2nd Sep 2014 09:01
LONDON (Alliance News) - Invista European Real Estate Trust said its net asset value has fallen since March, as it continues to target the disposal of assets it believes do not provide long term growth.
Invista said its net asset value at the end of June stood at EUR47.1 million, compared with EUR52.2 million on March 31.
The net asset value reflects a decrease in property valuation on a like-for-like basis of EUR3.0 million, or EUR0.01 per share. The sterling NAV was also adversely affected by a fluctuation in the exchange rate which reduced GBP NAV per share by GBP0.005 on a like-for-like basis.
As at June 30, the company's property portfolio was valued at EUR296.7 million and comprised 31 assets located in five countries.
At the beginning of the year, Invista identified a portfolio of 14 assets as being ready for sale, chosen, among other things, on the basis of their prospective long term vacancy.
Invista said it has made encouraging progress with these targeted disposals and the focus of the company's strategy remains to complete the remaining transactions in its existing business plan.
The implementation of the current disposal strategy will require careful cash management to balance the consequent loss of income from asset sales against planned expenditures.
Nonetheless, the group believes its assets, concentrated in France and Germany, will provide a mixture of opportunities for improvement through continued asset management.
The stock was quoted down 21.4% at 2.75 pence Tuesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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