F&C UK Real Est. Inv. Net Asset Value(s)

 
TIDMFCRE 
 
To:                   Company Announcements 
Date:                10 January 2017 
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 31 December 2016 was 97.2 pence. This represents an 
increase of 1.5 per cent from the net asset value per share as at 30 September 
2016 of 95.8 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 31 December 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 31 December 2016, which is 
expected to be paid in March 2017. 
 
Share Price 
 
The share price was 99.0 pence per share at 31 December 2016, which represented 
a premium of 1.9 per cent to the NAV per share announced above. The share price 
total return for the quarter was 5.3 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 September 2016 to 31 
December 2016. 
 
                                                               Pence     % of 
                                                                 per  opening 
                                                               share      NAV 
 
Net asset value per share as at 30 September 2016               95.8 
 
Unrealised movement in valuation of property portfolio           1.1     1.2* 
(including the effect of gearing) 
 
Movement in revenue reserves                                     0.3      0.3 
 
Net asset value per share as at 31 December 2016                97.2      1.5 
 
* The un-geared increase in the valuation of the property portfolio over the 
quarter to 31 December 2016 was 0.8%. 
 
The net gearing as at 31 December 2016 was 28.9%# 
 
# Bank debt (less net current assets) divided by fair value of investment 
properties 
 
Portfolio Analysis                                  GBPm         % of   % capital 
                                                       portfolio as       value 
                                                              at 31   movement 
                                                           December  in quarter 
                                                               2016 
 
Offices                                           89.2         26.9       (1.3) 
 
West End                                          25.9          7.8           - 
 
South East                                        33.2         10.0       (0.8) 
 
Rest of UK                                        30.1          9.1       (2.8) 
 
Retail                                            69.7         21.0         2.2 
 
West End                                           7.5          2.3         0.3 
 
Rest of London                                     7.9          2.4        13.7 
 
South East                                        18.1          5.4         3.0 
 
Rest of UK                                        36.2         10.9           - 
 
Industrial                                        98.7         29.8         2.7 
 
South East                                        98.7         29.8         2.7 
 
Retail Warehouse                                  73.9         22.3       (0.6) 
 
Rest of London                                     8.5          2.6           - 
 
Rest of UK                                        65.4         19.7       (0.6) 
 
Total Property                                   331.5        100.0         0.8 
 
Property Purchases and Sales 
 
The Company exchanged on the sale of 17-21 George Street, Croydon during 
December 2016 for GBP4 million at an initial yield of 4.6 per cent. This compares 
against the September 2016 valuation of GBP3.05 million and this uplift has been 
reflected in the December 2016 valuation. The transaction is subject to a 
delayed completion date of 24th January 2017. 
 
Summary Balance Sheet 
 
                                                         GBPm    Pence % of Net 
                                                                 per   Assets 
                                                               share 
 
Property Portfolio per Valuation Report               331.5    138.9    142.9 
 
Adjustment for lease incentives                       (5.1) 
                                                               (2.1)    (2.2) 
 
Fair Value of Property Portfolio                      326.4    136.8    140.7 
 
Cash                                                   12.0      5.0      5.2 
 
Trade and other receivables                             6.4      2.7      2.8 
 
Trade and other payables                              (7.8)    (3.3)    (3.4) 
 
Interest-bearing loans                              (105.0)   (44.0)   (45.3) 
 
Net Assets at 31 December 2016                        232.0     97.2    100.0 
 
The property portfolio will next be valued by an external valuer during March 
2017 and the net asset value per share as at 31 March 2017 will be announced in 
April 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] 
 
 
 
 
END 
 

(END) Dow Jones Newswires

January 11, 2017 05:21 ET (10:21 GMT)