To:
Company Announcements
Date:
27 October 2016
Company: F&C UK Real
Estate Investments Limited
Subject:
Net Asset Value
Net Asset Value
The unaudited net asset value per share of F&C UK Real
Estate Investments Limited (“FCRE”) as at 30
September 2016 was 95.8 pence.
This represents a decrease of 3.4 per cent from the net asset value
per share as at 30 June 2016 of
99.2 pence.
The net asset value is based on the external valuation of the
Group's property portfolio prepared by Cushman & Wakefield.
The net asset value is calculated under International Financial
Reporting Standards ("IFRS").
The net asset value includes all income to 30 September 2016 and is calculated after
deduction of all dividends paid prior to that date. It does
not include a provision for the dividend for the quarter to
30 September 2016, which is expected
to be paid in December 2016.
Share Price
The share price was 95.3 pence per
share at 30 September 2016, which
represented a discount of 0.5 per cent to the NAV per share
announced above. The share price total return for the quarter was
9.1 per cent.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net
asset value per share calculated under IFRS over the period from
30 June 2016 to 30 September 2016.
|
Pence per share |
% of opening NAV |
Net asset value per share as at
30 June 2016 |
99.2 |
|
Unrealised movement in valuation of
property portfolio (including the effect of gearing) |
(3.1) |
(3.1)* |
Realised loss on sale of
property |
(0.1) |
(0.1) |
Movement in revenue reserves |
(0.2) |
(0.2) |
Net asset value per share as at
30 September 2016 |
95.8 |
(3.4) |
* The un-geared decrease in the valuation of the property
portfolio over the quarter to 30 September
2016 was 2.3%.
The net gearing as at 30 September
2016 was 29.4%#
# Bank debt (less net current assets) divided by fair value of
investment properties
Portfolio Analysis |
£m |
% of portfolio as at 30
September 2016 |
% capital value
movement in quarter |
Offices |
90.4 |
27.5 |
(3.1) |
West End |
25.9 |
7.9 |
- |
South East |
33.5 |
10.2 |
(5.4) |
Rest of UK |
31.0 |
9.4 |
(3.1) |
Retail |
68.2 |
20.7 |
(1.4) |
West End |
7.5 |
2.3 |
- |
Rest of London |
6.9 |
2.1 |
- |
South East |
17.6 |
5.3 |
(0.1) |
Rest of UK |
36.2 |
11.0 |
(2.2) |
Industrial |
96.0 |
29.2 |
0.4 |
South East |
96.0 |
29.2 |
0.4 |
Retail Warehouse |
74.3 |
22.6 |
(5.2) |
Rest of London |
8.5 |
2.6 |
- |
Rest of UK |
65.8 |
20.0 |
(5.9) |
Total Property |
328.9 |
100.0 |
(2.3) |
Property Purchases and Sales
On 6 September 2016, IRP Holdings
Limited, a subsidiary of FCRE, sold King William House, Hull for £2,585,000 which
compared with its valuation of £2,750,000 as at 30 June 2016. There were no other purchases or
sales in the quarter.
Summary Balance Sheet
|
£m |
Pence per
share |
% of Net
Assets |
Property Portfolio per Valuation
Report |
328.9 |
137.8 |
143.9 |
Adjustment for lease incentives |
(5.2) |
(2.2) |
(2.3) |
Fair Value of Property
Portfolio |
323.7 |
135.6 |
141.6 |
Cash |
15.0 |
6.3 |
6.5 |
Trade and other receivables |
6.6 |
2.8 |
2.9 |
Trade and other payables |
(7.8) |
(3.3) |
(3.4) |
Interest-bearing loans |
(108.9) |
(45.6) |
(47.6) |
Net Assets at 30
September 2016 |
228.6 |
95.8 |
100.0 |
The property portfolio will next be valued by an external valuer
during December 2016 and the net
asset value per share as at 31 December
2016 will be announced in January
2017.
This announcement contains inside information.
Enquiries:
The Company Secretary
Northern Trust International Fund Administration Services
(Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Tel: 01481 745001
Fax: 01481 745051
Peter Lowe
Scott Macrae
F&C Investment Business Ltd
Tel: 0207 628 8000
Fax: 0131 225 2375