F&C UK Real Estate Investments Ltd - Net Asset Value

To:                  Company Announcements
Date:               25 January 2018
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 2017 was 104.9 pence. This represents an increase of 2.1 per cent from the net asset value per share as at 30 September 2017 of 102.7 pence and a NAV total return for the quarter of 3.4 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 2017 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 2017, which is expected to be paid in March 2018.

Share Price

The share price was 103.3 pence per share at 31 December 2017, which represented a discount of 1.5 per cent to the NAV per share announced above. The share price total return for the quarter was -1.4 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 2017 to 31 December 2017.

	Pence per share	% of opening NAV
Net asset value per share as at 30 September 2017	102.7
Unrealised movement in valuation of property portfolio (including the effect of gearing)	2.2	2.1*
Net asset value per share as at 31 December 2017	104.9	2.1

* The un-geared increase in the valuation of the property portfolio over the quarter to 31 December 2017 was 1.5%.

The net gearing as at 31 December 2017 was 28.2%#

# Bank debt (less net current assets) divided by fair value of investment properties

 

Portfolio Analysis	£m	% of portfolio as at 31 December 2017	% capital value movement in quarter
Offices	92.4	26.3	0.9
West End	28.2	8.0	1.8
South East	33.8	9.6	0.1
Rest of UK	30.4	8.7	1.0
Retail	61.8	17.6	(0.1)
West End	8.5	2.4	0.6
Rest of London	3.9	1.1	-
South East	18.3	5.2	1.0
Rest of UK	31.1	8.9	(1.0)
Industrial	122.6	35.0	3.6
South East	122.6	35.0	3.6
Retail Warehouse	73.9	21.1	0.4
Rest of London	9.1	2.6	-
Rest of UK	64.8	18.5	0.4
Total Property	350.7	100.0	1.5

Property Purchases and Sales

During the quarter, IRP Holdings Limited, a subsidiary of FCRE, sold 100A Princes Street, Edinburgh for £3,350,000 which compared with its valuation of £3,300,000 as at 30 September 2017.

There were no other purchases or sales in the quarter.

 

Summary Balance Sheet

	£m	Pence per share	% of Net Assets
Property Portfolio per Valuation Report	350.7	145.7	138.9
Adjustment for lease incentives	(4.3)	(1.8)	(1.7)
Fair Value of Property Portfolio	346.4	143.9	137.2
Cash	9.6	4.0	3.8
Trade and other receivables	5.2	2.2	2.1
Trade and other payables	(6.5)	(2.7)	(2.6)
Interest-bearing loans	(102.2)	(42.5)	(40.5)
Net Assets at 31 December 2017	252.5	104.9	100.0

The property portfolio will next be valued by an external valuer during March 2018 and the net asset value per share as at 31 March 2018 will be announced in April 2018.

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]

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