19th Dec 2008 10:32
CLOSE HIGH INCOME PROPERTIES PLC (the "Company")
REVISED ANNOUNCEMENT OF NAV
The board of Close High Income Properties PLC advises a correction to the net asset value at close of business on 30 November 2008 announced on 15 December 2008 in respect of the Ordinary Shares. This correction is the result of an administrative error by the Company's lending bank in relation to the interest rate swap valuation issued at 30 November 2008.
The net asset value per "D" Ordinary Share at 30 November 2008 of 36.92 pence per share remains unaffected by this correction.
The board advises that at close of business on 30 November 2008, the revised unaudited net asset value per Ordinary Share of 1 penny each of the Company was 56.07 pence (previously advised net asset value on 15 December 2008: 57.37 pence).
The effect of the lending bank's error was to understate the liability of the interest rate swap related to the Ordinary Share portfolio by £0.97 million. The movement represents an additional decrease in the net asset value by 1.30 pence per Ordinary Share. Whilst the total market valuation of the interest rate swap is currently in deficit, its value will run to zero over the term of the contract. The swap continues to provide a fixed rate of interest to the Company. It is not the intention of the Company to dispose of the swap and realise the deficit as the Company continues to benefit from fixed rate funding.
The net asset value is calculated under International Financial Reporting Standards ("IFRS").
Set out below is a comparison of the revised unaudited net asset value per Ordinary Share calculated over the period from 1 November 2008 to 30 November 2008 against the net asset value previously announced on 15 December 2008.
|
Ordinary Share as announced on 15 December 2008 |
Ordinary Share as revised |
|||
|
Pence per share |
% of opening NAV |
Pence per share |
% of opening NAV |
|
|
Net asset value per share as at 31 October 2008 |
58.05 |
58.05 |
||
|
Decrease in interest rate swap valuation |
(0.90) |
(1.55) |
(2.20) |
(3.79) |
|
Movement in revenue reserves |
0.22 |
0.38 |
0.22 |
0.38 |
|
Net asset value per share as at 30 November 2008 |
57.37 |
(1.17) |
56.07 |
(3.41) |
The property portfolio will next be valued by an external valuer at 31 December 2008 and the net asset value per share as at 31 December 2008 will be announced in January 2009.
Related Shares:
IMPT.L