15th Jan 2009 15:13
CLOSE HIGH INCOME PROPERTIES PLC (the "Company")
ANNOUNCEMENT OF NAV
The board of Close High Income Properties PLC advises that as at close of business on 31 December 2008, the unaudited net asset value per Ordinary Share of 1 penny each of the Company was 41.30 pence (30 November 2008: 56.07 pence). The unaudited net asset value per "D" Ordinary Share of 1 penny each was 15.17 pence (30 November 2008: 36.92 pence). This represents a decrease of 26.34 per cent per Ordinary Share and a decrease of 58.91 per cent per "D" Ordinary Share.
The net asset value is based on the external valuation of the Company's property portfolio prepared by DTZ Debenham Tie Leung Limited at 31 December 2008. It also incorporates the movement in the interest rate swap valuations as seen in the table below.
The Ordinary Share and "D" Ordinary Share property portfolios were valued at 31 December 2008 by DTZ Debenham Tie Leung Limited ("DTZ"). On a like for like basis there has been an average fall in valuation from 30 September 2008 of 9.7% across the Ordinary Share portfolio and an 18.4% fall in valuation across the "D" Ordinary Share property portfolio.
During the month the market value of the interest rate swap entered into by Ordinary Share increased by £0.41 million to a liability of £4.88 million (30 November 2008: liability of £4.47 million) and the market value of the interest rate swap entered into by "D" Ordinary Share decreased by £0.11 million to a liability of £0.06 million (30 November 2008: asset of £0.05 million). The movements during the month represented a decrease against NAV of 0.98 per cent per Ordinary Share and a decrease of 1.18 per cent per "D" Ordinary Share. Whilst the total market valuation of the interest rate swaps is currently in deficit, their value will run to zero over the term of the contracts. The swaps continue to provide a fixed rate of interest to the Company. It is not the intention of the Company to dispose of the swaps and realise the deficit as the Company cvontinues to benefit from fixed rate funding.
There were no property sales completed during December 2008.
The net asset value is calculated under International Financial Reporting Standards ("IFRS").
|
Ordinary Share |
"D" Ordinary Share |
|||
|
Pence per share |
% of opening NAV |
Pence per share |
% of opening NAV |
|
|
Net asset value per share as at 30 November 2008 |
56.07 |
36.92 |
||
|
Increase / (decrease) in interest rate swap valuation |
(0.55) |
(0.98) |
(0.44) |
(1.18) |
|
Movement in revenue reserves |
(0.15) |
(0.26) |
(0.54) |
(1.48) |
|
Unrealised decrease in valuation of property portfolio (including the effect of gearing) |
(14.07) |
(25.10) |
(20.77) |
(56.25) |
|
Net asset value per share as at 31 December 2008 |
41.30 |
(26.34) |
15.17 |
(58.91) |
The property portfolio will next be valued by an external valuer at 31 March 2009 and the net asset value per share as at 31 January 2009 will be announced in February 2009.
Related Shares:
IMPT.L