CT Property Trust Limited Trading update and NAV

 
TIDMCTPT 
 
To:                   Company Announcements 
Date:                28 October 2022 
Company:        CT Property Trust Limited 
LEI:                  231801XRCB89W6XTR23 
 
Subject:           Trading Update and Net Asset Value 
 
Headlines 
 
·      NAV per share of 122.0 pence and Net Asset Value total return of -7.3 
per cent for the quarter ended 30 September 2022 
 
·      Share Price total return of -5.6 per cent for the quarter ended 30 
September 2022 
 
·      As of 30 September 2022, the portfolio void rate was 5.4 per cent by 
estimated rental value 
 
·      Reduction in net gearing from an LTV of 22.1 per cent at 30 June 2022 to 
18.3 per cent at 30 September 2022 
 
Net Asset Value ('NAV') 
 
The unaudited NAV per share of CT Property Trust Limited ('CTPT') as at 30 
September 2022 was 122.0 pence. This represents a decrease of 8.1 per cent from 
the NAV per share as at 30 June 2022 of 132.8 pence and a NAV total return for 
the quarter of -7.3 per cent. 
 
The NAV is based on the external valuation of the Company's property portfolio 
prepared by Cushman & Wakefield. 
 
The NAV is calculated under International Financial Reporting Standards 
("IFRS"). 
 
The NAV includes all income to 30 September 2022 and is calculated after the 
deduction of all dividends paid prior to that date. 
 
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 2022 to 30 September 
2022. 
 
                                                      Pence    % of 
                                                        per opening 
                                                      share     NAV 
 
Net asset value per share as at 30 June 2022          132.8 
 
Unrealised movement in valuation of property         (12.1)  (9.1)* 
portfolio (including the effect of gearing) 
 
Realised gain on sale of property (including the        0.5     0.4 
effect of gearing) 
 
Share buy-backs                                         0.9     0.7 
 
Net revenue                                                     0.7 
                                                      0.9 
 
Dividends paid                                        (1.0)   (0.8) 
 
Net asset value per share as at 30 September 2022     122.0   (8.1) 
 
* The un-geared unrealised capital return of portfolio over the quarter to 30 
September 2022 was -7.7 per cent. 
 
Performance 
 
The capital value of the Company's portfolio fell by 7.7 per cent over the 
quarter as sentiment towards real estate, and wider financial markets, turned 
negative. The 'mini budget' presented on the 23 September 2022 compounded gilt 
market volatility and lower-yielding real estate assets in particular have 
found themselves exposed in the current inflationary environment. 
 
Industrial 
 
The capital value of the Company's industrial assets declined by 9.5 per cent 
over the quarter which, while a meaningful adjustment, represents only a 
partial offsetting of the 36.0 per cent capital growth the portfolio's 
industrial assets generated in the 12 months to June 2022. Portfolio management 
activity over the quarter demonstrated the underlying strengths of the 
Company's industrial assets. Rent reviews settled at Lister Road, Basingstoke 
and Lakeside Industrial Estate, Colnbrook showed meaningful uplifts to passing 
rents at 23.7 per cent and 14.3 per cent respectively. Unit 2 Network in 
Bracknell became vacant in September but is already under offer to new occupier 
at a significant uplift on the previous passing rent. The crystallisation of 
rental growth through asset management initiatives such as these will be 
critical in delivering the income return. 
 
Retail 
 
The Company's high street retail holdings saw a relatively limited valuation 
decline of 1.0 per cent over the quarter as an already attractive yield profile 
was supported by a number of leasing successes, maintaining near-full 
occupation. The capital value of the Company's retail warehousing portfolio, 
which remains fully occupied by a discount/convenience-led 'essential retail' 
tenant base, fell by 5.7 per cent, again only partially offsetting capital 
gains of 22.9 per cent seen in the year to June 2022. 
 
Offices 
 
The capital value of the Company's office assets fell by 5.6 per cent as the 
Company's independent valuers adopted prudent assumptions given relatively 
constrained liquidity within the wider market. As reported in August 2022, the 
quarter saw the successful disposal of the prime multi-let office holding at 14 
Berkeley Street, London, sold at a 4.9 per cent premium to the preceding 
valuation at £32.4m. The disposal was timed to take full advantage of the asset 
and market cycles and crystallised a significant profit. 
 
The vacancy rate across the portfolio increased from 2.6 per cent to 5.4 per 
cent by rental value, driven entirely by the recent vacancy at the industrial 
holding at Network, Bracknell. However, as outlined above, this vacancy is now 
under offer and is an opportunity to extract rental growth and performance from 
the asset. The weighted average unexpired lease term, assuming all break 
options are exercised, increased from 6.1 years to 6.3 years, largely on 
account of the disposal of 14 Berkeley Street. 
 
Cash and Borrowings 
 
As at 30 September 2022, the Company had approximately £32.5 million of 
available cash and an undrawn revolving credit facility of £20 million. The £90 
million long-term debt with Canada Life and the £20 million revolving credit 
loan facility with Barclays (which is undrawn) do not need to be refinanced 
until November 2026 and March 2025 respectively. The £7 million draw down from 
Barclays was repaid during the quarter. As at 30 September 2022, the LTV (net 
of cash) was 18.3 per cent. 
 
Share Price 
 
The share price was 78.4 pence per share as at 30 September 2022, which 
represented a discount of 35.7 per cent to the NAV per share announced above. 
The share price total return for the quarter was -5.6 per cent. 
 
Share Buybacks 
 
The Company purchased 6,100,000 ordinary shares during the quarter. As at 30 
September 2022 the Company had 6,100,000 shares held in treasury (2.5 per cent 
of ordinary shares in issue), acquired at an average discount to NAV of 35.6 
per cent. 
 
Dividend 
 
On 31 August 2022, the Company announced a quarterly dividend payment of 1.0 
pence per ordinary share in respect of the financial year ended 30 June 2022, 
which was paid to shareholders on 30 September 2022. The Board will continue to 
monitor rental receipts and earnings closely and keep the future level of 
dividends under review. 
 
Portfolio Analysis                                £m        % of  % capital 
                                                       portfolio      value 
                                                        as at 30  movement 
                                                       September in quarter 
                                                            2022 
 
Offices                                         54.4        15.6      (5.6) 
 
·      South East                               31.4         9.0      (3.9) 
 
·      Rest of UK                               23.0         6.6      (7.8) 
 
Industrial, logistics and distribution         203.2        58.0      (9.5) 
 
·      South East                              203.2        58.0      (9.5) 
 
Standard Retail                                 20.0         5.7      (1.0) 
 
·      West End                                  6.4         1.8        0.8 
 
·      Rest of London                            1.3         0.4     (15.3) 
 
·      South East                                8.9         2.5          - 
 
·      Rest of UK                                3.4         1.0      (0.7) 
 
Retail Warehouse                                72.6        20.7      (5.7) 
 
Total Property                                 350.2       100.0      (7.7) 
 
Summary Balance Sheet 
 
                                                     £m   Pence    % of 
                                                            per     Net 
                                                          share  Assets 
 
Property Portfolio per Valuation Report           350.2   149.3   122.3 
 
Adjustment for lease incentives                   (4.2) 
                                                          (1.8)   (1.5) 
 
Fair Value of Property Portfolio                  346.0   147.5   120.8 
 
Cash                                               32.5    13.8    11.3 
 
Trade and other receivables                         6.8     2.9     2.4 
 
Trade and other payables                          (9.0)   (3.8)   (3.1) 
 
Interest-bearing loans                           (90.0)  (38.4)  (31.4) 
 
Net Assets at 30 September 2022                   286.3   122.0   100.0 
 
The property portfolio will next be valued by an external valuer during 
December 2022 and the net asset value per share as at 31 December 2022 will be 
announced in January 2023. 
 
Important information 
 
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. 
 
Enquiries: 
 
The Company Secretary 
Northern Trust International Fund Administration Services (Guernsey) Limited 
Trafalgar Court 
Les Banques 
St Peter Port 
Guernsey 
GY1 3QL 
Tel: [phone] 
 
Matthew Howard 
Scott Macrae 
Columbia Threadneedle Investment Business Limited 
Tel: [phone] 
 
 
 
END 
 
 

(END) Dow Jones Newswires

October 28, 2022 02:00 ET (06:00 GMT)