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UKCM Uk Commercial Property Reit Limited

69.80
0.40 (0.58%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Uk Commercial Property Reit Limited LSE:UKCM London Ordinary Share GB00B19Z2J52 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.40 0.58% 69.80 70.10 70.50 70.80 69.10 69.60 2,317,620 16:35:24
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Real Estate Investment Trust 73.38M -222.33M -0.1711 -4.12 916.09M

UK Comm Prop Tst Ltd Net Asset Value

26/04/2017 7:00am

UK Regulatory


 
TIDMUKCM 
 
Guernsey, 26 April 2017 
 
        UK Commercial Property Trust Limited ("UKCPT" or "the Company") 
 
                       Net Asset Value at 31 March 2017 
 
UK Commercial Property Trust Limited (FTSE 250, LSE: UKCM), advised by Standard 
Life Investments, owns a diversified portfolio of high quality income producing 
UK commercial property. It announces its unaudited quarterly Net Asset Value 
("NAV") as at 31 March 2017. 
 
Strong performance 
 
  * NAV per share of 87.4p (31 December 2016: 86.2p), resulting in a NAV total 
    return of 2.5% in the quarter. 
 
  * Like-for-like portfolio capital value increased by 1.6% during the quarter 
    which  compares favourably to the 0.9% increase in the MSCI/IPD Monthly 
    index for the period. 
 
Delivering value through asset management 
 
  * GBP1.3 million of annual rental income, in line with ERV, secured from eleven 
    new leases and nine lease renewals / rent reviews including: 
 
      + The completion of a new 10 year lease, following the comprehensive 
        refurbishment of the property at 81 George Street, Edinburgh, securing 
        a headline rent of GBP30 per square foot per annum to a global power 
        generation company InterGen. 
 
      + Three further lettings completed with Airbase Interiors, Capital 
        Scenery and GlassEco International at Gatwick Gate, Crawley, securing 
        over GBP600,000 per annum, improving capital value and increasing 
        unexpired lease length. 
 
  * Contracts exchanged with Laura Ashley on the remaining 5,000 sq.ft. unit of 
    the new 25,000 sq.ft. development to be built on St George's Retail Park, 
    Leicester.  On completion Laura Ashley, Tapi Carpets and Wren Living, will 
    be secured on new 10 year leases generating over GBP500,000 per annum of 
    additional rent with an expected yield on cost of 8.0%. 
 
  * Void rate of 4.1%*, well below the MSCI/IPD benchmark figure of 6.9%** 
 
Positive investment activity 
 
In early January 2017, the Company took advantage of a special opportunity to 
sell one of its West End office properties, 13 Great Marlborough Street, Soho 
to the owner of the adjoining property. The lease to Sony had less than two 
years remaining, the sale removing short term letting risk and the need for 
potentially significant capital expenditure. The disposal price of GBP30.5m was 
ahead of the year end valuation and equated to a yield of 3.3%. 
 
Some GBP23 million of these sale proceeds have been recycled into an investment 
that will produce an income yield of 5.8% through the forward funding of a 
258,000 sqft, long-lease, pre-let, logistics warehouse development under 
construction in an established distribution location at Burton upon Trent. 
Palletforce Ltd has committed to a 15 year lease with RPI inflation linked rent 
increases of between 1%-3% per annum compounded and payable five yearly. The 
Company has acquired the site, construction is underway, and a balancing 
payment is due on completion, which is expected this summer. 
 
Strong financial position and attractive dividend yield 
 
  * Significant financial resources of GBP71 million are currently available for 
    investment.  Additional firepower from the undrawn GBP50 million revolving 
    credit facility remains available. 
 
  * Low net gearing of 10.1%*** (gross gearing of 18.0%***) remaining one of 
    the lowest in the Company's peer group and the quoted REIT sector. 
 
  * Dividend yield of 4.1%****, comparing favourably to the FTSE All-Share 
    Index (3.6%****) and FTSE All-Share REIT Index (3.5%****). 
 
*31 March 2017 
** 31 December 2016 
*** Net gearing - Gross borrowing less cash divided by total assets (excluding 
cash) less current liabilities 
        Gross gearing - Gross borrowings divided by total assets less current 
liabilities 
****21 April 2017 
 
Andrew Wilson, Chairman of UKCPT, commented: 
 
"Today's positive numbers further build on the achievements of last year, in 
part reflecting a number of the ongoing asset management initiatives being 
successfully completed. The Company's GBP1.278bn commercial and industrial 
portfolio is both well located and well tenanted with a minimal amount of unlet 
accommodation. UKCPT is prudently managed, has a sound financial base with cash 
resources to deploy in acquisitions that will be accretive to dividend cover 
. Despite the current political and therefore economic uncertainties at home 
and abroad the Company's sound property and financial position allows the 
future to be viewed with confidence. " 
 
Will Fulton, Lead Manager of UKCPT at Standard Life Investments, said: 
 
"We have had an active start to 2017, building on the momentum we created 
behind the delivery of our strategy last year, and have made good strides in 
recycling capital from sales into more attractive income opportunities." 
 
Breakdown of NAV movement 
 
Set out below is a breakdown of the change to the unaudited net asset value per 
share calculated under International Financial Reporting Standards ("IFRS") 
over the period from 1 January 2017 to 31 March 2017. 
 
UK Commercial         Per  Share (p)   Attributable            Comment 
Property Trust                          Assets (GBPm) 
Limited 
 
Net assets as at 1         86.2         1,120.6 
January 2017 
 
Unrealised increase        1.6            19.6      Like for like increase of 1.6% 
in valuation of                                     in property portfolio and gain 
property portfolio                                  on sale of 13 Great 
and gain on sale                                    Marlborough Street 
 
Capital expenditure        -0.2           -2.3      Principally relates to costs 
during the period                                   associated with purchase of 
                                                    Burton upon Trent and ongoing 
                                                    work at Shrewsbury to 
                                                    facilitate opening of Primark 
                                                    store. 
 
Income earned for the      1.3            17.4      Equates to dividend cover of 
period                                              94% for the quarter 
 
Expenses for the           -0.5           -6.0 
period 
 
Dividend paid on 28        -0.9          -12.0 
February 2017 
 
Interest rate swaps        0.0            0.2       Marginal decrease in swap 
mark to market                                      liabilities 
revaluation 
 
Net assets as at 31        87.5         1,137.5 
March  2017 (excl 
deferred tax) 
 
Deferred tax               -0.1           -1.3      *See below 
 
Net assets as at 31        87.4         1,136.2 
March 2017 
 
* Due to the refinancing of the Company's internal loan notes it is forecast 
that the Company will utilise the losses it has built up since inception to 
offset future taxable profits. As previously stated in the NAV announcement 
released on 8 February 2017, the Company was required to recognise a deferred 
tax asset for the year to 31 December 2016. This adjustment reflects the 
ongoing write-off of the asset as the losses are utilised against profits. 
 
Net Asset Value analysis as at 31 March 2017 (unaudited) 
 
                               GBPm       % of net 
                                         assets 
 
Retail                    484.7           42.6 
 
Industrial                425.0           37.4 
 
Offices                   238.4           21.0 
 
Leisure                   129.5           11.4 
 
Total Property           1,277.6         112.4 
Portfolio 
 
Adjustment for lease      -13.2           -1.1 
incentives 
 
Fair value of            1,264.4         111.3 
Property Portfolio 
 
Cash                      122.8           10.8 
 
Other Assets               23.2           2.0 
 
Total Assets             1,410.4         124.1 
 
Current liabilities       -22.6           -2.0 
 
Non-current               -251.6         -22.1 
liabilities (bank 
loans & swap) 
 
Total Net Assets         1,136.2         100.00 
 
The NAV per share is based on the external valuation of the Company's direct 
property portfolio. It includes all current period income and is calculated 
after the deduction of all dividends paid prior to 31 March 2017. It does not 
include provision for any unpaid dividends relating to periods prior to 31 
March 2017, i.e. the proposed dividend for the period to 31 March 2017. 
 
The NAV per share at 31 March 2017 is based on 1,299,412,465 shares of 25p 
each, being the total number of shares in issue at that time. 
 
The EPRA NAV per share (excluding swap liability) is 87.7p (Dec 2016 - 86.5p). 
 
Sector analysis 
 
                        Portfolio    Exposure as at  Like for Like  Capital Value 
                      Value as at 31  31 Mar 2017    Capital Value      Shift 
                      Mar 2017 (GBPm)       (%)         Shift (excl     (including 
                                                        sales &        sales & 
                                                      purchases)    purchases) 
                                                                         (GBPm) 
                                                          (%) 
 
External valuation as                                                  1,280.8 
at 31 December 2016 
 
Retail                    484.7           37.9            1.3            6.3 
 
High St - South East                      2.9             0.0            0.0 
 
High St- Rest of UK                       5.2             2.3            1.5 
 
Shopping Centres                          7.7             4.1            3.8 
 
Retail Warehouse                          22.1            0.3            1.0 
 
Offices                   238.4           18.7            0.7           -26.8 
 
City                                      2.3             2.5            0.7 
 
West End                                  6.8             1.9           -26.8 
 
South East                                1.6             0.1            0.0 
 
Rest of UK                                8.0            -0.7            -0.7 
 
Industrial                425.0           33.3            3.0            17.0 
 
South East                                24.6            3.8            11.6 
 
Rest of UK                                8.7             0.8            5.4 
 
Leisure/Other             129.5           10.1            0.2            0.3 
 
External valuation as    1,277.6         100.0            1.6          1,277.6 
at 31 Mar 2017 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulations 
(EU) No. 596/2014). Upon the publication of this announcement via Regulatory 
Information Service this inside information is now considered to be in the 
public domain. 
 
Details of the Company may also be found on the Company's website which can be 
found at: www.ukcpt.co.uk 
 
For further information please contact: 
 
Will Fulton / Graeme McDonald, Standard Life Investments 
Tel: 0131 245 2799 / 0131 245 3151 
 
Edward Gibson-Watt / Oliver Kenyon, J.P. Morgan Cazenove 
Tel: 020 7742 4000 
 
Richard Sunderland / Claire Turvey / Polly Warrack, FTI Consulting 
Tel: 020 3727 1000 
 
The above information is unaudited and has been calculated by Standard Life 
Investments Limited. 
 
 
 
END 
 

(END) Dow Jones Newswires

April 26, 2017 02:00 ET (06:00 GMT)

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