UK Comm Prop Tst Ltd Net Asset Value(s)
October 10 2016 - 2:00AM
UK Regulatory
TIDMUKCM
10 October 2016
UK Commercial Property Trust Limited ("UKCPT" or "the Company")
Net Asset Value at 30 September 2016
UK Commercial Property Trust Limited (LSE: UKCM), the largest Guernsey based,
UK focused, London listed commercial property investment company, which is
advised by Standard Life Investments, announces its unaudited quarterly Net
Asset Value ("NAV") as at 30 September 2016.
· NAV per share of 83.7p (30 June 2016: 86.5p), resulting in a NAV total
return of -2.2% over the period;
· Like-for-like portfolio capital value decline of 2.7% during the quarter.
This compares favourably to the fall in the IPD Monthly index for just the two
months of July and August of 3.4%, highlighting the defensive qualities of the
Company's portfolio;
· Void rate of 2.7%*, well below the IPD benchmark figure of 6.7%**;
· Positive leasing activity post the EU referendum delivering sixteen new
or renewed leases which secured GBP1.7m of annual rental income. Transactions of
note include;
· A 10 year lease renewal of Craven House, an office building
in Soho, London at GBP1,027,250 per annum, an increase of 37%;
· Good tenant progress at the Company's Shrewsbury shopping
centres, generating GBP232,400 per annum of income from four new leases at - New
Look Menswear, Smiggle, The Body Shop and Yours Clothing;
· A 10 year lease renewal within 9 Colmore Row, an office
building in Birmingham, at GBP105,150 per annum, an increase of 15%;
· Strong financial resources with GBP112 million cash as at 30 September of
which GBP70 million is available for investment after allowing for dividend and
capital expenditure commitments. Additional cash in the form of a GBP50 million
revolving credit facility is available;
· Low net gearing of 11.2%*** (gross gearing of 18.7%***) remaining one of
the lowest in the Company's peer group and also the quoted REIT sector;
· Attractive dividend yield of 4.7%*, which compares favourably to the FTSE
All-Share Index (3.5%*) and FTSE REIT Index (3.6%*).
*30 September 2016
** 30 June 2016
*** Net gearing - Gross borrowing less cash divided by total assets (excluding
cash) less current liabilities
Gross gearing - Gross borrowings divided by total assets less current
liabilities
Andrew Wilson, Chairman of UKCPT commented: "Whilst any fall in value is
disappointing, it is at such times that the Company's strong income component
shows its value. It is also pleasing to see the combination of successful asset
management and UKCPT's strong defensive characteristics provide a brake on
capital change when compared to the IPD index while still delivering an
attractive income yield."
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net asset value per
share calculated under International Financial Reporting Standards ("IFRS")
over the period from 1 July 2016 to 30 September 2016.
UK Commercial Per Share (p) Attributable Comment
Property Trust Assets (GBPm)
Limited
Net assets as at 1 86.5 1,124.6
July 2016
Unrealised increase -2.6 -33.7 Like for like decrease
in valuation of of 2.7% in property
property portfolio portfolio
Capital expenditure -0.1 -1.4 Principally relates to
during the period costs associated with
ongoing work at
Shrewsbury to deliver
the Primark store.
Income earned for the 1.3 16.2 Dividend cover of 90%
period for the nine months to
30 Sep 16 with GBP70m
still available for
investment. For the
quarter, dividend
cover was 81%
following the sale of
Expenses for the -0.5 -6.5 Arlington Street and
period Dolphin House and a
revenue deduction
attributable to the
BHS administration
Dividend paid on 31 -0.9 -12.0 which will not recur.
August 2016
Interest rate swaps 0.0 0.0 Marginal increase in
mark to market swap liabilities (GBP
revaluation 50k)as interest rates
continue to fall
Net assets as at 30 83.7 1,087.2
Sep 2016
The NAV per share is based on the external valuation of the Company's direct
property portfolio. It includes all current period income and is calculated
after the deduction of all dividends paid prior to 30 September 2016. It does
not include provision for any unpaid dividends relating to periods prior to 30
September 2016, i.e. the proposed dividend for the period to 30 September 2016.
The NAV per share at 30 September 2016 is based on 1,299,412,465 shares of 25p
each, being the total number of shares in issue at that time.
The EPRA NAV per share (excluding swap liability) is 84.1p (Jun 2016 - 87.0p).
Sector Analysis
Portfolio Value Exposure as at Like for Like Capital Value
as at 30 Sep 30 Sep 2016 Capital Value Shift
2016 (GBPm) (%) Shift (excl (including
sales & transactions)
purchases) (GBPm)
(%)
Valuation as of 30 1,282.4
Jun 2016
Retail 440.8 35.3 -4.5 -20.8
High St - South 3.0 -1.5 -0.6
East
High St- Rest of UK 2.7 -1.7 -0.6
Shopping Centres 7.3 -9.3 -9.4
Retail Warehouse 22.3 -3.5 -10.2
Offices 285.8 22.9 -3.8 -11.3
City 2.2 -5.2 -1.5
West End 8.8 -5.8 -6.7
South East 1.7 -4.1 -0.9
Rest of UK 10.2 -1.7 -2.2
Industrial 395.9 31.7 -0.1 -0.5
South East 23.2 -0.2 -0.5
Rest of UK 8.5 0.0 0.0
Leisure/Other 125.9 10.1 -1.1 -1.4
External valuation 1,248.4 100.0 -2.7 1,248.4
at 30 Sep
Whilst uncertainty has diminished over the quarter, CBRE Ltd continue to
include a diluted "market conditions" caveat in the vast majority of the
valuations they undertook as at 30 September 2016. This caveat is as follows:
"Following the Referendum held on 23 June 2016 concerning the UK's membership
of the EU, a decision was taken to exit. Since that date we have monitored
market transactions and market sentiment in arriving at our opinion of Market
Value/Fair Value. After an initial period of uncertainty and an absence of
activity, transactional volumes and available evidence has risen in most
sectors of the market and liquidity is returning to more normal levels. This
has led to a generally more stable outlook for the market. However, there
remains a paucity of comparable transactions in central London offices,
development land and buildings, retail parks and large shopping centres and
therefore valuations in these sectors reflect a greater degree of judgement."
For further information please contact:
Will Fulton / Graeme McDonald, Standard Life Investments
Tel: 0131 245 2799 / 0131 245 3151
Edward Gibson-Watt / Oliver Kenyon, J.P. Morgan Cazenove
Tel: 020 7742 4000
Richard Sunderland / Claire Turvey / Clare Glynn, FTI Consulting
Tel: 020 3727 1000
The above information is unaudited and has been calculated by Standard Life
Investments Limited.
END
(END) Dow Jones Newswires
October 10, 2016 02:00 ET (06:00 GMT)
Uk Commercial Property R... (LSE:UKCM)
Historical Stock Chart
From Apr 2024 to May 2024
Uk Commercial Property R... (LSE:UKCM)
Historical Stock Chart
From May 2023 to May 2024