TIDMEPIC
RNS Number : 3309Z
Ediston Property Inv Comp PLC
21 May 2021
THIS ANNOUNCEMENT HAS BEEN DETERMINED TO CONTAIN INSIDE
INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU)
NO. 596/2014.
Ediston Property Investment Company plc
(the 'Company')
(LEI: 213800JRL87EGX9TUI28)
HALF YEAR RESULTS
MOVING FORWARD
Ediston Property Investment Company plc (LSE: EPIC) announces
its half-year results for the six months ended 31 March 2021.
Key points for the six months to 31 March 2021:
-- share price increased by 35.6% to 69.00 pence, narrowing the
discount to 18.1% at the period end;
-- net asset value decreased 2.0% to 84.26 pence (30 September 2020: 86.01 pence);
-- dividend cover of 133.7% at the period end (on an accounting
basis), based on a 4.00 pence annualised dividend;
-- dividend increased by 25.0% to 5.00 pence per share annualised, payable from May 2021;
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-- completed four lease restructures across the office and
retail warehouse portfolio securing GBP1.45m of income per
annum;
-- completed the development of a pre-let drive-thru pod at
Barnsley for Costa Coffee which provides GBP72,500 of new
contracted income per annum;
-- sold the Tesco Superstore at Prestatyn Shopping Park for
GBP26.5m, which was in line with valuation;
-- progressed the development of Haddington Retail Park. The
project remains on time and budget, with completion anticipated in
June 2021;
-- 95.7% of the rent due was collected for the period;
-- property portfolio increased in value, on a like-for like basis, by 0.2%; and
-- various pipeline projects, with income accretive opportunities, being considered.
Key Performance Indicators
Six months Six months Year ended
ended 31 ended 31 30 September
March March 2020
2021 2020 (audited)
EPRA NAV per share 84.26p 96.23p 86.01p
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NAV total return 0.3% (8.9)% (16.6)%
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Share price total return 39.8% (44.4)% (35.3)%
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Average premium/ (discount) of
share price to NAV (24.3)% (22.5)% (33.2)%
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EPRA vacancy rate 5.6% 5.7% 5.1%
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William Hill, Chairman, commented:
" The Company has come through the pandemic in a relatively
strong position and is well positioned to navigate recovery and to
respond to challenges that may lie ahead. The Board believes that
the case for share price growth is realistic given an attractive
yield of 7.2% on the current share price. The improving rental
income position should drive further dividend growth. A substantial
part of the portfolio is held in a sector of the market where
recovery has started to take shape which should benefit the NAV. In
summary, whilst still cautious, we are in a position to move
forward with some optimism."
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Enquiries
Will Barnett - Investec Bank plc 0207 597 5873
Calum Bruce - Ediston Properties Limited 0131 225 5599
Ruth Wright - JTC 0203 893 1011
Ben Robinson - Kaso Legg Communications 0203 995 6672
Stephanie
Ross - Kaso Legg Communications 0203 995 6676
Chairman's Statement
introduction
Twelve months on from writing an interim statement at a very
challenging time in the Company's history, it is with relief that I
am able to introduce this Interim Statement with some significant
positives to report:
-- the Board has been able to increase the dividend by 25.0%
from May 2021, following strong rental collection over recent
quarters;
-- tenant interest in vacant units has picked up and the Company
is on track to restore income to pre-pandemic levels over the next
six months giving, we hope, further scope for dividend
progress;
-- the market has at long last become more discerning in its
views on retail, and values are increasing within the retail
warehouse sector as its attributes and future potential have become
better understood. The Company is well-positioned to benefit given
its large exposure in the sector;
-- the value of the Company's investments showed an increase, on
a like for like basis, against the reported valuation six months
ago and may now be on an upward trend;
-- the recent sale of the Tesco Superstore at Prestatyn has
provided an opportunity to refresh the portfolio with new stock;
and
-- the share price has increased by 35.6% during the first half
of the financial year and, post the dividend increase, shows a
yield of 7.2% on the new dividend level and share price at the
period end.
In listing the positives above, I also want to make it very
clear on behalf of the Board and the management team that there is
no risk of any complacency creeping in. As we plan to take
advantage of the opportunities that lie ahead, ensuring resilience
of the portfolio against potential future shocks is central to our
approach. We also remain acutely aware of those that continue to
struggle with the impact of the pandemic in the UK and the
suffering it is causing around the world. The uncertainty is by no
means removed and the longer term financial and economic impact on
how we live, work and play will take some time to become fully
apparent.
NAV AND SHARE PRICE PERFORMANCE
The Company's investment portfolio was valued at GBP246.9m at 31
March 2021 (30 September 2020: GBP272.9m). Taking into account the
asset sold in the period, the property portfolio has increased in
value by 0.2%, on a like-for-like basis, over the six months.
Nevertheless, over the six months to 31 March 2021 the increase
in property valuations was not sufficient to offset the effect of
capital expenditure, and costs associated with the sale of the
Tesco Superstore at Prestatyn. The EPRA NAV per share therefore
fell from 86.01 pence to 84.26 pence, a decrease of 2.0%. Taking
into account dividends paid in the period, the NAV total return per
share based on NAV movement was 0.3% over the first six months of
the Company's financial year.
The Company's share price 12 months ago had fallen to 45.70
pence per share as the market took fright at the possible impact of
COVID-19 restrictions on the retail sector, and on property more
generally. However, the share price began to recover prior to the
start of the current financial year, and this has continued into
the first six months of the current year. As a result, the
Company's share price total return over the first half of the year
has been strong at 39.8%, with an average discount to NAV of 24.26%
compared to 40.8% at the start of the period. Closing the discount
further is a priority for the Board and we hope to see more
positive price progression to reflect the improved dividend pay-out
and cover, and also potentially improving NAV.
The Investment Manager's review includes an analysis of the
financial results of the last 12 months, since the onset of the
pandemic, and what the impact has been on the Company.
INVESTMENT STRATEGY
The Board is fully supportive of the Investment Manager's
strategy to retain and potentially increase the Company's exposure
to the retail warehouse sector. This confidence is underpinned by
the following:
-- the strong trading performance from some of the sector's
large space users, including B&Q and B&M;
-- affordability of rents in the type of assets owned by the Company;
-- provision of efficient and flexible space for modern forms of
retailing that is easily accessible;
-- low levels of vacancy and a number of acquisitive retailers taking space in the sector;
-- suitability of the space for socially distanced shopping that
is already driving footfall back towards pre-pandemic levels;
-- the format works well for 'click and collect', which combines
the physical world with the digital economy;
-- attractive yield on offer following the fall in all retail
values over the last 12 to 24 months; and
-- full pricing in other sectors of the real estate market,
particularly industrial and logistics.
PORTFOLIO ACTIVITY
During the period the Investment Manager has completed four new
asset management initiatives, progressed existing longer-term
projects and completed a sale. The EPRA vacancy in the portfolio
has remained low at 5.6% and is just below the level reported at
the same time last year. The outlook is encouraging with several
vacant units under offer.
The Board has continued to work closely with the Investment
Manager on achieving the Company's sustainability goals. This
progress will be reported on in detail in the next annual report
and is covered in the Investment Manager's review.
INCOME AND DIVID
Rent collection, a largely routine process until the onset of
the pandemic, became one of the industry's main KPIs from the March
2020 quarter day. The Company has provided regular updates to
shareholders on its ability to collect its due rent and further
analysis of the Company's strong collection statistics for the last
12 months can be found in the Investment Manager's review.
In May 2020 the Board announced a 30.4% cut in the annualised
dividend rate of 5.75p to 4.00p, bringing the dividend in line with
the expected rent collection levels at the time and for prudent
management of cash against a very uncertain economic backdrop.
The resilience of the Company's income and the ability of the
Investment Manager to work with tenants in collecting what was due
has enabled the Board to start the journey back towards reinstating
the former level of dividend. Over the last 12 months 92.0% of the
rent due has been collected and this is expected to rise to 94.0%
once rent deferment and repayment plans are factored in. The Board
was pleased to announce on 6 April that it would increase the May
dividend by 25.0% to an annualised rate of 5.00p per share. This
dividend level remains well-covered on current projections, but
prudence remains important in setting the dividend level as the
economic uncertainties are by no means over.
Rent collection statistics only provide part of the picture. It
is also important to understand the impact of the pandemic on the
overall rent roll of a company. Over the last 12 months the
Company's contracted rent has declined by 8.8% (ignoring the rent
foregone as a result of the sale of Tesco at Prestatyn, which will
be replaced) as it has not been immune from tenant failures, CVAs
and leases either not being renewed or agreed at lower rents.
However, without increasing the equity base or borrowings, the
Investment Manager projects that this missing rent will be made up
by the year end following completion of the Haddington development,
and the expected letting of vacant units. The Board believes
restoring rental income to pre-pandemic levels in this period would
be a highly positive outcome and commends the Investment Manager if
this is achieved.
CAPITAL STRUCTURE
The Company's total debt is unchanged at GBP111.1m at a blended
'all-in' fixed rate of 2.9%. Gearing at 31 March 2021 was 38.1% of
total assets. As at 31 March 2021, the Company had approximately
GBP16.2m of cash for operational purposes, and an additional
GBP27.0m of cash available for investment. The latter amount was
included within debtors at the period end. The Company works
closely with its debt provider, Aviva, to deploy cash as
efficiently as it can.
GOVERNANCE
The Board and Investment Manager continue to be very busy on
portfolio and operational resilience matters: to date both have
been relatively sound. We are also looking to the future in trying
to find means of 'moving forward' towards our strategic growth
objective. This remains an imperative for a relatively small
Company such as EPIC in order to diversify our portfolio further,
provide greater liquidity in our shares and reduce the impact of
operating costs.
At the Company's AGM all the resolutions put to the meeting were
passed by substantial margins. However, the remuneration policy was
opposed by certain voting agencies and attracted negative votes.
The Board stated its intention to engage with the voting agencies
and shareholders to ensure it understood their concerns and this
has now been done.
OUTLOOK
The progress made within the UK to re-open the economy is
encouraging, and it is certainly feasible for a strong bounce in
the rate of growth to take place. Real estate investment markets
are relatively buoyant and have the capacity to respond further
when travel restrictions are lifted, and more international capital
is unlocked. However, there is much to ponder for investors
including the fiscal response to repairing the nation's balance
sheet, the potential for inflation and its impact on interest
rates, the effect of the pandemic on how we live, work, shop and
play and regulatory interventions guiding our journey to net zero
carbon. The Board believes that the Company has come through the
pandemic in a relatively strong position and is well positioned to
navigate recovery and to respond to challenges that may lie ahead.
Returning to the positive note struck at the beginning of my
report, the Board believes that the case for share price growth is
realistic, given an attractive yield of 7.2% on the current share
price. The improving rental income position should drive further
dividend growth. A substantial part of the portfolio is held in a
sector of the market where recovery has started to take shape which
should benefit the NAV. In summary, whilst still cautious, we are
in a position to move forward with some optimism.
William Hill
Chairman
20 May 2021
Investment Manager's Review
Introduction and Market Commentary
The ongoing pandemic continued to impact on the activities of
the Company, particularly as various parts of the country were
under strict lockdown conditions for four of the six months of the
reporting period.
Despite the lockdown restrictions the investment market
continued to function, with investment levels improving in Q4 2020.
For the calendar year 2020 investment volumes reached c. GBP39bn, a
positive result given the low activity during quarters 2 and 3, but
the lowest year of investment volume since 2012. However, this was
hardly unexpected given the global effects of COVID-19.
Investment volumes slipped back during the first part of Q1
2021, but not by as much as some predicted. However, the total
number of deals increased as Q1 progressed. Encouragingly, investor
sentiment towards the retail warehouse sector improved in the
period which has driven increased investor demand. The yields on
offer in this sector look attractive. It is anticipated that this
positive momentum will continue as the year progresses and lockdown
restrictions are eased further. It could be argued that it has
taken a pandemic for the market to fully appreciate the qualities
of the retail warehouse sector given the prior indiscriminate
writing off of all things retail.
Over the reporting period occupational demand has also improved
for the Company's office and retail warehouse assets. In the retail
warehouse portfolio several tenants have reactivated requirements
for new stores, which had been put on hold during the pandemic. The
Investment Manager is in discussions with a number of tenants
looking to occupy units on the Company's retail parks. During the
period, the Investment Manager completed four asset management
initiatives across the office and retail warehouse portfolios,
which are more fully described in this report.
Portfolio Composition
We currently invest in office, retail warehouse and leisure
assets without the constraints of a specific market benchmark. As
at 31 March 2021 we owned 16 assets across the office, retail
warehouse and leisure sectors. The portfolio valuation was
GBP246.9m. The allocation is detailed in the table below.
Office Retail Warehouse Leisure
Number of properties 4 10 2
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Value GBP70.4m GBP171.4m GBP5.1m
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Sector weighted average 4.7 years 5.0 years 1.4 years
unexpired lease term
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Total contracted rent GBP4.9m GBP12.5m GBP0.6m
per annum
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The EPRA vacancy rate at 31 March 2021 was 5.6%, an increase
from 5.1% in September 2020, but marginally lower than at 31 March
2020 when it was 5.7%.
Sector weightings as at 31 March 2021
The Company's largest exposure is to convenience-led retail
warehousing which constitutes 66.2% of the property portfolio. The
retail warehouse assets are underpinned by tenants defined by the
UK Government as providing 'essential services', who have been
permitted to stay open for trade throughout the pandemic.
The remainder of the portfolio is made up of office and leisure
assets, and one retail warehouse development site which is 97%
pre-let. The latter is under construction with completion
anticipated in June 2021.
Sector Exposure
(%)
Retail warehouse 66.2
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Office 28.6
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Other commercial/
Leisure 3.2
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Development 2.0
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Geographical diversification as at 31 March 2021
The portfolio is diversified across the regional markets.
Region Exposure
(%)
Wales 22.4
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North East 16.7
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Scotland 14.7
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West Midlands 14.0
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North West 12.9
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Yorkshire 12.2
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East Midlands 4.7
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South West 2.4
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Top five tenants as at 31 March 2021
The top five tenants comprise 35.3% of the Company's rent roll.
The remaining 64.7% is made up of tenants who individually do not
comprise more than 4.2% of the rent roll.
Tenant Exposure
(%)
B&Q plc* 10.2
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B&M Retail Limited* 7.1
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AXA Insurance UK
plc 6.4
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Marks & Spencer
plc* 5.8
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Ernst & Young LLP 5.8
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*Denotes a tenant providing 'essential services' which was able
to stay open for trade throughout periods of lockdown.
rent collection and rent analysis
The Company had a strong rent collection record throughout the
pandemic. For the 12 months to 31 March 2021, 92.0% of the rent due
has been collected, rising to 94.0% once rent deferment and
repayment plans are factored in. While this collection record is
due in part to good communication and a collaborative approach with
tenants, it is also because the retail warehouse sector has shown
greater resilience during the pandemic than other parts of the
retail market. The sector's attributes have also come to the fore
during this difficult trading period.
The rent collection since quarter 2 2020 is summarised in the
following table:
Quarter Q2 2020 (%) Q3 2020 (%) Q4 2020 (%) Q1 2021 (%)
Rent received 82.6 92.7 96.7 92.8
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Payment expected - 0.1 0.2 2.1
------------ ------------ ------------ ------------
Deferred 6.6 2.3 0.8 0.5
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Under discussion 2.3 1.6 0.9 1.7
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Outstanding 8.5 3.3 1.4 2.9
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Total 100 100 100 100
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In the main the Company's income stream has been resilient.
However, the property portfolio has not been totally immune from
tenants using insolvency procedures, such as Company Voluntary
Arrangements and administrations to reduce their liabilities and
rationalise property portfolios. This has resulted in a loss of
rent for the Company. When these insolvency processes are used
there is little a landlord can do to protect itself from them.
Tenants vacating at lease expiry and certain lease restructures
have all adversely impacted on the level of rent that the Company
receives.
Overall, the decline in the contracted rental income from the
portfolio since the outbreak of the pandemic over 12 months ago, on
a like-for-like basis (adjusting for the Tesco Superstore sale),
has been c. GBP1.8m (8.8%), a relatively modest amount for a
portfolio skewed to retail-based tenants. Over the same period, the
Company's ERV has reduced by 4.8%, with all the decline being in
the retail warehouse and leisure sectors. The ERV of the office
portfolio has been stable throughout the pandemic, with any letting
or lease restructuring activity in the office portfolio being in
line with or ahead of ERV.
During the 12 months ended 31 March 2021, the Company suffered
bad debts of c. GBP612,000 and has deferral plans in place for
GBP670,000 of the income, with approximately GBP160,000 already
recovered. With intensive efforts to manage rent collection, the
deterioration in income has been less than might have been
anticipated. Whilst there are still significant challenges ahead,
the good income cover and stabilisation of asset values has
returned some degree of confidence for the future.
It is anticipated that c. GBP1.5m of the lost contracted income
will be replaced in the next few months with the completion of the
Haddington development, and the completion of lettings that are
currently under offer. Assuming no further market setbacks and the
development of existing interest in vacant units, by the end of the
financial year at 30 September we are aiming to have restored
income to at least pre-pandemic levels without adding to the
existing capital base of the Company. Under the circumstances, we
believe this is a good result in preserving the Company's income
stream.
Portfolio Valuation AND NAV
The Company's property portfolio is valued by Knight Frank on a
quarterly basis throughout the year. As at 31 March 2021 it was
valued at GBP246.9m, a like-for-like increase of 0.2% compared to
the 30 September 2020 valuation.
The COVID-19 pandemic started to impact directly on the
portfolio during March 2020. To put the Company's circumstances in
some perspective, in the prior quarter end (31 December 2019) the
Company had 16 properties valued at GBP308.9m. By 31 March 2021,
the Company had 16 properties valued at GBP246.9m, a like-for-like
decrease of 12.6% from 31 December 2019. The number of properties
remain unchanged, despite the sale of the Tesco Superstore at
Prestatyn, as the Company retained the retail park element of the
asset.
This valuation decline was the main reason for the Company
suffering a net asset value deterioration of 18.7% during the
15-month period 31 December 2019 to 31 March 2021, with, the
negative impact of gearing exacerbating the fall. The net asset
value of 96.23p at 31 March last year had already been impacted by
changes in retail trends, coming down from a high of 112.21p the
previous year. It is encouraging that the most severe impacts on
valuation now appear to have passed, but the challenge remains to
restore the net asset value, as well as the Company's net
income.
Asset Management Activity
During the period we have completed four asset management
initiatives in the property portfolio, across both office and
retail warehouse assets, securing GBP1.45m of rental income per
annum.
In the office portfolio, we completed two lease restructures
with existing tenants which secured c. GBP973,000 of income per
annum. At St Philips Point in Birmingham, AXA Insurance UK plc
committed to 27,990 sq. ft. of space across three floors, reducing
the amount of floorspace it leases by 5,005 sq. ft. One floor has a
break option in June 2022, one has a break option in December 2023,
and the largest floor is leased for a term certain of five years.
The rent secured was in line with the passing rents and the
independent valuer's ERV.
At Citygate II in Newcastle we completed a lease restructure
with N&D (London) Limited ('N&D'). N&D occupies c.
11,000 sq. ft. on the first floor and has signed a ten-year
reversionary lease, with a tenant break option after five years.
The lease will now expire in March 2032, with the break option
being in March 2027. The rent will increase by c. 9.0%, which is
6.5% ahead of the independent valuer's ERV.
In the retail warehouse portfolio, we secured GBP485,000 of
income per annum from two tenants. The new rent is 12.6% above the
previous passing rent across the units. At Clwyd Retail Park in
Rhyl, we agreed a five-year lease extension with Halfords, who
occupy c. 7,500 sq. ft. Securing Halfords on the retail park for
another five years is good news for the Company as the retailer has
performed well during the pandemic and has paid its rent
throughout.
At Pallion Retail Park in Sunderland, we upsized B&M from a
unit of 20,000 sq. ft. into a vacant unit of 30,000 sq. ft. B&M
will pay an annual rent of GBP400,000, and the lease expires in
2032. This is the third time we have been able to accommodate
B&M's expansion on our retail parks having completed similar
deals at Barnsley and Hull in previous years.
The development programme has continued to deliver successfully.
During the period, at Barnsley East Retail Park, we completed a
1,800 sq. ft. drive-thru unit for Costa Coffee. Costa now occupies
the unit on a 15-year lease (without break) and pays an annual rent
of GBP72,500.
The development of Haddington Retail Park, which commenced in
August 2020, is progressing on time and budget. It is expected to
complete in June 2021. The development is 97.0% pre-let to Aldi,
The Food Warehouse, Costa Coffee, Home Bargains and Euro Garages.
One unit of 1,500 sq. ft. remains available to let. Once fully let
and constructed, the asset will have a WAULT in excess of 15 years
and will generate an annual rent of GBP875,000.
We are seeing improving occupational demand from both our retail
warehouse and office tenants. We are currently in discussions with
tenants on new lettings and lease regears, which will be reported
on more fully in due course.
ASSET SALE
In March, we sold the Tesco Superstore which forms part of
Prestatyn Shopping Park, for GBP26.5m. The sale price was in line
with the property's valuation as at 31 December 2020 and above the
December 2017 acquisition price.
We have retained the remainder of the retail park, which extends
to c. 91,500 sq. ft. across 14 units. The retail park is let to 13
tenants, with M&S as an anchor, and has various asset
management angles to exploit.
The sale is in line with the investment strategy and provides
the opportunity to recycle capital from lower yielding assets into
higher yielding properties which are more suited to our intensive
style of asset management. This will further improve the Company's
income stream. A number of acquisition opportunities are currently
being reviewed.
ESG UPDATE
During the reporting period the Company has continued to make
good progress with its ESG objectives, which were put in place
during FY2020. The Company has targeted the following areas in
order to make further improvements in its ESG credentials:
-- Health, Safety and Wellbeing;
-- ESG Disclosure and Transparency;
-- Managing Environmental Impacts; and
-- Sustainable Building Design.
To help reach these targets, during the period the Company has
introduced Asset Sustainability Plans. These plans outline specific
asset targets and initiatives for all operationally managed assets,
aimed at improving environmental efficiency, health and wellbeing,
and tenant and community engagement on ESG issues. Progress is also
well underway on developing the Company's pathway towards net zero
carbon in operation.
Having achieved 'Green Star' status from GRESB in 2020, the
Company is again participating in the GRESB Real Estate
Sustainability Benchmark, with its submission due by the end of
June 2021. It is anticipated that the work completed to date will
help to improve the Company's rankings across a number of ESG
aspects under both Management and Performance components. In
addition, work is ongoing to ensure that the Company reports in
line with the EPRA Best Practices Recommendations for
Sustainability Reporting (sBPR) and improves its alignment with the
Task Force on Climate-related Financial Disclosures (TCFD)
recommendations.
A full update on the Company's ESG progress will be provided in
the annual report and accounts which are due to be published later
this year.
Outlook
The success of the vaccination programme and the easing of
lockdown restrictions across the UK are reasons to be optimistic.
The pathway out of the COVID-19 pandemic is now clearer, but there
will still be obstacles to navigate. There is nervousness around
new strains of the virus emerging, and until the economy is fully
open and restrictions are eased further, a degree of caution should
be exercised.
That said, demand for UK real estate remains robust and there is
an increased appetite for retail warehouse assets, which constitute
66.2% of the Company's portfolio. Retail warehousing has proved to
be more resilient than other parts of the retail market, and its
attributes, which the Company has been championing for some time,
are now being more widely understood.
Identifying and executing asset management initiatives remains a
priority and it is encouraging that there are several underway in
the portfolio. On completion these transactions will improve the
Company's income stream, reduce the vacancy rate and support and
improve the capital value of the property portfolio.
Calum Bruce
Investment Manager
20 May 2021
Directors' Responsibilities
Statement of Principal Risks and Uncertainties
The risks, and the way in which they are managed, are described
in more detail under the heading 'Principal and emerging risks'
within the Strategic Report in the Group's Annual Report and
Accounts for the year ended 30 September 2020. The Group's
principal and emerging risks have not changed materially since the
date of that report. The COVID-19 pandemic continues to have a
significant impact on capital values and income from the portfolio.
The operational risks of the Company and resilience of the
portfolio are being examined on an ongoing basis but have been
sound to date, both in the management of the portfolio and in the
Company's operations.
As a direct result of the COVID-19 pandemic and the attendant
economic, social, financial and market crises, the Group's
principal and emerging risks have been heightened for a
considerable period However, these are expected to be moderated in
light of the government's COVID-19 strategy and the easing of
lockdown restrictions.
Statement of Directors' Responsibilities in Respect of the
Interim Report
The Directors confirm that to the best of their knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 'Interim Financial Reporting' as adopted
by the European Union and gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the
Group;
-- the Chairman's Statement and Investment Manager's Review
(together constituting the Interim Management Report) include a
fair review of the information required by the Disclosure and
Transparency Rules (DTR) 4.2.7R, being an indication of important
events that have occurred during the first six months of the
financial year and their impact on the condensed set of
consolidated financial statements;
-- the Statement of Principal Risks and Uncertainties above is a
fair review of the information required by DTR 4.2.7R; and
-- the Chairman's Statement and Investment Manager's Review,
together with the condensed set of consolidated financial
statements, include a fair review of the information required by
DTR 4.2.8R, being related party transactions that have taken place
in the first six months of the current financial year and that have
materially affected the financial position or performance of the
Company during the period, and any changes in the related party
transactions described in the last Annual Report that could do so
are included in Note 10.
These interim statements are unaudited and have not been subject
to review by the audit firm.
On behalf of the Board
William Hill
Chairman
20 May 2021
Financial Statements
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 31 March 2021
Notes Six months ended 31 March 2021 (unaudited)
===== ============================================== ================= ===============
Six months ended Year ended
31 March 30 September
2020 (unaudited) 2020 (audited)
Revenue Capital Total Total Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=========================== ===== ============== ============== ============== ================= ===============
Revenue
Rental income 9,107 - 9,107 10,328 19,857
=========================== ===== ============== ============== ============== ================= ===============
Total revenue 9,107 - 9,107 10,328 19,857
Unrealised loss on
revaluation of investment
properties 5 - (5,324) (5,324) (27,290) (49,991)
Gain on sale of investment
properties realised 5 - 192 192 - -
=========================== ===== ============== ============== ============== ================= ===============
Total income 9,107 (5,132) 3,975 (16,962) (30,134)
=========================== ===== ============== ============== ============== ================= ===============
Expenditure
Investment management fee 2 (824) - (824) (999) (1,882))
Other expenses (1,043) - (1,043) (495) (1,648)
=========================== ===== ============== ============== ============== ================= ===============
Total expenditure (1,867) - (1,867) (1,764) (4,042)
=========================== ===== ============== ============== ============== ================= ===============
Profit/(loss) before
finance costs and taxation 7,240 (5,132) 2,108 (18,726) (34,176)
Net finance costs
Interest receivable - - - 36 58
Interest payable (1,588) - (1,588) (1,630) (3,258)
=========================== ===== ============== ============== ============== ================= ===============
Profit/(loss) before
taxation 5,652 (5,132) 520 (20,320) (37,376)
Taxation - - - - -
=========================== ===== ============== ============== ============== ================= ===============
Profit/(loss) and total
comprehensive income for
the period 5,652 (5,132) 520 (20,320) (37,376)
=========================== ===== ============== ============== ============== ================= ===============
Basic and diluted earnings
per share 3 2.68p (2.43)p 0.25p (9.61)p (17.69)p
=========================== ===== ============== ============== ============== ================= ===============
The total column of this statement represents the Group's
Condensed Consolidated Statement of Comprehensive Income, prepared
in accordance with IFRS.
The supplementary revenue return and capital return columns are
prepared under guidance published by the Association of Investment
Companies.
All revenue and capital items in the above statement are derived
from continuing operations.
No operations were acquired or discontinued in the period.
The accompanying notes are an integral part of these condensed
consolidated financial statements.
Condensed Consolidated Statement of Financial Position
As at 31 March 2021
Notes As at As at As at
31 March 2021 31 March 2020 30 September 2020
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
=================================== ===== =============== =============== ===================
Non-current assets
Investment properties 5 242,008 289,098 268,246
=================================== ===== =============== =============== ===================
242,008 289,098 268,246
=================================== ===== =============== =============== ===================
Current assets
Trade and other receivables 33,194 15,959 14,164
Cash and cash equivalents 16,186 12,511 12,308
=================================== ===== =============== =============== ===================
49,380 28,470 26,472
=================================== ===== =============== =============== ===================
Total assets 291,388 317,568 294,718
=================================== ===== =============== =============== ===================
Non-current liabilities
Loans 6 (110,195) (110,029) (110,112)
=================================== ===== =============== =============== ===================
(110,195) (110,029) (110,112)
Current liabilities
Trade and other payables (3,126) (4,175) (2,833)
=================================== ===== =============== =============== ===================
Total liabilities (113,321) (114,204) (112,945)
=================================== ===== =============== =============== ===================
Net assets 178,067 203,364 181,773
=================================== ===== =============== =============== ===================
Equity and reserves
Called-up equity share capital 7 2,113 2,113 2,113
Share premium 125,559 125,559 125,559
Capital reserve - investments held (52,689) (24,664) (47,365)
Capital reserve - investments sold 2,574 2,382 2,382
Special distributable reserve 82,893 83,388 83,162
Revenue reserve 17,617 14,586 15,922
=================================== ===== =============== =============== ===================
Equity shareholders' funds 178,067 203,364 181,773
=================================== ===== =============== =============== ===================
Net asset value per Ordinary Share 8 84.26p 96.23p 86.01p
=================================== ===== =============== =============== ===================
The accompanying notes are an integral part of these condensed
consolidated financial statements.
The condensed financial statements on pages 8 to 14 were
approved by the Board of Directors and authorised for issue on 20
May 2021 and were signed on its behalf by:
William Hill
Chairman
Registered number: 09090446
Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 March 2021 (unaudited)
Capital Capital
reserve - reserve - Special
Share capital investments investments distributable Revenue
account Share premium held sold reserve reserve Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============== ============= ============= ============= ============= ============= ============= ============
As at 30
September
2020 2,113 125,559 (47,365) 2,382 83,162 15,922 181,773
Profit and
total
comprehensive
income for
the period - - (5,324) 192 - 5,652 520
Transactions
with owners
recognised in
equity:
Dividends paid - - - - - (4,226) (4,226)
Transfer from
special
reserve - - - - (269) 269 -
As at 31 March
2021 2,113 125,559 (52,689) 2,574 82,893 17,617 178,067
============== ============= ============= ============= ============= ============= ============= ============
For the six months ended 31 March 2020 (unaudited)
Capital Capital
reserve - reserve - Special
Share capital investments investments distributable Revenue
account Share premium held sold reserve reserve Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============== ============= ============= ============= ============= ============= ============= ============
As at 30
September
2019 2,113 125,559 2,626 2,382 83,639 13,441 229,760
(Loss)/Profit
and total
comprehensive
income for
the period - - (27,290) - - 6,970 (20,320)
Transactions
with owners
recognised in
equity:
Dividends paid - - - - - (6,076) (6,076)
Transfer from
special
reserve - - - - (251) 251 -
============== ============= ============= ============= ============= ============= ============= ============
As at 31 March
2020 2,113 125,559 (24,664) 2,382 83,388 14,586 203,364
============== ============= ============= ============= ============= ============= ============= ============
For the year ended 30 September 2020 (audited)
Capital Capital
reserve - reserve - Special
Share capital investments investments distributable Revenue
account Share premium held sold reserve reserve Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============== ============= ============= ============= ============= ============= ============= ============
As at 30
September
2019 2,113 125,559 2,626 2,382 83,639 13,441 229,760
Loss and total
comprehensive
income for
the year - - (49,991) - - 12,615 (37,376)
Transactions
with owners
recognised in
equity:
Dividends paid - - - - - (10,611) (10,611)
Transfer from
special
reserve - - - - (477) 477 -
============== ============= ============= ============= ============= ============= ============= ============
As at 30
September
2020 2,113 125,559 (47,365) 2,382 83,162 15,922 181,773
============== ============= ============= ============= ============= ============= ============= ============
The accompanying notes are an integral part of these condensed
consolidated financial statements.
Condensed Consolidated Cash Flow Statement
For the six months ended 31 March 2021
Six months ended Six months ended Year ended
31 March 2020 31 March 2019 30 September 2020
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
==================================================== === ================ ================ ===================
Cash flows from operating activities
Profit/(loss) before tax 520 (20,320) (37,376)
Adjustments for:
Interest receivable - (36) (58)
Interest payable 1,588 1,630 3,258
Unrealised revaluation loss on property portfolio 5,324 27,290 49,991
Gain on sale of investment property realised (192) - -
========================================================= ================ ================ ===================
Operating cash flows before working capital changes 7,240 8,564 15,815
(Increase)/decrease in trade and other receivables (18,078) (370) 620
(Decrease)/increase in trade and other payables (538) 1,299 1,169
========================================================= ================ ================ ===================
Net cash (outflow)/inflow from operating activities (11,376) 9,493 17,604
========================================================= ================ ================ ===================
Cash flows from investing activities
Capital expenditure (5,512) (1,330) (3,355)
Sale of investment properties 26,466 - -
========================================================= ================ ================ ===================
Net cash inflow/(outflow) from investing activities 20,954 (1,330) (3,355)
========================================================= ================ ================ ===================
Cash flows from financing activities
Dividends paid (4,090) (6,078) (10,803)
Interest received - 36 58
Interest paid (1,610) (1,586) (3,172)
========================================================= ================ ================ ===================
Net cash outflow from financing activities (5,700) (7,628) (13,917)
========================================================= ================ ================ ===================
Net increase in cash 3,878 535 332
Opening cash and cash equivalents 12,308 11,976 11,976
========================================================= ================ ================ ===================
Closing cash and cash equivalents 16,186 12,511 12,308
========================================================= ================ ================ ===================
The accompanying notes are an integral part of these condensed
financial statements.
Notes to the Condensed Consolidated Financial Statements
1. Interim results
The condensed consolidated financial statements have been
prepared in accordance with International Financial Reporting
Standards (IFRS) and IAS 34 'Interim Financial Reporting' adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union and the accounting policies set out in the statutory
accounts of the Group for the year ended 30 September 2020. The
condensed consolidated financial statements do not include all of
the information required for a complete set of IFRS financial
statements and should be read in conjunction with the financial
statements of the Group for the year ended 30 September 2020, which
were prepared under IFRS adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union. The accounting
policies adopted in this report are consistent with those applied
in the Group's audited financial statements for the year ended 30
September 2020, apart from the amendment to IFRS 16 "Leases"
related to COVID-19 related rent concessions. The amendment to IFRS
16 specifies how rent concessions granted to lessees are
recognised, measured, presented and disclosed. This has not had a
material impact on the Group as a lessor and accordingly there have
been no restatements to the Group's previously reported financial
information as a result of the amendment to IFRS 16. The accounting
policies applied in the preparation of this financial information
are expected to be consistently applied in the financial statements
for the year to 30 September 2021 Based on the current operations
of the Group, no other new or revised accounting standards have
been issued that are expected to have a material effect on the
Group's financial statements in the future. There have been no
significant changes to management judgements and estimates since 30
September 2020.
The condensed consolidated financial statements have been
prepared on the going concern basis. In assessing the going concern
basis of accounting the Directors have had regard to the guidance
issued by the Financial Reporting Council. Whilst the timing of the
recovery from the impact of COVID-19 is unknown, after making
enquiries, and bearing in mind the nature of the Group's business
and assets, the Directors consider that the Group has adequate
resources to continue in operational existence over the medium
term. For these reasons, the Board continues to adopt the going
concern basis in preparing these financial statements.
2. Investment Management Fee
Six months ended Six months ended Year ended
31 March 2021 31 March 2020 30 September 2020
GBP'000 GBP'000 GBP'000
========================== ================ ================ ==================
Investment management fee 824 999 1,882
========================== ================ ================ ==================
Total 824 999 1,882
========================== ================ ================ ==================
Ediston Investment Services Limited has been appointed as the
Company's Alternative Investment Manager (AIFM) and investment
manager, with the property management services for the Group being
delegated to Ediston Properties Limited. Ediston Investment
Services Limited is entitled to a fee calculated as 0.95% per annum
of the net assets of the Group up to GBP250m, 0.75% per annum of
the net assets of the Group over GBP250m and up to GBP500m and
0.65% per annum of the net assets of the Group over GBP500m. The
management fee on any cash available for investment (being all cash
held by the Group except cash required for working capital and
capital expenditure) is reduced to 0.475% per annum while such cash
remains uninvested. The Management fee is reduced by a quarterly
contribution of GBP10,000 (GBP40,000 per annum) towards the overall
management costs of the Company.
Ediston Investment Services Limited has committed to investing
20.0% of the quarterly management fee in the Company's shares each
quarter for a period of three years commencing 1 October 2020.
Refer to note 10 for further information.
3. Earnings per Share
Six months ended Six months ended Year ended
31 March 2021 31 March 2020 30 September 2020
================================== ======================== ========================= =========================
GBP'000 Pence per share GBP'000 Pence per share GBP'000 Pence per share
================================== ======= =============== ======== =============== ======== ===============
Revenue earnings 5,652 2.68 6,970 3.30 12,615 5.97
Capital earnings (5,132) (2.43) (27,290) (12.91) (49,991) (23.66)
Total earnings 520 0.25 (20,320) (9.61) (37,376) (17.69)
================================== ======= =============== ======== =============== ======== ===============
Average number of shares in issue 211,333,737 211,333,737 211,333,737
================================== ======================== ========================= =========================
Earnings for the period to 31 March 2021 should not be taken as
a guide to the results for the year to 30 September 2021.
4. Dividends
Six monthly dividends of 0.3333 pence per share, at a cost of
GBP4,224,000 (six monthly dividends at a rate of 0.472 pence per
share for the six months ended 31 March 2020, at a cost of
GBP6,078,000) were paid during the period. The rate was reduced
from 0.472 pence per share to 0.3333 pence per share in April
2020.
A seventh interim dividend for the year ending 30 September
2021, of 0.4167 pence per share, will be paid on 28 May 2021 to
shareholders on the register on 14 May 2021. This monthly dividend
of 0.4167 pence per share equates to an annualised dividend level
of 5.00 pence per share.
All of the distributions made by the Company have been Property
Income Distributions (PIDs).
5. Investment Properties
As at As at As at
31 March 31 March 30 September
2021 2020 2020
Freehold and leasehold properties GBP'000 GBP'000 GBP'000
============================================== ========= ========= =============
Opening book cost 315,611 312,517 312,517
Opening unrealised appreciation (47,365) 2,626 2,626
============================================== ========= ========= =============
Opening fair value 268,246 315,143 315,143
============================================== ========= ========= =============
Movement for the period
Sales
- net proceeds (26,466) - -
- gain on sales 192 - -
Capital expenditure 5,360 1,245 3,094
============================================== ========= ========= =============
Movement in book cost (20,914) 1,245 3,094
============================================== ========= ========= =============
Unrealised gain/loss realised during the year - - -
Unrealised gains on investment properties 598 - -
Unrealised losses on investment properties (5,922) (27,290) (49,991)
============================================== ========= ========= =============
Movement in fair value (26,238) (26,045) (46,897)
============================================== ========= ========= =============
Closing book cost 294,697 313,762 315,611
============================================== ========= ========= =============
Closing unrealised (depreciation) (52,689) (24,664) (47,365)
============================================== ========= ========= =============
Closing fair value 242,008 289,098 268,246
============================================== ========= ========= =============
During the period ended 31 March 2021 the Group sold the Tesco
Superstore, which forms part of Prestatyn Shopping Park, as well as
a strip of undeveloped land at Hull (which was acquired from us by
way of a compulsory purchase order). The Group received a net
amount of GBP26,466,000 (31 March 2020: GBP0) from investments sold
in the period. The book cost of the Prestatyn Tesco investment when
it was purchased was GBP26,274,000. This investment has been
revalued over time and, until it was sold, any unrealised
gains/losses were included in the fair value of the
investments.
The fair value of the investment properties reconciled to the appraised value as follows:
Six months ended Six months ended Year ended
31 March 2021 31 March 2020 30 September 2020
GBP'000 GBP'000 GBP'000
=================================================== ================ ================ ==================
Closing fair value 242,008 289,098 268,246
Lease incentives held as debtors 4,842 4,702 4,729
=================================================== ================ ================ ==================
Appraised market value per Knight Frank 246,850 293,800 272,975
=================================================== ================ ================ ==================
Changes in the valuation of investment properties
Six months ended Six months ended Year ended
31 March 2021 31 March 2020 30 September 2020
GBP'000 GBP'000 GBP'000
=================================================== ================ ================ ==================
Gain on sale of investment properties 192 - -
Gain on sale of investment properties realised* 192 - -
Unrealised gains on investment properties 598 - -
Unrealised losses on investment properties (5,922) (27,290) (49,991)
=================================================== ================ ================ ==================
Total loss on revaluation of investment properties (5,132) (27,290) (49,991)
=================================================== ================ ================ ==================
*Represents the difference between the sales proceeds, net of
costs, and the property valuation at the end of the prior year.
5. Investment Properties continued
The loss on revaluation of investment properties reconciles to the movement in appraised market
value as follows:
Six months ended Six months ended Year ended
31 March 2021 31 March 2020 30 September 2020
GBP'000 GBP'000 GBP'000
=================================================== ================ ================ ==================
Total loss on revaluation of investment properties (5,132) (27,290) (49,991)
Capital expenditure 5,360 1,245 3,094
Sales - net proceeds (26,466) - -
--------------------------------------------------- ---------------- ---------------- ------------------
Movement in fair value (26,238) (26,045) (46,897)
--------------------------------------------------- ---------------- ---------------- ------------------
Movement in lease incentives held as debtors 113 670 697
--------------------------------------------------- ---------------- ---------------- ------------------
Movement in appraised market value (26,125) (25,375) (46,200)
--------------------------------------------------- ---------------- ---------------- ------------------
At 31 March 2021, the properties were valued at GBP246,850,000
(31 March 2020: GBP293,800,000 and 30 September 2020:
GBP272,975,000) by Knight Frank LLP (Knight Frank), in their
capacity as external valuers. The valuation was undertaken in
accordance with the current editions of RICS Valuation - Global
Standards, which incorporate the International Valuation Standards,
and the RICS UK National Supplement.
Fair value is based on an open market valuation (the price that
would be received to sell an asset, or paid to transfer a
liability, in an orderly transaction between market participants at
the measurement date), provided by Knight Frank on a quarterly
basis, using recognised valuation techniques as set out in the
accounting policies and Note 9 of the consolidated financial
statements of the Group for the year ended 30 September 2020.
There were no other significant changes to the valuation
process, assumptions or techniques used during the period.
6. Loans
As at As at As at
31 March 31 March 30 September
2021 2020 2020
GBP'000 GBP'000 GBP'000
================================== ========= ========= =============
Principal amount outstanding 111,076 111,076 111,076
Set-up costs (1,612) (1,612) (1,612)
Amortisation of loan set-up costs 731 565 648
================================== ========= ========= =============
Total 110,195, 110,029 110,112
================================== ========= ========= =============
The Group's loan arrangements are with Aviva Commercial Finance
Limited.
The Group has loans totalling GBP56,920,000 which carry a fixed
interest rate of 2.99% and mature in May 2025. This rate is fixed
for the period of the loan as long as the loan-to-value is
maintained below 40%, increasing by ten basis points if the
loan-to-value is 40% or higher. These loans are secured over EPIC
(No.1) Limited's property portfolio. The Group also has loans
totalling GBP54,156,000 which carry a fixed interest rate of 2.73%
and mature in December 2027. This rate is fixed for the period of
the loan as long as the loan-to-value is maintained below 40%,
increasing by ten basis points if the loan-to-value is 40% or
higher. These loans are secured over EPIC (No.2) Limited's property
portfolio.
Under the terms of early repayment relating to the loans, the
cost of repaying the loans on 31 March 2021, based on the yield on
the Treasury 5% 2025 and Treasury 4.25% 2027 plus a margin of 0.5%,
would have been approximately GBP122,222,000 (31 March 2020:
GBP126,019,000 and 30 September 2020: GBP126,362,000), Including
repayment of the principal GBP111,076,000 (31 March 2020:
GBP111,076,000 and 30 September 2020: GBP111,076,000).
The fair value of the loans based on a marked-to-market basis,
being the yield on the relevant Treasury plus the appropriate
margin, was GBP116,274,000 at 31 March 2021 (31 March 2020:
GBP118,841,000 and 30 September 2020: GBP119,668,000). This
includes the principal borrowed.
7. Called-up Equity Share Capital
The Company had 211,333,737 Ordinary Shares of 1 pence par value
in issue at 31 March 2021 (31 March 2020: 211,333,737 and 30
September 2020: 211,333,737).
During the period to 31 March 2021, the Company did not issue
any Ordinary Shares (six months ended 31 March 2020: issued none;
year ended 30 September 2020: issued none). The Company did not
buyback or resell from treasury any Ordinary Shares during the
period or during either comparative period.
The Company did not hold any shares in treasury at 31 March 2021
(31 March 2020: nil and 30 September 2020: nil).
8. Net Asset Value
The Group's net asset value per Ordinary Share of 84.26 pence
(31 March 2020: 96.23 pence and 30 September 2020: 86.01 pence) is
based on equity shareholders' funds of GBP178,087,000 (31 March
2020: GBP203,364,000 and 30 September 2020: GBP181,773,000) and on
211,333,737 (31 March 2020: 211,333,737 and 30 September 2020:
211,333,737) Ordinary Shares, being the number of shares in issue
at the period end.
The net asset value calculated under IFRS is the same as the
EPRA net asset value as at 31 March 2021 and for both comparative
periods.
9. Investment in subsidiaries
The Group's results consolidate those of EPIC (No.1) Limited, a
wholly owned subsidiary of Ediston Property Investment Company plc,
incorporated in England & Wales on 27 June 2014 (Company
Number: 09106328) and EPIC (No.2) Limited, a wholly owned
subsidiary of Ediston Property Investment Company plc, incorporated
in England & Wales on 23 September 2017 (Company Number:
10978359). The subsidiaries hold all the investment properties
owned by the Group and are also the parties which hold the Group's
borrowings (see Note 6).
10. Related Parties
There have been no material transactions between the Company and
its directors during the period other than amounts paid to them in
respect of expenses and remuneration for which there were no
outstanding amounts payable at the period end.
Ediston Investment Services Limited has received investment
management fees of GBP824,000 in relation to the six months ended
31 March 2021 (six months ended 31 March 2020: GBP999,000 and year
ended 30 September 2020: GBP1,882,000) of which GBP411,213 (31
March 2020: GBP481,000 and 30 September 2020: GBP430,000) remained
payable at the period end. Ediston Investment Services Limited
received development management fees of GBP177,000 in relation to
the six months ended 31 March 2021 (six months ended 31 March 2020:
GBPnil and year ended 30 September 2020: GBPnil) of which GBPnil
(31 March 2020: GBPnil and 30 September 2020: GBPnil) remained
payable at the period end.
Ediston Investment Services Limited acquired 121,944 shares in
the Company during the period ended 31 March 2021 as part of its
commitment to reinvest 20 per cent of its quarterly management
fee.
The aggregate shareholding of the manager and its senior
personnel as at 31 March 2021 is 1,721,377 shares, 0.8% of the
issued share capital as at that date.
11. Commitments
As at 31 March 2021 the Group had contractual commitments
totalling GBP1,738,000 (31 March 2020: GBP1,500,000 and 30
September 2020: GBP4,666,000). This is in relation to retentions
for the capital works on the Coatbridge Pods, the Barnsley Costa
Coffee and the JD Gyms fit out at Widnes as well as the development
of Haddington Retail Park and ongoing works at Kingston Retail Park
in Hull.
The Group did not have any other contractual commitments to
refurbish, construct or develop any investment property, or for
repair, maintenance or enhancements, as at 31 March 2021.
12. Fair Value Measurements
The fair value measurements for assets and liabilities are
categorised into different levels in the fair value hierarchy based
on the inputs to valuation techniques used. These different levels
have been defined as follows:
-- Level 1 - quoted prices (unadjusted) in active markets for
identical assets or liabilities that the Group can access at the
measurement date.
-- Level 2 - inputs, other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly or indirectly.
-- Level 3 - unobservable inputs for the asset or liability.
Value is the Directors' best estimate, based on advice from
relevant knowledgeable experts, use of recognised valuation
techniques and on assumptions as to what inputs other market
participants would apply in pricing the same or similar instrument.
All investment properties are included in Level 3.
There were no transfers between levels of the fair value
hierarchy during the six months ended 31 March 2021.
13. Interim Report Statement
The Company's auditor, Grant Thornton UK LLP, has not audited or
reviewed the Interim Report to 31 March 2021 pursuant to the
Auditing Practices Board guidance on 'Review of Interim Financial
Information'. These are not full statutory accounts in terms of
Section 434 of the Companies Act 2006 and are unaudited. Statutory
accounts for the year ended 30 September 2020, which received an
unqualified audit report and which did not contain a statement
under Section 498 of the Companies Act 2006, have been lodged with
the Registrar of Companies. No full statutory accounts in respect
of any period after 30 September 2020 have been reported on by the
Company's auditor or delivered to the Registrar of Companies.
---------------------------------------------------------------------------------------------------------------------------------
This interim report and accounts will only be produced in an
electronic form. It will be available on the Company's website at
www.epic-reit.com. In accordance with Listing Rule 9.6.1, copies of
these documents will also be submitted to the UK Listing Authority
via the National Storage Mechanism and will be available for
viewing shortly at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
This information is provided by RNS, the news service of the
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END
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