10th Aug 2007 12:23
Invista Foundation Property Tst Ltd10 August 2007 Invista Foundation Property Trust Limited Interim Management Statement and FactsheetFrom 31 March to 10 August 2007 Key highlights • Quarterly NAV uplift of 6.69 pence per share or 4.70% as at 30 June 2007.• Total NAV return for the year to 30 June 2007 of 22.40%• Considerable transactional, finance and asset management activity Investment Objective To provide shareholders with an attractive level of income together with thepotential for income and capital growth from investing in UK commercialproperty. Key Statistics NAV per share (30/06/2007) 148.89 pence per shareMid share price (09/08/2007) 122.25 pence per shareGross property value (30 June 2007) £722.07 millionOn-balance sheet debt (LTV) £263.50 million (33.16%)Total Consolidated debt (LTV) £449.56 million (45.85%)Ex Div date 1 August 2007 Company performance overview Net Asset Value As at 30 June 2007 the Company's NAV was 148.89 pence per share (pps), an upliftof 6.69 pps or 4.70% over the March figure of 142.2 pps. The sustained NAVgrowth in the quarter to June is ahead of each of the three month periods toDecember 2006 and March 2007 of 4.10 pps and 4.45 pps respectively. Over the 12months to 30 June 2007 the Company's NAV increased by 21.09 pps or 16.50% andcombined with the dividend provided our Shareholders with a total NAV return ofapproximately 22.40%. These results are after the accrual of a performance feeto the Investment Manager. Property performance relative to peer group The UK IPD Property Index has independently assessed the underlying performanceof the Company's property portfolio. Over the quarter to 30 June 2007, IPDcalculate a total return for the Company of 4.0%, reflecting capital growth overthe quarter of 2.9%. This compares with the IPD Benchmark for the quarter of2.1% and 0.9% respectively. The Company is placed top in its IPD Benchmark of63 Funds for the three, six and 12 months to 30 June 2007. Portfolio value The Company's property portfolio was valued at £722.07 million as at 30 June2007, comprising 74 properties with an average lot size of £9.78 million. Thelike-for-like capital uplift of properties held over the quarter was £17.77million, or 2.54%. Central London properties contributed £11.65 million, 65% ofthis uplift, with the balance generated by significant progress on key assetmanagement initiatives. Significant profits were also realised over the quarterthrough transactions. The Company is focused on actively managing assets to addvalue and acquiring good quality income producing assets to continue its incomesupport. Market - Higher interest rates are slowing capital growth in the UK propertymarket, with secondary property yields the most affected. The divergence ofreturns between the sectors is becoming increasingly pronounced in IPD Monthlydata for the three months to 30 June 2007, illustrated by the contrasting threemonth annualised total return of Standard Retail and Central London offices of6% and 19.2% respectively. The differential is being driven by rental growthwith rates becoming increasingly polarised. Sector weightings Retail 21%Offices 54%Industrial 22%Other 3%Total 100% Regional weightings Central London 33%South East excl. Central London 34%Rest of South 11%Midlands and Wales 13%North and Scotland 9%Total 100% 10 largest holdings Value (£) %*National Magazine House, Broadwick Street, London W1 £58,700,000 8.4%Plantation Place, London EC3 £57,635,000 8.3%Minerva House, London SE1 £57,400,000 8.2%Portman Square, London W1 £33,565,000 4.8%6-8 Tokenhouse Yard, London EC2 £25,100,000 3.6%The Galaxy, Luton £22,100,000 3.2%Reynards Business Park, Brentford £20,500,000 2.9%Victory House, Brighton £20,500,000 2.9%Union Park, Fifers Lane, Norwich £18,000,000 2.6%Churchill Way West, Salisbury £16,450,000 2.4%Total as at June 2007 £329,950,000 47.3% *Percentage of Value as at 30 June 2007 excluding disposals between 30 June 2007and 9 August 2007. 10 largest Tenants Rent %*The National Magazine Company Limited £2,300,587 7.5%Reed Smith Services £1,326,190 4.3%Mott McDonald Limited £1,307,148 4.3%The British Broadcasting Corporation £850,100 2.8%Grand Metropolitan Estates Ltd £795,975 2.6%Recticel SA £727,128 2.4%Partners of Cushman & Wakefield £574.128 1.9%Motorhouse 2000 Limited £570,150 1.9%Partners of Irwin Mitchell Solicitors £547,000 1.8%Snowden & Bridge Limited (Trading as Booker ) £517,000 1.7%Total as at June 2007 £9,515,406 31.2% *Percentage of Rent per annum as at 30 June 2007 excluding disposals between 30June 2007 and 9 August 2007. Disposals During the period from March to June, the Company exchanged and has subsequentlycompleted the disposal of a shop in Northampton for £2.54 million, reflecting anet initial yield of 4.5%. The shop was acquired in July 2004 for £1.54 millionand the disposal followed the granting of a new 15 year lease to a good qualitytenant at an increased rent. The Company has also sold a health and fitnessunit in Sefton, acquired in March 2007 for £12.83 million, crystallising a £1.9million profit over the gross purchase price of £10.9 million. Since the quarter end, the Company has completed the disposal of a small retailproperty in York for £1.94 million. The sale price was 2% ahead of the June 2007valuation of £1.9 million and 28% ahead of the March 2007 valuation. Moresignificant since the quarter end is completion of the sale of the Company's19.73% stake in MidCity Place, London WC1. The property comprised a highquality office building in the Mid Town of London. The Company's stake wasacquired in August 2005 for £9.8 million. A lease restructuring during 2006repaid £8.2 million of the Company's original investment and a further receiptof £21.5 million on completion in August 2007 concludes a profitable deal,tripling the Company's initial investment over 24 months. Active Asset Management Having secured a retail warehouse planning consent at the Company's industrialsite at Hinckley last quarter, another planning consent has been obtained for amajor refurbishment and extension of the office in Uxbridge. The consentincreases the potential floor area from 39,000 sq ft to 70,000 sq ft. Thecurrent leases at the property expire this September and a re-development isbeing considered. At Salisbury, a lease of the vacant unit was completed at arental level some 20% ahead of the independent valuation assumption. The newlease increases the rent receivable by £300,000 to £820,000 per annum, whichfollowing forthcoming rent reviews, should result in a yield on gross purchasecost of approximately 6.0%. The valuation is £16.45 million at June 2007compared with the purchase price in February of £15.02 million. The Company has now exchanged all the agreements required to commence the majorrefurbishment project at the retail investment at Victoria Plaza, Bolton. Thiswill increase the current rent from £470,000 per annum to £720,000 per annumfollowing capital expenditure of £1.8 million. Finance The Company raised a further £111 million of securitised debt, increasing totalsecuritised borrowings to £263.5 million. This has been used to repay theprevious more expensive debt with the surplus being used to fund ongoing assetmanagement projects and selective acquisitions. This issue was well timed and isimmediately accretive to returns. Contacts Broker: JP Morgan CazenoveTel: 0207 588 2828Richard Cotton (Managing Director, Corporate Finance)Angus Gordon Lennox (Managing Director, Corporate Finance) Public Relations: Financial DynamicsTel: 020 7831 3113Stephanie HighettDido Laurimore Notes: This Statement has not been audited. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Schroder Real