27th Oct 2016 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, October 26
To: Company AnnouncementsDate: 27 October 2016Company: 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 30 September 2016 was 95.8 pence. This represents a decrease of 3.4 per cent from the net asset value per share as at 30 June 2016 of 99.2 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 30 September 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 30 September 2016, which is expected to be paid in December 2016.
Share Price
The share price was 95.3 pence per share at 30 September 2016, which represented a discount of 0.5 per cent to the NAV per share announced above. The share price total return for the quarter was 9.1 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 June 2016 to 30 September 2016.
| Pence per share | % of opening NAV | |
| Net asset value per share as at 30 June 2016 | 99.2 | |
| Unrealised movement in valuation of property portfolio (including the effect of gearing) | (3.1) | (3.1)* |
| Realised loss on sale of property | (0.1) | (0.1) |
| Movement in revenue reserves | (0.2) | (0.2) |
| Net asset value per share as at 30 September 2016 | 95.8 | (3.4) |
* The un-geared decrease in the valuation of the property portfolio over the quarter to 30 September 2016 was 2.3%.
The net gearing as at 30 September 2016 was 29.4%#
# Bank debt (less net current assets) divided by fair value of investment properties
| Portfolio Analysis | £m | % of portfolio as at 30 September 2016 | % capital value movement in quarter |
| Offices | 90.4 | 27.5 | (3.1) |
| West End | 25.9 | 7.9 | - |
| South East | 33.5 | 10.2 | (5.4) |
| Rest of UK | 31.0 | 9.4 | (3.1) |
| Retail | 68.2 | 20.7 | (1.4) |
| West End | 7.5 | 2.3 | - |
| Rest of London | 6.9 | 2.1 | - |
| South East | 17.6 | 5.3 | (0.1) |
| Rest of UK | 36.2 | 11.0 | (2.2) |
| Industrial | 96.0 | 29.2 | 0.4 |
| South East | 96.0 | 29.2 | 0.4 |
| Retail Warehouse | 74.3 | 22.6 | (5.2) |
| Rest of London | 8.5 | 2.6 | - |
| Rest of UK | 65.8 | 20.0 | (5.9) |
| Total Property | 328.9 | 100.0 | (2.3) |
Property Purchases and Sales
On 6 September 2016, IRP Holdings Limited, a subsidiary of FCRE, sold King William House, Hull for £2,585,000 which compared with its valuation of £2,750,000 as at 30 June 2016. There were no other purchases or sales in the quarter.
Summary Balance Sheet
| £m | Pence per share | % of Net Assets | |
| Property Portfolio per Valuation Report | 328.9 | 137.8 | 143.9 |
| Adjustment for lease incentives | (5.2) | (2.2) | (2.3) |
| Fair Value of Property Portfolio | 323.7 | 135.6 | 141.6 |
| Cash | 15.0 | 6.3 | 6.5 |
| Trade and other receivables | 6.6 | 2.8 | 2.9 |
| Trade and other payables | (7.8) | (3.3) | (3.4) |
| Interest-bearing loans | (108.9) | (45.6) | (47.6) |
| Net Assets at 30 September 2016 | 228.6 | 95.8 | 100.0 |
The property portfolio will next be valued by an external valuer during December 2016 and the net asset value per share as at 31 December 2016 will be announced in January 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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