31st Oct 2007 12:11
Invista Foundation Property Tst Ltd31 October 2007 31 October 2007 Invista Foundation Property Trust Limited (the "Company") ANNOUNCEMENT OF NAV AND INTERIM DIVIDEND Invista Foundation Property Trust Limited today announces a Net Asset Value('NAV') of 137.3 pence per share as at 30 September 2007 and an interim dividendof 1.6875 pence per share in respect of the period 1 July 2007 to 30 September2007. The dividend payment will be made on 30 November 2007 to shareholders onthe register on 9 November 2007. The ex-dividend date will be on 7 November2007. The Company's NAV of 137.3 pence per share reflects a decline of 11.59 pence pershare or 7.78% over the quarter. The NAV performance over the quarter contrastswith the strong uplift of 6.69 pence per share or 4.7% over the previous quarterto June and 4.37 pence per share or 3.29% uplift over the twelve months toSeptember. The total NAV return for shareholders over the twelve months to 30September 2007 is approximately 8.6%. The fall in NAV over the quarter reflects the widely reported slowdown in the UKcommercial property market and uncertainty in global financial markets. The keyfactors in the fall in NAV over the quarter are: • A 2.37% fall in the like-for-like valuation of the Company's wholly owned portfolio, equating to £14.96 million or 4.2 pence per share • A downwards adjustment in the mark-to-market valuation of the Company's interest rate swap from £10.14 million to £1.73 million, a fall of £8.41 or 2.4 pence per share • A 14% fall in the like-for-like valuation of the Company's three joint venture investments, equating to £9.3 million or 2.6 pence per share. The main contributor to the fall was Plantation Place, London EC3 where the NAV fell by £8.2 million, of which £3.7 million related to a fall in the mark-to-market value of the interest rate swap in place for the separate, non-recourse financing • The disposal of Company's stake in MidCity Place, London WC1 realising net proceeds of £21.5 million. This brings the total proceeds realised on the Company's original investment of £9.8 million to £30 million. In contrast with the fall in capital values, however, the Company is pleased toreport that ongoing good progress is being made with key asset managementinitiatives across the portfolio as the Company pursues a more income orientedstrategy. The disposal of MidCity Place is a good example of this strategy,crystallising strong performance and reducing the Company's off-balance sheetborrowings by £42.4 million. The Company currently has available cash of approximately £75 million, providingit with significant financial and operational flexibility in more challengingmarket conditions. As noted previously the Board continues to review the level of the share pricerelative to NAV and will consider share buy-backs if the investment return tothe Company from buying shares is attractive relative to other investmentopportunities. Duncan Owen, Chief Executive, Invista Real Estate Investment Management,commented: "The UK commercial property market has experienced a significant downwardadjustment in capital values over the last few months which has been reflectedin the Company's valuation for this quarter. Against these more challengingmarket conditions, we have taken active steps to pursue a more defensive, incomeoriented strategy, including moves to increase the Company's rental income andreduce borrowings. "Our Central London offices continue to generate above average rental growthwith several significant rent reviews over the next 12 months. A 3% fall in theunderlying valuation of Plantation Place has impacted negatively but the highbuilding quality is resulting in above average rental growth with key rentreviews in early 2009. "In contrast to the investment market, the occupier market remains strong withlimited tenant delinquencies and low vacancies. The Company's portfolio offerssignificant income upside through the successful implementation of key assetmanagement projects. This active approach will be critical to futureperformance. A further more detailed analysis of the performance and prospectsfor the underlying property portfolio will be contained in the Interim Reportand Accounts that will be issued at the end of November." -ENDS- For further information: +-----------------------------------------------+-----------------------+|Invista Real Estate Investment Management |020 7153 9300 ||Duncan Owen | || | |+-----------------------------------------------+-----------------------+|Northern Trust |01481 745529 ||David Sauvarin | || | |+-----------------------------------------------+-----------------------+|Financial Dynamics |020 7831 3113 ||Stephanie Highett / Dido Laurimore | || | |+-----------------------------------------------+-----------------------+ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Schroder Real