UKCPT investment objective is to provide ordinary shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified UK commercial property portfolio.
UKCPT invests in a diversified portfolio of freehold and long leasehold UK commercial properties across geographical areas and sectors. This enables investment risk to be spread across the company. It is focussed on institutional grade income producing assets and currently invests in four distinct commercial property sectors: office, retail, industrial and leisure. UKCPT has not set any maximum geographic exposures within the UK or any maximum weighting limits in the principal property sectors. However, no single property shall at the time of acquisition, exceed 15 per cent of gross assets.
It is currently permitted to invest up to 15 per cent of its total assets in indirect property funds including in other listed investment companies. It is permitted to invest cash, held by it for working capital purposes and awaiting investment, in cash deposits, gilts and money market funds.
UKCPT invests in commercial properties which the Board and Investment Manager believe will generate income and long term capital growth for its shareholders. Investment decisions are based on a range of metrics including future capital and income growth projections, sector and geographic prospects, yield, lease length, covenant strength and asset management opportunities.
Gearing within the portfolio currently stands at 18.7% (net gearing 11.2%)*, the lowest gearing within UKCPT’s Guernsey peer group. The blended average interest rate on £250m drawn down, based on current margins, is 2.89%.
*Source: Internal as at 30 September 2016.