F&C UK Real Estate Investments Ltd - Net Asset Value(s)

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: [phone]
Fax: [phone]

Peter Lowe
Scott Macrae
F&C Investment Business Ltd
Tel: [phone]
Fax: [phone]
 

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