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

 
TIDMFCRE 
 
To:                   Company Announcements 
 
Date:                31 January 2019 
 
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 31 December 2018 was 106.0 pence. This represents a 
decrease of 1.2 per cent from the net asset value per share as at 30 September 
2018 of 107.3 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 31 December 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 31 December 2018, which is 
expected to be paid in March 2019. 
 
Share Price 
 
The share price was 92.2 pence per share at 31 December 2018, which represented 
a discount of 13.0 per cent to the NAV per share announced above. The share 
price total return for the quarter was -2.1 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 September 2018 to 31 
December 2018. 
 
                                                      Pence    % of 
                                                        per opening 
                                                      share     NAV 
 
Net asset value per share as at 30 September 2018     107.3 
 
Unrealised movement in valuation of property          (1.3)  (1.2)* 
portfolio (including the effect of gearing) 
 
Movement in revenue reserves                              -       - 
 
Net asset value per share as at 31 December 2018      106.0   (1.2) 
 
* The un-geared decrease in the valuation of the property portfolio over the 
quarter to 31 December 2018 was 0.9%. 
 
The net gearing as at 31 December 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 0.9 per cent over the quarter, 
compared to the 0.2 per cent fall in the MSCI UK Monthly Index over the same 
period. The retail market remains under pressure with the vast majority of 
subsectors experiencing falls in valuation over the quarter, reflecting both 
ongoing challenges within the occupier markets and weak investor sentiment. 
 The All Retail index recorded capital falls of 3.3 per cent at the market 
level over the quarter. While the Company does not hold any shopping centres or 
department stores, this impact was felt across the High Street portfolio with a 
3.2 per cent fall in values. The decrease in value in the portfolio's retail 
warehouse assets of 1.5 per cent was primarily attributable to the property at 
Northfields, Rotherham, let to Homebase which has been subject to a CVA. 
 
The positive capital return derived from the portfolio's Rest of UK Office 
segment was as a result of successful asset management initiatives at the 
property at Standard Hill, Nottingham.  38 per cent of the portfolio comprises 
Industrial assets located within the south east. These assets experienced 
capital growth over the period of 0.6 per cent. 
 
At the period end the portfolio void rate was 4.0 per cent by ERV and the 
average weighted unexpired lease term was 6.1 years. 
 
Portfolio Analysis                             GBPm        % of  % capital 
                                                    portfolio      value 
                                                     as at 31  movement 
                                                     December in quarter 
                                                         2018 
 
Offices                                      89.0        25.6      (1.0) 
 
West End                                     28.2         8.1          - 
 
South East                                   28.2         8.1      (3.6) 
 
Rest of UK                                   32.6         9.4        0.5 
 
Industrial                                  132.6        38.2        0.6 
 
South East                                  132.6        38.2        0.6 
 
Standard Retail                              55.9        16.1      (3.2) 
 
West End                                      8.4         2.4          - 
 
Rest of London                                3.3         0.9      (4.3) 
 
South East                                   17.3         5.0      (1.4) 
 
Rest of UK                                   26.9         7.8      (5.1) 
 
Retail Warehouse                             69.8        20.1      (1.5) 
 
Rest of UK                                   60.1        17.3      (2.1) 
 
Rest of London                                9.7         2.8        2.6 
 
Total Property                              347.3       100.0      (0.9) 
 
Property Purchases and Sales 
 
There were no sales or purchases in the quarter. 
 
Summary Balance Sheet 
 
                                                  GBPm   Pence    % of 
                                                         per     Net 
                                                       share  Assets 
 
Property Portfolio per Valuation Report        347.3   144.3   136.1 
 
Adjustment for lease incentives                (4.2) 
                                                       (1.7)   (1.6) 
 
Fair Value of Property Portfolio               343.1   142.6   134.5 
 
Cash                                             9.4     3.9     3.7 
 
Trade and other receivables                      5.7     2.4     2.3 
 
Trade and other payables                       (6.7)   (2.8)   (2.7) 
 
Interest-bearing loans                        (96.4)  (40.1)  (37.8) 
 
Net Assets at 31 December 2018                 255.1   106.0   100.0 
 
The property portfolio will next be valued by an external valuer during March 
2019 and the net asset value per share as at 31 March 2019 will be announced in 
April 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

January 31, 2019 02:00 ET (07:00 GMT)