TIDMJARA TIDMJARU TIDMJARE
RNS Number : 5061V
JPMorgan Global Core Real Assets Ld
14 December 2021
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") per share
as at 30th November 2021 of 95.08 pence. During the quarter to 30th
November 2021 the Company paid a dividend of 1 penny per share on
29th November 2021 , bringing the total return for the quarter to
5.03%. This has resulted in a total NAV return of 10.31% over the
last two quarters. The 12 month return, inclusive of the two most
recent quarters, comes to 8.44%. This is representative of JARA's
portfolio performing strongly since the Company has been near fully
invested. JARA has now paid out 7 pence per share of dividends
since IPO and the Manager notes that income from the underlying
portfolio has increased markedly in recent quarters.
Across both public and private allocations, and measured in
local currency, JARA's real estate, infrastructure and
transportation allocations returned 2.3%, 1.9% and 1.5%,
respectively, over the three month period . This local currency
return is in line with JARA's long term return targets. The 3.9%
appreciation of the US dollar versus sterling over the quarter [1]
benefitted JARA's NAV, given its 60% US dollar exposure.
The reopening of the global economy continues to benefit JARA's
portfolio and specifically real estate sectors. This has more
recently been led by private markets and in particular U.S. real
estate, which experienced one of its best quarters on record. As a
result, real estate was again the largest driver of returns for the
Company over the period.
The transportation and infrastructure allocations continue to
perform well, offering a higher income level to the portfolio than
real estate. Both these sectors are also benefiting from the
increase in economic activity but to a lesser extent than real
estate. As a core investor, the Company is focused on access to
these markets through assets with longer term contracts and sectors
which are less economically sensitive. The pipelines of the private
strategies are currently focused on renewables, regulated
utilities, contracted power and energy logistic assets. The
Company's listed allocation was impacted by the volatility leading
into the Company's quarter end resulting in a marginally negative
return over the period for this allocation.
We note the emergence of new variants of COVID and while this
puts some degree of uncertainty on the horizon, JARA's portfolio
performed well during the acute phase of the COVID disruption in
2020. The core nature and relatively low leverage of the overall
portfolio, along with the expertise honed in operating portfolio
assets through difficult market conditions means, given current
information, the Manager is comfortable with its ability to deliver
target returns going forward.
Dividends
The most recent quarterly dividend of 1 penny per share was paid
to investors on 29th November 2021 , representing an annualised
yield of 4.7% [2] . In the absence of unforeseen circumstances, the
Board expects distributions to be within the target range of 4 - 6%
yield on issue price, as set out in the Company's IPO
prospectus.
Issued share capital
No new shares were issued during the quarter. As at 30th
November 2021, there were 217,407,952 shares in issue. Since its
IPO in September 2019 JARA has seen its share capital expand by
45.9%; healthy evidence of the interest and support for the
diversified real assets investment proposition which differentiates
JARA in the market.
Portfolio Construction
As at 30th November 2021, the Company's portfolio was valued at
GBP203.9 million and was 96% invested.
Over the period there were no new commitments and the manager is
awaiting the drawdown of the allocation to JPM's US Real Estate
Mezzanine Debt Strategy, which aims to capture the attractive
returns currently available in that sector and will serve to boost
contracted income. As at 30th November 2021, the Company had
uncalled commitments of GBP14 million. We would highlight that
JARA's Private Asia property exposure is primarily logistics, with
a smaller allocation to office and a small residential exposure to
Japanese multi family dwellings. There is no residential or office
exposure in China. The Asia property portfolio is performing well
with solid income returns across all sectors and appreciation in
the industrial/logistics sector.
Sector exposure Percentage of NAV
Total Exposure Private Asset Public Asset
Exposure Exposure
Real Estate Equity 52% 38% 14%
Real Estate Mezzanine 0% 0% 0%
Infrastructure 23% 17% 6%
Transportation 21% 18% 3%
----------------------- --------------- -------------- -------------
Total 96% 74% 22%
As at 30th November 2021. Numbers may not sum due to
rounding.
Geographical exposure Percentage of NAV
31.5.21 31.8.21 30.11.21
North America 49% 48% 49%
Asia Pacific 29% 29% 29%
Europe 15% 15% 16%
UK 3% 3% 1%
Other 1% 1% 1%
Total 96% 95% 96%
Geographical exposures only include invested capital.
Private asset portfolio metrics
The private assets have the most detailed asset-level data set
compared to the listed portion of JARA's portfolio; therefore below
we have included the aggregated detail from the private portion of
the Company's portfolio to allow further analysis and comparison on
a time series basis. Private asset exposure currently represents
74% of JARA's NAV.
Investments
-- 251 investments and at a more granular individual asset
level, look through exposure to 957 individual assets (31st August
2021: 922)
31.5.21 31.8.21 30.11.21
Investments 232 236 251
Assets 880 922 957
Private Portfolio Operating Metrics
Discount Rates
-- The blended average discount rate is 7.4%. 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 few quarters.
31.5.21 31.8.21 30.11.21
Portfolio discount
rate 7.6% 7.5% 7.4%
Lease Duration
-- 4.7 years average lease duration in real estate and
transportation, with just 7% of JARA's portfolio leases due to
expire in 2022.
31.5.21 31.8.21 30.11.21
Weighted Lease
Duration (years) 4.9 4.7 4.7
Occupancy/Utilisation
-- 97% occupancy/utilisation of leased assets in real estate and
transportation, of which 98% paid income as expected in Q3 2021, a
marginal improvement on Q2 2021. This was driven by improving
economic conditions and a marginally higher weighting to
transportation, where we continue to receive 100% of all expected
payments. At an overall portfolio level, occupancy and income
receipts are in line with what the Manager expects as optimal
portfolio performance.
31.5.21 31.8.21 30.11.21
Occupancy/Utilisation 97% 97% 98%
Loan To Value ("LTV")
-- 39% portfolio weighted average loan to value across private
assets. Asset level LTVs will vary by strategy, with the real
estate blended LTV of 30% and infrastructure and transport blended
LTV of 48%. The underlying strategies generally take a conservative
view on overall leverage.
31.5.21 31.8.21 30.11.21
LTV 40% 40% 39%
Debt
-- 3.2% blended average cost of debt across the strategies, with
81% being fixed and 19% floating and a weighted average maturity of
5.9 years .
31.5.21 31.8.21 30.11.21
Debt Cost 3.1% 3.2% 3.2%
Fixed 81% 82% 81%
Floating 19% 18% 19%
Maturity (years) 5.9 5.6 5.9
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 to assets due to the rich pricing in
markets. Currently the development allocation is mainly focused on
three areas; Logistic assets, US single family 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.
31.5.21 31.8.21 30.11.21
Development Risk <3% <3% <3%
Exposure
Currency
The main currency exposures of the portfolio (including
liquidity funds) are as follows:
Currency 31.5.21 31.8.21 30.11.21
USD 61% 59% 60%
EUR 11% 10% 10%
AUD 8% 8% 8%
JPY 7% 6% 6%
GBP 3% 5% 5%
RMB 4% 3% 3%
SGD 2% 2% 2%
CAD 2% 2% 2%
NZD 2% 2% 2%
As at 30th November 2021 - may not sum to 100% due to
rounding.
14 December 2021
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.
[1] The GBP/USD exchange rate was 1.3323 as at 30th November 2021.
[2] Based on JARA's closing share price as at 30th November
2021.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NAVGPGGPPUPGGRW
(END) Dow Jones Newswires
December 14, 2021 02:00 ET (07:00 GMT)
Jpmorgan Global Core Rea... (LSE:JARE)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Jpmorgan Global Core Rea... (LSE:JARE)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
