JPMorgan Global Core JPM Glbl Core - JARU JPM Glbl Core - JARE - Quarterly Net Asset Value And Portfolio Update

JPMorgan Global Core Real Assets

19/12/2022 07:00

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RNS Number : 0672K  JPMorgan Global Core Real Assets Ld  19 December 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 30th November 2022 of 102.92 pence
per share. During the quarter to 30th November 2022 the Company paid a
dividend of 1 penny per share on 29th November 2022, bringing the total return
for the quarter to -3.8% and the total return for the year to 30th November
2022 to +12.6%.

 

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
had return contributions of -0.35%, +0.24% and +0.34%, respectively, over the
three month period. The 2.3% depreciation of the US dollar versus sterling
over the quarter* negatively affected GBP returns.

 

* The GBP/USD exchange rate was 1.19090 as at 30th November 2022.

 

Dividends

 

JARA has now paid out 11 pence per share of dividends since IPO. The most
recent quarterly dividend of 1 penny per share, represents a current
annualised yield of 4.19%*, and 4% on issue price. The Board continues to
expect the 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 30th November 2022.

 

Issued Share Capital

 

As at 30th November 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%.

 

Portfolio Construction

 

As at 30th November 2022, the Company's portfolio was valued at £223.8
million and is 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      20%             16%                     4%
 Transportation      22%             19%                     3%
 Total               100%            82%                     18%

As at 30th November 2022. Numbers may not sum due to rounding.

 

Geographical exposure percentage of NAV

 

                31.05.22  31.08.22  30.11.22
 North America  53%       54%              55%
 Asia Pacific   28%       27%              27%
 Europe         16%       15%              15%
 UK             2%        3%               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 30th
November 2022, private asset exposure represented 82% of JARA's NAV, stable
compared to the previous quarter.

 

Investments

 

·    336 private investments and, at a more granular individual asset
level, look through exposure to 1,203 individual assets (31(st) August 2022:
1,168)

 

              31.05.22  31.08.22  30.11.22
 Investments  290       309       336
 Assets       1,103     1,168     1,203

 

Private Portfolio Operating Metrics

 

Discount Rates

 

The blended average discount rate is 7.4%. The asset level discount rate will
vary by strategy, with real estate currently having a blended rate of 6.1% and
Infrastructure and Transport being 9.0%. The discount rate will change to some
degree as new assets are acquired. The blended average discount rate at the
portfolio level has remained relatively stable over the last two quarters
given the variety of sectors that the Company invests in.

 

                                 31.05.22  31.08.22  30.11.22
 Portfolio discount rate         7.2%      7.3%      7.4%
 Property                        6.2%      6.2%      6.1%
 Infrastructure & Transport      8.6%      8.8%      9.0%

 

Lease Duration

 

·    5.2 years average lease duration in real estate and transportation,
with under 10% expected to expire in 2023.

 

 

                                  31.05.22  31.08.22  30.11.22
 Weighted Lease Duration (years)  5.5       5.1       5.2

 

Occupancy

 

·    97% occupancy of leased assets in real estate and transportation,
with Q3 2022 collections being in line with expectations. At an overall
portfolio level, occupancy and income receipts are in line with what the
Manager expects as optimal portfolio performance.

 

            31.05.22  31.08.22  30.11.22
 Occupancy  97%       97%       97%

 

Loan To Value

 

·    37% portfolio weighted average loan to value across private assets.
Asset level LTVs will vary by strategy with the real estate blended LTV of 22%
and Infrastructure and Transport blended LTV of 50%. The underlying strategies
continue to take a conservative view on overall leverage use.

 

      31.05.22  31.08.22  30.11.22
 LTV  31%       35%       37%

 

Debt

 

·    3.4% blended average cost of debt across the strategies, with 75.5%
being fixed and 24.5% floating and a weighted average maturity of 5.0 years.

 

                   31.05.22  31.08.22  30.11.22
 Debt Cost         2.9%      3.0%      3.4%
 Fixed             79%       76.5%     75.5%
 Floating          21%       23.5%     24.5%
 Maturity (years)  5.5       5.0       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 areas
such as logistics assets and energy 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.

 

 

 

                            31.05.22  31.08.22  30.11.22
 Development Risk Exposure  <3%       <3%       <3%

 

 

 

Currency

 

The main currency exposures of the portfolio (including liquidity funds) are
as follows:

 

 Currency          31.05.22  31.08.22  30.11.22
 USD               63%       66%       66%
 EUR               8%        10%       8%
 AUD               7%        6%        6%
 JPY               6%        6%        6%
 GBP               1%        3%        3%
 RMB               3%        3%        3%
 SGD               3%        3%        3%
 NZD               2%        2%        2%
 CAD               2%        1%        1%

Numbers may not sum to 100% due to rounding.

 

19th December 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 capital appreciation, measured on a constant currency basis,
through exposure to a globally diversified portfolio of Core Real Assets in
accordance with the Company's investment policy. The Company obtains 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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