Balanced Commercial Property Trust Regulatory News (BCPT)

24 Jan 2008 10:40

F&C Commercial Property Trust Ltd24 January 2008 To: Company Announcements Date: 24 January 2008 Company: F&C Commercial Property Trust Limited Subject: Net Asset Value Net asset value The unaudited net asset value per share of F&C Commercial Property Trust Limitedas at 31 December 2007 was 129.2 pence. This represents a decrease of 9.8 percent from the net asset value per share as at 30 September 2007 of 143.3 pence. The net asset value is based principally on the external valuation of theGroup's direct property portfolio prepared by DTZ Debenham Tie Leung Limited. The net asset value has been calculated under International Financial ReportingStandards ("IFRS"), apart from the valuation of the Company's holdings inindirect property funds. Under IFRS, the Company's holdings in indirect propertyfunds have previously been valued at their underlying net asset values. However,in current market conditions, the Board no longer considers this to be anappropriate method of valuation and has for the first time applied a discount of10% to the underlying net asset values as at 31 December 2007, as supplied bythe managers of the indirect property funds. This discount reflects the Board'sview of the likely realisable value of these assets should the Company wish todispose of its holdings in an orderly fashion over time, based on current marketconditions. The quantum of such discount, if any, will be reviewed regularly bythe Board and will be amended, as required, to reflect changes in marketconditions and practice. The net asset value includes all income to 31 December 2007 and is calculatedafter deduction of all dividends paid prior to that date. It does not includeprovision for the quarterly interim dividend, which had an ex-dividend date of10 October 2007 and which will be paid on 25 January 2008. The adjusted netasset value per share after deducting such quarterly dividend payments was 127.7pence. Breakdown of NAV movement Set out below is a breakdown of the change to the unaudited net asset value pershare over the period from 30 September 2007 to 31 December 2007. Pence per share % of opening NAVNet asset value per share as at 30September 2007 143.3Unrealised decrease in valuation ofdirect property portfolio (including theeffect of gearing) (12.1) (8.4)*Unrealised decrease in net asset value ofindirect property funds (including theeffect of gearing) (1.8) (1.3)**Application of discount to net assetvalue of indirect property funds(including the effect of gearing) (1.6) (1.1)** Gain arising from shares bought back/issued 1.3 0.9Movement in revenue reserves 0.1 0.1Net asset value per share as at 31December 2007 129.2 (9.8) \* The ungeared decrease in the valuation of the direct property portfolio overthe quarter to 31 December 2007 was 8.3%. ** Prior to the application of the 10% discount to the net asset values of theindirect property funds, the ungeared decrease in the net asset value of theindirect property funds over the quarter to 31 December 2007 was 9.8%. Followingthe application of the discount, the valuation of the indirect property fundsdecreased by 18.8% The direct property portfolio will next be valued by an external valuer duringMarch 2008 and the net asset value per share as at 31 March 2008, which willalso include the valuation of the indirect property funds on that date, will beannounced in April 2008. Enquiries: Richard KirbyF&C Investment Business LimitedTel: 0207 628 8000 Graham ReavesG&N Collective Funds Services LimitedTel: 0131 226 4411 This information is provided by RNS The company news service from the London Stock Exchange