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JPMorgan Global Core Real AssetsAnnouncement

02/07/2025 07:00

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RNS Number : 2969P  JPMorgan Global Core Real Assets Ld  02 July 2025

LONDON STOCK EXCHANGE ANNOUNCEMENT

 

JPMORGAN GLOBAL CORE REAL ASSETS LIMITED

("JARA" or the "Company")

 

QUARTERLY NET ASSET VALUE AND PORTFOLIO UPDATE

 

 

Legal Entity Identifier: 549300D8JHZTH6GI8F97

 

 

Net Asset Value

The Company announces its unaudited Net Asset Value ("NAV") as at 31st May
2025 of 89.67 pence per share (28th February 2025: NAV 93.93 pence per share).
In line with the Company's previously stated policy, the Company paid no
dividend during the three month period to 31st May 2025. The NAV total return
for the quarter is -5.5% and -0.2% for the preceding 12 months, while the
total share price return for the 12 months to 31st May 2025 was +3.6%. The
decline of the US dollar against Sterling over the three months has reduced
the NAV by approximately 6%.

 

The Company did not buy back any shares in the three months to 31st May 2025.
As noted in the Chairman's Statement in the interim results announced on 27th
November 2024, and reiterated in the final results released on 30th June 2025,
the Board has taken the decision to suspend buybacks of the Company's own
shares.

 

A snapshot of the components to this NAV and the relevant date for their
valuation is provided below.

 

Strategies

 Name                Date of price for Strategy  % of JARA's NAV as at 31st May 2025
 Transportation      31st December 2024          24.7%
 Real Estate Equity  31st March 2025             36.1%
 Infrastructure      31st March 2025             1.6%
 Cash                31st May 2025               37.6%

 

During the three months to 31st May 2025, all strategies delivered positive
returns in local currency terms, with private transportation contributing
+1.3%, private real estate equity contributing +0.9%, and private
infrastructure contributing +0.1%(1). Sterling(2) strengthened against the
underlying currencies in the portfolio, resulting in a net negative currency
impact over the Company's quarter to 31st May 2025.

 

(1) The local return contribution is calculated based on the NAV snapshot as
of 31st May 2025.

(2)The GBP/USD exchange rate was 1.34855 as at 31st May 2025, versus 1.25915
as at 28th February 2025. Currency impact does not factor in an offsetting
gain/loss from the hedged infrastructure strategy, which is priced as at 31st
March 2025.

 

Dividends

The last quarterly dividend of 1.05 pence per share was paid to shareholders
on 29th November 2024. As noted in the Chairman's Statement in the interim
results announced on 27th November 2024, and reiterated in the financial
results released on 30th June 2025, the Company has ceased paying dividends,
and all further distributions will be made by way of returns of capital.

 

Issued Share Capital

As at 31st May 2025, there were 171,071,560 shares in issue.

Portfolio Construction

As at 31st May 2025, the Company's portfolio was valued at £95.8 million
(excluding cash held in JPM Liquidity Funds).

 

Geographical exposure percentage of NAV(3)

 

                29.11.24  28.02.25  31.05.25
 North America  54%       52%       45%
 Asia Pacific   26%       27%       41%
 Europe         17%       19%       14%
 UK             2%        2%        ~0%
 Total          100%      100%      100%

 

(3) As at 31st May 2025. Numbers may not sum due to rounding.

 

Private Asset Portfolio Metrics

Please see below for the metrics of JARA's private investments. As at 31st May
2025, private asset exposure represented 62% of JARA's NAV.

 

Investments

·    321 private investments and, at a more granular individual asset
level, look through exposure to 1,413 individual assets (28th February 2025:
345 private investments and 1,434 individual assets).

 

              29.11.24  28.02.25  31.05.25
 Investments  347       345       321
 Assets       1,440     1,434     1,413

 

Private Portfolio Operating Metrics

 

Discount Rates

·    The blended average discount rate is 7.6%. The asset level discount
rate will vary by strategy, as detailed below. The average discount rate moved
slightly higher over the quarter.

 

                                 29.11.24  28.02.25  31.05.25
 Portfolio Discount Rate         8.1%      8.2%      7.6%
 Real Estate Equity              7.0%      7.0%      6.9%
 Infrastructure & Transport      9.1%      9.2%      8.6%

 

Lease Duration

·    Average lease duration of 5.3 years in real estate and
transportation, with approximately 13% expected to expire in 2025.

 

                                  29.11.24  28.02.25  31.05.25
 Weighted Lease Duration (years)  5.4       5.2       5.3

 

Occupancy

·    96% occupancy of leased assets in real estate and transportation,
with Q4 2024 collections being in line with expectations. At an overall
portfolio level, occupancy and income receipts are in line with the Investment
Manager's expectations.

 

            29.11.24  28.02.25  31.05.25
 Occupancy  96%       96%       96%

 

Loan To Value (LTV)

·    41% portfolio weighted average LTV across private assets. Asset level
LTVs will vary by strategy, with the real estate average LTV of 34% and
infrastructure and transport blended LTV of 49%. The underlying strategies
continue to take a conservative view on overall leverage use.

 

      29.11.24  28.02.25  31.05.25
 LTV  41%       42%       41%

 

Debt

·    4.5% blended average cost of debt across the strategies, with 74.9%
being fixed and 25.1% floating and a weighted average maturity of 3.7 years.

 

                           29.11.24  28.02.25  31.05.25
 Debt Cost                 4.4%      4.5%      4.5%
 Fixed                     71.9%     69.8%     74.9%
 Floating                  28.1%     30.2%     25.1%
 Average Maturity (years)  4.8       5.0       3.7

 

Development Profile

A number of the underlying private strategies have the capacity to engage in a
small degree of development, with the private asset portfolio having a
relatively minimal exposure to development assets. This small allocation
allows the Investment Manager, where appropriate, to capitalise on areas where
construction is a more effective way to gain access to assets or sectors less
accessible in the secondary market. The development pipeline has moderated,
especially in real estate. We would expect construction exposure across JARA's
portfolio to remain relatively low on an aggregate basis.

 

Currency

 

The main currency exposures(4) of the portfolio are as follows:

 

 Currency          29.11.24  28.02.25  31.05.25
 USD               57%       55%       68%
 GBP               23%       27%       3%
 AUD               5%        5%        6%
 JPY               5%        4%        8%
 SGD               3%        4%        6%
 NZD               2%        2%        3%

 

(4) Other currencies represent approximately 4% in aggregate. Numbers may not
sum to 100% due to rounding.

 

2nd July 2025

 

For Further Information

 

JPMorgan Funds Limited - Company Secretary

Telephone: 0800 20 40 20 or +44 1268 44 44 70

E-mail: jpmam.investment.trusts@jpmorgan.com
(mailto:jpmam.investment.trusts@jpmorgan.com)

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