TIDMJARA TIDMJARU TIDMJARE

RNS Number : 1185P

JPMorgan Global Core Real Assets Ld

16 June 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 May 2022 of 101.84 pence per share. During the quarter to 31st May 2022 the Company paid a dividend of 1 penny per share on 31st May 2022, bringing the total return for the quarter to +8.26%.

JARA's portfolio is continuing to perform well since the Company has been near fully invested. Across both public and private allocations, and measured in local currency, JARA's real estate, infrastructure and transportation allocations returned 2.2%, 2.6% and 0.1% respectively, over the three month period . The 6.5% 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 1.26030 as at 31st May 2022.

Dividends

JARA has now paid out 9 pence per share of dividends since IPO. The most recent quarterly dividend of 1 penny per share was paid to investors on 31st May 2022 , representing an annualised yield of 3.92%* . 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 May 2022.

Issued Share Capital

No new shares were issued during the quarter. As at 31st May 2022, there were 217,407,952 shares in issue. Since its IPO in September 2019 JARA has seen its share capital expand by 45.9%.

Portfolio Construction

As at 31st May 2022, the Company's portfolio was valued at GBP221.4 million and was 99% invested. On 4th March 2022 and 24th April 2022 the Company announced that $11.1 million and $8.2 million respectively of the Company's committed capital was called and funded into the US Real Estate Mezzanine Debt strategy. These investments were funded from cash and listed real assets and there were no other significant asset allocation decisions or investments during the period.Sector exposure Percentage of NAV.

 
                       Total Exposure   Private Asset   Public Asset 
                                           Exposure       Exposure 
 Real Estate Equity         48%              40%             7% 
 Real Estate Debt           10%              7%              3% 
 Infrastructure             22%              17%             5% 
 Transportation             21%              18%             3% 
--------------------  ---------------  --------------  ------------- 
 Total                      100%             82%            18% 
 

As at 31st May 2022. Numbers may not sum due to rounding.

Geographical exposure Percentage of NAV

 
                  30.11.21    28.02.22      31.05.22 
 North America      49%          54%           53% 
 Asia Pacific       29%          29%           28% 
 Europe             16%          16%           16% 
 UK                  1%          2%            2% 
 Other              1%          0%           0% 
 Total              96%         100%          100% 
 
 

Geographical exposures only include invested capital. Numbers may not sum due to rounding.

Private Asset Portfolio Metrics

The private assets have the most complete data set compared to the listed portion of JARA's portfolio given their less consistent and non standardised reporting; therefore below we have included the aggregated detail from the private portion of JARA's portfolio to allow further analysis and comparison on a time series basis. As at 31st May 2022 private asset exposure represented 82% of JARA's NAV up from 78% last quarter.

Investments

-- 290 private investments and, at a more granular individual asset level, look through exposure to 1,103 individual assets (28th February 2022: 1,023)

 
                30.11.21   28.02.22   31.05.22 
 Investments      251        268        290 
 Assets           957       1,023      1,103 
 

Private Portfolio Operating Metrics

Discount Rates

-- The blended average discount rate is 7.2%. 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 8.6%. 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 and changes are primarily driven by portfolio acquisitions and disposals rather than a changing of assumptions.

 
                               30.11.21   28.2.22   31.05.22 
 Portfolio discount 
  rate                           7.4%      7.3%       7.2% 
----------------------------  ---------  --------  --------- 
 Property                        6.2%      6.1%       6.2% 
 Infrastructure & Transport      8.8%      8.6%       8.6% 
 

Lease Duration

-- 5.5 years average lease duration in real estate and transportation, with just 7% of JARA's portfolio leases due to expire in 2022.

 
                      30.11.21   28.02.22   31.05.22 
 Weighted Lease 
  Duration (years)      4.7        4.4        5.5 
 

Occupancy

-- 97% occupancy of leased assets in real estate and transportation, of which 98% paid income as expected in Q1 2022, in line with Q4 2021. At an overall portfolio level, occupancy and income receipts are in line with what the Manager expects as optimal portfolio performance.

 
              30.11.21   28.02.22   31.05.22 
 Occupancy      98%        98%        97% 
 

Loan To Value

-- 31% portfolio weighted average loan to value across private assets. The leverage reduction from last quarter was driven by the addition of Real Estate Mezzanine Debt which is an unlevered strategy. Asset level LTVs will vary by strategy with the real estate blended LTV of 21% and Infrastructure and Transport blended LTV of 47%. The underlying strategies continue to take a conservative view on overall leverage use.

 
        30.11.21   28.02.22   31.05.22 
 LTV      39%        39%        31% 
 

Debt

-- 2.9% blended average cost of debt across the strategies, with 79% being fixed and 21% floating and a weighted average maturity of 5.5 years.

 
                     30.11.21   28.02.22   31.05.22 
 Debt Cost             3.2%       3.0%       2.9% 
 Fixed                 82%        78%        79% 
 Floating              19%        22%        21% 
 Maturity (years)      5.9        5.7        5.5 
 

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 or due to a preference for newer, more technologically advanced assets. 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.

 
                    30.11.21   28.02.22   31.05.22 
 Development Risk     <3%        <3%        <3% 
  Exposure 
 

Currency

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

 
 Currency      30.11.21   28.02.22   31.05.22 
 USD             60%        64%        63% 
 EUR             10%         9%         8% 
 AUD              8%         7%         7% 
 JPY              6%         6%         6% 
 GBP              5%         1%         3% 
 RMB              3%         3%         3% 
 SGD              2%         3%         3% 
 CAD              2%         2%         2% 
 NZD              2%         2%         2% 
 

Numbers may not sum to 100% due to rounding.

16th June 2022

Alison Vincent

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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June 16, 2022 03:10 ET (07:10 GMT)

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