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Share Name Share Symbol Market Type Share ISIN Share Description
Jpmorgan Global Core Real Assets Limited LSE:JARE London Ordinary Share GG00BJVKW831 ORD NPV (EUR)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 1.1175 0.99 1.245 1.1175 1.1175 1.1175 0.00 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - - 0

JPMorgan Global Core Real Assets Ld Quarterly Net Asset Value and Portfolio Update

18/03/2022 7:01am

UK Regulatory (RNS & others)


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TIDMJARA TIDMJARU TIDMJARE

RNS Number : 2072F

JPMorgan Global Core Real Assets Ld

18 March 2022

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN GLOBAL CORE REAL ASSETS LIMITED

QUARTERLY NET ASSET VALUE AND PORTFOLIO UPDATE

Legal Entity Identifier: 549300D8JHZTH6GI8F97

JPMorgan Global Core Real Assets Limited ("JARA" or "the Company") announces an unaudited Net Asset Value ("NAV") as at 28th February 2022 of 94.99 pence per share. During the quarter to 28th February 2022 the Company paid a dividend of 1 penny per share on 25th February 2022, bringing the total return for the quarter to +0.96%.

JARA's portfolio is continuing to perform well since the Company has been near fully invested. Across both public and private allocations, and measured in local currency, JARA's real estate, infrastructure and transportation allocations returned 2.9%, 2.1% and 2.1%, respectively, over the three month period . The 0.7% depreciation of the US dollar versus sterling over the quarter* offset some of this strong asset level return. We are again pleased to see JARA's portfolio deliver positive returns over what has been a very volatile period for most asset classes.

As per the announcement made on 4th March 2022, the portfolio has no exposure to Russia or Ukraine at a net asset value or income level. JARA's core approach to investing should, as it did during the worst of the COVID related volatility, result in a relatively stable asset level performance. The portfolio has large exposures to logistics, long dated infrastructure cash flows and, via the transport allocation, to backbone transport assets such as liquid natural gas tankers, as well as some smaller allocations to offshore renewable energy maintenance vessels; all areas of interest given the current macro background.

JARA has now paid out 8 pence per share of dividends since IPO and the current dividend yield is 4.7% as at the closing price on 16th March.

   *   The GBP/USD exchange rate was 1.34175 as at 28th February 2022 . 

Dividends

The most recent quarterly dividend of 1 penny per share was paid to investors on 25th February 2022 , representing an annualized yield of 4.7%* . In the absence of unforeseen circumstances, the Board expects the ongoing yield to be within the target range of 4 - 6% yield on issue price as set out in the Company's IPO prospectus.

   *   Based on JARA's closing share price as at 16th March 2022. 

Issued Share Capital

No new shares were issued over the quarter, As at 28th February 2022, there were 217,407,952 shares in issue. Since its IPO in Sept 2019 JARA has seen its share capital expand by 45.9%.

Portfolio Construction

As at 28th February 2022, the Company's portfolio was valued at GBP204.7 million and was 99% invested. As announced on 4th March 2022, the Company made its initial commitment into US Real Estate Mezzanine Debt. This investment will take JARA to being effectively 100% invested and was funded from its cash balance and by reducing the liquid real asset allocation portion of JARA's portfolio.

This investment will provide JARA with exposure to a portfolio of 15 existing loans, with a bias towards multifamily and office loans. The weighted average duration of the portfolio of loans is 2.7 years. At full investment, and with the addition of the Mezzanine Debt strategy, the Company will have increased its sensitivity to rising interest rates, given the Mezzanine strategy's 64% exposure to floating rate loans.

In 2021 commercial real estate markets were on a very positive path. Investment sales volumes were strong, debt flows remained high, and core real estate equity returns climbed to approximately 20% for the full year. Core real estate mezzanine debt benefits from these strong underlying fundamentals and continues to offer an attractive relative value to other fixed income investment products seeking similar current income return.

Sector exposure Percentage of NAV

 
                          Total Exposure   Private Asset   Public Asset 
                                              Exposure       Exposure 
 Real Estate Equity            47%              39%             8% 
 Real Estate Mezzanine          8%              4%              4% 
 Infrastructure                23%              17%             5% 
 Transportation                21%              18%             3% 
-----------------------  ---------------  --------------  ------------- 
 Total                         100%             78%            21% 
 

As at 28th February 2022 . Numbers may not sum due to rounding.

Geographical exposure Percentage of NAV

 
                   31.8.21   30.11.21   28.02.22 
 North America      48%        49%        54% 
 Asia Pacific       29%        29%        29% 
 Europe             15%        16%        16% 
 UK                  3%         1%         2% 
 Other              1%        1%        0% 
 Total              95%        96%        100% 
 
 

Geographical exposures only include invested capital.

Private Asset Portfolio Metrics

The private assets have the most complete data set compared to the listed portion of JARA's portfolio given their less consistent and non standardised reporting; therefore below we have included the aggregated detail from the private portion of JARA's portfolio to allow further analysis and comparison on a time series basis. Private asset exposure currently represents 78% of JARA's NAV.

Investments

-- 268 investments and, at a more granular individual asset level, look through exposure to 1,023 individual assets (30th November 2021: 957)

 
                31.8.21   30.11.21   28.02.22 
 Investments      236       251        268 
 Assets           922       957       1,023 
 

Private Portfolio Operating Metrics

Discount Rates

-- The blended average discount rate is 7.3%. Asset level discount rate will vary by strategy, with real estate currently having a blended rate of 6.1% and Infrastructure and Transport being 8.6%. The discount rate will change to some degree as new assets are acquired. The discount rates have remained relatively stable over the last couple of quarters and changes are primarily driven by portfolio acquisitions and disposals rather than a changing of assumptions.

 
                               31.8.21   30.11.21   28.2.22 
 Portfolio discount 
  rate                          7.5%       7.4%      7.3% 
----------------------------  --------  ---------  -------- 
 Property                       6.3%       6.2%      6.1% 
 Infrastructure & Transport     8.7%       8.8%      8.6% 
 

Lease Duration

-- 4.4 years average lease duration in real estate and transportation, with just 7% of JARA's portfolio leases due to expire in 2022.

 
                      31.8.21   30.11.21   28.02.22 
 Weighted Lease 
  Duration (years)      4.7       4.7        4.4 
 

Occupancy

-- 98% occupancy of leased assets in real estate and transportation, of which 98% paid income as expected in Q4 2021, in line with Q3 2021. At an overall portfolio level, occupancy and income receipts are in line with what the manager expects as optimal portfolio performance.

 
              31.8.21   30.11.21   28.02.22 
 Occupancy      97%       98%        98% 
 

Loan To Value

-- 39% portfolio weighted average loan to value across private assets. Asset level LTVs will vary by strategy with the real estate blended LTV of 31% and Infrastructure and Transport blended LTV of 48%. The underlying strategies generally take a conservative view on overall leverage use and this approach has benefitted them over the last year of COVID related volatility.

 
        31.8.21   30.11.21   28.02.22 
 LTV      40%       39%        39% 
 

Debt

-- 3.0% blended average cost of debt across the strategies, with 78% being fixed and 22% floating and a weighted average maturity of 5.7 years .

 
                     31.8.21   30.11.21   28.02.22 
 Debt Cost            3.2%       3.2%       3.0% 
 Fixed                 82%       82%        78% 
 Floating              18%       19%        22% 
 Maturity (years)      5.6       5.9        5.7 
 

Development Profile

-- The private asset portfolio had less than 3% exposure to development assets. This allocation allows the Manager, where appropriate, to capitalize on areas where construction is a more effective way to gain access to assets due to the rich pricing in markets. Currently the development allocation is mainly focused on three areas; Logistics assets, US single family residential (collectively representing $2.2bn of value) and Energy Logistic transportation. Each underlying strategy has the capacity to engage in a small degree of development and this demonstrates the strength and flexibility of the JPM Alternatives Platform.

We would expect construction exposure across JARA's portfolio to remain relatively low on an aggregate basis.

 
                    31.8.21   30.11.21   28.02.22 
 Development Risk     <3%       <3%        <3% 
  Exposure 
 

Currency

The main currency exposures of the portfolio (including liquidity funds) are as follows:

 
 Currency      31.8.21   30.11.21   28.02.22 
 USD             59%       60%        64% 
 EUR             10%       10%         9% 
 AUD             8%         8%         7% 
 JPY             6%         6%         6% 
 GBP             5%         5%         1% 
 RMB             3%         3%         3% 
 SGD             2%         2%         3% 
 CAD             2%         2%         2% 
 NZD             2%         2%         2% 
 

As at 28th February 2022 - may not sum to 100% due to rounding.

18th March 2022

Alison Vincent

JPMorgan Funds Limited - Company Secretary

Telephone 0207 742 4000

Notes

The Company aims to provide holders of the Ordinary Shares with a stable income and constant currency capital appreciation through exposure to a globally diversified portfolio of Core Real Assets in accordance with the Company's investment policy. The Company is seeking exposure to Core Real Assets through various real asset strategies, namely: Global Infrastructure, Global Real Estate, Global Transport and Global Liquid Real Assets. J.P. Morgan's Alternative Solutions Group has the primary responsibility for managing the Company's portfolio.

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END

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March 18, 2022 03:01 ET (07:01 GMT)

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