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Share Name Share Symbol Market Type Share ISIN Share Description
Jpmorgan Global Core Real Assets Limited LSE:JARU London Ordinary Share GG00BJVKW831 ORD NPV (USD)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 1.2275 1.155 1.30 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 NAV and Disclosure Update

23/03/2021 7:00am

UK Regulatory (RNS & others)


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RNS Number : 1038T

JPMorgan Global Core Real Assets Ld

23 March 2021

LONDON STOCK EXCHANGE ANNOUNCEMENT

JPMORGAN GLOBAL CORE REAL ASSETS LIMITED

QUARTERLY NET ASSET VALUE AND DISCLOSURE UPDATE

Legal Entity Identifier: 549300D8JHZTH6GI8F97

JPMorgan Global Core Real Assets Limited ("JARA" or "the Company") announces an unaudited Net Asset Value ("NAV") per share as at 28th February 2021 of 87.96 pence. During the quarter to 28th February 2021 the Company paid a dividend of 1 penny per share on 25th February 2021 to shareholders on the register as at the close of business on 29th January 2021, bringing the total return for the quarter to -2.64%. Due to the timing of NAV releases from the underlying strategies, JARA's Transportation and Asia-Pacific Real Estate allocations are still held at cost.

Across both public and private allocations, and measured in local currency, JARA's real estate and infrastructure allocations rose 2.1% and 1.5%, respectively (1) . The 4.6% depreciation of the US dollar versus sterling over the quarter delivered a material drag to performance. The Manager however notes the reversal of some of this weakness post the quarter end.

(1) Latest performance statistics for the Infrastructure and Transport private strategy allocations are as at 31st December 2020.

Disclosure Update

Now JARA is near fully invested across its major strategies of Infrastructure, Global Real Estate and Transportation, the Manager is pleased to provide the following portfolio disclosure which it intends to continue to develop:

   1.    Occupancy and Asset Productivity 

As at the 31st December 2020, occupancy of leased assets was 97%, of which 96% paid income as expected in Q4 of 2020. These takings are not dissimilar to historical averages and show the benefit of a focus on high quality assets and counterparties, broadly diversified across asset, sector, geography and regulatory regimes.

Across the portfolio there is currently an exposure of under 5% to development assets, primarily focused within the real estate allocation where it is deemed there is a benefit to targeting newer industrial/logistics assets in prime locations. We feel this is an example of how JARA's underlying strategy teams are actively managing their portfolios to capitalise on local opportunities.

   2.   Lease/Contract Duration 

Current average lease duration was 4.9 years with just 3.2% of JARA's portfolio leases due to expire in 2021. We break out the lease/contract profile further below:

 
         Lease 
 Year     Expiry 
 2021     3.2% 
 2022     6.5% 
 2023     6.9% 
 2024     8.5% 
------  -------- 
 
   3.   Leverage 

The team also note that, despite the volatility of 2020, leverage remains moderate with JARA's portfolio weighted average loan to value being 33.8%. The blended LTV on the property allocation sits at 28.9% and the Infrastructure and Transport segment is at 55.6%. The underlying strategies generally take a conservative view on overall leverage use and this approach has benefitted them over the past year of COVID related volatility.

Where reported, the blended average cost of debt across the portfolio is 3.3%, with 82% being fixed and 18% floating and a weighted average maturity of 4.8 years.

 
 Maturity 
  year       % Maturing 
 2021           8.7% 
 2022          11.4% 
 2023          12.6% 
 2024           9.0% 
 2025 +        41.0% 
----------  ----------- 
 
   4.   Investment Progress 

The Company is currently 90% invested. This represents full investment of IPO proceeds as well as significant investment of any capital raised since IPO.

   5.   Ownership 

Another strength of the JPM Alternatives platform is, due to its scale, being able to gain access to large assets with control positions. Below we break out JARA's look through exposure. The vast majority of the asset base has majority or control positions and just 1.4% of the portfolio is minority owned.

 
 Ownership 
 Wholly Owned    63.8% 
 Majority 
  Owned          10.7% 
 Join Venture    24.2% 
 Minority 
  Owned           1.4% 
--------------  ------ 
 
   6.   Portfolio Diversity 

The portfolio as at the latest reporting dates of each of the underlying strategies has 262 investments and, at a more granular individual asset level, there is a look through exposure to 886 individual assets.

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. JARA remains invested in line with the original allocations as outlined in the 2019 IPO Prospectus.

   7.   Currency 

The main currency exposures of the portfolio (including liquidity funds) have diversified considerably since the last quarter end due to the drawdown into the other private strategies and they are as follows:

 
 Currency    % of NAV 
 USD            66.8% 
            --------- 
 EUR             8.6% 
            --------- 
 AUD             6.6% 
            --------- 
 JPY             5.6% 
            --------- 
 GBP             3.5% 
            --------- 
 RMB             2.9% 
            --------- 
 CAD             2.0% 
            --------- 
 NZD             1.3% 
            --------- 
 SGD             0.8% 
            --------- 
 HKD             0.6% 
            --------- 
 
   8.   Dividend Yield 

The most recent dividend of 1 penny per share paid to investors on 2 5th February 2021, brings the forward yield on a constant basis to 4.0 pence per share. As the portfolio approaches full investment, the Manager expects the level of income to increase further and the Board will assess the dividend level, which in the absence of unforeseen circumstances, it expects to be within the target range of 4%-6% yield on issue price as set out in the Company's prospectus.

   9.   Issuance 

During the period the Company issued no new shares and there are currently 208,807,952 shares in issue.

23rd March 2021

Alison Vincent

JPMorgan Funds Limited - Company Secretary

Telephone 0207 742 4000

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 rns@lseg.com or visit www.rns.com.

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END

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March 23, 2021 03:00 ET (07:00 GMT)

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