1st Jun 2006 12:30
Insight Foundation Property Tst Ltd01 June 2006 QUARTERLY FACTSHEET - June 2006 NAV 119.6 pence (31 March 2006)Total Shares Issued 353,560,000Mid share price 125.25 pence (15 May 2006)Gross Property Value £556.38 million (31 March 2006)Number of properties 72 (31 March 2006)Average lot size £7.73 million (31 March 2006)Average lease length 8 years (31 March 2006)Ex dividend dates 2 August 2006Next financial year end 31 March 2007Current Debt £152.5mArranger NM RothschildGearing 20.9% loan to valueCurrency GBPRegistered Office Guernsey Investment objective To provide investors with an attractive level of income together with potentialfor income and capital growth from investing in UK commercial property. IFPT performance overview As at 31 March 2006 and prior to the dividend payment, the Net Asset Value('NAV') of the Company increased to 119.6 pence per share. This reflects anuplift of 5.59 pence per share, or 4.9% over the three months to March. Over the12 months to March the NAV increased 14.3 pence per share or 13.6%. Combinedwith the dividend, shareholders have received a twelve month total NAV return ofapproximately 20.3%. The negative accounting impact of marking the Company'sdebt to market rates has reduced over the quarter from 1.77 pence per share to0.92 pence per share. The Company paid a dividend of 1.6875 pence per share on26 May 2006. Also reflected in the NAV is a performance fee provision of £5million, that is likely to be payable to Insight. The December valuation was £556.38 million, reflecting a £24 million (4. 8%)like for like capital uplift over the quarter. The Company's London officeproperties are performing strongly, with the net asset value of MidCity Placeincreasing by £6.9 million over the quarter to £17.6 million. Minerva House andNational Magazine House increased by 5% and 4.4% respectively over the quarter,now having a combined value of £97.1 million as compared to their combinedacquisition prices of £87.18 million. The performance of the property portfolio over the 12 months to March 2006 hasbeen independently assessed by Investment Property Databank ('IPD'). Theun-geared total return of 22.22% relative to its peer group benchmark of 19.3%places the portfolio on the 13th percentile. This margin of outperformancecontinues to be derived despite higher acquisition costs due to higher levels ofactivity than the peer group. Portfolio Activity The Company has continued its strategy of acquiring high quality London officesand targeting mis-priced opportunities across all the main sectors. Significantasset management activity continues across the whole portfolio. Portfolio Structure The portfolio structure incorporates valuation data as at 31 March 2006. Retail 23.5%Office 51.4%Industrial 23.1%Other 2.0% The Trust has maintained a balanced and diversified profile with 72 assetsspread across the country in the retail, office and industrial sectors. Central London 27.6%South East excl. CL 33.5%Rest of South 8.8%Midlands and Wales 17.2%North and Scotland 12.9% Property market performance The IPD Monthly Index for the first quarter of 2006 produced a total return of4.4% for the property market. This contrasts with the total return from equitiesand gilts over the same period of 8.1% and -1.1% respectively. Offices are nowthe best performing property sector over three, six and twelve months. Totalreturns across the property market are expected to slow gradually over 2006,following the rise in interest rates, but returns between the sectors are likelyto be more discriminate, with London offices outperforming. There continues tobe substantial unsatisfied demand for UK commercial property from a range ofinstitutional and private investors. Largest Ten Holdings Value %* National Magazine House, 10/20, Carnaby Street,Soho,London,W1 £49,500,000 8.9%Minerva House, 5&6, Montague Close, London, SE1 £47,600,000 8.6%Plantation Place, London EC3 £20,600,000 3.7%Victory House,Trafalgar Place, Brighton £19,100,000 3.4%Reynard Business Park, Brentford £18,850,000 3.4%20/22 Tudor Street, London WC2 £18,200,000 3.3%Mid City Place, London WC2 £17,600,000 3.2%Olympic Office Centre, Fulton Road, Wembley £16,500,000 3.0%Union Park, Fifers Lane, Norwich £14,990,000 2.7%The Albion Centre, Bath Street, Ilkeston £14,950,000 2.7%Total as at March 2006 £237,890,000 42.8% *Percentage of Gross Asset Value Asset management highlights Acquisitions On 28 March the Company completed the acquisition of a modern health and fitnessclub in Sefton, near Liverpool. The price of £10.75 million reflected anattractive yield of 6.2%. The property is let for a further 22 years and has aminimum fixed rental uplift in 2007 that will increase the yield on cost to 7%. On 24 May the Company completed the acquisition of an office on Tokenhouse Yard,London EC2 for £20.825 million. The property comprises 28,079 sq ft of very highquality newly developed accommodation behind a period facade. The property is40% vacant by area and is let off an average rent of £39 per sq ft. Immediatelyfollowing the acquisition terms have been agreed to let all of the vacant spaceand the yield on completion of this letting will be approximately 5.25%. On 12 May the Company acquired a 50% stake in Crendon Industrial PartnershipLimited, a Joint Venture set up specifically to acquire a multi-let industrialestate and land in Oxfordshire for £20.5 million. The Company has invested £3million alongside Joint Venture partners with the balance of the purchase pricecomprising non-recourse debt from Nationwide. There is a three year businessplan to increase the quality of the estate and build new warehouse units on the13.5 acres of development land. Disposals A small number of disposals are being considered having completed assetmanagement initiatives. Active Management MidCity Place, London WC1 Completion of a major lease restructuring and a significant valuation uplift has led to a refinancing of the debt secured against this asset. The Company will receive back £7.8 million of the £9.8 million original equity invested, whilst still retaining its 19.7% ownership. This is very strong performance within nine months of acquiring the asset. Abingdon Street, NorthamptonThis asset delivered an un-geared total return of 30.3% for the 12 months toDecember 2005. Having realised this growth a new lease has been agreed for a new15 year lease at a record rent. Income has increased from £107,500 per annum to£121,000 per annum. The value increased further from £2.2 million at December2005 to £2.45 million at March 2006 upon completion of the deal. Coventry Road, HinckleyThe Company has accepted a lease surrender for a premium of £750,000 and hasmade a planning application for 150,000 sq ft of retail warehousing withancillary distribution space. Largest Ten Tenants Rent % * The National Magazine Company Limited £2,270,000 7.24%Australia & New Zealand Banking Group Ltd £1,460,000 4.66%Mott MacDonald Ltd £1,307,148 4.17%Reed Smith Services £1,295,375 4.13%Freshfields Services Company £1,279,600 4.08%The British Broadcasting Corporation £830,750 2.65%Grand Metropolitan Estates Ltd £795,975 2.54%Recticel SA £713,538 2.28%Jarvis Porter (Property Holdings) Ltd £700,000 2.23%Total Fitness UK Limited £678,540 2.16% Total rent per annum as at May 2006 £11,330,925 36.13% *Percentage of portfolio rent Contacts Broker:JP Morgan Cazenove20 MoorgateLondon, EC2R 6DATel: 020 7588 2828Richard Cotton(Managing Director, Corporate Finance)Angus Gordon Lennox(Managing Director, Corporate Finance) Fund Administration:RBSI Fund Services (Guernsey) LimitedPO Box 482Royal Bank Place1 Glategny EsplanadeSt Peter PortGuernsey, GY1 6BHTel: 01481 743 000Paul Smith(Managing Director, RBSI Guernsey) Investment Manager:Insight Investment Management (Global) Limited33 Old Broad StreetLondon, EC2N 1HZTel: 020 7930 5474Duncan Owen(Managing Director, Property)The Company's website is www.ifpt.co.uk Insight Investment Management (Global) Limited. Registered office 33 Old Broad Street, London EC2N 1HZ.Registered in England and Wales. Registered number 827982. Authorised and regulated by the Financial Services Authority. Issued in accordance with Section 21 of the Financial Services and Markets Act2000 by Insight Investment Management (Global) Limited. The price of shares andthe income from them may go down as well as up and investors may not get back the full amount invested on disposal of the shares. Investments in property arerelatively illiquid and more difficult to realise than equities or bonds. Yieldsmay vary, and are not guaranteed. The use of gearing is likely to lead to avolatility in the Net Asset Value (NAV), meaning that a relatively small movement either down or up in value of the trust's total assets, will result ina magnified movement in the same direction, of that NAV. There is no guarantee that the market price of shares in Investment Trusts will fully reflect their underlying NAV. This Investment Trust should be considered only as part of a balanced portfolio, of which it should not form a disproportionate part. Underno circumstances should this newsletter be considered as an offer, or solicitation, to deal in the shares of the company. All figures correct as at 31 March 2006. Past performance is not a guide to future performance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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