JPMorgan Global Core Real Assets Ld Quarterly Net Asset Value and Portfolio Update (2191B)

TIDMJARA TIDMJARU TIDMJARE

RNS Number : 2191B

JPMorgan Global Core Real Assets Ld

09 June 2021

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") per share as at 31st May 2021 of 88.01 pence. During the quarter to 31st May 2021 the Company paid a dividend of 1 penny per share on 27th May 2021 , bringing the total return for the quarter to +1.2%.

Across both public and private allocations, and measured in local currency, JARA's real estate, infrastructure and transportation allocations returned 3.8%, 2.3% and 1.2% respectively over the three month period . This local currency return is in line with JARA's long term return targets. The 1.7% depreciation of the US dollar versus sterling* over the quarter delivered a drag to performance.

Of particular note was how the gradual global reopening benefited a range of real estate sectors in both the public and private markets, including those which have struggled most as a result of the pandemic. The transportation market has also benefited from the increase in economic activity with measures such as port call data and utilization levels looking strong. The Company's listed allocation provided notably strong positive performance over the period.

* The GBP/USD exchange rate was 1.4215 as at 31st May 2021.

Portfolio

As at 31st May 2021, the Company's invested portfolio was valued at GBP176.1 million. The Company has uncalled commitments of GBP8.1 million.

During the period a further $13.8 million of committed capital was called by the Asia-Pacific Real Estate Strategy and this will serve to materially increase the exposure to industrial/ logistics assets within the property allocation whilst further increasing JARA's revenue. This capital call brought JARA to 96% invested.

Sector exposure

 
                   Exposure (%   Private asset   Public asset 
                     of NAV)      exposure (%     exposure (% 
                                    of NAV)         of NAV) 
 Real Estate           53%            38%            15% 
 Infrastructure        24%            18%             6% 
 Transportation        20%            15%             5% 
----------------  ------------  --------------  ------------- 
 Total                 96%            71%            25% 
 

As at 31st May 2021

Main Geographical exposures

 
                  Exposure (% of NAV) 
 North America            49% 
 Asia Pacific             29% 
 Europe                   15% 
 UK                       3% 
---------------  -------------------- 
 Total                    96% 
 

As at 31st May 2021

Private asset portfolio metrics (as at 31st May 2021)

   -- 232 investments (28th February 2021: 235), and at a more granular individual asset level, look through exposure 
      to 880 individual assets (28th February 2021: 831).   As the underlying strategies are actively managed, the 
      managers will, if appropriate, look to buy or sell private investments to take advantage of accretive 
      opportunities they see in the market. This may impact the number of investments held between quarters. 
 
   -- 7.6% average discount rate (28th February 2021: 7.5%). 
 
   -- 4.9 years average lease duration in real estate and transportation (28th February 2021: 4.9 years), with just 7% 
      of JARA's portfolio leases due to expire in 2021. 
 
   -- 97% occupancy of leased assets in real estate and transportation (28th February 2021: 96%), of which 97% payed 
      income as expected in Q1 of 2021, in line with optimal portfolio performance. 
 
   -- 40% portfolio weighted average loan to value (28th February 2021: 42%). Real estate blended LTV of 30% and 
      Infrastructure and Transport blended LTV of 51%. 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. 
 
   -- 3.1% blended average cost of debt across the strategies (28th February 2021: 3.3%), with 81% being fixed and 19% 
      floating and a weighted average maturity of 5.9 years (28th February 2021: 4.8 years). 
 
   -- The private asset portfolio had less than 3% exposure to development assets (28th February 2021: <3%), focused 
      within the property strategies, taking advantage of the disparity between logistics and infill assets pricing 
      when compared with their construction costs. 

Dividends

The most recent quarterly dividend of 1 penny per share was paid to investors on 2 7th May 2021, representing an annualized yield of 4.0 pence per share. 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.

Issued share capital

There was no change in the number of shares in issue during the quarter. As at 31st May 2021, there were 208,807,952 shares in issue.

Currency

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

 
 Currency    % of NAV 
 USD            60.5% 
 EUR            11.3% 
 AUD             7.7% 
 JPY             6.8% 
 RMB             3.6% 
 GBP             2.8% 
 SGD             2.3% 
 CAD             2.1% 
 NZD             1.9% 
 

As at 31 May 2021

9th June 2021

Alison Vincent

JPMorgan Funds Limited - Company Secretary

Telephone [phone]

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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June 09, 2021 02:00 ET (06:00 GMT)