JPMorgan Global Core JPM Glbl Core - JARU JPM Glbl Core - JARE - Quarterly Net Asset Value and Portfolio Update
20/09/2022 07:00
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RNS Number : 8393Z JPMorgan Global Core Real Assets Ld 20 September 2022
LONDON STOCK EXCHANGE ANNOUNCEMENT
JPMORGAN GLOBAL CORE REAL ASSETS LIMITED
QUARTERLY NET ASSET VALUE AND PORTFOLIO UPDATE
Legal Entity Identifier: 549300D8JHZTH6GI8F97
JPMorgan Global Core Real Assets Limited ("JARA" or "the Company") announces
an unaudited Net Asset Value ("NAV") as at 31st August 2022 of 108.06 pence
per share. During the quarter to 31st August 2022 the Company paid a dividend
of 1 penny per share on 30th August 2022, bringing the total return for the
quarter to +7.1%.
JARA's portfolio is continuing to perform resiliently in a volatile market
environment. Across both public and private allocations, and measured in local
currency, JARA's real estate, infrastructure and transportation allocations
returned 1.4%, 1.2% and 1.8%, respectively, over the three month period. The
7.7% appreciation of the US dollar versus sterling over the quarter*
significantly assisted GBP returns. We are again pleased to see JARA's
portfolio deliver positive returns over what has been a very volatile period
for most asset classes.
* The GBP/USD exchange rate was 1.1636 as at 31st August 2022.
Dividends
JARA has now paid out 10 pence per share of dividends since IPO. The most
recent quarterly dividend of 1 penny per share was paid to investors on 30th
August 2022, representing a current annualised yield of 3.73%*, and 4% on
issue price. The Board continues to expect the ongoing yield to be within the
target range of 4 - 6% on issue price, as set out in the Company's IPO
prospectus.
* Based on JARA's closing share price as at 31st August 2022.
Issued Share Capital
The Board is delighted with the resumption of issuance against a difficult
market backdrop which shows that there is continued investor demand for JARA's
diversified real asset strategy. This culminated in 2 million new shares being
issued during the quarter. As at 31st August 2022, there were 219,407,952
shares in issue. Since its IPO in September 2019 JARA has seen its share
capital expand by 47.3%. The Board will continue to balance the management of
JARA's premium with investor demand for share issuance.
Portfolio Construction
As at 31st August 2022, the Company's portfolio was valued at £237.1 million
and is effectively fully invested. Sector exposure Percentage of NAV.
Total Exposure Private Asset Exposure Public Asset Exposure
Real Estate Equity 47% 40% 7%
Real Estate Debt 10% 7% 3%
Infrastructure 22% 16% 5%
Transportation 21% 18% 3%
Total 100% 82% 18%
As at 31st August 2022. Numbers may not sum due to rounding.
Geographical exposure percentage of NAV
28.02.22 31.05.22 31.08.22
North America 54% 53% 54%
Asia Pacific 29% 28% 27%
Europe 16% 16% 15%
UK 2% 2% 3%
Other ~0% ~0% ~0%
Total 100% 100% 100%
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
August 2022 private asset exposure represented 82% of JARA's NAV, stable
compared to last quarter.
Investments
· 309 private investments and, at a more granular individual asset
level, look through exposure to 1,168 individual assets (31(st) May 2022:
1,103)
28.02.22 31.05.22 31.08.22
Investments 268 290 309
Assets 1,023 1,103 1,168
Private Portfolio Operating Metrics
Discount Rates
· The blended average discount rate is 7.3%. The asset level discount
rate will vary by strategy, with real estate currently having a blended rate
of 6.2% and Infrastructure and Transport being 8.8%. The discount rate will
change to some degree as new assets are acquired. The discount rates have
remained relatively stable over the last couple of quarters.
28.2.22 31.05.22 31.08.22
Portfolio discount rate 7.3% 7.2% 7.3%
Property 6.1% 6.2% 6.2%
Infrastructure & Transport 8.6% 8.6% 8.8%
Lease Duration
· 5.1 years average lease duration in real estate and transportation,
with just 3% of JARA's portfolio leases due to expire in the rest of 2022.
28.02.22 31.05.22 31.08.22
Weighted Lease Duration (years) 4.4 5.5 5.1
Occupancy
· 97% occupancy of leased assets in real estate and transportation, of
which 97% paid income as expected in Q2 2022, in line with Q4 2021 and Q1
2022. At an overall portfolio level, occupancy and income receipts are in line
with what the Manager expects as optimal portfolio performance.
28.02.22 31.05.22 31.08.22
Occupancy 98% 97% 97%
Loan To Value
· 35% portfolio weighted average loan to value across private assets.
Asset level LTVs will vary by strategy with the real estate blended LTV of 21%
and Infrastructure and Transport blended LTV of 48%. The underlying strategies
continue to take a conservative view on overall leverage use.
28.02.22 31.05.22 31.08.22
LTV 39% 31% 35%
Debt
· 3.0% blended average cost of debt across the strategies, with 77%
being fixed and 23% floating and a weighted average maturity of 5.0 years.
28.02.22 31.05.22 31.08.22
Debt Cost 3.0% 2.9% 3.0%
Fixed 78% 79% 77%
Floating 22% 21% 23%
Maturity (years) 5.7 5.5 5.0
Development Profile
· The private asset portfolio had less than 3% exposure to development
assets. This allocation allows the Manager, where appropriate, to capitalise
on areas where construction is a more effective way to gain access due to the
rich pricing. Currently the development allocation is mainly focused on three
areas; logistics assets, US multifamily residential and energy logistic
transportation. Each underlying strategy has the capacity to engage in a small
degree of development and this demonstrates the strength and flexibility of
the JPM Alternatives Platform.
We would expect construction exposure across JARA's portfolio to remain
relatively low on an aggregate basis.
28.02.22 31.05.22 31.08.22
Development Risk Exposure <3% <3% <3%
Currency
The main currency exposures of the portfolio (including liquidity funds) are
as follows:
Currency 28.02.22 31.05.22 31.08.22
USD 64% 63% 66%
EUR 9% 8% 10%
AUD 7% 7% 6%
JPY 6% 6% 6%
GBP 5% 1% 3%
RMB 3% 3% 3%
SGD 3% 3% 3%
NZD 2% 2% 2%
CAD 2% 2% 1%
Numbers may not sum to 100% due to rounding.
20th September 2022
Emma Lamb
JPMorgan Funds Limited - Company Secretary
Telephone 0207 742 4000
Notes
The Company aims to provide holders of the Ordinary Shares with a stable
income and constant currency capital appreciation through exposure to a
globally diversified portfolio of Core Real Assets in accordance with the
Company's investment policy. The Company is seeking exposure to Core Real
Assets through various real asset strategies, namely: Global Infrastructure,
Global Real Estate, Global Transport and Global Liquid Real Assets. J.P.
Morgan's Alternative Solutions Group has the primary responsibility for
managing the Company's portfolio.
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