JPMorgan Global Core Real Assets Ld Quarterly NAV and Portfolio Update - Replacement (9048T)

TIDMJARA TIDMJARU TIDMJARE

RNS Number : 9048T

JPMorgan Global Core Real Assets Ld

22 March 2023

The following replaces the 'Quarterly Net Asset Value And Portfolio Update' announcement released on 22 March 2023 at 7.00am under RNS No 7817T.

The changes made are solely related to the share price returns and net asset value returns quoted in the first paragraph. All other aspects remain unchanged.

The full amended text is shown below.

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 2023 of 102.16 pence per share. During the quarter to 28th February 2023 the Company paid a dividend of 1.05 pence per share on 24th February 2023, bringing the NAV total return for the quarter to +0.3% and +11.8% for the year, while the total share price return for the year to 28th February 2023 was +7.0%.

An analysis of the components to this NAV and the relevant dates for their valuation is provided below:

Strategies

 
 Name                        Date of price for     % of JARA's NAV 
                                  Strategy         as at 28 February 
                                                         2023 
 US Real Estate Equity        31 December 2022          21.2% 
                            -------------------  ------------------- 
 Asia-Pacific Real Estate 
  Equity                      31 December 2022          18.1% 
                            -------------------  ------------------- 
 US Real Estate Debt          31 December 2022           7.1% 
                            -------------------  ------------------- 
 Transportation              30 September 2022          18.6% 
                            -------------------  ------------------- 
 Infrastructure               31 December 2022          17.0% 
                            -------------------  ------------------- 
 Liquid Strategy              28 February 2023          18.0% 
                            -------------------  ------------------- 
 

Across both public and private allocations, and measured in local currency, JARA's real estate exposure contributed -0.81% whilst infrastructure and transportation contributed +0.14%. This again, shows stable, resilient returns during a period which was volatile for many private assets. This was driven by JARA's diversification across different real asset types and geographies, in both equity and debt. The US dollar delivered a drag to performance over the Company's quarter to 28th February 2023 due to its decline versus sterling*. This was offset by the positive currency moves seen in the private strategies during their latest quarterly cycle (quarter end dates given in the table above).

* The GBP/USD exchange rate was 1.21065 as at 28th February 2023.

Dividends

The most recent quarterly dividend of 1.05 pence per share was paid to shareholders on 24th February 2023. This brings the total dividends for the year to 28th February 2023 to 4.05 pence per share which represents a current annualised yield of 4.67%*, and 4.05% 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 28th February 2023.

Issued Share Capital

As at 28th February 2023, there were 219,407,952 shares in issue.

Portfolio Construction

As at 28th February 2023, the Company's portfolio was valued at GBP221.5 million and is fully invested.

Sector exposure Percentage of NAV

 
                       Total Exposure   Private Asset   Public Asset 
                                           Exposure       Exposure 
 Real Estate Equity         46%              39%             7% 
 Real Estate Debt           10%              7%              3% 
 Infrastructure             21%              17%             4% 
 Transportation             22%              19%             3% 
--------------------  ---------------  --------------  ------------- 
 Total                      100%             82%            18% 
 

As at 28(th) February 2023. Numbers may not sum due to rounding.

Geographical exposure percentage of NAV

 
                  31.08.22     30.11.22      28.02.23 
 North America       54%          55%           54% 
 Asia Pacific        27%          27%           28% 
 Europe              15%          15%           16% 
 UK                  3%           3%            2% 
 Other               0%          0%           0% 
 Total              100%         100%          100% 
 
 

As at 28(th) February 2023. Numbers may not sum due to rounding.

Private Asset Portfolio Metrics

Please see below for the metrics of JARA's private investments. As at 28th February 2023, private asset exposure represented 82% of JARA's NAV, stable compared to the previous quarter.

Investments

-- 335 private investments and, at a more granular individual asset level, look through exposure to 1,230 individual assets (30th November 2022: 1,203)

 
                31.08.22   30.11.22   28.02.23 
 Investments      309        336        335 
 Assets          1,168      1,203      1,230 
 

Private Portfolio Operating Metrics

Discount Rates

The blended average discount rate is 7.9%. The asset level discount rate will vary by strategy, with real estate, including debt currently having a blended rate of 7.5% and Infrastructure and Transport being 9.2%. The increase in the real estate discount rate has been driven by the inclusion of the debt allocation in this number. The blended average discount rate at the portfolio level has increased over the last couple of quarters reflecting the higher rate environment the Company now operates in.

 
                               31.08.22   30.11.22   28.02.23 
 Portfolio discount 
  rate                           7.3%       7.4%       7.9% 
----------------------------  ---------  ---------  --------- 
 Property                        6.2%       6.1%       7.5% 
 Infrastructure & Transport      8.8%       9.0%       9.2% 
 

Lease Duration

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

 
                      31.08.22   30.11.22   28.02.23 
 Weighted Lease 
  Duration (years)      5.1        5.2        4.8 
 

Occupancy

-- 96% occupancy of leased assets in real estate and transportation, with Q4 2022 collections being in line with expectations. At an overall portfolio level, occupancy and income receipts are in line with what the Manager expects.

 
              31.08.22   30.11.22   28.02.23 
 Occupancy      97%        97%        96% 
 

Loan To Value (LTV)

-- 37% portfolio weighted average loan to value across private assets. Asset level LTVs will vary by strategy with the real estate average LTV of 25% and Infrastructure and Transport blended LTV of 47%. The underlying strategies continue to take a conservative view on overall leverage use.

 
        31.08.22   30.11.22   28.02.23 
 LTV      32%        37%        37% 
 

Debt

-- 3.7% blended average cost of debt across the strategies, with 77.4% being fixed and 22.6% floating and a weighted average maturity of 5.2 years.

 
                     31.08.22   30.11.22   28.02.23 
 Debt Cost             3.0%       3.4%       3.7% 
 Fixed                76.5%      75.5%      77.4% 
 Floating             23.5%      24.5%      22.6% 
 Average Maturity 
  (years)              5.0        5.0        5.2 
 

Development Profile

-- Each underlying strategy has the capacity to engage in a small degree of development with the private asset portfolio having less than 3% exposure to development assets. This small allocation allows the Manager, where appropriate, to capitalise on areas where construction is a more effective way to gain access to assets or sectors due to the rich pricing in the secondary market. Currently the development allocation is mainly focused on areas such as residential housing and energy transportation.

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

 
                    31.08.22   30.11.22   28.02.23 
 Development Risk     <3%        <3%        <3% 
  Exposure 
 

Currency

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

 
 Currency      31.08.22   30.11.22   28.02.23 
 USD             66%        66%        65% 
 EUR             10%         8%        11% 
 JPY              6%         6%         7% 
 AUD              6%         6%         5% 
 RMB              3%         3%         3% 
 SGD              3%         3%         3% 
 NZD              2%         2%         2% 
 GBP              3%         3%         2% 
 CAD              1%         1%         1% 
 

Numbers may not sum to 100% due to rounding.

22nd March 2023

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.

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March 22, 2023 10:41 ET (14:41 GMT)