TIDMEPIC
RNS Number : 1830D
Ediston Property Inv Comp PLC
25 April 2017
Ediston Property Investment Company plc
(LEI: 213800JRL87EGX9TUI28)
Net Asset Value ("NAV") as at 31 March 2017
Ediston Property Investment Company plc (LSE: EPIC) (the
"Company") announces its unaudited NAV as at 31 March 2017.
Quarter highlights
-- NAV per share at 31 March 2017 of 109.67 pence (31 December
2016: 108.31 pence), an increase of 1.26%, resulting in a NAV total
return (including dividends) of 2.53% for the quarter
-- Fair value independent valuation of the property portfolio as
at 31 March 2017 of GBP184.74 million, a 1.10% increase on the
valuation at 31 December 2016
-- The delivery of successful asset management initiatives helped increase the valuation
-- Annualised dividend yield of 5.06% based on annual dividends
per share of 5.5 pence and share price of 108.75 pence (31 March
2017)
Net Asset Value
The Company's unaudited NAV per share as at 31 March 2017 was
109.67 pence. As at 31 March 2017, the Company owned investment
properties with a fair value of GBP184.74 million and had cash and
cash equivalent balances of approximately GBP11.97 million.
The unaudited NAV of the Company at 31 March 2017 was GBP141.22
million, or 109.67 pence per share, an increase of 1.26% on the
Company's NAV as at 31 December 2016:
Pence GBP million
Per Share
------------------------ ----------- ------------
NAV at 31 December
2016 108.31 139.46
------------------------ ----------- ------------
Valuation increase
in property portfolio 1.20 1.56
------------------------ ----------- ------------
Capital expenditure
in the period (0.01) (0.02)
------------------------ ----------- ------------
Income earned
for the period 2.34 3.01
------------------------ ----------- ------------
Expenses for
the period (0.80) (1.02)
------------------------ ----------- ------------
Dividends paid
in the period (1.37) (1.77)
------------------------ ----------- ------------
NAV at 31 March
2017 109.67 141.22
------------------------ ----------- ------------
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 March 2017 and income for the quarter, but does not include a
provision for any accrued dividend.
Successful asset management
During the period, the Investment Manager exchanged contracts to
let an office suite at Phoenix, Reading to Handd Business Solutions
Limited ('Handd'). Handd has agreed to lease 4,333sq. ft. on a
10-year lease with a five-year option to break. The rent is
GBP30.50 per sq. ft. per annum which enhances the rental tone of
the building. Only 5,900 sq. ft. remains available to let.
At Abbey Retail Park in Daventry, contracts have been exchanged
to let 17,610 sq. ft. to B&M Retail Limited. The retailer has
agreed to sign a 10-year lease at a rent of GBP14 per sq. ft. per
annum. The lease will be on full repairing and insuring (FRI)
terms.
The letting secures another high profile tenant for the property
and will result in the retail park element being fully let and, in
the process, improve overall footfall. This was a particularly
complex transaction to execute requiring the negotiation of two
lease surrenders, a relocation of one tenant via a new letting and
a reconfiguration of space to give the contiguous units required by
B&M.
The Reading and Daventry lettings enhance the income stream of
the Company and reduce the EPRA void rate from 3.9% to 1.5%.
The Investment Manager continues to work on a number of other
asset management initiatives which we believe will improve the
portfolio's income stream and capital value.
Outlook
The property market is in an interesting phase of the cycle,
with overseas investors the most active buyers. The flight to
quality remains, with properties let to good covenants, on long
leases, with index-linked rent reviews achieving prices higher than
pre-referendum. There is also a weight of money from private equity
looking for opportunities with high post-leverage returns.
The UK institutions are not especially active but relatively low
levels of property on the market are ensuring prices are holding up
reasonably well for most other asset types. However, we are
increasingly seeing more opportunities where assets with value-add
initiatives can be acquired at attractive yields in line with our
investment policy.
Income supplemented by value gains from management initiatives
will be the key driver of total returns this year. Therefore
identifying and executing asset management initiatives to increase
capital value and enhance income will be more important than ever.
As demonstrated over recent quarters, the Investment Manager has
the skill set to do this and continue to build on the attractive
income distribution made by the Company.
Portfolio Composition
Sector
Sector Exposure
------------------ ---------
Office 57.89%
------------------ ---------
Retail warehouse 36.61%
------------------ ---------
Other commercial 5.50%
------------------ ---------
Geography
The portfolio is diversified across the regional markets and has
no exposure to Central London assets.
Sector Exposure
--------------- ---------
North East 11.97%
--------------- ---------
North West 1.68%
--------------- ---------
West Midlands 18.44%
--------------- ---------
South West 2.58%
--------------- ---------
Scotland 15.41%
--------------- ---------
South East 11.64%
--------------- ---------
Yorkshire 10.70%
--------------- ---------
East Midlands 6.78%
--------------- ---------
Wales 20.80%
--------------- ---------
Dividends
The Company paid three dividends of 0.4583 pence per share each
in January, February and March 2017, in respect of the three-month
period ended 28 February 2017, resulting in a cumulative dividend
payment for the quarter of 1.3749 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 remains 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 continue to unlock value and improve income through our
intensive and entrepreneurial approach to asset management. This is
important in a market where market-driven yield compression is not
prevalent and an active approach is needed."
Forthcoming events
The Company's interim results will be announced in May 2017. The
next scheduled independent quarterly valuation of the property
portfolio will be conducted by Knight Frank as at 30 June 2017 with
the NAV per share at that date expected to be announced in July
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
Laura Cronin - Lansons, 0207 294 3607
This information is provided by RNS
The company news service from the London Stock Exchange
END
NAVUSUBRBVASUAR
(END) Dow Jones Newswires
April 25, 2017 02:01 ET (06:01 GMT)
Ediston Property Investm... (LSE:EPIC)
Historical Stock Chart
From Apr 2024 to May 2024
Ediston Property Investm... (LSE:EPIC)
Historical Stock Chart
From May 2023 to May 2024