21st Jan 2008 16:29
ING UK Real Estate Income Trust Ltd21 January 2008 ING UK Real Estate Income Trust Limited 21 January 2008 ING UK Real Estate Income Trust Limited (IRET) - Net Asset Value as at 31December 2007 The unaudited Net Asset Value ('NAV') per share of ING UK Real Estate IncomeTrust Limited (the "Company") as at 31 December 2007 was GBP369.5m,approximately 112 pence per share. This NAV figure incorporates the externalportfolio valuation as at 31 December 2007. It includes current year income andis calculated after the deduction of dividends paid prior to 31 December 2007,but does not include provision for the next quarterly dividend which is expectedto be paid in February 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 GBP5.2m. Inaddition, excluding asset sales there has been a GBP37.6m reduction,representing a capital decline of 5.62%, in the value of the underlying propertyportfolio over the period. The unaudited NAV is as follows: +-----------------+---------------+----------------+---------------+---------------+| | 31 December | 30 September | 30 June | 31 March || | 2007 | 2007 | 2007 | 2007 || | £m | £m | £m | £m |+-----------------+---------------+----------------+---------------+---------------+|Investment | 633.2 | 687.4 | 715.5 | 711.1 ||properties | | | | || | | | | |+-----------------+---------------+----------------+---------------+---------------+|Other assets | 57.2 | 37.8 | 39.1 | 39.1 |+-----------------+---------------+----------------+---------------+---------------+|Other liabilities| (19.5) | (18.1) | (18.4) | (20.3) |+-----------------+---------------+----------------+---------------+---------------+|Borrowings | (307.0) | (307.0) | (312.3) | (313.5) |+-----------------+---------------+----------------+---------------+---------------+| | 363.9 | 400.1 | 423.9 | 416.4 |+-----------------+---------------+----------------+---------------+---------------+|Market value of | 5.6 | 10.8 | 18.4 | 11.6 ||interest rate | | | | ||swaps | | | | |+-----------------+---------------+----------------+---------------+---------------+|Net Asset Value | 369.5 | 410.9 | 442.3 | 428.0 |+-----------------+---------------+----------------+---------------+---------------+ The property portfolio will next be valued by an external valuer during March2008 and the NAV per share as at 31 March 2008 will be issued in April 2008. The Company will prepare its Annual Report to 31 December 2007, and this will beissued to shareholders in April 2008. The figures at that date are thereforesubject to audit. Investment Manager Commentary The UK Commercial Property Market has continued to re-price over Q4, with theIPD monthly index of directly held properties now having undergone an 11.7%capital decline since its peak in June 2007 and 9.7% in Q4. Rental growthremains positive with the IPD monthly figures showing average rental valuegrowth of 2.8% p.a. over Q4. In terms of the underlying portfolio of the Company, this saw outward yieldmovement across all sectors. These movements and current sector weightings aredetailed below;+--------------------+---------------------------+-----------------------+| | | |+--------------------+---------------------------+-----------------------+|Sector |Capital Valuation Movement |Weighting at 31 || | |December |+--------------------+---------------------------+-----------------------+|Retail |-5.44% |18.0% |+--------------------+---------------------------+-----------------------+|Offices |-5.50% |44.7% |+--------------------+---------------------------+-----------------------+|Industrial |-5.22% |26.7% |+--------------------+---------------------------+-----------------------+|Leisure |-3.10% |3.6% |+--------------------+---------------------------+-----------------------+|Retail Warehouse |-9.43% |7.0% |+--------------------+---------------------------+-----------------------+|Total | |100.0% |+--------------------+---------------------------+-----------------------+ As at 31 December 2007 the portfolio had a 94.5% occupancy rate, a weightedaverage lease term of 8.63 years and a net initial yield of 5.69%. The Company made no acquisitions during Q4, but in accordance with its strategyit disposed of a vacant industrial unit in Oxford (with completion following thequarter end) and a low yielding retail block in Belfast, both of which willenhance the overall portfolio's income return. These assets were disposed of foran aggregate of GBP25.8 million, which represented an 11.7% premium to theirSeptember valuation. Following the sale of these assets, and after the end of the quarter, theCompany successfully reduced its non-securitised borrowings by GBP24.8m toGBP57.2m. This in turn has reduced the weighted average cost of debt to 5.1% andcurrent borrowings stand at GBP282.2m. Net debt represents a loan to value ratioof 38.9% to the portfolio's value as at 31 December 2007. During Q4 the Company also repurchased 1,098,700 Ordinary Shares forcancellation, leaving Ordinary Shares in issue of 330,401,300. Despite more challenging market conditions, the Investment Manager continues tomanage the Company's portfolio actively, with a particular focus on incomegeneration. For further information: All Enquiries The Company Secretary Northern Trust International Fund Administration Services (Guernsey) Limited Trafalgar Court Les Banques St Peter Port Guernsey GY1 3QL Tel: 01481 745439 Fax: 01481 745085 ING Real Estate Investment Management (UK) Limited Selina Sasse, 020 7767 5756, selina.sasse@ingrealestate.co.uk Helen Stott, 020 7767 5648 helen.stott@ingrealestate.co.uk Financial Dynamics Dido Laurimore, 020 7831 3113, dido.laurimore@fd.com Stephanie Highett, 020 7831 3113, stephanie.highett@fd.com END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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