TIDMJARA TIDMJARU TIDMJARE
RNS Number : 3374M
JPMorgan Global Core Real Assets Ld
21 September 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 31st August 2021 of 91.48 pence. During the quarter to 31st
August 2021 the Company paid a dividend of 1 penny per share on
27th August 2021 , bringing the total return for the quarter to
+5.1%.
Across both public and private allocations, and measured in
local currency, JARA's real estate, infrastructure and
transportation allocations returned 3.6%, 1.3% and 1.9%,
respectively, over the three month period . This local currency
return is in line with JARA's long term return targets. The 3.4%
appreciation of the US dollar versus sterling over the quarter*
benefitted overall return performance.
The gradual global reopening continues to benefit real estate
sectors in both the public and private markets, including those
which have struggled most as a result of the pandemic, along with a
continuation of the robust usage of the logistics and industrial
sectors. As a result, real estate was the largest driver of returns
for Company over the period.
The transportation market is also benefiting from the increase
in economic activity with measures such as port call data and
utilisation levels looking strong. As a core investor in the asset
class the Company is focused on access to this market through
longer term contracts, which are less impacted by spot rates, but
the portfolio does take advantage of attractive economics when
renewing lease rates or acquiring new vessels. This addition of new
vessels at higher rates serves to benefit the overall portfolio
incrementally. The Company's listed allocation supplemented its
private exposure by providing strong positive performance over the
period.
* The GBP/USD exchange rate was 1.37625 as at 31st August 2021.
Dividends
The most recent quarterly dividend of 1 penny per share was paid
to investors on 2 7th August 2021, representing an annualized yield
of 4.3%*. In the absence of unforeseen circumstances, the Board
expects the ongoing yield to be within the target range of 4 - 6%
yield on issue price as set out in the Company's IPO
prospectus.
* Based on JARA's closing share price as at 31st August 2021.
Issued share capital
8,600,000 new shares were issued over the quarter, seeing a 4%
increase in the issued share capital of the Company. As at 31st
August 2021, there were 217,407,952 shares in issue. Since its IPO
in Sept 2019 JARA has seen its share capital expand by 45.9%.
Portfolio Construction
As at 31st August 2021, the Company's portfolio was valued at
GBP197.6 million. During the period a further $13.9 million of
committed capital was called by the Asia-Pacific Real Estate
Strategy; this capital call increased the Company's invested
position to 95% by the period end.
Over the period there was a commitment 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 31 st August 2021, the Company had
uncalled commitments of $20.9 million.
Sector exposure Percentage of NAV
Total Exposure Private Asset Public Asset
Exposure Exposure
Real Estate Equity 51% 37% 14%
Real Estate Mezzanine 0% 0% 0%
Infrastructure 22% 17% 6%
Transportation 22% 18% 3%
----------------------- --------------- -------------- -------------
Total 95% 72% 23%
As at 31st August 2021. Numbers may not sum due to rounding.
Geographical exposure Percentage of NAV
29.2.21 31.5.21 31.8.21
North America 48% 49% 48%
Asia Pacific 23% 29% 29%
Europe 15% 15% 15%
UK 3% 3% 3%
Other 1% 1% 1%
Total 89% 96% 95%
Geographical exposures only include invested capital.
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.
Private asset exposure currently represents 72% of JARA's NAV.
Investments
-- 236 investments and at a more granular individual asset
level, look through exposure to 922 individual assets (31st May
2021: 880)
29.2.21 31.5.21 31.8.21
Investments 235 232 236
Assets 831 880 922
Private Portfolio Operating Metrics
Discount Rates
-- The blended average discount rate is 7.5%. Asset level
discount rate will vary by strategy with real estate currently
having a blended rate of 6.3% and Infrastructure and Transport
being 8.7%. The discount rate will change to some degree as new
assets are acquired. The discount rates have remained stable over
the last couple of quarters.
29.2.21 31.5.21 31.8.21
Portfolio discount
rate 7.5% 7.6% 7.5%
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 2021.
29.2.21 31.5.21 31.8.21
Weighted Lease
Duration (years) 4.9 4.9 4.7
Occupancy
-- 97% occupancy of leased assets in real estate and
transportation, of which 98% paid income as expected in Q2 of 2021,
in line with optimal portfolio performance and a marginal
improvement on Q1 2021. This was largely driven by improving Retail
collections. At an overall portfolio level, occupancy and income
receipts are in line with what the manager expects as optimal
portfolio performance.
29.2.21 31.5.21 31.8.21
Occupancy 97% 97% 97%
Loan To Value
-- 40% portfolio weighted average loan to value. Asset level
LTVs will vary by strategy with the real estate blended LTV of 30%
and Infrastructure and Transport blended LTV of 51%. The underlying
strategies generally take a conservative view on overall leverage
use and this approach has benefitted them over the last year of
COVID related volatility
29.2.21 31.5.21 31.8.21
LTV 42% 40% 40%
Debt
-- 3.2% blended average cost of debt across the strategies, with
82% being fixed and 18% floating and a weighted average maturity of
5.6 years .
29.2.21 31.5.21 31.8.21
Debt Cost 2.4% 3.1% 3.2%
Fixed 83% 81% 82%
Floating 17% 19% 18%
Maturity (years) 5.2 5.9 5.6
Development Profile
-- The private asset portfolio had less than 3% exposure to
development assets, within the property and shipping strategies.
This allocation allows the Manager, where appropriate, to
capitalize 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 areas such as US
and Asia logistics assets and US single family residential. 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.
29.2.21 31.5.21 31.8.21
Development Risk <3% <3% <3%
Exposure
Currency
The main currency exposures of the portfolio (including
liquidity funds) are as follows:
Currency 29.2.21 31.5.21 31.8.21
USD 66% 61% 59%
EUR 12% 11.% 10%
AUD 6% 8% 8%
JPY 6% 7% 6%
RMB 3% 4% 3%
GBP 2% 3% 5%
SGD 1% 2% 2%
CAD 2% 2% 2%
NZD 1% 2% 2%
As at 31st August 2021 - may not sum to 100% due to
rounding.
21st September 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.
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