
capital growth over the period of 0.6 per cent.
At the period end the portfolio void rate was 4.0 per cent by ERV and the
average weighted unexpired lease term was 6.1 years.
Portfolio Analysis GBPm % of % capital
portfolio value
as at 31 movement
December in quarter
2018
Offices 89.0 25.6 (1.0)
West End 28.2 8.1 -
South East 28.2 8.1 (3.6)
Rest of UK 32.6 9.4 0.5
Industrial 132.6 38.2 0.6
South East 132.6 38.2 0.6
Standard Retail 55.9 16.1 (3.2)
West End 8.4 2.4 -
Rest of London 3.3 0.9 (4.3)
South East 17.3 5.0 (1.4)
Rest of UK 26.9 7.8 (5.1)
Retail Warehouse 69.8 20.1 (1.5)
Rest of UK 60.1 17.3 (2.1)
Rest of London 9.7 2.8 2.6
Total Property 347.3 100.0 (0.9)
Property Purchases and Sales
There were no sales or purchases in the quarter.
Summary Balance Sheet
GBPm Pence % of
per Net
share Assets
Property Portfolio per Valuation Report 347.3 144.3 136.1
Adjustment for lease incentives (4.2)
(1.7) (1.6)
Fair Value of Property Portfolio 343.1 142.6 134.5
Cash 9.4 3.9 3.7
Trade and other receivables 5.7 2.4 2.3
Trade and other payables (6.7) (2.8) (2.7)
Interest-bearing loans (96.4) (40.1) (37.8)
Net Assets at 31 December 2018 255.1 106.0 100.0
The property portfolio will next be valued by an external valuer during March
2019 and the net asset value per share as at 31 March 2019 will be announced in
April 2019.
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: 01481 745001
Fax: 01481 745051
Peter Lowe
Scott Macrae
F&C Investment Business Ltd
Tel: 0207 628 8000
Fax: 0131 225 2375
END
(END) Dow Jones Newswires
January 31, 2019 02:00 ET (07:00 GMT)
F&C UK Real Estate (LSE:FCRE)
Historical Stock Chart
From Oct 2024 to Nov 2024
F&C UK Real Estate (LSE:FCRE)
Historical Stock Chart
From Nov 2023 to Nov 2024
