F&C UK Real Est. Inv. Net Asset Value
October 25 2018 - 2:00AM
UK Regulatory
TIDMFCRE
To: Company Announcements
Date: 25 October 2018
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 30 September 2018 was 107.3 pence. This represents a
decrease of 1.1 per cent from the net asset value per share as at 30 June 2018
of 108.5 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 30 September 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 30 September 2018, which is
expected to be paid in December 2018.
Share Price
The share price was 95.6 pence per share at 30 September 2018, which
represented a discount of 10.9 per cent to the NAV per share announced above.
The share price total return for the quarter was -3.0 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 June 2018 to 30 September
2018.
Pence % of
per opening
share NAV
Net asset value per share as at 30 June 2018 108.5
Unrealised movement in valuation of property (1.0) (0.9)*
portfolio (including the effect of gearing)
Movement in revenue reserves (0.2) (0.2)
Net asset value per share as at 30 September 2018 107.3 (1.1)
* The un-geared decrease in the valuation of the property portfolio over the
quarter to 30 September 2018 was 0.6%.
The net gearing as at 30 September 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 0.6% over the quarter, compared
to the IPD Monthly Index which recorded capital value growth of 0.4% over the
period. The retail market remains a challenge with High Street and retail
warehouse capitalisation rates moving out over the quarter. The Company has
also been impacted by the Homebase Company Voluntary Arrangement ('CVA') which
specifically affects the values of properties held at Enterprise Way, Luton and
Northfields Road, Rotherham. Active asset management initiatives are focused on
restoring income and value.
Portfolio Analysis GBPm % of % capital
portfolio value
as at 30 movement
September in quarter
2018
Offices 89.9 25.7 0.7
West End 28.2 8.1 -
South East 29.3 8.3 -
Rest of UK 32.4 9.3 2.1
Retail 57.7 16.5 (3.4)
West End 8.5 2.4 -
Rest of London 3.4 1.0 (6.8)
South East 17.5 5.0 (4.1)
Rest of UK 28.3 8.1 (3.6)
Industrial 131.9 37.6 1.7
South East 131.9 37.6 1.7
Retail Warehouse 70.9 20.2 (4.1)
Rest of UK 61.4 17.5 (5.3)
Rest of London 9.5 2.7 4.4
Total Property 350.4 100.0 (0.6)
Property Purchases and Sales
During the quarter, the Group completed the sale of an office building, in
Swindon for GBP1.1 million.
There were no other sales or purchases in the quarter.
Summary Balance Sheet
GBPm Pence % of
per Net
share Assets
Property Portfolio per Valuation Report 350.4 145.5 135.6
Adjustment for lease incentives (4.4)
(1.8) (1.7)
Fair Value of Property Portfolio 346.0 143.7 133.9
Cash 15.7 6.5 6.1
Trade and other receivables 6.0 2.5 2.3
Trade and other payables (7.0) (2.9) (2.7)
Interest-bearing loans (102.4) (42.5) (39.6)
Net Assets at 30 September 2018 258.3 107.3 100.0
The property portfolio will next be valued by an external valuer during
December 2018 and the net asset value per share as at 31 December 2018 will be
announced in January 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
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