UK Comm Prop Tst Ltd Net Asset Value
April 26 2017 - 2:00AM
UK Regulatory
TIDMUKCM
Guernsey, 26 April 2017
UK Commercial Property Trust Limited ("UKCPT" or "the Company")
Net Asset Value at 31 March 2017
UK Commercial Property Trust Limited (FTSE 250, LSE: UKCM), advised by Standard
Life Investments, owns a diversified portfolio of high quality income producing
UK commercial property. It announces its unaudited quarterly Net Asset Value
("NAV") as at 31 March 2017.
Strong performance
* NAV per share of 87.4p (31 December 2016: 86.2p), resulting in a NAV total
return of 2.5% in the quarter.
* Like-for-like portfolio capital value increased by 1.6% during the quarter
which compares favourably to the 0.9% increase in the MSCI/IPD Monthly
index for the period.
Delivering value through asset management
* GBP1.3 million of annual rental income, in line with ERV, secured from eleven
new leases and nine lease renewals / rent reviews including:
+ The completion of a new 10 year lease, following the comprehensive
refurbishment of the property at 81 George Street, Edinburgh, securing
a headline rent of GBP30 per square foot per annum to a global power
generation company InterGen.
+ Three further lettings completed with Airbase Interiors, Capital
Scenery and GlassEco International at Gatwick Gate, Crawley, securing
over GBP600,000 per annum, improving capital value and increasing
unexpired lease length.
* Contracts exchanged with Laura Ashley on the remaining 5,000 sq.ft. unit of
the new 25,000 sq.ft. development to be built on St George's Retail Park,
Leicester. On completion Laura Ashley, Tapi Carpets and Wren Living, will
be secured on new 10 year leases generating over GBP500,000 per annum of
additional rent with an expected yield on cost of 8.0%.
* Void rate of 4.1%*, well below the MSCI/IPD benchmark figure of 6.9%**
Positive investment activity
In early January 2017, the Company took advantage of a special opportunity to
sell one of its West End office properties, 13 Great Marlborough Street, Soho
to the owner of the adjoining property. The lease to Sony had less than two
years remaining, the sale removing short term letting risk and the need for
potentially significant capital expenditure. The disposal price of GBP30.5m was
ahead of the year end valuation and equated to a yield of 3.3%.
Some GBP23 million of these sale proceeds have been recycled into an investment
that will produce an income yield of 5.8% through the forward funding of a
258,000 sqft, long-lease, pre-let, logistics warehouse development under
construction in an established distribution location at Burton upon Trent.
Palletforce Ltd has committed to a 15 year lease with RPI inflation linked rent
increases of between 1%-3% per annum compounded and payable five yearly. The
Company has acquired the site, construction is underway, and a balancing
payment is due on completion, which is expected this summer.
Strong financial position and attractive dividend yield
* Significant financial resources of GBP71 million are currently available for
investment. Additional firepower from the undrawn GBP50 million revolving
credit facility remains available.
* Low net gearing of 10.1%*** (gross gearing of 18.0%***) remaining one of
the lowest in the Company's peer group and the quoted REIT sector.
* Dividend yield of 4.1%****, comparing favourably to the FTSE All-Share
Index (3.6%****) and FTSE All-Share REIT Index (3.5%****).
*31 March 2017
** 31 December 2016
*** Net gearing - Gross borrowing less cash divided by total assets (excluding
cash) less current liabilities
Gross gearing - Gross borrowings divided by total assets less current
liabilities
****21 April 2017
Andrew Wilson, Chairman of UKCPT, commented:
"Today's positive numbers further build on the achievements of last year, in
part reflecting a number of the ongoing asset management initiatives being
successfully completed. The Company's GBP1.278bn commercial and industrial
portfolio is both well located and well tenanted with a minimal amount of unlet
accommodation. UKCPT is prudently managed, has a sound financial base with cash
resources to deploy in acquisitions that will be accretive to dividend cover
. Despite the current political and therefore economic uncertainties at home
and abroad the Company's sound property and financial position allows the
future to be viewed with confidence. "
Will Fulton, Lead Manager of UKCPT at Standard Life Investments, said:
"We have had an active start to 2017, building on the momentum we created
behind the delivery of our strategy last year, and have made good strides in
recycling capital from sales into more attractive income opportunities."
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net asset value per
share calculated under International Financial Reporting Standards ("IFRS")
over the period from 1 January 2017 to 31 March 2017.
UK Commercial Per Share (p) Attributable Comment
Property Trust Assets (GBPm)
Limited
Net assets as at 1 86.2 1,120.6
January 2017
Unrealised increase 1.6 19.6 Like for like increase of 1.6%
in valuation of in property portfolio and gain
property portfolio on sale of 13 Great
and gain on sale Marlborough Street
Capital expenditure -0.2 -2.3 Principally relates to costs
during the period associated with purchase of
Burton upon Trent and ongoing
work at Shrewsbury to
facilitate opening of Primark
store.
Income earned for the 1.3 17.4 Equates to dividend cover of
period 94% for the quarter
Expenses for the -0.5 -6.0
period
Dividend paid on 28 -0.9 -12.0
February 2017
Interest rate swaps 0.0 0.2 Marginal decrease in swap
mark to market liabilities
revaluation
Net assets as at 31 87.5 1,137.5
March 2017 (excl
deferred tax)
Deferred tax -0.1 -1.3 *See below
Net assets as at 31 87.4 1,136.2
March 2017
* Due to the refinancing of the Company's internal loan notes it is forecast
that the Company will utilise the losses it has built up since inception to
offset future taxable profits. As previously stated in the NAV announcement
released on 8 February 2017, the Company was required to recognise a deferred
tax asset for the year to 31 December 2016. This adjustment reflects the
ongoing write-off of the asset as the losses are utilised against profits.
Net Asset Value analysis as at 31 March 2017 (unaudited)
GBPm % of net
assets
Retail 484.7 42.6
Industrial 425.0 37.4
Offices 238.4 21.0
Leisure 129.5 11.4
Total Property 1,277.6 112.4
Portfolio
Adjustment for lease -13.2 -1.1
incentives
Fair value of 1,264.4 111.3
Property Portfolio
Cash 122.8 10.8
Other Assets 23.2 2.0
Total Assets 1,410.4 124.1
Current liabilities -22.6 -2.0
Non-current -251.6 -22.1
liabilities (bank
loans & swap)
Total Net Assets 1,136.2 100.00
The NAV per share is based on the external valuation of the Company's direct
property portfolio. It includes all current period income and is calculated
after the deduction of all dividends paid prior to 31 March 2017. It does not
include provision for any unpaid dividends relating to periods prior to 31
March 2017, i.e. the proposed dividend for the period to 31 March 2017.
The NAV per share at 31 March 2017 is based on 1,299,412,465 shares of 25p
each, being the total number of shares in issue at that time.
The EPRA NAV per share (excluding swap liability) is 87.7p (Dec 2016 - 86.5p).
Sector analysis
Portfolio Exposure as at Like for Like Capital Value
Value as at 31 31 Mar 2017 Capital Value Shift
Mar 2017 (GBPm) (%) Shift (excl (including
sales & sales &
purchases) purchases)
(GBPm)
(%)
External valuation as 1,280.8
at 31 December 2016
Retail 484.7 37.9 1.3 6.3
High St - South East 2.9 0.0 0.0
High St- Rest of UK 5.2 2.3 1.5
Shopping Centres 7.7 4.1 3.8
Retail Warehouse 22.1 0.3 1.0
Offices 238.4 18.7 0.7 -26.8
City 2.3 2.5 0.7
West End 6.8 1.9 -26.8
South East 1.6 0.1 0.0
Rest of UK 8.0 -0.7 -0.7
Industrial 425.0 33.3 3.0 17.0
South East 24.6 3.8 11.6
Rest of UK 8.7 0.8 5.4
Leisure/Other 129.5 10.1 0.2 0.3
External valuation as 1,277.6 100.0 1.6 1,277.6
at 31 Mar 2017
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014). Upon the publication of this announcement via Regulatory
Information Service this inside information is now considered to be in the
public domain.
Details of the Company may also be found on the Company's website which can be
found at: www.ukcpt.co.uk
For further information please contact:
Will Fulton / Graeme McDonald, Standard Life Investments
Tel: 0131 245 2799 / 0131 245 3151
Edward Gibson-Watt / Oliver Kenyon, J.P. Morgan Cazenove
Tel: 020 7742 4000
Richard Sunderland / Claire Turvey / Polly Warrack, FTI Consulting
Tel: 020 3727 1000
The above information is unaudited and has been calculated by Standard Life
Investments Limited.
END
(END) Dow Jones Newswires
April 26, 2017 02:00 ET (06:00 GMT)
Uk Commercial Property R... (LSE:UKCM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Uk Commercial Property R... (LSE:UKCM)
Historical Stock Chart
From Apr 2023 to Apr 2024