F&C ASSET MANAGEMENT
The Company's net asset value ('NAV') total return for the six months to 30 June 2015 was 8.2 per cent, ahead of a total return of 6.5 per cent for the benchmark index (the Investment Property Databank ('IPD') Quarterly Universe). The share price total return during the period was 5.7 per cent. There continued to be high demand for the company's shares, with a share price premium to the NAV per share of 9.5 per cent at the end of the period.
The overall total return from the Company's retail properties was 7.1 per cent for the six months, compared with the benchmark return of 4.2 per cent. The Company's best performing retail segment was high street retail - rest of UK, which recorded a total return of 18.7 per cent. This is largely due to the completed sale of 124-125 Princes Street, Edinburgh, for £18.1 million (before costs). The disposal realised substantial capital growth following the completion of a programme of asset management activities for the property.
The Company's industrial and logistics portfolio delivered a total return of 12.7 per cent compared with a benchmark return of 8.0 per cent, with its South East properties performing strongly over the period.
Void levels continued to decline over the period, falling from 4.5 per cent to 3.8 per cent of estimated rental value, compared to a benchmark rate of 6.9 per cent.
Since the end of the period, the Company has announced the acquisition of The Leonardo Building, a Grade A Headquarters Office building under construction within Crawley Business Quarter, Manor Royal, Crawley. Completion of the pre-leased offices is expected by 31 March
2016 and the total consideration will be £45.3 million.
Commenting on the outlook for the UK Commercial Property sector, fund manager, Richard Kirby said:
"The economic outlook is for steady growth and modest inflation, providing a favourable backdrop for sustained positive property performance. In the absence of major shocks, we believe that the next five years will see a period of positive total returns supported by rental and capital growth, especially in the first part of the period.
"We expect London and the South East will continue to out-perform, aided by stronger relative economic growth, providing opportunities in both established and emerging sub-markets. The broadening of recovery to the regions, possibly aided by government policy initiatives and infrastructure improvements, could also produce new growth hubs in the future."
Six monthly dividends, each of 0.5p per share, were paid during the period, maintaining the annual dividend rate of 6.0p per share. The dividend yield at the end of the period was 4.2 per cent based on the closing share price of 141.2p per share. Barring unforeseen circumstances, the Board intends that the dividend will continue to be paid monthly at the same rate.
The Company's level of gearing, net of cash, as at 30 June 2015, was 16.9 per cent.
Net asset value total return of 8.2 per cent
Share price total return of 5.7 per cent
Dividend yield of 4.2 per cent at the period end
Top quartile performance over three years within the IPD universe and top decile performance over five and 10 years
About F&C Commercial Property Trust: F&C Commercial Property Trust aims to provide Ordinary shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified UK commercial property portfolio
F&C Commercial Property Trust is managed by Richard Kirby at BMO Real Estate Partners in London, who has an award winning track record as lead fund manager
The Company is benchmarked against the Investment Property Databank ('IPD') Quarterly
Universe
ENDS Notes to editors:The full results statement is attached.
About BMO Global Asset Management
BMO Global Asset Management is a global investment manager delivering service excellence from
24 offices in 14 countries with more than US$254 billion in assets under management, as of April
30, 2015. It includes a network of world-class boutique managers: BMO Real Estate Partners, LGM Investments, Monegy Inc., Pyrford International Ltd., and Taplin, Canida & Habacht LLC.
BMO Global Asset Management has been recognised by Pension & Investments as one of the world's largest 100 asset managers based on combined assets under management as of December 31, 2014 and is a signatory of the United Nations-supported Principles for Responsible Investment initiative (UN PRI).
It is part of BMO Financial Group (NYSE: BMO), founded in 1817 as the Bank of Montreal, a fully diversified financial services organisation and the 8th largest bank in North America by assets with C$633 billion as of April 30, 2015, and more than 47,000 employees.
BMO Real Estate Partners is an entrepreneurial, institutionally-partnered force in commercial property and manages a global portfolio worth £6.9bn* on behalf of a wide range of individuals, professional investors, property trusts and institutional clients.
BMO Real Estate Partner's investment team uses both detailed proprietary and external research, sophisticated forecasting and strategic analysis to find market inefficiencies and opportunities - across property sectors, countries, types and tenants.
BMO Real Estate Partners offers a comprehensive, integrated range of real estate fund management services with a network of offices spanned across five countries: UK (London), Germany (Munich), France (Paris), Ireland (Dublin), and India (Mumbai).
* As at 30.06.2015. Some assets under management are recorded at their acquisition cost, reflecting the basis on which income is generated for BMO Real Estate Partners by these assets.
Media Contact: FTI Consulting bmo@fticonsulting.comTel: +44 (0) 20 3727 1888
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