- Part 3: For the preceding part double click ID:nRSG6266Yb
2016 2017
£'000 £'000 £'000
At the beginning of the period/year 29,010 14,250 14,250
Bank borrowings drawn in the period/year 3,490 12,260 14,760
Interest bearing loans and borrowings 32,500 26,510 29,010
Less: loan issue costs incurred (400) (388) (388)
Plus: amortised loan issue costs 159 79 118
At the end of the period/year 32,259 26,201 28,740
Repayable between 2 and 5 years 32,500 26,510 29,010
Bank borrowings available but undrawn in the period/year 7,500 13,490 10,990
Total facility available 40,000 40,000 40,000
The Company entered into a £40.0 million credit facility with the RBSi on 20
October 2015. On 11 May 2017, the Company reduced its available loan facility
from £40.0 million to £32.5 million and on 17 October 2017, the Company
increased the available facility back to £40.0 million. At the period end,
£7.5 million remained undrawn.
Borrowing costs associated with the credit facility are shown as finance costs
in note 5 to these financial statements.
The term to maturity as at the period end is 2.97 years.
13. Payables and accrued expenses
31 October 31 October 30 April
2017 2016 2017
£'000 £'000 £'000
Deferred income 1,223 3,122 1,513
Accruals 532 526 534
Other creditors 922 301 709
Total 2,677 3,949 2,756
14. Finance lease obligations
Finance leases are capitalised at the lease's commencement at that lower of
the fair value of the property and the present value of the minimum lease
payments. The present value of the corresponding rental obligations are
included as liabilities
The following table analyses the minimum lease payments under non-cancellable
finance leases:
31 October 31 October 30 April
2017 2016 2017
£'000 £'000 £'000
Not later than one year 47 118 5
Later than one year but not later than five years 154 432 15
Later than five years 437 1,150 40
591 1,582 55
Total 638 1,700 60
15. Issued Share Capital
For the period 1 May 2017 to 31 October 2017
Number of
£'000 Ordinary Shares
Ordinary Shares issued and fully paid
At the beginning of the period 1,236 123,647,250
Issued on admission to trading on the London Stock Exchange on 24 October 2017 279 27,911,001
At the end of the period 1,515 151,558,251
On 24 October 2017, the Company issued 27,911,001 Ordinary Shares at a price
of 100.5 pence per share pursuant to the Initial Placing, Initial Offer for
Subscription and Intermediaries Offer of the Share Issuance Programme, as
described in the prospectus published by the Company on 28 September 2017.
For the period 1 May 2016 to 31 October 2016
Number of
£'000 Ordinary Shares
Ordinary Shares issued and fully paid
At the beginning of the period 1,175 117,510,000
Issued on admission to trading on the London Stock Exchange on 16 September 2016 24 2,450,000
Issued on admission to trading on the London Stock Exchange on 10 October 2016 37 3,687,250
At the end of the period 1,236 123,647,250
For the period ended 30 April 2017
Number of
£'000 Ordinary Shares
Ordinary Shares issued and fully paid
At the beginning of the year 1,175 117,510,000
Issued on admission to trading on the London Stock Exchange on 16 September 2016 24 2,450,000
Issued on admission to trading on the London Stock Exchange on 10 October 2016 37 3,687,250
At the end of the period 1,236 123,647,250
16. Share premium account
Period from Period from
1 May 2017 to 1 May 2016 to Year ended
31 October 31 October 30 April
2017 2016 2017
£'000 £'000 £'000
The share premium relates to amounts subscribed for share capital in excess of nominal value:
Balance at the beginning of the period/year 22,514 16,729 16,729
Share issue costs (paid and accrued) - (23) (23)
Issued on admission to trading on the London Stock Exchange on 16 September 2016 - 2,352 2,352
Share issue costs (paid and accrued) - (42) (42)
Issued on admission to trading on the London Stock Exchange on 10 October 2016 - 3,586 3,586
Share issue costs (paid and accrued) - (55) (88)
Issued on admission to trading on the London Stock Exchange on 24 October 2017 27,771 - -
Share issue cost (546) - -
Balance at the end of the period/year 49,739 22,547 22,514
17. Transaction with related parties
As defined by IAS 24 Related Party Disclosures, parties are considered to be
related if one party has the ability to control the other party or exercise
significant influence over the other party in making financial or operational
decisions.
For the six months ended 31 October 2017, the Directors' of the Company are
considered to be the key management personnel. Directors' remuneration is
disclosed in note 4.
The Company is party to an Investment Management Agreement with the Investment
Manager, pursuant to which the Company has appointed the Investment Manager to
provide investment management services relating to the respective assets on a
day-to-day basis in accordance with their respective investment objectives and
policies, subject to the overall supervision and direction of the Boards of
Directors.
Under the Investment Management Agreement the Investment Manager receives a
management fee which is calculated and accrued monthly at a rate equivalent to
0.9% per annum of NAV (excluding un-invested fund raising proceeds) and paid
quarterly.
During the period 1 May 2017 to 31 October 2017, the Company incurred £519,373
(31 October 2016: £525,776; 30 April 2017: £1,033,637) in respect of
investment management fees and expenses of which £259,276 was outstanding at
31 October 2017 (31 October 2016: £253,769; 30 April 2017: £252,850).
On 1 May 2017, the Company had a holding of 6,359,440 shares in the Core Fund,
which were valued at £7,594,443. The investment was deemed to be with a
related party due to the common influence of the Investment Manager over both
parties. On 9 May 2017, the Company sold its remaining investment in the Core
Fund for proceeds of £7.67 million.
18. Events after reporting date
Dividend
On 1 December 2017, the Board declared its second interim dividend of 2.00
pence per share in respect of the period from 1 August 2017 to 31 October
2017. This is to be paid on 29 December 2017 to shareholders on the register
as at 15 December 2017. The ex-dividend date will be 14 December 2017.
EPRA Unaudited Performance Measures
Detailed below is a summary table showing the EPRA performance measures of the
Company
MEASURE AND DEFINITION PURPOSE PERFORMANCE
1. EPRA EarningsEarnings from operational activities. A key measure of a company's underlying operating results and an indication of the extent to which current dividend payments are supported by earnings. £4.66 million/3.73 ppsEPRA earnings for the six month period to 31 October 2017 (six month period to 31 October 2016: £4.52 million/3.81 pps)
2. EPRA NAVNet asset value adjusted to include properties and other investment interests at fair value and to exclude certain items not expected to crystallise in a long Makes adjustments to IFRS NAV to provide stakeholders with the most relevant information on the fair value of the assets and liabilities within a true real estate investment company with a long-term investment £148.20 million/97.78 ppsEPRA NAV as at 31 October 2017 (At 30 April 2017: £118.64 million/95.95 pps)
-term investment property business. strategy.
3. EPRA NNNAVEPRA NAV adjusted to include the fair values of:(i) financial instruments;(ii) debt; and(iii) deferred taxes. Makes adjustments to EPRA NAV to provide stakeholders with the most relevant information on the current fair value of all the assets and liabilities within a real estate company. £148.22 million/97.80 pps EPRA NNNAV as at 31 October 2017 (At 30 April 2017: £118.67 million/95.98 pps)
4.1 EPRA Net Initial Yield ('NIY')Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, A comparable measure for portfolio valuations. This measure should make it easier for investors to judge themselves, how the valuation of portfolio X compares with portfolio Y. 7.39% EPRA NIY as at 31 October 2017 (At 30 April 2017: 7.12%)
divided by the market value of the property, increased with (estimated) purchasers' costs.
4.2 EPRA 'Topped-Up' NIYThis measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives A comparable measure for portfolio valuations. This measure should make it easier for investors to judge themselves, how the valuation of portfolio X compares with portfolio Y. 7.79%EPRA 'Topped-Up' NIY as at 31 October 2017 (At 30 April 2017: 8.27%)
such as discounted rent periods and step rents).
5. EPRA VacancyEstimated Market Rental Value ('ERV') of vacant space divided by ERV of the whole portfolio. A "pure" (%) measure of investment property space that is vacant, based on ERV. 8.59%EPRA vacancy as at 31 October 2017 (At 30 April 2017: 7.22%)
6. EPRA Cost RatioAdministrative and operating costs (including and excluding costs of direct vacancy) divided by gross rental income. A key measure to enable meaningful measurement of the changes in a company's operating costs. 23.60%EPRA Cost Ratio (including direct vacant cost) as at 31 October 2017 (At 30 April 2017: 24.20%) 15.54%EPRA Cost ratio excluding direct vacancy costs as at 31 October 2017 (At 30 April 2017: 18.37%
Calculation of EPRA Net Initial Yield and 'topped-up' Net Initial Yield
31 October
2017
£'000
Investment property - wholly owned 147,785
Allowance for estimated purchasers' cost 10,049
Gross up completed property portfolio valuation 157,834
Annualised cash passing rental income 12,653
Property outgoings (984)
Annualised net rents 11,669
Rent expiration of rent-free periods and fixed uplifts 621
'Topped-up' net annualised rent 12,290
EPRA Net Initial Yield 7.39%
EPRA 'topped-up' Net Initial Yield 7.79%
EPRA Net Initial Yield (NIY) basis of calculation
EPRA NIY is calculated as the annualised net rent, divided by the gross value
of the completed property portfolio.
The valuation of grossed up completed property portfolio is determined by our
external valuers as at 31 October 2017, plus an allowance for estimated
purchaser's costs. Estimated purchaser's costs are determined by the relevant
stamp duty liability, plus an estimate by our valuers of agent and legal fees
on notional acquisition. The net rent deduction allowed for property outgoings
is based on our valuers' assumptions on future recurring non-recoverable
revenue expenditure.
In calculating the EPRA 'topped-up' NIY, the annualised net rent is increased
by the total contracted rent from expiry of rent-free periods and future
contracted rental uplifts.
Calculation of EPRA Vacancy Rate
31 October
2017
£'000
Annualised potential rental value of vacant premises 1,190
Annualised potential rental value for the completed property portfolio 13,849
EPRA Vacancy Rate 8.59%
Calculation of EPRA Cost Ratios 31 October
2017
£'000
Administrative/operating expense per IFRS income statement 1,536
Less: Ground rent costs (4)
EPRA Costs (including direct vacancy costs) 1,532
Direct vacancy costs (523)
EPRA Costs (excluding direct vacancy costs) 1,009
Gross Rental Income 6,491
EPRA Cost Ratio (including direct vacancy costs) 23.60%
EPRA Cost Ratio (excluding direct vacancy costs) 15.54%
Company Information
Share Register Enquiries
The register for the Ordinary Shares is maintained by Computershare Investor
Services PLC. In the event of queries regarding your holding, please contact
the Registrar on 0370 889 4069 or email: web.queries@computershare.co.uk
Changes of name and/or address must be notified in writing to the Registrar,
at the address shown below. You can check your shareholding and find practical
help on transferring shares or updating your details at
www.investorcentre.co.uk.
Share Information
Ordinary £0.01 Shares 151,558,251
SEDOL Number BWD2415
ISIN Number GB00BWD24154
Ticker/TIDM AEWU
Share Prices
The Company's Ordinary Shares are traded on the Main Market of the London
Stock Exchange.
Annual and Interim Reports
Copies of the Annual and Interim Reports are available from the Company's
website
Provisional Financial Calendar
31 March 2018 Year end (the Company is changing its financial year end from 30 April to 31 March. As a result, our next Annual Report will cover a period of eleven months from 1 May 2017 to 31 May 2018)
June 2018 Announcement of annual results
September 2018 Annual General Meeting
30 September 2018 Half-year End
November 2018 Announcement of interim results
Dividends
The following table summarises the amounts recognised as distributions to
equity shareholders in the period:
£
Interim dividend for the period 1 May 2017 to 31 July 2017 (payment made on 30 September 2017 2,472,945
Dividend for the period 1 August 2017 to 31 October 2017 (payment to be made on 29 December 2017) 3,031,165
Total 5,504,110
Directors
Mark Burton* (Non-executive Chairman)
James Hyslop (Non-executive Director)
Bimaljit (''Bim'') Sandhu* (Non-executive Director)
Katrina Hart* (Non-executive Director)
Registered Office
6th Floor
65 Gresham Street
London
EC2V 7NQ
Investment Manager
AEW UK Investment Management LLP
33 Jermyn Street
London
SW1Y 6DN
Tel: 020 7016 4880
Website: www.aewuk.co.uk
Property Manager
M J Mapp
180 Great Portland Street
London
W1W 5QZ
Corporate Broker
Fidante Capital
1 Tudor Street
London
EC4Y 0AH
Legal Adviser to the Company
Gowling WLG (UK) LLP
4 More London Riverside
London
SE1 2AU
Depositary
Langham Hall UK LLP
5 Old Bailey
London
EC4M 7BA
Administrator
Link Alternative Fund Administrators Limited
Beaufort House
51 New North Road
Exeter
EX4 4EP
Company Secretary
Link Company Matters Limited
6th Floor
65 Gresham Street
London
EC2V 7NQ
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS13 8AE
Auditor
KPMG LLP
15 Canada Square
London
E14 5GL
Valuer
Knight Frank LLP
55 Baker Street
London
W1U 8AN
*Independent of the Investment Manager.
Frequency of NAV publication:
The Company's NAV is released to the London Stock Exchange on a quarterly
basis and is published on the Company's website.
National Storage Mechanism
A copy of the Interim Report will be submitted shortly to the National Storage
Mechanism ('NSM') and will be available for inspection at the NSM, which is
situated at www.morningstar.co.uk/uk/NSM.
This information is provided by RNS
The company news service from the London Stock Exchange