10th Jan 2017 07:00
F&C UK Real Estate Investments Ltd - Net Asset Value(s)F&C UK Real Estate Investments Ltd - Net Asset Value(s)
PR Newswire
London, January 9
To: Company AnnouncementsDate: 10 January 2017Company: F&C UK Real Estate Investments Limited
Subject: Net Asset Value
Net Asset Value
The unaudited net asset value per share of F&C UK Real Estate Investments Limited (“FCRE”) as at 31 December 2016 was 97.2 pence. This represents an increase of 1.5 per cent from the net asset value per share as at 30 September 2016 of 95.8 pence.
The net asset value is based on the external valuation of the Group's property portfolio prepared by Cushman & Wakefield.
The net asset value is calculated under International Financial Reporting Standards ("IFRS").
The net asset value includes all income to 31 December 2016 and is calculated after deduction of all dividends paid prior to that date. It does not include a provision for the dividend for the quarter to 31 December 2016, which is expected to be paid in March 2017.
Share Price
The share price was 99.0 pence per share at 31 December 2016, which represented a premium of 1.9 per cent to the NAV per share announced above. The share price total return for the quarter was 5.3 per cent.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net asset value per share calculated under IFRS over the period from 30 September 2016 to 31 December 2016.
| Pence per share | % of opening NAV | |
| Net asset value per share as at 30 September 2016 | 95.8 | |
| Unrealised movement in valuation of property portfolio (including the effect of gearing) | 1.1 | 1.2* |
| Movement in revenue reserves | 0.3 | 0.3 |
| Net asset value per share as at 31 December 2016 | 97.2 | 1.5 |
* The un-geared increase in the valuation of the property portfolio over the quarter to 31 December 2016 was 0.8%.
The net gearing as at 31 December 2016 was 28.9%#
# Bank debt (less net current assets) divided by fair value of investment properties
| Portfolio Analysis | £m | % of portfolio as at 31 December 2016 | % capital value movement in quarter |
| Offices | 89.2 | 26.9 | (1.3) |
| West End | 25.9 | 7.8 | - |
| South East | 33.2 | 10.0 | (0.8) |
| Rest of UK | 30.1 | 9.1 | (2.8) |
| Retail | 69.7 | 21.0 | 2.2 |
| West End | 7.5 | 2.3 | 0.3 |
| Rest of London | 7.9 | 2.4 | 13.7 |
| South East | 18.1 | 5.4 | 3.0 |
| Rest of UK | 36.2 | 10.9 | - |
| Industrial | 98.7 | 29.8 | 2.7 |
| South East | 98.7 | 29.8 | 2.7 |
| Retail Warehouse | 73.9 | 22.3 | (0.6) |
| Rest of London | 8.5 | 2.6 | - |
| Rest of UK | 65.4 | 19.7 | (0.6) |
| Total Property | 331.5 | 100.0 | 0.8 |
Property Purchases and Sales
The Company exchanged on the sale of 17-21 George Street, Croydon during December 2016 for £4 million at an initial yield of 4.6 per cent. This compares against the September 2016 valuation of £3.05 million and this uplift has been reflected in the December 2016 valuation. The transaction is subject to a delayed completion date of 24th January 2017.
Summary Balance Sheet
| £m | Pence per share | % of Net Assets | |
| Property Portfolio per Valuation Report | 331.5 | 138.9 | 142.9 |
| Adjustment for lease incentives | (5.1) | (2.1) | (2.2) |
| Fair Value of Property Portfolio | 326.4 | 136.8 | 140.7 |
| Cash | 12.0 | 5.0 | 5.2 |
| Trade and other receivables | 6.4 | 2.7 | 2.8 |
| Trade and other payables | (7.8) | (3.3) | (3.4) |
| Interest-bearing loans | (105.0) | (44.0) | (45.3) |
| Net Assets at 31 December 2016 | 232.0 | 97.2 | 100.0 |
The property portfolio will next be valued by an external valuer during March 2017 and the net asset value per share as at 31 March 2017 will be announced in April 2017.This announcement contains inside information.Enquiries:The Company SecretaryNorthern Trust International Fund Administration Services (Guernsey) LimitedTrafalgar CourtLes BanquesSt Peter PortGuernseyGY1 3QLTel: 01481 745001Fax: 01481 745051Peter LoweScott MacraeF&C Investment Business LtdTel: 0207 628 8000Fax: 0131 225 2375
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