23rd Apr 2008 07:00
ING UK Real Estate Income Trust Ltd23 April 2008 ING UK Real Estate Income Trust Limited 22 April 2008 ING UK Real Estate Income Trust Limited (IRET) - Net Asset Value as at 31 March2008 The unaudited Net Asset Value ('NAV') per share of ING UK Real Estate IncomeTrust Limited (the "Company") as at 31 March 2008 was GBP 337.8m, reflectingapproximately 102 pence per share. This NAV figure incorporates the externalportfolio valuation as at 31 March 2008. It includes current quarter income andis calculated after the deduction of dividends paid prior to 31 March 2008, butdoes not include provision for the next quarterly dividend which is expected tobe paid in May 2008. The NAV attributable to the Ordinary Shares is calculated under InternationalFinancial Reporting Standards ('IFRS') and includes a downwards adjustment inrespect of the mark to market value of the interest rate swaps by GBP 2.1m. Inaddition, excluding asset sales there has been a GBP 27.8m reduction in NAV,representing a -4.4% reduction in the underlying property portfolio over theperiod. The unaudited NAV is as follows: +-----------------+---------------+----------------+| | 31 March |31 December 2007|| | | || | 2008 | £m || | | || | £m | |+-----------------+---------------+----------------+|Investment | 599.0 | 633.2 ||properties | | || | | |+-----------------+---------------+----------------+|Other assets | 35.7 | 57.2 |+-----------------+---------------+----------------+|Other liabilities| (18.2) | (19.5) |+-----------------+---------------+----------------+|Borrowings | (282.2) | (307.0) |+-----------------+---------------+----------------+| | 334.3 | 363.9 |+-----------------+---------------+----------------+|Market value of | 3.5 | 5.6 ||interest rate | | ||swaps | | |+-----------------+---------------+----------------+|Net Asset Value | 337.8 | 369.5 |+-----------------+---------------+----------------+ The property portfolio will next be valued by an external valuer during June2008 and the NAV per share as at 30 June 2008 will be issued in July 2008. The Company will prepare its Interim Report to 30 June 2008, and this will beissued to shareholders in August 2008. The figures at that date are subject toreview by our auditors. Investment Manager Commentary The UK commercial property market continued to re-price during Q1 2008 and allsectors suffered from outward yield movement. As measured by the IPD monthly index capital growth was -4.7% reflecting aslower rate of decline compared with Q4 2007 which was -9.7%. The underlying portfolio of the Company saw outward yield movement across allsectors. These movements and current sector weightings are detailed below: +--------------------+---------------------------+-----------------------+| | | |+--------------------+---------------------------+-----------------------+|Sector |Capital Valuation Movement |Weighting 31 March 2008|+--------------------+---------------------------+-----------------------+|Retail |-2.13% |18.7% |+--------------------+---------------------------+-----------------------+|Offices |-4.91% |44.6% |+--------------------+---------------------------+-----------------------+|Industrial |-5.47% |26.0% |+--------------------+---------------------------+-----------------------+|Leisure |-3.79% |3.6% |+--------------------+---------------------------+-----------------------+|Retail Warehouse |-4.05% |7.1% |+--------------------+---------------------------+-----------------------+|Total | |100.0% |+--------------------+---------------------------+-----------------------+ Over the quarter the best performing sector was retail, principally as a resultof the sales programme. The Company made no acquisitions during Q1, but completed on the sales of adistribution warehouse in Oxford and an office property in West Byfleet for acombined total of GBP 7.04m. Furthermore, it exchanged contracts on the sale ofa retail property in Chester for GBP 32m (with completion following the quarterend). Following the quarter end the Company exchanged contracts on a retailparade in Stevenage for GBP 2.6m, which is in line with the March valuation. During Q1 the Company successfully repaid GBP 24.8m of non securitisedborrowings bringing these down to GBP 57.2 million. Total debt now stands at GBP282.2m with a Weighted Average Cost of Debt of 5.09%. As at 31 March net debtrepresents a loan to value ratio of 43.7%. Since June 2007 the portfolio has seen a like-for-like capital movement of-12.8%. Since that date the Company has made combined sales of GBP 69m at anaverage price of 3.9% above their June 2007 valuations. As at 31 March 2008 the portfolio has a net initial yield of 5.96% and areversionary yield of 6.56%, a 95% occupancy rate and a weighted average leaseterm of 8.62 years. For further information: All Enquiries The Company SecretaryNorthern Trust International Fund Administration Services (Guernsey) LimitedTrafalgar CourtLes BanquesSt Peter PortGuernseyGY1 3QL Tel: 01481 745439Fax: 01481 745085 ING Real Estate Investment Management (UK) LimitedHelen Stott, 020 7767 5648 [email protected] Financial Dynamics Dido Laurimore, 020 7831 3113, [email protected] Highett, 020 7831 3113, [email protected] END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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