TIDMEPIC
RNS Number : 8845U
Ediston Property Inv Comp PLC
24 January 2017
Ediston Property Investment Company plc
Net Asset Value ("NAV") as at 31 December 2016
Ediston Property Investment Company plc (LSE: EPIC) (the
"Company") announces its unaudited NAV as at 31 December 2016.
Quarter highlights
-- NAV per share at 31 December 2016 of 108.31 pence (30
September 2016: 107.07 pence), an increase of 1.16%, resulting in
an NAV total return (including dividends) of 2.4% for the
quarter
-- Fair value independent valuation of the property portfolio as
at 31 December 2016 of GBP182.74 million, a 0.73% increase on the
valuation at 30 September 2016
-- EPRA void rate decreased to 3.9% (30 September 2016: 4.7%)
-- The valuation increase and EPRA void rate decrease were
driven by successful asset management initiatives
-- Annualised dividend yield of 5.24% based on annual dividends
per share of 5.5 pence and share price of 104.88 pence (31 December
2016)
-- 500,000 shares issued at 109.00 pence per share during the quarter
Net Asset Value
The Company's unaudited NAV per share as at 31 December 2016 was
108.31 pence. As at 31 December 2016, the Company owned investment
properties with a fair value of GBP182.74 million and had cash and
cash equivalent balances of approximately GBP10.92 million.
The unaudited NAV of the Company at 31 December 2016 was
GBP139.46 million, or 108.31 pence per share, an increase of 1.16%
on the Company's NAV as at 30 September 2016:
Pence GBP million
Per Share
------------------------ ----------- ----------------------------------
NAV at 30 September
2016 107.07 137.33
------------------------ ----------- ----------------------------------
Valuation increase
in property portfolio 1.03 1.33
------------------------ ----------- ----------------------------------
Capital expenditure
in the period (0.04) (0.05)
------------------------ ----------- ----------------------------------
Income earned
for the period 2.34 3.01
------------------------ ----------- ----------------------------------
Expenses for
the period (0.73) (0.93)
------------------------ ----------- ----------------------------------
Dividends paid
in the period (1.37) (1.77)
------------------------ ----------- ----------------------------------
Equity raised
in the period 0.01 0.54
------------------------ ----------- ----------------------------------
NAV at 31 December
2016 108.31 139.46
------------------------ ----------- ----------------------------------
The NAV attributable to the ordinary shares has been calculated
under International Financial Reporting Standards ("IFRS"); the
EPRA NAV is not reported separately in this update as it is the
same as the IFRS NAV.
The NAV incorporates the independent portfolio valuation as at
31 December 2016 and income for the quarter, but does not include a
provision for any accrued dividend.
Void rate reduced and St Philips Point Birmingham 100% let
The EPRA void rate has fallen to 3.9% (September 2016: 4.7%) as
a result of AXA Insurance UK plc (AXA) leasing the eighth floor at
St Philips Point in Birmingham, on a lease which expires in 2021.
AXA now occupies five floors in the building, totalling around
33,000 sq. ft. This letting results in the property being 100% let,
to a mix of office and retail tenants.
The Investment Manager is working on a number of other asset
management initiatives which we believe will improve the
portfolio's income stream and capital value.
Outlook
Property remains an attractive investment proposition given its
level of income return compared to other asset classes. The
property market has repriced and stabilised in the six months
following the EU referendum, with willing buyers and sellers
transacting deals in the marketplace. The Investment Manager
believes that attractive buying opportunities will continue to
appear as Brexit proceeds and the Company would like to capitalise
on them when they do, to further enhance the property
portfolio.
Portfolio Composition
Sector
Sector Exposure
------------------ ---------
Office 57.76%
------------------ ---------
Retail warehouse 36.68%
------------------ ---------
Other commercial 5.56%
------------------ ---------
Geography
The portfolio is diversified across the regional markets and has
no exposure to Central London assets.
Sector Exposure
--------------- ---------
North East 12.10%
--------------- ---------
North West 1.70%
--------------- ---------
West Midlands 18.28%
--------------- ---------
South West 2.60%
--------------- ---------
Scotland 15.43%
--------------- ---------
South East 11.63%
--------------- ---------
Yorkshire 10.73%
--------------- ---------
East Midlands 6.59%
--------------- ---------
Wales 20.94%
--------------- ---------
Dividends
The Company paid a dividend of 0.4587 pence per share in October
and two dividends of 0.4583 pence per share each in November and
December 2016, in respect of the three-month period ended 30
November 2016, resulting in a cumulative dividend payment for the
quarter of 1.3753 pence per share. The Board intends to continue
paying monthly dividends of 0.4583 pence per share, implying an
annualised dividend yield of 5.5%, calculated by reference to the
Company's issue price of 100p per share as set out in its October
2014 prospectus.
The dividend is now fully covered as a result of the completion
of the investment of the Company's available equity and debt, and
through the implementation of asset management initiatives.
Calum Bruce, Investment Manager, commented:
"We have been working hard to identify and execute asset
management opportunities to help the Company grow. Through
understanding the occupational needs of our tenants we have
achieved 100% occupancy at St Philips Point in Birmingham, which
has improved the Company's income stream and capital value. We hope
this can be enhanced further as other asset management
opportunities are completed".
Forthcoming events
The next scheduled independent quarterly valuation of the
property portfolio will be conducted by Knight Frank as at 31 March
2017 with the NAV per share at that date expected to be announced
in April 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.
Enquiries
Will Barnett - Canaccord Genuity, 0207 523 8000
Calum Bruce - Investment Manager, Ediston Properties Limited,
0131 225 5599
Donald Cameron - Company Secretary, R&H Fund Services
Limited, 0131 550 3763
This information is provided by RNS
The company news service from the London Stock Exchange
END
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