Janus Henderson ends dealing suspension for UK Property PAIF
Janus Henderson Group is to end the current dealing suspension for the Janus Henderson UK Property PAIF and its associated Feeder Fund with effect from midday on 24 February 2021.
Dealing in the fund was temporarily suspended on 16 March 2020 in response to CBRE (the appointed independent valuer of the Janus Henderson UK Property PAIF) advising that they had material uncertainty around the valuation of the UK properties across the market, due to the Covid-19 pandemic. The dealing suspension has allowed for an orderly sale of properties to raise the portfolio’s cash to a level that is sufficient to cover known client redemptions. Once reopened, the intention is to maintain a cash weighting in the portfolio in excess of 15 per cent. This will, however, fluctuate depending on subscription and redemption levels and property transactions. At the end of December the fund showed a cash level of 27.1 per cent.
Simon Hillenbrand, Head of UK Retail at Janus Henderson Investors, says: “We are pleased to re-open dealing in the fund from 24 February 2021. We acknowledge that the dealing suspension has represented a serious disruption of service to clients. However, the decision to temporarily suspend dealings has allowed us to safeguard clients’ interests; raise liquidity levels and ensure the characteristics of the Fund are not compromised, balancing the interests of investors who wish to remain invested in the Fund and those who would like to redeem. An extended low interest rate environment should see investor demand continue for income-yielding assets and underscores the case for high-quality, well located UK commercial property.”
While the fund was suspended, 11 assets have been sold; with most sale prices attained exceeding 31 December 2019 valuations.
Portfolio Manager, Ainslie McLennan, says: “The fund has had robust performance over the long term. It has returned 1.7 per cent pa over five years, and 4.2 per cent pa over 10 years which compares favourably to the peer group average return of 0.7 per cent and 3.4 per cent pa over the same time frames.
"The investment objective of the Fund remains focused on holding a strong portfolio of defensive, core assets with a mix of robust tenants on long leases across all sectors. Despite the ongoing impact from the Covid-19 pandemic and Brexit related uncertainties, we believe the asset class remains attractive as a portfolio diversifier, given its supply of steady contractual rental income and potential for income and capital growth over the long term. Rent collection remained strong in 2020 with 91.5 per cent of rents due collected by 18 January 2021. This reflects the quality and diversity of the underlying tenant base. We are also ambitious for the future; we are still working to the goal we set in January 2019, to become operationally net zero carbon across our portfolio by 2030 and we are going to continue to build on our solid sustainability credentials. The fund aims to hold a portfolio of energy efficient and well-connected assets that companies of today and the disruptors forming tomorrow’s businesses would wish to occupy.”
The decision to become operationally net zero carbon across the portfolio by 2030 was made in January 2019; the fund has already taken big steps already toward meeting this goal making a demonstrable impact on the environment and in those communities in which we work.
Already 100 per cent of the landlord procured electricity for the fund’s assets now comes from renewable sources, through a power purchase agreement. Last year the Fund was ranked fourth in the Global Real Estate Sustainability Benchmark (GRESB), out of 59 in its GRESB peer group, with an overall score of 76/100, outperforming the peer group average score by 12 points. GRESB also awarded the Fund ‘Green Star’ status for the fifth consecutive year, outperforming its peer group average score in 13 out of 14 benchmark aspects, and scored 100/100 for its overall approach.
Janus Henderson’s work is being assessed externally by bodies who are experts in these issues. The average energy use across the portfolio will improve on targets set by the UK Green Building Council (UKGBC) and will apply to buildings owned by the portfolio by 2030 (except those owned for fewer than three years). The Carbon Trust has independently validated the fund’s ‘net zero’ strategy approach and will provide support to ensure that all actions towards achieving this ambition are taken.