To:
Company Announcements
Date:
23 July 2018
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 June 2018 was 143.2 pence. This represents an increase of 0.2
per cent from the unaudited NAV per share as at 31 March 2018 of 142.9
pence and a NAV total return for the quarter of 1.3 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 June
2018 and is calculated after deduction of all dividends paid
prior to that date. As at 30 June
2018, 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 150.60 pence
per share at 30 June 2018, which
represented a premium of 5.2 per cent to the NAV per share
announced above. The share price total return for the quarter was
7.6 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 31 March 2018 to 30 June
2018 (including the effect of gearing):
|
£m |
Pence per share |
% of opening NAV per
share |
NAV as at 31 March 2018 |
1,142.4 |
142.9 |
|
Unrealised increase in valuation of
property portfolio * |
5.1 |
0.6 |
0.4 |
Movement in fair value of interest
rate swap |
(0.2) |
0.0 |
0.0 |
Other net revenue |
9.6 |
1.2 |
0.8 |
Dividends paid |
(12.0) |
(1.5) |
(1.0) |
NAV as at 30 June 2018 |
1,144.9 |
143.2 |
0.2 |
* The ungeared increase in the valuation of the property
portfolio over the quarter to 30 June
2018 was 0.4%, after allowing for capital expenditure.
The net gearing at 30 June 2018
was 20.2%. #
# 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 0.9% over the
period.
At the sector level industrials and offices recorded the highest
capital growth in the portfolio with valuations increasing on the
back of further yield compression in the industrial and logistics
sector and on the progress of asset management activities in the
office sector. As widely reported the retail market remains
challenging. The Company has no exposure to shopping centres and
limited exposure to traditional High Streets. However, the
Company’s retail warehouses have been affected by Company Voluntary
Arrangements (‘CVA’s’), specifically New Look and Mothercare where
rents at Newbury Retail Park have reduced, impacting the Company’s
rent roll by 0.5%.
The strong performance of the Alternative sector is due to the
annual rental uplift being agreed at the purpose built student
accommodation block at Winchester and yield compression in the
sector for long leased properties.
Portfolio Analysis – Sector Breakdown
|
Market
Value
£m |
% of
portfolio as at
30 June 2018 |
%
unrealised
movement in quarter |
Offices |
532.1 |
36.7 |
1.1 |
West End |
154.7 |
10.7 |
1.4 |
South East |
132.0 |
9.1 |
1.3 |
South West |
32.0 |
2.2 |
1.4 |
Rest of UK |
193.4 |
13.3 |
0.8 |
City |
20.0 |
1.4 |
-0.1 |
Retail |
443.9 |
30.6 |
0.0 |
West End |
343.6 |
23.7 |
0.0 |
South East |
68.4 |
4.7 |
-0.2 |
Rest of UK |
31.9 |
2.2 |
-0.3 |
Industrial |
249.8 |
17.2 |
1.2 |
South East |
57.1 |
3.9 |
2.6 |
Rest of UK |
192.7 |
13.3 |
0.8 |
Retail
Warehouse |
180.7 |
12.5 |
-3.1 |
Other |
43.5 |
3.0 |
6.6 |
Total Property Portfolio |
1,450.0 |
100.0 |
0.4 |
Portfolio Analysis – Geographic Breakdown
|
Market
Value
£m |
% of portfolio as
at
30 June 2018 |
% unrealised
movement in quarter |
West End |
498.3 |
34.4 |
0.5 |
South East |
359.1 |
24.8 |
-0.1 |
Midlands |
178.9 |
12.3 |
0.4 |
Scotland |
172.6 |
11.9 |
0.1 |
North West |
159.9 |
11.0 |
1.1 |
South West |
32.0 |
2.2 |
1.4 |
Eastern |
29.2 |
2.0 |
2.3 |
Rest of London |
20.0 |
1.4 |
-0.1 |
Total Property Portfolio |
1,450.0 |
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 £100 million and £150 million |
|
London SW1, Cassini
House, St James’s Street |
Office |
Properties valued
between £70 million and £100 million |
|
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 |
Winchester, Burma
Road |
Other |
Manchester, 82 King
St |
Office |
Properties valued
between £30 million and £40 million |
|
Aberdeen, Unit 2 Prime
Four Business Park, Kingswells |
Office |
Uxbridge, 3 The
Square, Stockley Park |
Office |
|
|
*Mixed use property of retail, office and residential space.
Summary Balance Sheet
|
£m |
Pence per
share |
% of Net
Assets |
Property Portfolio per Valuation
Report |
1,450.0 |
181.4 |
126.7 |
Adjustment for lease incentives |
(20.9) |
(2.7) |
(1.7) |
Fair Value of Property
Portfolio |
1,429.1 |
178.7 |
125.0 |
Debtors |
24.5 |
3.1 |
2.1 |
Cash |
19.9 |
2.5 |
1.7 |
Interest rate swap |
0.1 |
- |
- |
Current Liabilities |
(19.0) |
(2.4) |
(1.7) |
Total Assets (less current
liabilities) |
1,454.6 |
181.9 |
127.1 |
Non-Current liabilities |
(1.9) |
(0.2) |
(0.2) |
Interest-bearing loans |
(307.8) |
(38.5) |
(26.9) |
Net Assets at 30
June 2018 |
1,144.9 |
143.2 |
100.0 |
Property Purchases and Sales
The Company completed the purchase of Hurricane 47, Estuary
Business Park, Liverpool for £3.995 million as well as an adjoining
site of 3.6 acres with planning consent for the construction of a
52,000 sq. ft. unit for £1.080 million. Hurricane 47 comprises a
47,462 sq. ft. speculatively developed building, which achieved
practical completion in April 2018
and is constructed to a high specification. The Company has entered
into a forward commitment to acquire the warehouse to be
constructed on completion of the works at an additional sum of
£3.382 million. The Company already has an existing property on
Estuary Business Park having acquired a warehouse let to Adient
Seating in April 2014. The investment
provides the Company with an opportunity to generate sustainable
income and to benefit from the lack of supply for new
buildings and strong occupier demand, both of which are
driving up rents in the logistics sector.
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 September
2018 and it is expected that the unaudited NAV per share as
at 30 September 2018 will be
announced in October 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