F&C COMMERCIAL PROPERTY TRUST LTD
To: Company Announcements
Date: 24 October 2017
Company: F&C Commercial Property Trust Limited
LEI: 213800A2B1H4ULF3K397
Subject: Net Asset Value
Net Asset Value
The unaudited net asset value ('NAV') per share of the Group as at 30 September
2017 was 140.0 pence. This represents an increase of 0.4 per cent from the
unaudited NAV per share as at 30 June 2017 of 139.4 pence and a NAV total
return for the quarter of 1.5 per cent.
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 September 2017 and is calculated after
deduction of all dividends paid prior to that date. As at 30 September 2017, no
adjustments were required to the NAV in respect of dividends for which the
share price had gone ex-dividend.
Share Price
The share price was 149.1 pence per share at 30 September 2017, which
represented a premium of 6.5 per cent to the NAV per share announced above. The
share price total return for the quarter was 3.7 per cent.
Analysis of Movement in NAV
The following table provides an analysis of the movement in the unaudited NAV
per share for the period from 30 June 2017 to 30 September 2017 (including the
effect of gearing):
% of
Pence per opening NAV
£m share per share
NAV as at 30 June 2017 1,114.6 139.4
Unrealised increase in valuation of property 5.4 0.8 0.6
portfolio *
Movement in fair value of interest rate swap 0.3 - -
Other net revenue 10.5 1.3 0.9
Dividends paid (12.0) (1.5) (1.1)
NAV as at 30 September 2017 1,118.8 140.0 0.4
* The ungeared increase in the valuation of the property portfolio over the
quarter to 30 September 2017 was 0.4%, after allowing for capital expenditure.
The net gearing at 30 September 2017 was 17.5%.#
# Net gearing: (Borrowings - cash) ÷ total assets (less current liabilities and
cash).
Performance
The capital value growth over the quarter was 0.4%. The IPD Monthly Index
recorded capital value growth of 1.3% over the same period.
Capital growth across the whole portfolio was relatively flat over the period.
The industrial and logistics sector saw the highest capital growth at 1.9% and
this sector comprises 17% of the portfolio. Yields were held in the other
sectors and uplifts in value were achieved where underlying asset management
activities contracted.
The portfolio has an underweight position compared to the benchmark in both
South East Industrials and the Alternative Sectors both of which saw strong
capital appreciation over the period.
Portfolio Analysis - Sector Breakdown
Market % of portfolio % unrealised
Value as at movement in
£m 30 September quarter
2017
Offices 34.6 -0.2
474.4
West End 142.4 10.4 0.3
South East 131.2 9.6 -1.3
Rest of UK 182.6 13.3 0.0
City 18.2 1.3 2.0
Retail 405.8 29.6 0.6
West End 337.4 24.6 0.6
South East 68.4 5.0 0.8
Industrial 232.5 17.0 1.9
South East 52.8 3.9 1.4
Rest of UK 179.7 13.1 2.0
Retail Warehouse 218.8 16.0 0.1
Other 39.0 2.8 0.0
Total Property Portfolio 1,370.5 100.0 0.4
Portfolio Analysis - Geographic Breakdown
Market % of portfolio % unrealised
Value as at movement in
£m 30 September quarter
2017
West End 479.8 35.0 0.5
South East 356.6 26.0 -0.2
Scotland 165.7 12.1 -0.2
Midlands 175.4 12.9 0.9
North West 147.3 10.7 1.7
Eastern 27.5 2.0 1.9
Rest of London 18.2 1.3 2.0
Total Property Portfolio 1,370.5 100.0 0.4
Top Ten Investments
Sector
Properties valued in excess of £250 million
London W1, St Christopher's Place Estate * Retail
Properties valued between £70 million and £100 million
London SW1, Cassini House, St James's Street Office
Newbury, Newbury Retail Park Retail Warehouse
Properties valued between £50 million and £70 million
Solihull, Sears Retail Park Retail Warehouse
London SW19, Wimbledon Broadway Retail
Properties valued between £40 million and £50 million
Crawley, Leonardo House, Manor Royal Office
Properties valued between £30 million and £40 million
Uxbridge, 3 The Square, Stockley Park Office
Winchester, Burma Road Other
Aberdeen, Unit 2 Prime Four Business Park, Kingswells Office
Manchester, 82 King St Office
*Mixed use property of retail, office and residential space.
Summary Balance Sheet
£m Pence per % of Net
share Assets
Property Portfolio per Valuation Report 1,370.5 171.4 122.5
Adjustment for lease incentives (19.2) (2.4) (1.8)
Fair Value of Property Portfolio 1,351.3 169.0 120.7
Current Debtors 23.0 2.9 2.1
Cash 72.4 9.1 6.5
Current Liabilities (18.2) (2.3) (1.6)
Total Assets (less current liabilities) 1,428.5 178.7 127.7
Non-Current liabilities (1.9) (0.2) (0.2)
Interest-bearing loans (307.6) (38.5) (27.5)
Interest rate swap (0.2) - -
Net Assets at 30 September 2017 1,118.8 140.0 100.0
Property Purchases and Sales
There were no purchases or sales in the quarter.
Borrowings
The Group's borrowings consist of a £260 million loan with a term to 31
December 2024 and a fixed interest rate of 3.32 per cent per annum. The Group
also has a £50 million bank loan with a term to 21 June 2021 on which the
interest rate has been fixed, through an interest rate swap of the same
notional value and duration, at 2.522 per cent per annum. In addition, the
Board has agreed an additional revolving credit facility of £50 million with
Barclays over the same period, to be used for ongoing working capital purposes
and to provide the Group with the flexibility to acquire further property
should the opportunity arise.
The Group's weighted average cost of debt is 3.3 per cent per annum.
Key Information
This statement and further information regarding the Company, including
movements in the share price since the end of the period and the Group's most
recent annual and interim reports, can be found at the Company's website
fccpt.co.uk.
The next quarterly valuation of the property portfolio will be conducted by
CBRE Limited during December 2017 and it is expected that the unaudited NAV per
share as at 31 December 2017 will be announced in January 2018.
This announcement contains inside information.
Enquiries:
Richard Kirby
BMO REP Asset Management plc
Tel: 0207 499 2244
Graeme Caton
Winterflood Securities Limited
Tel: 0203 100 0268
F&C Commercial Property Trust : Net Asset Value
October 24, 2017 at 06:52 am EDT
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© PRNewswire - 2017
