21st Aug 2007 11:32
Teesland Advantage Property Inc Tst21 August 2007 FOR IMMEDIATE RELEASE 21 AUGUST 2007 "TAP-in" - Teesland Advantage Property Income Trust LimitedQuarterly Factsheet - SUMMER 2007 Investment objective To provide shareholders with an attractive level of income together with thepotential for income and capital growth derived from investment in the Group'sdiversified portfolio of commercial property in the United Kingdom and theChannel Islands. Property Fund Adviser's comments Highlights and Portfolio Activity •An industrial property in Witham, Essex was acquired for £3.8m reflecting an income yield of 9.90% on cost. The property provides a high income return with short term opportunities to add value •An office building in Hounslow and an industrial unit in Livingston were sold for a total of £5.65m, 9.0% above valuation, reflecting a combined profit of £0.8m to the Company •Net Asset Value increased over the 2nd quarter to 119.3p •Additional portfolio income of £205,000 has been generated through six lettings during the quarter. In addition two lease renewals and four rent reviews have been settled •The void across the portfolio reduced during the period from 5.5% to 3.3% (as a percentage of rental value) •The Brunel Shopping Centre, Bletchley, the largest asset in the portfolio is now fully let and income producing following a recent letting of upper parts •A retail unit in Bakewell has been let on a 10 year lease at a headline rent of £35,000 pa, 17.6% above the unit's rental value TAP continues to provide investors with a well balanced and diversifiedportfolio with significant opportunity to drive rental and capital value growththrough stock selection and realistic asset management initiatives, whilstcontinuing to deliver an attractive dividend yield to investors. Key Financial Statistics - June 2007 Launched Feb 2005Total property assets £274,013,000Total shares issued 142,747,300Share price 100.5p (21.08.07)Long term debt £113,350,000Gearing 41.3% LTVDividend dates Feb, May, Aug, NovNumber of properties 77Average lot size £ 3.56 millionAverage lease length 7.35 yearsVoid rate 3.3% of ERVIncome return* (annualised) 6.04%Net Initial Yield* 5.71%Net Reversionary Yield* 6.20% * Property level Property Market The performance of the UK property market in 2007 is forecast to slow from the18%+ all property total returns of the last 3 years, a period which is nowconsidered to have been the top of the current cycle. A recent Investment Property Forum consensus survey (August 07) forecasts AllProperty total returns of 8.1% for 2007 compared to 14.2% for the year to Juneand 20.0% for the same period last year (CBRE UK Monthly Index). The slow downin returns is a result of yield compression ceasing in all but super-prime andCentral London office sectors. Consequently returns from property in the shortterm are expected to be achieved through income, income growth and assetmanagement. The fundamentals of the UK economy remain strong which is being reflected insound occupier demand for good quality properties across the traditional office,industrial and retail sectors. Capital value growth will be achieved from thestock selection of properties that offer added value through intensivemanagement or rental value growth from occupational demand due to location andbuilding quality. Financial structure The Company has long term debt of £113.35m from two lenders and currently hasapproximately 74% of its debt hedged. A £75.89m loan from the Bank of Scotland until Feb 2015 at a margin of 0.79%over LIBOR until May 2008 and 0.75% thereafter. The facility was extended to£98.32m in Q1 2007 on the existing terms of which £22.43 m remains undrawn. Theeffective interest cost on £43.8m of this debt (before margin) has been fixeduntil Feb 2015 using interest rate swaps at an average rate of 5.14%, thebalance remains floating. £37.46m is from Capmark until Jan 2013. The total interest cost on this debthas been fixed at 5.27%. The average cost of all debt, fixed and floating, with LIBOR at 6%, is estimatedat 5.97%. Source: This factsheet has been approved for issue by Teesland AdvantageProperty Income Trust Limited, which accepts responsibility for the informationcontained herein save for the content of the Property Fund Adviser's comments. Top 10 property investments Location Sector Valuation WeightingThe Brunel Centre Bletchley SE Retail 5.7%Waterfront Business Fleet SE Office 4.8%ParkThe Links Warrington NW Office 4.5%Kingscourt Leisure Dundee Scot Leisure 4.0%ComplexSouthgate Retail Park Derby E Retail 3.7%National Westminster Guernsey CI Office 3.6%HouseGeoffrey House Maidenhead SE Office 3.6%Silver Court Welwyn Garden SE Office 3.5% CityPagoda Park Swindon SW Office 2.4%Fujifilm House Hemel Hempstead SE Industrial 2.2%Total 38.0% Top 10 tenants Income WeightingHalfords Limited 13.5%Nisaba Group Limited 4.4%National Westminster Bank Plc 3.9%Toys R Us Limited 3.6%Odeon Multiplex Limited 3.2%Fujifilm Electronic Imaging Limited 3.1%Amtek Investments UK 2 Limited 3.1%Citi Financial Europe Plc 2.6%Exel Europe Limited 2.3%Geopost UK Limited 1.8% Sector breakdown % 32.0 Offices22.6 Industrial21.4 Retail Warehousing20.0 Retail 4.0 Leisure Geographic breakdown % 40.0 South East11.8 Scotland 9.8 West Midlands 8.8 East Midlands 8.4 North West 5.0 South West 4.2 Outer London 3.6 Channel Islands 3.6 Yorkshire & Humberside 2.9 Eastern 1.5 Wales 0.4 North East Contact details Broker KBC Peel Hunt111 Old Broad StreetLondon EC2N 1PHDavid Davies - T: 020 7418 8900 Company Secretary Anson Fund Managers LimitedAnson PlaceMill CourtLa CharroterieSt. Peter PortGuernseyGY1 1EJT: 01481 722260 Property Fund Adviser Teesland Asset Management Limited1 Mount StreetLondon W1K 3NBChris Carter Keall - T: 020 7659 6795 This document is not, and is not intended to be an invitation, inducement,offer, or solicitation, to deal in the shares of the company. The price ofshares in the company and the income from them may go down as well as up andinvestors may not get back the full amount invested on disposal of shares in thecompany. An investment in the company should be considered only as part of abalanced portfolio of which it should not form a disproportionate part.Investments in property are relatively illiquid and may be more difficult torealise than equities or bonds. Yields may vary and are not guaranteed. Allfigures are correct as at 30th June 2007. Past performance cannot be relied uponas a guide to future performance. Teesland Advantage Property Income Trust Limited (TAP) Anson Place, Mill Court, La Charroterie, St. Peter Port, Guernsey GY1 1EJT 01481 722260 F 01481 729829 E [email protected] W www.teeslandiog.com/our-funds/tap END OF ANNOUNCEMENT E&OE - in transmission This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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