23rd Jan 2008 07:30
Invista European Real Estate Trust23 January 2008 Invista European Real Estate Trust SICAF Quarterly Factsheet - 30th September 2007www.ieret.eu Key Highlights: • Adjusted NAV growth of 10.1% since IPO on 20 December 2006. Including dividends, total return since IPO is 11.8% • Property portfolio valued at €736m up 0.8% over the quarter • Strong income characteristics with net initial of 6.13% on valuation and a running yield of 6.61% • Strong tenant credit rating of Low - Medium Risk (Experian). • Portfolio diversified by sector and geography to capture growth Investment Objective: To provide shareholders with an attractive level of income return together withthe potential for income and capital growth through investing in diversifiedcommercial real estate in Continental Europe. Key Statistics NAV per share 09/07* • 3.11Share Price 30/9/07 199.75Gross Property Value 09/07** • 736.3mNet debt 09/07 • 359.0mGearing 09/07*** 59.0%Dividend dates May/NovemberCash 09/07 • 68.6 * Adjusted to exclude deferred tax liabilities** Includes committed assets*** Gross debt divided by portfolio value Company Performance Overview: Net Asset Value - Invista European Real Estate Trust listed on the main marketof the London Stock Exchange on 20 December 2006 at an issue price of 200p.Adjusted NAV has grown 10.1% since IPO (proforma NAV of €2.82). The total NAVreturn, including dividends, from IPO to 30 September 2007 was 11.8%. Property Portfolio - The value of the property portfolio as at 30 September 2007was €724.3m and consisted of 46 properties. The Company is committed toacquiring one further property valued at €12m. The Company purchased threelogistics properties during the quarter totalling €40.5m, two of which arelocated in The Netherlands and the third in Prague, Czech Republic. TheCompany's portfolio on a like-for-like basis, increased in value over thequarter by 0.8%. Portfolio Fundamentals - The property portfolio including committed assets iswell diversified by both country and sector and benefits from good quality,relatively long income characteristics ("Low - Medium Risk" Experian/Dun &Bradstreet credit rating and 7yrs weighted average lease length to expiry).These portfolio characteristics are fully consistent with the objective of thefund to provide an attractive level of income return with the potential forcapital growth. In addition, there are a number of asset management initiativescurrently being pursued to optimise returns which, together with the benefits oflease indexation, positions the portfolio well for future value growth. Portfolio Structure Sector Logistics 53%Offices 33%Retail 14% Valuation as at 30 September 2007, including committed assets Geographic Czech 2%Netherlands 3%Belgium 3%Spain 5%Germany 34%France 52%Poland 1% Valuation as at 30 September 2007, including committed assets 10 Largest Holdings* %**Campus Heusenstamm, 54-64 Jahnstrasse, Heusenstamm, Germany 11.6%Riesapark 2, 01587 Riesa, Germany 7.6%Le Delta, 95800 Cergy, France 5.1%Vor der Hecke, 34355 Lutterberg, Germany 4.5%21 Chemin de la Sauvegarde, 69130 Ecully, Lyon, France 4.3%Plot 14A&B, Avenida Rio Henares, Alovera, Guadalajara, 3.6%19208 Madrid, SpainZAC des Escampades I, 84170, Monteux, France 3.1%Fos-Distriport Logistics Park, 13270 Fos sur Mer, 13270 2.9%Marseille, France13 Avenue Albert Einstein, 69100 Villeurbanne, Lyon, France 2.9%Sun, 180 Avenue de l'Europe, 38330 Montbonnot St Martin, 2.8%Grenoble, France Total as at September 2007 48.4% *Includes committed assets** Percentage of aggregate asset value plus cash (including committed assets) 10 Largest tenants* %**Norbert Dentressangle 14.3%Deutsche Telekom 9.9%DHL 6.4%Tech Data Espana 3.1%Valeo 3%Merial SAS 2.7%Sun Microsystems 2.7%Carrefour 2.5%AVA Marktkauf 2.1%Real 2.2%Copal Logistics 2% Total as at September 2007 48.7% * Includes committed assets**Percentage of aggregate gross rent (including committed assets Asset Management Highlights: Acquisitions The Company completed the purchase of three logistics properties located in Tieland Amsterdam in The Netherlands and Prague, in the Czech Republic totalling€40.5m. The Company committed to purchase these properties in December 2005 (atpre-agreed yields) and closed the transactions following completion of certainconditions relating to construction, occupation and receipt of rent fromtenants. The properties are let to multi national logistics companies ChristianSalvesen, DHL and Bax Global and are complementary to the existing logisticsassets in the portfolio. The Company purchased a portfolio of five officeproperties in Brussels, Belgium on 19 December 2007, valued at acquisition at€33.1 million. The portfolio provides the opportunity to benefit from upside inleasing vacant accommodation in two of the properties whose purchase wasunderwritten off a low rental level. Committed Assets The Company is committed to purchase a logistics property in Girona, Spain for€12m. Pipeline Invista Real Estate Investment Management, the investment manager, has access tostrong deal flow of c. €3bn per month in Continental Europe and continues toreview a number of potential transactions for the Company. Such transactions areanalysed to enable the company to capture growth through accessing differentmarkets, regions, sectors or market cycles. Invista Real Estate InvestmentManagement continues to focus on the main Western European markets - and willtrade in and out of market cycles to capture value where appropriate. Active Asset Management Against the background of a challenging capital markets environment theimplementation of an active asset management strategy remains central todelivering NAV performance. Yield driven capital growth has contributed todouble digit returns in the sector in the last 18-24 months, however fundamentaldecisions concerning stock selection and identifying growth markets, regions ofcountries or sectors that are forecast to outperform will become an increasinglyimportant component of property returns. Invista Real Estate InvestmentManagement has always been focused on such property level characteristics andidentifying growth opportunities that can be generated through activemanagement. These intiatives, such as lease re-gears, identifying assetsappropriate for sale, investigating use of surplus land etc are now beginning togenerate benefits across the portfolio which have positively contributed toreturns. Further details of such asset management initiatives will be reported,subject to confidentiality arrangements, once formal agreements have beenreached with tenants/occupiers. Contacts Brokers: JP Morgan Cazenove20 MoorgateLondon EC2R 6DATel: 0207 588 2828Richard Cotton (Managing Director, Corporate Finance)Angus Gordon Lennox (Managing Director, Corporate Finance) for more details,please visit www.ifpt.co.uk CitigroupCitigroup CentreCanada SquareCanary WharfLondon, E14 5LB, UKTel: +44 20 7986 0062 Tim Harvey Samuel (Managing Director), Alex Carter(Director), Tel: +44 20 7986 0520 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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