TIDMJARA TIDMJARU TIDMJARE
RNS Number : 1282N
JPMorgan Global Core Real Assets Ld
21 September 2023
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 2023 of 95.37 pence per share. During the quarter, the
Company paid a dividend of 1.05 pence per share on 30th August
2023, bringing the NAV total return for the quarter to -2.0% and to
-8.0% for the preceding 12 months, while the total share price
return for the 12 months to 31st August 2023 was -23.6%.
Further to the announcement on 10th August 2023 regarding the
use of the share repurchase authority, the program's first
repurchase was on 11th August 2023 and the Company repurchased
1,400,000 shares in the quarter to 31st August 2023. The shares
were repurchased at a weighted average discount of c. 18.4%. The
programme is ongoing.
An analysis of the components to this NAV and the relevant dates
for their valuation is provided below:
Strategies
Name Date of price for % of JARA's NAV
Strategy as at 31st August
2023
US Real Estate Equity 30th June 2023 20.5 %
------------------- -------------------
Asia-Pacific Real Estate
Equity 30th June 2023 16.3%
------------------- -------------------
US Real Estate Debt 30th June 2023 7.4%
------------------- -------------------
Transportation 31st March 2023 19.5%
------------------- -------------------
Infrastructure 30th June 2023 18.9%*
------------------- -------------------
Liquid Strategy 31st August 2023 17.5%
------------------- -------------------
*includes 1% (GBP2.4m) of non-unitised (i.e., held at cost)
called capital.
Across both public and private allocations, and measured in
local currency, JARA's real estate equity and debt exposure
contributed -0.3%, whilst infrastructure and transportation
contributed 1.0%. The US dollar delivered a drag to performance
over the Company's quarter to 31st August 2023 due to its 2.2%
decline versus sterling*.
The Company announced at the end of June an update to its
hedging strategy. As of 3rd July 2023 JARA has been invested in the
hedged vehicle of its Infrastructure allocation. The reallocation
of the existing unhedged investment in Infrastructure to the hedged
vehicle is intended to reduce the currency-related volatility in
returns from the private infrastructure allocation. The resultant
currency exposure as of 31st August 2023 is shown in the currency
table below. The Company will consider further additional actions
to reduce currency-related NAV volatility as appropriate.
* The GBP/USD exchange rate was 1.26715 as at 31st August 2023,
versus 1.23940 on 31st May 2023
Dividends
The most recent quarterly dividend of 1.05 pence per share was
paid to shareholders on 30th August 2023. 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. The current
year's expected total dividends for the financial year ending 29th
February 2024 of 4.20 pence per share represents a yield of 5.4% on
the current market price* and 4.2% on issue price.
* Based on JARA's closing share price as at 31st August
2023.
Issued Share Capital
As at 31st August 2023, there were 218,007,952 shares in
issue.
Portfolio Construction
As at 31st August 2023, the Company's portfolio was valued at
GBP203.8 million and this includes GBP2.4m of non-unitised (i.e.,
held at cost) capital in the Infrastructure Strategy.
Sector exposure Percentage of NAV
Total Exposure Private Asset Public Asset
Exposure Exposure
Real Estate Equity 43% 37% 6%
Real Estate Debt 10% 7% 2%
Infrastructure 23% 19% 4%
Transportation 22% 20% 3%
-------------------- --------------- -------------- -------------
Total 100% 83% 17%
As at 31st August 2023. Numbers may not sum due to rounding.
Cash level at quarter end was 2%
Geographical exposure percentage of NAV
28.02.23 31.05.23 31.08.23
North America 54% 54% 56%
Asia Pacific 28% 28% 26%
Europe 16% 15% 15%
UK 2% 2% 3%
Other 0% 0% 0%
Total 100% 100% 100%
As at 31st August 2023. 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 2023, private asset exposure represented 83% of
JARA's NAV, stable compared to the previous quarter.
Investments
-- 344 private investments and, at a more granular individual
asset level, look through exposure to 1,409 individual assets (31st
May 2023: 1,377)
28.02.23 31.05.23 31.08.23
Investments 335 340 344
Assets 1,230 1,377 1,409
Private Portfolio Operating Metrics
Discount Rates
The blended average discount rate is 7.9%. The asset level
discount rate will vary by strategy as detailed below. The average
discount rate has risen marginally from 7.6% for the previous
quarter. This was primarily driven by an increase in the
infrastructure and transportation discount rates.
28.02.23 31.05.23 31.08.23
Portfolio discount
rate 7.9% 7.6% 7.9%
---------------------------- --------- --------- ---------
Property 7.5% 6.4% 6.5%
Infrastructure & Transport 9.2% 9.0% 9.3%
Lease Duration
-- 4.7 years average lease duration in real estate and
transportation, with c.10% expected to expire in 2023.
28.02.23 31.05.23 31.08.23
Weighted Lease
Duration (years) 4.8 4.8 4.7
Occupancy
-- 96% occupancy of leased assets in real estate and
transportation, with Q2 2023 collections being in line with
expectations. At an overall portfolio level, occupancy and income
receipts are in line with what the Manager expects.
28.02.23 31.05.23 31.08.23
Occupancy 96% 96% 96%
Loan To Value (LTV)
-- 38% portfolio weighted average loan to value across private
assets. Asset level LTVs will vary by strategy, with the real
estate average LTV of 33% and Infrastructure and Transport blended
LTV of 49%. The underlying strategies continue to take a
conservative view on overall leverage use.
28.02.23 31.05.23 31.08.23
LTV 37% 37% 38%
Debt
-- 4.3% blended average cost of debt across the strategies, with
78.6% being fixed and 21.4% floating and a weighted average
maturity of 5.6 years.
28.02.23 31.05.23 31.08.23
Debt Cost 3.7% 4.1% 4.3%
Fixed 77.4% 76.4% 78.6%
Floating 22.6% 23.6% 21.4%
Average Maturity
(years) 5.2 5.8 5.6
Development Profile
Each underlying strategy has 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 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 more recently, 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 of the portfolio (including
liquidity funds) are as follows:
Currency 28.02.23 31.05.23 31.08.23
USD 65% 65% 58%
GBP 2% 2% 20%
JPY 7% 7% 6%
AUD 5% 5% 4%
SGD 3% 3% 3%
RMB 3% 3% 2%
EUR 11% 10% 2%
NZD 2% 2% 1%
CAD 1% 1% 1%
Other currencies also represent 2% of NAV. Numbers may not sum
to 100% due to rounding.
The above reflects the changes in currency exposure following
the allocation to the hedged vehicle of the Infrastructure strategy
on 3rd July 2023 as described above.
21st September 2023
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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