REG - Local Shopping REIT - Half-year Report <Origin Href="QuoteRef">LSR.L</Origin> - Part 2

Alina HoldingsAnnouncement

18/05/2016 18:30

- Part 2: For the preceding part double click  ID:nRSR6646Ya 

         £000               
 Net assets per Consolidated Balance Sheet                      35,275         34,940             34,852  
 Fair value of derivative financial instruments                 -              3,411              2,294   
                                                                35,275         38,351             37,146  
                                                                                                          
 Adjusted net asset value per share                             £0.43          £0.46              £0.45   
                                                                                                          
 
 
11 Derivative financial instruments 
 
Derivative financial instruments held by the Group are interest rate swaps
used to manage the Group's interest rate exposure. These are shown in the
Consolidated Balance Sheet as follows: 
 
 Notional value of swap £000                    Effective date  Maturity date      Rate  Value at  
                                                payable on      30 September 2015  
                                                fixed leg                          
                                                %               £000               
 20,178 (paid down 31 October 2015)             16 July 2007    31 January 2017    4.85  (1,087)   
 22,500 (paid down 31 January 2016)             30 April 2013   29 July 2016       5.05  (823)     
 10,500 (paid down 31 January 2016)             30 April 2013   29 July 2016       5.05  (384)     
                                                                                         (2,294)   
 Cost charged to pay down swaps                                                          1,758     
 Fair value movement taken to income statement                                           (536)     
 Value at 31 March 2016                                                                  -         
 
 
The derivative financial instruments included in the above table are stated at
their fair value based on quotations from the Group's bank. 
 
12 Related parties 
 
There have been no transactions with related parties which have materially
affected the financial position or performance of the Group during the current
or previous period nor have there been any changes in related party
transactions which could have a material effect on the financial position or
performance of the Company during the first six months of the current
financial year. 
 
13 Significant contracts 
 
With effect from 22 July 2013 the Company entered into a management agreement
with Internos Global Investors Limited("Internos"). Under this agreement the
Company pays to Internos: 
 
1. An annual management fee of 0.70% of the gross asset value of the
portfolio, subject to a minimum fee of £1m in each of the first two years,
£0.95m for the third year and £0.9m for the fourth year. 
 
2. An annual performance fee of 20% of the recurring operating profits above a
pre-agreed target recurring profit. 
 
3. Fees for property sales as follows: 
 
Up to £50m nil 
 
£50m - £150m 0.5% of sales 
 
Over £150m 1.5% of sales 
 
4. A terminal fee of 5.7% of cash returned to the Company's shareholders in
excess of 36.1 pence per share per annum from the Effective Date outside of
dividend payments (the "Terminal Fee Hurdle"). The Terminal Fee Hurdle rises
by 8% per annum after the first year but reduces on a pro-rata daily basis
each time equity is returned to shareholders outside of dividend payments from
recurring operating profits. 
 
Under the terms of the agreement Internos received a fee of £509,560
(September 2015 - £1,016,461 March 2015 - £509,000). 
 
This information is provided by RNS
The company news service from the London Stock Exchange