To:
Company Announcements
Date:
8 February 2017
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 31 December 2016 was 135.5 pence. This represents an increase of 2.7
per cent from the unaudited NAV per share as at 30 September 2016 of 132.0
pence and a NAV total return for the quarter of 3.8 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 31
December 2016 and is calculated after deduction of all
dividends paid prior to that date. As at 31
December 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 136.4 pence
per share at 31 December 2016, which
represented a premium of 0.6 per cent to the NAV per share
announced above. The share price total return for the quarter was
12.2 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 September 2016 to 31
December 2016 (including the effect of gearing):
|
£m |
Pence per share |
% of opening NAV per
share |
NAV as at 30 September
2016 |
1,055.4 |
132.0 |
|
Unrealised increase in valuation of
property portfolio * |
26.8 |
3.4 |
2.6 |
Realised increase in valuation of
property portfolio |
0.2 |
- |
- |
Movement in fair value of interest
rate swap |
0.8 |
0.1 |
0.1 |
Other net revenue |
12.2 |
1.5 |
1.1 |
Dividends paid |
(12.0) |
(1.5) |
(1.1) |
NAV as at 31 December
2016 |
1,083.4 |
135.5 |
2.7 |
* The ungeared increase in the valuation of the property
portfolio over the quarter to 31 December
2016 was 2.1%, after allowing for capital expenditure.
The net gearing at 31 December
2016 was 17.2%.#
# Net gearing: (Borrowings – cash) ÷ total assets (less current
liabilities and cash).
Performance
The capital value growth of 2.1% over the quarter compares
favourably with the IPD Quarterly Index which recorded capital
value growth of 1.0% 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. The sale of 25 Great Pulteney
Street, London W1 and the
completion of the commercial units at the redevelopment of 71-77
Wigmore Street, London W1 were
both events contributing to a strong quarter. The industrial and
logistics sector produced good returns as asset management and a
further hardening of capitalisation rates underpinned
performance.
Portfolio Analysis – Sector
Breakdown
|
Market
Value
£m |
% of
portfolio as at
31 Dec 2016 |
%
unrealised
movement in quarter |
Offices |
469.4 |
35.5 |
1.0 |
West End |
132.7 |
10.0 |
2.6 |
South East |
131.6 |
10.0 |
0.6 |
Rest of UK |
186.5 |
14.1 |
0.3 |
City |
18.6 |
1.4 |
0.9 |
Retail |
382.9 |
29.0 |
3.4 |
South East |
382.9 |
29.0 |
3.4 |
Industrial |
214.5 |
16.2 |
5.1 |
South East |
50.5 |
3.8 |
6.9 |
Rest of UK |
164.0 |
12.4 |
4.5 |
Retail
Warehouse |
218.1 |
16.5 |
0.1 |
Other |
37.6 |
2.8 |
0.0 |
Total Property Portfolio |
1,322.5 |
100.0 |
2.1 |
Portfolio Analysis – Geographic
Breakdown
|
Market
Value
£m |
% of portfolio as
at
31 Dec 2016 |
% unrealised
movement in quarter |
West End |
448.0 |
33.9 |
3.5 |
South East |
351.7 |
26.6 |
0.9 |
Scotland |
170.2 |
12.9 |
0.0 |
Midlands |
164.1 |
12.4 |
6.0 |
North West |
142.9 |
10.8 |
3.0 |
Eastern |
27.0 |
2.0 |
8.1 |
Rest of London |
18.6 |
1.4 |
0.9 |
Total Property Portfolio |
1,322.5 |
100.0 |
2.1 |
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 |
Office |
Properties valued
between £50 million and £70 million |
|
Solihull, Sears Retail
Park |
Retail
Warehouse |
London SW19, Wimbledon
Broadway |
Retail |
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 |
|
Winchester, Burma
Road |
Other |
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 |
1,322.5 |
165.4 |
122.1 |
Adjustment for lease incentives |
(16.5) |
(2.1) |
(1.5) |
Fair Value of Property
Portfolio |
1306.0 |
163.3 |
120.6 |
Current Debtors |
20.9 |
2.6 |
1.9 |
Cash |
85.0 |
10.6 |
7.8 |
Current Liabilities |
(20.5) |
(2.5) |
(1.9) |
Total Assets (less current
liabilities) |
1,391.4 |
174.0 |
128.4 |
Interest-bearing loans |
(307.3) |
(38.4) |
(28.3) |
Interest rate swap |
(0.7) |
(0.1) |
(0.1) |
Net Assets at 31
December 2016 |
1,083.4 |
135.5 |
100.0 |
Property Purchases and Sales
The Board announced previously that, on 22 December
2016, the Company completed the sale of its Freehold interest
in 25 Great Pulteney Street, London W1 for £54.4 million, reflecting a net
initial yield of 3.95 per cent. The property comprises a
seven-storey building providing high quality, contemporary, Grade A
office accommodation and is fully let to four tenants. The
sale price compares to the valuation as at 30 September 2016 of £51.2 million.
25 Great Pulteney Street is a property that the Company fully
redeveloped, completing in 2011. It was subsequently leased at high
rents reflecting the quality of the building. The most recent re-
letting achieved a rent of £96.50psf. The disposal crystallises
substantial value for the Company, reduces its exposure to
Central London and allows capital
to be deployed into other opportunities.
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 March
2017 and it is expected that the unaudited NAV per share as
at 31 March 2017 will be announced in
April 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