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

TIDMJARA TIDMJARU TIDMJARE

RNS Number : 0672K

JPMorgan Global Core Real Assets Ld

19 December 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 30th November 2022 of 102.92 pence per share. During the quarter to 30th November 2022 the Company paid a dividend of 1 penny per share on 29th November 2022, bringing the total return for the quarter to -3.8% and the total return for the year to 30th November 2022 to +12.6%.

JARA's portfolio is continuing to perform resiliently in a volatile market environment. Across both public and private allocations, and measured in local currency, JARA's real estate, infrastructure and transportation allocations had return contributions of -0.35%, +0.24% and +0.34%, respectively, over the three month period . The 2.3% de preciation of the US dollar versus sterling over the quarter* negatively affected GBP returns.

* The GBP/USD exchange rate was 1.19090 as at 30th November 2022.

Dividends

JARA has now paid out 11 pence per share of dividends since IPO. The most recent quarterly dividend of 1 penny per share , represents a current annualised yield of 4.19%*, and 4% on issue price . The Board continues to expect the yield to be within the target range of 4 - 6% on issue price, as set out in the Company's IPO prospectus.

* Based on JARA's closing share price as at 30th November 2022.

Issued Share Capital

As at 30th November 2022, there were 219,407,952 shares in issue. Since its IPO in September 2019 JARA has seen its share capital expand by 47.3%.

Portfolio Construction

As at 30th November 2022, the Company's portfolio was valued at GBP223.8 million and is fully invested.

Sector exposure Percentage of NAV

 
                       Total Exposure   Private Asset   Public Asset 
                                           Exposure       Exposure 
 Real Estate Equity         47%              40%             7% 
 Real Estate Debt           10%              7%              3% 
 Infrastructure             20%              16%             4% 
 Transportation             22%              19%             3% 
--------------------  ---------------  --------------  ------------- 
 Total                      100%             82%            18% 
 

As at 30th November 2022. Numbers may not sum due to rounding.

Geographical exposure percentage of NAV

 
                  31.05.22     31.08.22      30.11.22 
 North America       53%          54%           55% 
 Asia Pacific        28%          27%           27% 
 Europe              16%          15%           15% 
 UK                  2%           3%            3% 
 Other               0%          0%           0% 
 Total              100%         100%          100% 
 
 

Numbers may not sum due to rounding.

Private Asset Portfolio Metrics

Please see below for the metrics of JARA's private investments. As at 30th November 2022, private asset exposure represented 82% of JARA's NAV, stable compared to the previous quarter.

Investments

-- 336 private investments and, at a more granular individual asset level, look through exposure to 1,203 individual assets (31(st) August 2022: 1,168)

 
                31.05.22   31.08.22   30.11.22 
 Investments      290        309        336 
 Assets          1,103      1,168      1,203 
 

Private Portfolio Operating Metrics

Discount Rates

The blended average discount rate is 7.4%. The asset level discount rate will vary by strategy, with real estate currently having a blended rate of 6.1% and Infrastructure and Transport being 9.0%. The discount rate will change to some degree as new assets are acquired. The blended average discount rate at the portfolio level has remained relatively stable over the last two quarters given the variety of sectors that the Company invests in.

 
                               31.05.22   31.08.22   30.11.22 
 Portfolio discount 
  rate                           7.2%       7.3%       7.4% 
----------------------------  ---------  ---------  --------- 
 Property                        6.2%       6.2%       6.1% 
 Infrastructure & Transport      8.6%       8.8%       9.0% 
 

Lease Duration

-- 5.2 years average lease duration in real estate and transportation, with under 10% expected to expire in 2023.

 
                      31.05.22   31.08.22   30.11.22 
 Weighted Lease 
  Duration (years)      5.5        5.1        5.2 
 

Occupancy

-- 97% occupancy of leased assets in real estate and transportation, with Q3 2022 collections being in line with expectations. At an overall portfolio level, occupancy and income receipts are in line with what the Manager expects as optimal portfolio performance.

 
              31.05.22   31.08.22   30.11.22 
 Occupancy      97%        97%        97% 
 

Loan To Value

-- 37% portfolio weighted average loan to value across private assets. Asset level LTVs will vary by strategy with the real estate blended LTV of 22% and Infrastructure and Transport blended LTV of 50%. The underlying strategies continue to take a conservative view on overall leverage use.

 
        31.05.22   31.08.22   30.11.22 
 LTV      31%        35%        37% 
 

Debt

-- 3.4% blended average cost of debt across the strategies, with 75.5% being fixed and 24.5% floating and a weighted average maturity of 5.0 years.

 
                     31.05.22   31.08.22   30.11.22 
 Debt Cost             2.9%       3.0%       3.4% 
 Fixed                 79%       76.5%      75.5% 
 Floating              21%       23.5%      24.5% 
 Maturity (years)      5.5        5.0        5.0 
 

Development Profile

-- The private asset portfolio had less than 3% exposure to development assets. This allocation allows the Manager, where appropriate, to capitalise on areas where construction is a more effective way to gain access due to the rich pricing. Currently the development allocation is mainly focused on areas such as logistics assets and energy 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.

 
                    31.05.22   31.08.22   30.11.22 
 Development Risk     <3%        <3%        <3% 
  Exposure 
 

Currency

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

 
 Currency      31.05.22   31.08.22   30.11.22 
 USD             63%        66%        66% 
 EUR              8%        10%         8% 
 AUD              7%         6%         6% 
 JPY              6%         6%         6% 
 GBP              1%         3%         3% 
 RMB              3%         3%         3% 
 SGD              3%         3%         3% 
 NZD              2%         2%         2% 
 CAD              2%         1%         1% 
 

Numbers may not sum to 100% due to rounding.

19th December 2022

Emma Lamb

JPMorgan Funds Limited - Company Secretary

Telephone [phone]

Notes

The Company aims to provide holders of the Ordinary Shares with a stable income and capital appreciation, measured on a constant currency basis, through exposure to a globally diversified portfolio of Core Real Assets in accordance with the Company's investment policy. The Company obtains 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCBRBDDCSBDGDL

(END) Dow Jones Newswires

December 19, 2022 02:00 ET (07:00 GMT)