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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| F&c Commercial Property Trust Limited | LSE:FCPT | London | Ordinary Share | GG00B4ZPCJ00 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 121.20 | 121.40 | 121.60 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMBCPT
To: Company Announcements
Date: 31 October 2022
Company: Balanced Commercial Property Trust Limited
LEI: 213800A2B1H4ULF3K397
Subject: NAV release for Balanced Commercial Property Trust Ltd (the
"Company" or "BCPT")
Headlines
* Net Asset Value total return of -5.2 per cent for the quarter ended 30
September 2022 (YTD total return 11.7 per cent)
* Share Price total return of -27.2 per cent for the quarter ended 30
September 2022 (YTD total return -21.2 per cent)
* Three monthly dividends of 0.4 pence per share, equating to an annualised
dividend yield of 6.0 per cent based on 30 September 2022 share price.
Net Asset Value
The unaudited net asset value ('NAV') per share of the Company as at 30
September 2022 was 139.6 pence. This represents a decrease of 6.1 per cent from
the unaudited NAV per share as at 30 June 2022 of 148.6 pence and a NAV total
return for the quarter of -5.2 per cent.
The NAV has been calculated under International Financial Reporting Standards
('IFRS'). It is based on the external valuation of the Company's property
portfolio which has been prepared by CBRE Limited.
The NAV includes all income to 30 September 2022 and is calculated after
deduction of all dividends paid prior to that date. The EPRA Net Tangible
Assets (NTA) per share as at 30 September 2022, which is adjusted to remove the
fair value of the interest rate swap, was 139.3 pence per share.
Analysis of Movement in NAV
The following table provides an analysis of the movement in the unaudited NAV
per share for the period from 30 June 2022 to 30 September 2022 (including the
effect of gearing):
% of
Pence opening
per NAV per
£m share share
NAV as at 30 June 2022 1,069.6 148.6
Unrealised decrease in valuation of (70.2) (9.8) (6.7)
property portfolio
Movement in fair value of interest rate 0.7 0.1 0.1
swap
Share buy-backs (20.7) 0.7 0.5
Other net revenue 8.3 1.2 0.8
Dividends paid (8.5) (1.2) (0.8)
NAV as at 30 September 2022 979.2 139.6 (6.1)
Valuation
The capital value of the Company's portfolio decreased by 5.4 per cent over the
quarter. Sentiment towards real estate turned negative over the period in the
face of, in particular, significant inflationary pressures and increasing
interest rates. The Government's mini budget further fuelled the negative
sentiment as the reaction of the bond market triggered a liquidity event for
pension funds. We are already beginning to witness more property coming to the
market as pension funds look to raise liquidity and this is likely to put
further downward pressure on future valuations.
Industrial and logistics, comprising 31.4 per cent of the portfolio, where
yields had been bid down to historically low levels were impacted by the rising
costs of finance and increasing gilt yields. The capital markets reacted to
these increases and pricing softened. The equivalent yield on the Company's
industrial and logistics properties moved out 65 basis points resulting in a
fall in value of 12 per cent. The occupational market remains resilient
recording historically low rates of vacant space.
Against this backdrop, the Company's retail warehouses which had also
experienced significant yield compression in the last 12 months, were subject
to a pricing rebase, leading to valuation falls of 7.4 per cent and a 41 basis
point outward movement on the sub-sector equivalent yield. At Newbury Retail
Park, a new letting to Pets at Home contracted which brings another new
retailer use to the park.
Whilst downward valuation movements in the industrial and retail warehousing
sectors are meaningful in isolation, they represent only a partial reversal of
capital gains generated in the first half of 2022 of 16.4 per cent and 21.9 per
cent respectively.
St Christopher's Place increased in value by 0.3 per cent. Activity and
footfall continue to improve as office workers return and tourist visits
increase.
The valuation of the office portfolio fell by 1.6 cent reflecting a 10 basis
point shift in the sector's equivalent yield.
Share Price
Negative share price returns have been experienced across the REIT sector with
additional downward pressure in the aftermath of the mini budget. As at 30
September 2022, the share price was 80.2 pence per share, which represented a
discount of 42.6 per cent to the NAV per share. The share price total return
for the quarter to 30 September 2022 was -27.2 per cent.
Cash and Borrowings
The Company had £64.3 million of available cash as at 30 September 2022 and has
committed approximately £18 million of this to development opportunities. As
previously announced, this is primarily at Burton-Upon-Trent and there is also
a development at Estuary Business Park, Speke, Liverpool where construction
cost is expected to be in the region of £4.8 million and a redevelopment of an
obsolete warehouse unit at the Cowdray Centre, Colchester with costs estimated
to be in the region of £5.7million.
There is a £260 million term loan in place with L&G which matures in December
2024. The Company also has a £50 million term loan with Barclays, along with an
additional undrawn £50 million revolving credit facility. The Barclays facility
expires on 31 July 2023, with the option of a one-year extension. As at 30
September 2022, the Company's loan to value, net of cash ('LTV') was 20.0 per
cent.
Dividend
The Company paid three monthly property income distributions at a rate of 0.4
pence per share during the quarter.
Share Buybacks
The Company bought back 18,335,738 ordinary shares during the quarter. As at 30
September 2022 the Company had 97,815,921 shares held in treasury, acquired at
an average discount to NAV of 20.8 per cent.
Portfolio Analysis - Sector Breakdown
Portfolio % of % capital
Value portfolio as value shift
£m at (including
30 September purchases and
2022 CAPEX)
Offices 379.8 30.7 -1.6
West End 89.8 7.3 0.3
South East 65.3 5.3 -4.3
South West 30.1 2.4 -2.3
Rest of UK 175.3 14.1 -1.4
City 19.3 1.6 -4.0
Retail 188.7 15.3 0.2
West End 159.9 13.0 0.2
South East 28.8 2.3 0.0
Industrial 387.2 31.4 -12.0
South East 57.7 4.7 -11.6
Rest of UK 329.5 26.7 -12.1
Retail 148.0 12.0 -7.4
Warehouse
Alternatives 130.2 10.6 0.6
Total Property 1,233.9 100.0 -5.4
Portfolio
Portfolio Analysis - Geographic Breakdown
Market % of portfolio
Value as at
£m 30 September
2022
West End 308.2 25.0
South East 296.3 24.0
Midlands 282.7 22.9
North West 161.1 13.1
Scotland 136.2 11.0
South West 30.1 2.4
Rest of London 19.3 1.6
Total Property Portfolio 1,233.9 100.0
Top Ten Investments
Sector
Properties valued in excess of £200 million
London W1, St Christopher's Place Estate * Mixed
Properties valued between £70 million and £100
million
Newbury, Newbury Retail Park Retail
Warehouse
Solihull, Sears Retail Park Retail
Warehouse
Properties valued between £50 million and £70
million
Winchester, Burma Road Alternative
Properties valued between £40 million and £50
million
Chorley, Unit 6 and 8 Revolution Park Industrial
London SW19, Wimbledon Broadway ** Mixed
Liverpool, Unit 1, G.Park Industrial
Birmingham, Unit 8 Hams Hall Industrial
Markham Vale, Orion 1 & 2 Industrial
Daventry, Site E4, DIRFT Industrial
* Mixed use property of retail, office, food/beverage, and residential space.
** Mixed use property of retail, food/beverage, and leisure space.
Summary Balance Sheet
£m Pence % of
per Net
share Assets
Property Portfolio 1,233.9 176.0 126.0
Adjustment for lease incentives (21.1) (3.0) (2.1)
Fair Value of Property Portfolio 1,212.8 173.0 123.9
Trade and other receivables 30.3 4.3 3.1 Cash and cash equivalents 64.3 9.2 6.6 Current Liabilities (17.0) (2.4) (1.7) Total Assets (less current liabilities) 1,290.4 184.1 131.9 Non-Current liabilities (2.1) (0.3) (0.2) Interest-bearing loans (309.1) (44.2) (31.7) Net Assets at 30 September 2022 979.2 139.6 100.0 The next quarterly valuation of the property portfolio will be conducted by CBRE Limited during December 2022 and it is expected that the unaudited NAV 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: Richard Kirby Columbia Threadneedle REP AM plc Tel: 0207 499 2244 Innes Urquhart Winterflood Securities Limited Tel: 0203 100 0265 END
(END) Dow Jones Newswires
October 31, 2022 03:00 ET (07:00 GMT)
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