F&C UK Real Est. Inv. Net Asset Value

 
TIDMFCRE 
 
To:                  Company Announcements 
Date:               25 October 2018 
Company:         F&C UK Real Estate Investments Limited 
LEI:                 231801XRCB89W6XTR23 
 
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 2018 was 107.3 pence. This represents a 
decrease of 1.1 per cent from the net asset value per share as at 30 June 2018 
of 108.5 pence and a NAV total return for the quarter of 0.1 per cent. 
 
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 2018 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 2018, which is 
expected to be paid in December 2018. 
 
Share Price 
 
The share price was 95.6 pence per share at 30 September 2018, which 
represented a discount of 10.9 per cent to the NAV per share announced above. 
The share price total return for the quarter was -3.0 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 2018 to 30 September 
2018. 
 
                                                      Pence    % of 
                                                        per opening 
                                                      share     NAV 
 
Net asset value per share as at 30 June 2018          108.5 
 
Unrealised movement in valuation of property          (1.0)  (0.9)* 
portfolio (including the effect of gearing) 
 
Movement in revenue reserves                          (0.2)   (0.2) 
 
Net asset value per share as at 30 September 2018     107.3   (1.1) 
 
* The un-geared decrease in the valuation of the property portfolio over the 
quarter to 30 September 2018 was 0.6%. 
 
The net gearing as at 30 September 2018 was 26.3% # 
 
# Bank debt (less net current assets) divided by fair value of investment 
properties 
 
 
Performance 
 
The capital value of the portfolio decreased by 0.6% over the quarter, compared 
to the IPD Monthly Index which recorded capital value growth of 0.4% over the 
period. The retail market remains a challenge with High Street and retail 
warehouse capitalisation rates moving out over the quarter. The Company has 
also been impacted by the Homebase Company Voluntary Arrangement ('CVA') which 
specifically affects the values of properties held at Enterprise Way, Luton and 
Northfields Road, Rotherham. Active asset management initiatives are focused on 
restoring income and value. 
 
 
Portfolio Analysis                             GBPm        % of  % capital 
                                                    portfolio      value 
                                                     as at 30  movement 
                                                    September in quarter 
                                                         2018 
 
Offices                                      89.9        25.7        0.7 
 
West End                                     28.2         8.1          - 
 
South East                                   29.3         8.3          - 
 
Rest of UK                                   32.4         9.3        2.1 
 
Retail                                       57.7        16.5      (3.4) 
 
West End                                      8.5         2.4          - 
 
Rest of London                                3.4         1.0      (6.8) 
 
South East                                   17.5         5.0      (4.1) 
 
Rest of UK                                   28.3         8.1      (3.6) 
 
Industrial                                  131.9        37.6        1.7 
 
South East                                  131.9        37.6        1.7 
 
Retail Warehouse                             70.9        20.2      (4.1) 
 
Rest of UK                                   61.4        17.5      (5.3) 
 
Rest of London                                9.5         2.7        4.4 
 
Total Property                              350.4       100.0      (0.6) 
 
 
Property Purchases and Sales 
 
During the quarter, the Group completed the sale of an office building, in 
Swindon for GBP1.1 million. 
 
There were no other sales or purchases in the quarter. 
 
 
 
 
Summary Balance Sheet 
 
                                                  GBPm   Pence    % of 
                                                         per     Net 
                                                       share  Assets 
 
Property Portfolio per Valuation Report        350.4   145.5   135.6 
 
Adjustment for lease incentives                (4.4) 
                                                       (1.8)   (1.7) 
 
Fair Value of Property Portfolio               346.0   143.7   133.9 
 
Cash                                            15.7     6.5     6.1 
 
Trade and other receivables                      6.0     2.5     2.3 
 
Trade and other payables                       (7.0)   (2.9)   (2.7) 
 
Interest-bearing loans                       (102.4)  (42.5)  (39.6) 
 
Net Assets at 30 September 2018                258.3   107.3   100.0 
 
The property portfolio will next be valued by an external valuer during 
December 2018 and the net asset value per share as at 31 December 2018 will be 
announced in January 2019. 
 
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] 
 
 
 
END 
 

(END) Dow Jones Newswires

October 25, 2018 02:00 ET (06:00 GMT)