TIDMJARA TIDMJARU TIDMJARE

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 GBP237.1 million and is effectively fully invested. Sector exposure Percentage of NAV.

 
                       Total Exposure   Private Asset   Public Asset 
                                           Exposure       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     <3%        <3%        <3% 
  Exposure 
 

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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