Interim Management Statement
07 Julho 2010 - 8:56AM
UK Regulatory
TIDMHGPC
RNS Number : 9781O
Henderson Global Property Companies
07 July 2010
HENDERSON GLOBAL PROPERTIES COMPANY LIMITED
7 July 2010
HENDERSON GLOBAL PROPERTIES COMPANIES LIMITED
Interim Management Statement
Review of the period from 1 March 2010 to 31 May 2010
MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD
Portfolio
Over the period global equity markets have seen levels of volatility last seen
over a year ago. Concerns over sovereign debt issues in Europe intensified and
led to significant weakness in the Euro and the region's stocks. Asia also
suffered amid further policy tightening by the Chinese government and tensions
between North and South Korea. Stocks in the US declined as fears of contagion
from the Eurozone and a disappointing jobs report dampened growth expectations.
However, in contrast to the listed market, news from the underlying property
markets was broadly encouraging, with a strong Q1 reporting season from US
companies, and UK companies releasing full year results that showed significant
capital value growth and a stabilisation in rental values. Despite the upbeat
tone from management, property equity markets were at the mercy of macro drivers
andthe FTSE EPRA/NAREIT Developed index (GBP) fell by 1.9%.
Our investment objective is to deliver the best possible total return, while
maintaining an income distribution of at least 3.20p per ordinary share for the
year. To this end, we are pleased to see that our total return is in line with
the index over the financial year to date and that we have comfortably met our
third quarter's dividend target, leaving us in a strong position for the full
year.
Much of the activity in the quarter has been focused on North America, where we
have increased our overall exposure to c.50% of the fund. The US property market
is much larger and more diverse than the UK's, and the economy is clearly
recovering at a different pace. The investment market indicators show the same
sort of performance as much of the Western world, but sentiment is more positive
and we foresee greater dividend growth in the region than in most other areas of
the developed world. There are few direct property investment opportunities, but
REITs are well placed to compete for them, because they are not over-leveraged
and have access to both equity and debt at rates that can make acquisitions
accretive in both income and NAV terms. Over the quarter we opened a new
position Liberty Property Trust and have increased holdings in retail-focused
stocks Macerich, CBL and Kimco, while taking profits in warehouse specialist
ProLogis.
In Asia we reduced exposure to Singapore, selling Cambridge Industrial and
CapitaRetail China Trust, rotating into Japan to secure some attractive yields,
such as that from Kenedix Realty Investment which offers a prospective yield
greater than 7%, highlighting the fact that JREITs remain out of favour. In Hong
Kong we consolidated holdings, closing positions in Glorious Property and China
Overseas Land, selling into the Hong Kong rally of early March. In Australia, we
re-introduced Bunnings Warehouse Property and built an overweight position in
Westfield, as it appeared to be good value relative to its international peers.
In Europe we remain overweight in the UK where we favour exposure to Central
London, via holdings in Land Securities, retail-focused Shaftesbury and
office-focused Derwent London. Dividend yields remain attractive among the
Continental shopping centre owners, and we have added to Amsterdam-listed
Eurocommercial Properties. Elsewhere, we introduced Swedish homebuilder JM to
retain our overweight exposure to the country and initiated a position in PSP
Swiss Property which offers an attractive yield and defensive characteristics.
Gearing
As mentioned in the half year report, the company has begun to introduce
'Contract For Difference' (CFD) positions into the portfolio as a flexible,
low-cost method of leverage. We are permitted to leverage the portfolio up to
20%, but we do not currently anticipate reaching this level in the near future.
At the end of May leverage as a result of CFD exposure stood at 8.9%.
Discount to Net Asset Value
The discount was 15.3% at the end of May. The discount as at the close of
business on 6 July 2010 was 8.9%.
Dividends
An interim dividend of 0.80p per ordinary Share, in respect of the period ended
28 February 2010, was paid on 30 April 2010 to holders registered on 16 April
2010, in line with the Company's dividend objective.
Outlook
Despite the recent volatility, apparently stemming from sovereign debt worries
and Korean sabre-rattling, property fundamentals remain on a gently sloping
recovery path. The greatest challenge, in our view, is negative investor
sentiment. This stems in part from a view that the upside has already been
taken, partly from fear of the outstanding debt. Despite this view, we believe
that we are yet to reach the halfway point of the first half of the recovery,
and that there will be continue to be investment opportunities over the next few
years for those with the right balance sheet and skills.
PERFORMANCE AND FINANCIAL HIGHLIGHTS
Performance to 31 May 2010
+----------------------------------+---------+--------+----+------+
| | 3 | 1 | | |
| | months | year | | |
+----------------------------------+---------+--------+----+------+
| Net asset value total return per | 4.37% | 46.90% | | |
| ordinary share | | | | |
| | | | | |
+----------------------------------+---------+--------+----+------+
| FTSE/EPRA NAREIT Developed Index | 5.34% | 41.53% | | |
| (GBP) total return | | | | |
+----------------------------------+---------+--------+----+------+
Source: Fundamental Data
+-------------------------------+--------------------+--------------------+
| Financial Position | at 31 May 2010 | at 28 February |
| | | 2010 |
+-------------------------------+--------------------+--------------------+
| Net assets | GBP23.5m | GBP22.8m |
+-------------------------------+--------------------+--------------------+
| Net asset value (including | 62.6p | 60.7p |
| current year income) | | |
+-------------------------------+--------------------+--------------------+
| Ordinary share price | 53.0p | 54.0p |
+-------------------------------+--------------------+--------------------+
| Discount | 15.3% | 11.0% |
+-------------------------------+--------------------+--------------------+
| Gearing (i) | Nil | Nil |
+-------------------------------+--------------------+--------------------+
| Gearing (ii) | 8.9% | Nil |
+-------------------------------+--------------------+--------------------+
(i) The company did not have any loans or overdrafts at 31 May 2010 and
therefore was not financially geared.
(ii) The company has introduced Contracts for Difference (CFD) into the
portfolio and at 31 May 2010 had a net long exposure of GBP2,496,000.
THE PORTFOLIO
+------------------------------+---------------+------------+-------------+
| Top 10 Investments | Country of | % of | % of |
| | | portfolio | portfolio |
+------------------------------+---------------+------------+-------------+
| | | at 31 May | at 28 |
| | incorporation | 2010 | February |
| | | | 2010 |
+------------------------------+---------------+------------+-------------+
| Westfield Group | Australia | 4.8 | 3.5 |
+------------------------------+---------------+------------+-------------+
| Mitsubishi Estate | Japan | 4.6 | 4.6 |
+------------------------------+---------------+------------+-------------+
| Sun Hung Kai Properties | Hong Kong | 4.3 | 4.5 |
+------------------------------+---------------+------------+-------------+
| Kenedix Realty Investment | Japan | 3.5 | - |
+------------------------------+---------------+------------+-------------+
| Simon Property | United | 3.3 | 3.0 |
| | States | | |
+------------------------------+---------------+------------+-------------+
| Macerich Co | United | 3.1 | 1.6 |
| | States | | |
+------------------------------+---------------+------------+-------------+
| Land Securities | United | 2.5 | 1.7 |
| | Kingdom | | |
+------------------------------+---------------+------------+-------------+
| Kerry Properties | Hong Kong | 2.5 | - |
+------------------------------+---------------+------------+-------------+
| Entertainment Properties | United | 2.4 | 1.9 |
| Trust | Kingdom | | |
+------------------------------+---------------+------------+-------------+
| Ventas | United | 2.4 | 1.2 |
| | States | | |
+------------------------------+---------------+------------+-------------+
+-----------------------+--------------------+--------------------+
| Geographic Breakdown* | % at 31 May 2010 | % at 28 February |
| | | 2010 |
+-----------------------+--------------------+--------------------+
| United States | 46.2 | 37.8 |
+-----------------------+--------------------+--------------------+
| Hong Kong & China | 15.1 | 11.5 |
+-----------------------+--------------------+--------------------+
| UK | 9.9 | 10.8 |
+-----------------------+--------------------+--------------------+
| Japan | 7.2 | 11.7 |
+-----------------------+--------------------+--------------------+
| Australia | 4.9 | 6.1 |
+-----------------------+--------------------+--------------------+
| Canada | 3.5 | 4.6 |
+-----------------------+--------------------+--------------------+
| France | 2.9 | 4.3 |
+-----------------------+--------------------+--------------------+
| Singapore | 2.3 | 5.4 |
+-----------------------+--------------------+--------------------+
| Russia | 1.6 | 1.8 |
+-----------------------+--------------------+--------------------+
| Sweden | 1.5 | 1.7 |
+-----------------------+--------------------+--------------------+
| Other | 4.9 | 4.3 |
+-----------------------+--------------------+--------------------+
*based on location of the assets
+--------------------+--------------------+--------------------+
| Sector Breakdown | % at 31 May 2010 | % at 28 February |
| | | 2010 |
+--------------------+--------------------+--------------------+
| Retail | 34.3 | 39.3 |
+--------------------+--------------------+--------------------+
| Office | 21.9 | 20.7 |
+--------------------+--------------------+--------------------+
| Residential | 14.7 | 11.1 |
+--------------------+--------------------+--------------------+
| Industrial | 9.7 | 11.8 |
+--------------------+--------------------+--------------------+
| Healthcare | 4.0 | 3.3 |
+--------------------+--------------------+--------------------+
| Hotel | 1.9 | 2.2 |
+--------------------+--------------------+--------------------+
| Storage | 0.4 | 0.6 |
+--------------------+--------------------+--------------------+
| Other* | 13.1 | 11.0 |
+--------------------+--------------------+--------------------+
The investment objective is to provide investors with a total return (both
income and capital) principally through investing in listed property securities
and property-related securities globally.
Further information on the Company, including an up to date NAV and share price
information, can be found at www.hendersonglobalproperty.com
For further information, please contact:
+----------------------------------+----------------------------------+
| Sara Bourne | James de Sausmarez |
| Company Secretary | Head of Investment Trusts |
| BNP Paribas Fund Services | Henderson Global Investors |
| (Guernsey) Limited | Telephone: 020 7818 3349 |
| Telephone: 01481 750858 | |
| | |
+----------------------------------+----------------------------------+
| Sarah Gibbons-Cook | |
| Investor Relations and PR | |
| Manager | |
| Henderson Global Investors | |
| Telephone: 020 7818 3198 | |
+----------------------------------+----------------------------------+
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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