UK Commercial Property Reit Limited

Net Asset Value • Feb 1, 2013

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 8544W

UK Commercial Property Trust Ltd

01 February 2013

1 February 2013

UK Commercial Property Trust Limited

Net Asset Value and Interim Management Statement

for the three month period from 1 October 2012 to 31 December 2012 and appointment of additional non-executive director

Breakdown of NAV movement

UK Commercial Property Trust Limited ("UKCPT" or the "Company") (LSE: UKCM), the largest Guernsey based, UK focused, commercial property trust, announces its unaudited quarterly Net Asset Value ("NAV") as at 31 December 2012.

The unaudited NAV per share as at 31 December 2012 was 69.6 pence, representing a decrease of 1.8% from the unaudited NAV per share as at 30 September 2012 of 70.9 pence.

This decline is mainly attributable to a 1.2% decrease in the value of the Company's property portfolio, which is in turn largely caused by valuation reductions in the retail portfolio; the fall is virtually in line with a decline of 1.1% in the IPD Monthly Property Index over the same period.

As at 31 December 2012 the Company's gross gearing (borrowings (excl SWAPS) divided by total assets less current liabilities) was 21.3%.  Net gearing (borrowings (excl SWAPS) less cash divided by total assets less current liabilities and cash) was 15.3%.

The NAV has been calculated under International Financial Reporting Standards ("IFRS"). It is based on the external valuation of the Company's direct property portfolio prepared by CBRE Limited.

The NAV includes all income to 31 December 2012 and is calculated after deduction of all dividends paid prior to that date.

UK Commercial Property Trust Limited	Per  Share (p)	Attributable Assets (£m)
Net assets as at 1 October 2012	70.9	848.7
Unrealised decrease in valuation of property portfolio	(1.0)	(12.4)
Capital expenditure during the period	(0.1)	(1.4)
Income earned for the period	1.6	19.1
Expenses for the period	(0.5)	(5.7)
Dividend paid on 30 November 2012	(1.3)	(15.7)
Interest rate swaps mark to market revaluation	(0.0)	0.2
Net assets as at 31 December 2012	69.6	832.8

Net Asset Analysis as at 31 December 2012

	£m	%
Property Portfolio
Retail	533.7	64.1
Office	242.2	29.1
Industrial	194.7	23.4
Leisure	50.6	6.0
Total Property Market Value	1,021.2	122.6
Adjustment for lease incentives	(5.6)	(0.6)
Fair Value of Property Portfolio	1,015.6	122.0
Net Current Assets	62.0	7.4
Net Long Term Liabilities	(244.8)	(29.4)
Total Net Assets as at 31 December 2012	832.8	100.0

Sector Analysis

	Portfolio Value as at 31 Dec 2012 (£m)	Exposure as at 31 Dec 2012 (%)	Capital Value Shift (%)	Capital Value Shift (£m)
External valuation at 30 September 2012				1,033.2
Retail	533.7	52.3	-1.7	-9.0
High St - South East		9.2	0.0	0.0
High St- Rest of UK		3.8	-4.5	-1.8
Shopping Centres		14.4	-1.6	-2.4
Retail Warehouse		24.9	-1.8	-4.8
Offices	242.2	23.7	-0.5	-1.3
West End		9.1	1.0	1.0
South East		4.5	-0.2	-0.1
Rest of UK		10.1	-2.0	-2.2
Industrial	194.7	19.1	-0.9	-1.7
South East		12.3	-1.4	-1.7
Rest of UK		6.8	0.0	0.0
Leisure/Other	50.6	4.9	0.0	0.0
External valuation at 31 December 2012	1021.2	100.0	-1.2	1021.2

Debt

On 19 November 2012 the Company drew down the remaining £30 million of the £150m Barclays loan facility, and, as a result, this facility is now fully utilised. The Company also entered into a swap contract to hedge this £30 million for the duration of the term. The blended interest rate across both of the Company's debt facilities, based on current margins, is now 3.85%.

Dividend

A fourth interim dividend of 1.3125p is declared in respect of the period from 1 October 2012 to 31 December 2012. The dividend will be paid on 28 February 2013 to shareholders on the register on 15 February 2013. The ex-dividend date will be 13 February 2013.

New Director

The Board is pleased to announce the appointment of Mr Ken McCullagh as a non-executive Director of the Company. Mr McCullagh resides in Dublin and is a Chartered Accountant with over twenty years' experience in senior roles within the property industry, including his current position as Chief Executive Officer of LNC Property Group which he has held for 12 years. The Board believes Mr McCullagh brings skills that will complement and strengthen the skill-set of the Board as a whole.

There are no details to be disclosed under 9.6.13 (1) to (6) of the Listing Rules.

Additional Disclosures

Further information will be given in the annual results of the Company for the year to 31 December 2012 which will be announced in late March 2013.

The Board is not aware of any further significant events or transactions which have occurred between 31 December 2012 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Christopher Hill, Chairman of UKCPT, commented:

"During the period we have faced challenges from conditions in the broader economy, which have affected valuations, particularly in our retail portfolio. However, the hard work undertaken by our specialist asset management team has mitigated this impact and we continue to focus on deriving maximum value and income from our existing property portfolio, while evaluating potential opportunities to acquire high quality assets where we believe we can generate increased value.

"I am also pleased to welcome Ken McCullagh a highly experienced property professional, to the Board of UKCPT. Ken's expertise in the real estate sector will be invaluable as we look to grow the portfolio, and I look forward to working alongside him."

Enquiries

Robert Boag / Graeme McDonald, Ignis Investment Services Limited

Tel: 0141 222 8000

Edward Gibson-Watt / Oliver Kenyon, J.P. Morgan Cazenove

Tel: 020 7742 4000

Stephanie Highett/Richard Sunderland/Will Henderson, FTI Consulting

Tel: 020 7831 3113

The above information is unaudited and has been calculated by Ignis Investment Services Limited. Further information can be found on the updated UKCPT website at www.ukcpt.co.uk.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCSDWFMFFDSEFF