To:
Company Announcements
Date: 25
October 2018
Company: F&C Commercial
Property Trust Limited
LEI:
213800A2B1H4ULF3K397
Subject:
Net Asset Value
Net Asset Value
The unaudited net asset value (‘NAV’) per share of the Group as
at 30 September 2018 was 141.8 pence. This represents a decrease of 1.0
per cent from the unaudited NAV per share as at 30 June 2018 of 143.2
pence and a NAV total return for the quarter of 0.1 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 2018 and is calculated after deduction of all
dividends paid prior to that date. As at 30
September 2018, 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 139.60 pence
per share at 30 September 2018, which
represented a discount of 1.6 per cent to the NAV per share
announced above. The share price total return for the quarter was
-6.4 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 2018 to 30
September 2018 (including the effect of gearing):
|
£m |
Pence per share |
% of opening NAV per
share |
NAV as at 30 June 2018 |
1,144.9 |
143.2 |
|
Unrealised increase in valuation of
property portfolio * |
(9.1) |
(1.1) |
(0.8) |
Movement in fair value of interest
rate swap |
0.2 |
0.0 |
0.0 |
Other net revenue |
9.4 |
1.2 |
0.8 |
Dividends paid |
(12.0) |
(1.5) |
(1.0) |
NAV as at 30 September
2018 |
1,133.4 |
141.8 |
(1.0) |
* The ungeared decrease in the valuation of the property
portfolio over the quarter to 30 September
2018 was 0.6%, after allowing for capital expenditure.
The net gearing at 30 September
2018 was 20.8%. #
# Net gearing: (Borrowings – cash) ÷ total assets (less current
liabilities and cash).
Performance
The capital value of the portfolio decreased by 0.6% over the
quarter. The IPD Monthly Index recorded capital value growth of
0.4% over the period.
The largest impact on NAV was due to valuation write downs on
the Company’s retail warehouses and specifically Newbury Retail
Park, Newbury and Solihull Retail Park, Solihull. This quarter both
properties were impacted by the Homebase Company Voluntary
Arrangement (CVA) and the Administration of Poundworld at Newbury.
Asset Management of these assets is focussed on securing revised
planning consents for the change of use and division of units and
will be a priority for the Manager over the short term.
Portfolio Analysis – Sector
Breakdown
|
Market
Value
£m |
% of
portfolio as at
30 September 2018 |
%
unrealised
movement in quarter |
Offices |
533.9 |
36.9 |
-0.2 |
West End |
154.8 |
10.7 |
-1.1 |
South East |
131.6 |
9.1 |
-0.3 |
South West |
32.4 |
2.2 |
1.2 |
Rest of UK |
194.8 |
13.5 |
0.2 |
City |
20.3 |
1.4 |
1.4 |
Retail |
445.2 |
30.8 |
0.1 |
West End |
344.9 |
23.9 |
0.1 |
South East |
68.4 |
4.7 |
-0.1 |
Rest of UK |
31.9 |
2.2 |
0.0 |
Industrial |
255.2 |
17.7 |
2.1 |
South East |
59.3 |
4.1 |
3.7 |
Rest of UK |
195.9 |
13.6 |
1.6 |
Retail
Warehouse |
167.6 |
11.6 |
-7.4 |
Other |
43.5 |
3.0 |
0.0 |
Total Property
Portfolio |
1,445.4 |
100.0 |
-0.6 |
Portfolio Analysis – Geographic
Breakdown
|
Market
Value
£m |
% of portfolio as
at
30 June 2018 |
% unrealised
movement in quarter |
West End |
499.7 |
34.6 |
-0.3 |
South East |
351.0 |
24.3 |
-2.3 |
Midlands |
175.2 |
12.1 |
-2.0 |
Scotland |
173.6 |
12.0 |
0.0 |
North West |
163.1 |
11.3 |
2.0 |
South West |
32.4 |
2.2 |
1.2 |
Eastern |
30.1 |
2.1 |
2.7 |
Rest of London |
20.3 |
1.4 |
1.4 |
Total Property Portfolio |
1,445.4 |
100.0 |
-0.6 |
Top Ten Investments
|
Sector |
Properties valued
in excess of £250 million |
|
London W1, St
Christopher’s Place Estate * |
Retail |
Properties valued
between £100 million and £150 million |
|
London SW1, Cassini
House, St James’s Street |
Office |
Properties valued
between £70 million and £100 million |
|
Newbury, Newbury Retail
Park |
Retail
Warehouse |
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 |
|
Crawley, Leonardo
House, Manor Royal |
Office |
Winchester, Burma
Road |
Other |
Manchester, 82 King
St |
Office |
Properties valued
between £30 million and £40 million |
|
Aberdeen, Unit 2 Prime
Four Business Park, Kingswells |
Office |
Uxbridge, 3 The
Square, Stockley Park |
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 |
1,445.4 |
180.8 |
127.6 |
Adjustment for lease incentives |
(21.3) |
(2.7) |
(1.9) |
Fair Value of Property
Portfolio |
1,424.1 |
178.1 |
125.7 |
Debtors |
25.8 |
3.2 |
2.3 |
Cash |
12.5 |
1.6 |
1.1 |
Interest rate swap |
0.2 |
- |
- |
Current Liabilities |
(19.4) |
(2.4) |
(1.7) |
Total Assets (less current
liabilities) |
1,443.2 |
180.5 |
127.4 |
Non-Current liabilities |
(1.9) |
(0.2) |
(0.2) |
Interest-bearing loans |
(307.9) |
(38.5) |
(27.2) |
Net Assets at 30
September 2018 |
1,133.4 |
141.8 |
100.0 |
Property Purchases and Sales
The were no purchases or sales 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 average cost of debt is 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 fccpt.co.uk.
The next quarterly valuation of the property portfolio will be
conducted by CBRE Limited during December
2018 and it is expected that the unaudited NAV per share as
at 31 December 2018 will be announced
in January 2019.
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