To:
Company Announcements
Date:
31 October 2016
Company:
F&C Commercial Property Trust Limited
Subject:
Net Asset Value
Net Asset Value
The unaudited net asset value (‘NAV’) per share of the Group as
at 30 September 2016 was 132.0 pence. This represents a decrease of 1.6
per cent from the unaudited NAV per share as at 30 June 2016 of 134.1
pence and a NAV total return for the quarter of -0.4 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 2016 and is calculated after deduction of all
dividends paid prior to that date. As at 30
September 2016 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 123.0 pence
per share at 30 September 2016, which
represented a discount of 6.4 per cent to the NAV per share
announced above. The share price total return for the quarter was
9.4 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 2016 to 30
September 2016 (including the effect of gearing):
|
£m |
Pence per share |
% of opening NAV per
share |
NAV as at 30 June 2016 |
1,072.3 |
134.1 |
|
Unrealised decrease in valuation of
property portfolio * |
(12.9) |
(1.6) |
(1.2) |
Movement in fair value of interest
rate swap |
(0.2) |
- |
- |
Other net revenue |
8.2 |
1.0 |
0.7 |
Dividends paid |
(12.0) |
(1.5) |
(1.1) |
NAV as at 30 September
2016 |
1,055.4 |
132.0 |
(1.6) |
* The ungeared decrease in the valuation of the property
portfolio over the quarter to 30 September
2016 was 0.9%, after allowing for capital expenditure.
The net gearing at 30 September
2016 was 20.7%.#
# Net gearing: (Borrowings – cash) ÷ total assets (less current
liabilities and cash).
Performance
Although the portfolio recorded a valuation decrease of 0.9%
this quarter, it performed particularly strongly in comparison with
the IPD Monthly Index, which reported capital value falls of 3.6%
over the same period.
The portfolio structure was beneficial, having no exposure to
shopping centres and only one small building in the City of London.
Successful asset management increased or held valuations. At St
Christopher’s Place, various new lettings were negotiated on
extended lease lengths with enhanced terms.
The industrial and logistics sector helped performance too and
further benefitted from a number of ongoing asset management
initiatives, some of which completed over the quarter. At Hams
Hall, Birmingham a new 10-year
lease of unit 10a was contracted at lease renewal and at Unit 8,
the tenant’s only break was removed, providing certainty of income
until 2025.
Other properties in the portfolio did experience capital value
falls, of particular note being the retail warehouses, where a
combination of negative investor sentiment to the sector and larger
lot sizes led the valuers to adjust capitalisation rates.
Portfolio Analysis – Sector
Breakdown
|
Market
Value
£m |
% of
portfolio as at
30 Sept 2016 |
%
unrealised
movement in quarter |
Offices |
518.2 |
38.5 |
(1.9) |
West End |
183.1 |
13.6 |
(2.6) |
South East |
130.8 |
9.7 |
(2.7) |
Rest of UK |
185.9 |
13.8 |
(0.4) |
City |
18.4 |
1.4 |
(3.5) |
Retail |
368.9 |
27.4 |
1.0 |
South East |
368.9 |
27.4 |
1.0 |
Industrial |
204.1 |
15.2 |
1.7 |
South East |
47.3 |
3.5 |
(0.6) |
Rest of UK |
156.8 |
11.7 |
2.4 |
Retail
Warehouse |
217.4 |
16.1 |
(5.1) |
Other |
37.6 |
2.8 |
5.9 |
Total Property Portfolio |
1,346.2 |
100.0 |
(0.9) |
Portfolio Analysis – Geographic
Breakdown
|
Market
Value
£m |
% of portfolio as
at
30 Sept 2016 |
% unrealised
movement in quarter |
West End |
485.1 |
36.0 |
(0.3) |
South East |
348.3 |
25.9 |
(2.3) |
Scotland |
170.3 |
12.6 |
(0.6) |
Midlands |
160.5 |
11.9 |
7.3 |
North West |
138.7 |
10.3 |
(2.5) |
Eastern |
24.9 |
1.9 |
(1.1) |
Rest of London |
18.4 |
1.4 |
(3.5) |
Total Property Portfolio |
1,346.2 |
100.0 |
(0.9) |
Top Ten Investments
|
Sector |
Properties valued
in excess of £200 million |
|
London W1, St
Christopher’s Place Estate * |
Retail |
Properties valued
between £70 million and £100 million |
|
Newbury, Newbury Retail
Park |
Retail
Warehouse |
London
SW1, Cassini House, St James’s Street
Solihull, Sears Retail Park |
Office
Retail Warehouse |
Properties valued
between £50 million and £70 million |
|
London SW19, Wimbledon
Broadway |
Retail |
London W1, 25 Great
Pulteney Street |
Office |
Properties valued
between £40 million and £50 million |
|
Uxbridge,
3 The Square, Stockley Park
Crawley, Leonardo House, Manor Royal |
Office
Office |
Properties valued
between £30 million and £40 million |
|
Aberdeen, Unit 2 Prime
Four Business Park, Kingswells |
Office |
Aberdeen, Unit 1 Prime
Four Business Park, Kingswells |
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 |
1,346.2 |
168.4 |
127.6 |
Adjustment for lease incentives |
(16.6) |
(2.1) |
(1.6) |
Fair Value of Property
Portfolio |
1,329.6 |
166.3 |
126.0 |
Current Debtors |
21.6 |
2.7 |
2.0 |
Cash |
34.1 |
4.3 |
3.2 |
Current Liabilities |
(21.1) |
(2.7) |
(2.0) |
Total Assets (less current
liabilities) |
1,364.2 |
170.6 |
129.2 |
Interest-bearing loans |
(307.3) |
(38.4) |
(29.1) |
Interest rate swap |
(1.5) |
(0.2) |
(0.1) |
Net Assets at 30
September 2016 |
1,055.4 |
132.0 |
100.0 |
Property Purchases and Sales
There were no sales or purchases during 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 cost of debt is therefore 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 www.fccpt.co.uk.
The next quarterly valuation of the property portfolio will be
conducted by CBRE Limited during December
2016 and it is expected that the unaudited NAV per share as
at 31 December 2016 will be announced
in January 2017.
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