9th Jan 2008 11:32
UK Commercial Property Trust Ltd09 January 2008 Net asset value The unaudited net asset value per share of UK Commercial Property Trust Limitedas at 31 December 2007 was 92.2p. This represents a decrease of 7.7 per cent.from the net asset value per share as at 30 September 2007. The net asset value per share is based on the external valuation of the propertyportfolio prepared by CB Richard Ellis Limited as at 31 December 2007 of £773.1million. The net asset value per share is calculated under International FinancialReporting Standards ("IFRS"). The net asset value per share includes all current year income and is calculatedafter deduction of all dividends paid prior to 31 December 2007. It does notinclude provision for any unpaid dividends for the periods prior to 31 December2007 including the dividend for the quarter to 31 December 2007 which isexpected to go ex-dividend in February 2008 and to be paid in February 2008. Theadjusted net asset value per share after deducting such quarterly dividend is90.9p. The NAV per share at 31 December 2007 is based on 867,126,287 Ordinary shares of25p each, being the total number of shares in issue at that time. In the periodto 31 December 2007 the Company bought back 12,873,713 Ordinary shares of 25peach at a total cost of £10.3 million. This resulted in a positive contributionto the net asset value per share of 0.3p per share. Breakdown of NAV movement Set out below is a breakdown of the change to the unaudited net asset value pershare calculated under IFRS over the period from 30 September 2007 to 31December 2007. Per Share (p) Attributable Assets (£m)Net assets as at 30 September2007 99.9 879.5Unrealised decrease in valuationof property portfolio (8.0) (70.0)Realised gains on sales ofproperties 0.0 0.1Income earned over the period 1.6 14.1Expenses over the period (0.3) (2.8)Dividends paid on 30 November2007 (1.3) (11.4)Contribution of Share Buybacksto NAV per share 0.3 (10.3)Net assets as at 31 December 2007 92.2 799.2 Net Asset Analysis as at 31 December 2007 £m % Property PortfolioOffice 385.9 48.3Retail 246.1 30.7Industrial 141.1 17.7Total Property 773.1 96.7Net Current Assets 26.1 3.3Total Net Assets as at 31 December 2007 799.2 100.0 The annualised total expense ratio of the Company for the period 30 September2007 to 31 December 2007, based on the value of the assets as at 31 December2007 and on the basis of annualised expenses, was 0.8% of the average totalassets of the Company. For the purposes of this calculation, "expenses" includesthe costs of running the Group, including the investment management fee,administration fees, Directors fees, insurance costs, board costs, registrarcosts and any irrecoverable VAT, but excludes issue costs, capital expenditureand refurbishment and irrecoverable property running costs. Over the period the Company has had no borrowings. Over the period from 22 September 2006 (launch) to 31 December 2007 theunaudited net asset value per share calculated under IFRS has decreased by 5.2%from 97.2p to 92.2p. Breakdown in valuation movements over the period 30 September to 31 December2007 Set out below is a breakdown of the movement in the external valuation of theproperty portfolio over the period from 30 September 2007 to 31 December 2007. UK Commercial Property Trust Exposure Capital Value Shift £m % % as at 31 Dec 2007External Valuation at 30September 843.12007Sub Sector AnalysisRetail 31.79 -5.95 -15.8High St - South East 8.94 -1.61High St - Rest of UK 2.73 -12.76Shopping Centres 9.22 -1.14Retail Warehouses 10.90 -11.07 Offices 49.94 -9.33 -39.7City 2.93 -2.45West End 16.81 -13.07South East 12.45 -8.75Rest of UK 17.75 -7.04 Industrial 18.27 -9.22 -14.3South East 11.32 -8.03Rest of UK 6.95 -11.11 Adjustment for disposals - - -0.9Adjustment for acquisitions - - +0.7External valuation at 31 December -8.26 773.12007 Investment Manager Commentary Whilst there is a general expectation that the economy will slow down in 2008(current GDP growth forecasts for 2008 are in the region of 1.7 to 1.8 percent.), there is no suggestion that the economy will fall back dramatically aswas the case in the early 1990s. Despite this, the direct property market haswitnessed one of the largest downturns/initial yield corrections since the early1990s with IPD All Property initial yield rising from 4.7 to 5.0 per cent.Unlike the early 1990s, however, the current capital value falls are against thebackground of a reasonably healthy occupational market. For the Company, there has been a further decline in the capital value of theportfolio over Quarter 4. The table above indicates that the largest drop invalue, both in absolute and relative terms, was in the Company's office stocks.The sub-sector where the greatest negative impact was felt was West End offices.Generally, in the market, initial yields for West End stocks have, on average,moved out by 1 per cent. and the Company's stocks moved out by approximately thesame margin. On a positive note, the portfolio was helped by a busy quarter in terms ofletting activity. Approximately £1.8 million of income was let over the courseof Quarter 4, of which roughly £1.2 million was void space. This activityreduced voids within the portfolio by 50 per cent. and limited the capitaldecline. During Quarter 4 the Company sold a small High Street shop in Uxbridgeand acquired a shop/leisure unit in Swindon. Enquiries: The Company Secretary, Northern Trust International Fund Administration Services(Guernsey) Limited - 01481 745338 Gary Hutcheson/Gerry Brady, Resolution Investment Services Limited - 0141 222 8000 Important Note: The above information is unaudited and has been calculated by ResolutionInvestment Services Limited This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
UKCM.L