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 29th February 2024 of 93.92 pence per share (30th November 2023: NAV 94.06 pence per share). During the quarter, the Company paid a dividend of 1.05 pence per share on 23rd February 2024, bringing the NAV total return for the quarter to +1.0% and to -3.9% for the preceding 12 months, while the total share price return for the 12 months to 29th February 2024 was -20.9%.

The Company repurchased 1,850,000 shares in the quarter to 29th February 2024. The shares were repurchased at a weighted average discount of c. 28% and these repurchases added approximately 0.2 pence per share to NAV performance. The programme is ongoing.

An analysis of the components to this NAV and the relevant dates for their valuation is provided below. The Company currently has redemption requests in US Real Estate which, if exercised, would reduce the allocation from the current 19.1% to a target of 15%.

Strategies

Private infrastructure and transportation were significant contributors during the period, adding 0.8%, with private real estate debt contributing -0.2% in local currency. The private real estate equity sleeve was the most significant detractor, contributing -1.6% to performance, while liquid strategies contributed +0.5% in local currency. The underlying currencies in the portfolio weakened against the USD, resulting in a net positive currency impact. In addition, a slightly stronger US dollar versus sterling* marginally helped performance over the Company's quarter to 29th February 2024.

*The GBP/USD exchange rate was 1.26495 as at 29th February 2024, versus 1.26595 as at 30th November 2023

Dividends

The most recent quarterly dividend of 1.05 pence per share was paid to shareholders on 23rd February 2024. The Board continues to expect the yield to be within the target range of 4 - 6% on issue price, as set out in the Company's IPO prospectus. The current year's expected total dividends for the financial year ending 29th February 2024 of 4.20 pence per share represents a yield of 6.5% on the current market price*.

* Based on JARA's closing share price as at 29th February 2024.

Issued Share Capital

As at 29th February 2024, there were 210,445,138 shares in issue, excluding 8,962,814 shares held in treasury.

Valuations

The Board notes that one of the broader market concerns is in relation to the accuracy of private market NAVs. To this end, the portfolio management team has reviewed historical transactional data in relation to the appraisal (carrying) NAVs for JARA's indirect investments in private real assets. This review was conducted on 15 transactions since the second quarter of 2022 across U.S. real estate, APAC real estate, and global infrastructure. It showed that exit valuations were largely in line with the appraisal values at the time of disposal - with the deals observed on average transacting at a 1% premium over appraisal value.

Both the Board and the investment manager believe this affirms the quality and resilience of JARA's NAV. This is an indication of the rigour of the valuation process which is undertaken for each of JARA's strategies and their underlying assets. It is important to highlight that this has occurred during a period of significant market uncertainty, most notably in the real estate sector. The Board receives regular reporting on realised gains/losses of any underlying asset disposal against its carrying value as part of its work to oversee and validate the Company's reported NAV.  

Portfolio Construction

As at 29th February 2024, the Company's portfolio was valued at £194.5million.

Sector exposure Percentage of NAV

As at 29th February 2024. Numbers may not sum due to rounding. Cash level at quarter end was <2%

Geographical exposure percentage of NAV

As at 29th February 2024. Numbers may not sum due to rounding.  

Private Asset Portfolio Metrics

Please see below for the metrics of JARA's private investments. As at 29th February 2024, private asset exposure represented 83% of JARA's NAV, stable compared to the previous quarter.

Investments

·    352 private investments and, at a more granular individual asset level, look through exposure to 1,414 individual assets (30th November 2023: 348 private investments and 1,402 individual assets).

Private Portfolio Operating Metrics

Discount Rates

The blended average discount rate is 8.1%. The asset level discount rate will vary by strategy as detailed below. The average discount rate has risen marginally from 8.0% for the previous quarter. This was primarily driven by an increase in the real estate discount rate.

Lease Duration

·    5.0 years average lease duration in real estate and transportation, with approximately 15% expected to expire in 2024.

Occupancy

·    96% occupancy of leased assets in real estate and transportation, with Q4 2023 collections being in line with expectations. At an overall portfolio level, occupancy and income receipts are in line with what the Manager expects.

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 average LTV of 35% and Infrastructure and Transport blended LTV of 49%. The underlying strategies continue to take a conservative view on overall leverage use.

Debt

·    4.4% blended average cost of debt across the strategies, with 65.6% being fixed and 34.4% floating and a weighted average maturity of 5.2 years.

¹ The cost of debt for mezzanine debt as at 30th Nov 2023 has been restated from 4.6% to 4.5%.

Development Profile

A number of the underlying private strategies have the capacity to engage in a small degree of development, with the private asset portfolio having a relatively minimal exposure to development assets. This small allocation allows the Manager, where appropriate, to capitalise on areas where construction is a more effective way to gain access to assets or sectors less accessible in the secondary market. The development pipeline has moderated more recently, especially in real estate. We would expect construction exposure across JARA's portfolio to remain relatively low on an aggregate basis.

Currency

The main currency exposures of the portfolio (including liquidity funds) are as follows:

Other currencies represent approximately 4% in aggregate. Numbers may not sum to 100% due to rounding.

The above reflects the changes in currency exposure following the allocation to the hedged vehicle of the Infrastructure strategy on 3rd July 2023.

21st March 2024

For Further Information

JPMorgan Funds Limited - Company Secretary

Emma Lamb

Telephone 0800 20 40 20 or +44 1268 44 44 70

Buchanan Communications - Financial PR

JARA@buchanancomms.co.uk

0207 466 5000

Notes

The Company aims to provide holders of the Ordinary Shares with a stable income and capital appreciation, measured on a constant currency basis, through exposure to a globally diversified portfolio of Core Real Assets in accordance with the Company's investment policy. The Company obtains 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.