F&C Commercial Property Trust Ltd - Net Asset Value(s)

To:                   Company Announcements

Date:                20 July 2017

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 June 2017 was 139.4 pence. This represents an increase of 1.5 per cent from the unaudited NAV per share as at 31 March 2017 of 137.4 pence and a NAV total return for the quarter of 2.5 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 June 2017 and is calculated after deduction of all dividends paid prior to that date. As at 30 June 2017, 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 145.3 pence per share at 30 June 2017, which represented a premium of 3.9 per cent to the NAV per share announced above. The share price total return for the quarter was 1.4 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 31 March 2017 to 30 June 2017 (including the effect of gearing):

	£m	Pence per share	% of opening NAV per share
NAV as at 31 March 2017	1,098.7	137.4
Unrealised increase in valuation of property portfolio *	18.2	2.3	1.7
Movement in fair value of interest rate swap	0.3	-	-
Other net revenue	9.4	1.2	0.9
Dividends paid	(12.0)	(1.5)	(1.1)
NAV as at 30 June 2017	1,114.6	139.4	1.5

* The ungeared increase in the valuation of the property portfolio over the quarter to 30 June 2017 was 1.4%, after allowing for capital expenditure.

The net gearing at 30 June 2017 was 17.4%.#

# Net gearing: (Borrowings – cash) ÷ total assets (less current liabilities and cash).

Performance

The capital value growth of 1.4% over the quarter compares favourably with the IPD Monthly Index, which recorded capital value growth of 1.1% over the same period.

The major drivers of performance over the quarter related to a 9% increase in the value of Cassini House, London W1, which is attributable to the completion of a new lease with the office’s major tenant and an agreed refurbishment programme. The valuation of St. Christopher’s Place Estate increased in value by 3.5%, reflecting the completion of the development at 75 Wigmore Street and a number of new lettings.

Portfolio Analysis – Sector Breakdown

	Market Value £m	% of portfolio as at 30 June 2017	% unrealised movement  in quarter
Offices	474.8	34.8	0.7
West End	141.7	10.4	6.7
South East	132.8	9.7	-0.3
Rest of UK	182.5	13.4	-2.3
City	17.8	1.3	-4.8
Retail	402.7	29.6	2.7
West End	334.9	24.6	3.3
South East	67.8	5.0	0.0
Industrial	228.2	16.7	1.7
South East	52.0	3.8	1.6
Rest of UK	176.2	12.9	1.8
Retail Warehouse	218.6	16.0	-0.2
Other	39.0	2.9	3.6
Total Property Portfolio	1,363.3	100.0	1.4

Portfolio Analysis – Geographic Breakdown

	Market Value £m	% of portfolio as at 30 June 2017	% unrealised movement  in quarter
West End	476.6	34.9	4.3
South East	357.2	26.2	0.5
Scotland	166.0	12.2	-2.6
Midlands	173.9	12.8	1.2
North West	144.9	10.6	0.3
Eastern	26.9	2.0	0.8
Rest of London	17.8	1.3	-4.8
Total Property Portfolio	1,363.3	100.0	1.4

Top Ten Investments

	Sector
Properties valued in excess of £250 million
London W1, St Christopher’s Place Estate *	Retail
Properties valued between £70 million and £100 million
London SW1, Cassini House, St James’s Street	Office
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
Properties valued between £30 million and £40 million
Uxbridge, 3 The Square, Stockley Park	Office
Winchester, Burma Road	Other
Aberdeen, Unit 2 Prime Four Business Park, Kingswells	Office
Manchester, 82 King St	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	1,363.3	170.6	122.3
Adjustment for lease incentives	(18.9)	(2.4)	(1.7)
Fair Value of Property Portfolio	1,344.4	168.2	120.6
Current Debtors	22.2	2.8	2.0
Cash	75.0	9.4	6.7
Current Liabilities	(17.5)	(2.2)	(1.6)
Total Assets (less current liabilities)	1,424.1	178.2	127.7
Non-Current liabilities	(1.6)	(0.2)	(0.1)
Interest-bearing loans	(307.5)	(38.5)	(27.6)
Interest rate swap	(0.4)	(0.1)	-
Net Assets at 30 June 2017	1,114.6	139.4	100.0

Property Purchases and Sales

There were no purchases or sales in 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 September 2017 and it is expected that the unaudited NAV per share as at 30 September 2017 will be announced in October 2017.

This announcement contains inside information.

Enquiries:

Richard Kirby
BMO REP Asset Management plc
Tel: [phone]

Graeme Caton
Winterflood Securities Limited
Tel: [phone]

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