26th Jul 2007 07:01
Invista Foundation Property Tst Ltd26 July 2007 26 July 2007 Invista Foundation Property Trust Limited (the "Company") ANNOUNCEMENT OF NAV AND INTERIM DIVIDEND Invista Foundation Property Trust Limited is pleased to announce a Net AssetValue of 148.89 pence per share as at 30 June 2007 and an interim dividend of1.6875 pence per share in respect of the period 1 April 2007 to 31 June 2007.The dividend payment will be made on 17 August 2007 to shareholders on theregister on 3 August 2007. The ex-dividend date will be on 1 August 2007. The Company's NAV of 148.89 pence per share reflects an uplift of 6.69 pence pershare, or 4.70% over the quarter, and 21.09 pence per share or 16.50% over thetwelve months to June. This results in a total NAV return for shareholders overthe twelve months to June 2007 of approximately 22.40%. The reported NAV takesaccount of a performance fee accrual to Invista Real Estate InvestmentManagement, the Investment Manager. The quarterly NAV uplift followed an increase in the value of the underlyingproperty portfolio held over the quarter of £17.8 million or 2.5%. The totalNAV uplift over the quarter was £23.53 million with £6.73 million of thisattributable to an increase in the mark to market value of the Company'sinterest rate swap. As at 30 June 2007 the Company and its subsidiaries ownproperty assets valued at £722 million. Key highlights during the quarter include: • The Company issued £111 million of AAA-rated securitised debt at amargin of 0.25%. This has been used to re-finance £70 million ofnon-securitised debt at a materially lower rate, with the balance used to fundongoing asset management projects and selective acquisitions • The Company's Central London office investments continue to performstrongly, increasing in value by £11.6 million over the quarter. The Company's21.6% interest in Portman Square House, London W1 increased by £1.86 million or6% to £33.6 million reflecting the strong rental growth in anticipation of keyrent reviews in 2008 • The Salisbury retail warehouse investment, increased in value by£700,000 or 4.44% over the quarter to £16.45 million. This increase in valuefollowed the receipt of planning as well as completing a new lease 20% ahead ofthe rental value at acquisition. The new lease increases the rent by £300,000to £820,000 per annum, which following forthcoming rent reviews, should resultin a yield on gross purchase cost of approximately 6.0% • Having secured a retail warehouse planning consent at Hinckley lastquarter, planning for a major refurbishment and extension of the office inUxbridge has also been obtained. The consent increases the area from 39,000 sqft to 70,000 sq ft. The current leases at the property expire this Septemberand a development is being considered • The Company has now exchanged all of the agreements required tocommence the major refurbishment project at the retail investment at VictoriaPlaza, Bolton. This will increase the current rent from £470,000 per annum to£720,000 per annum with capital expenditure of £1.8 million. The valuation hasincreased to £11 million, an uplift of £850,000 or 8.4% over the quarter • During the quarter the Company exchanged and subsequently completed thedisposal of a shop in Northampton for £2.54 million, reflecting a net initialyield of 4.5%. The Company also sold its health and fitness club in Sefton for£12.83 million, reflecting a profit of £1.9 million over the gross purchase costin March 2006 of £10.9 million. Finally, the Company has exchanged contracts tosell a small shop in York for £1.94 million, 28% above the March 2007 valuation. Commenting on the announcement, Duncan Owen, Chief Executive, Invista RealEstate Investment Management, said: "The Company's portfolio is strongly positioned providing a combination ofactive management opportunities to generate capital growth as well as havingstrong income characteristics. This prepares the Company well for the nextperiod in the UK market. "In addition, we are pleased to report that the Company has taken some importantsteps this quarter in progressing key asset management initiatives. "At Bolton, we are delighted that this major refurbishment project can nowcommence, involving the conversion of vacant first floor storage space toretail. This initiative has involved negotiations with six separate retailersand has taken over three years, illustrating the challenges faced inimplementing certain complex projects. By contrast, the initiative at Salisburyhas progressed more quickly than anticipated and is another example of theCompany acquiring assets with strong property fundamentals with opportunitiesfor growth through pro-active asset management. "The completion of the shop disposals of Northampton and the impendingcompletion of York at a price 28% above valuation shows that it is stillpossible to achieve premium prices. The Company has successfully sold 10 smallretail properties in the last 15 months, crystallising significant valuationgains. The disposal of Sefton crystallised a material profit ahead ofexpectations. "The asset management initiatives such as Hinckley, Uxbridge and otherinteresting opportunities within the portfolio, combined with the Company'sexposure in the Central London office markets should ensure continued futuregrowth. In addition, the debt raised over the quarter is immediately accretiveto earnings." -ENDS- For further information: Duncan OwenInvista Real Estate Investment Management Tel: 020 7153 9300 David SauvarinNorthern Trust International Fund Administration services(Guernsey) Ltd Tel: 01481 7455 29Stephanie Highett / Dido LaurimoreFinancial Dynamics Tel: 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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