29th Aug 2006 12:48
Insight Foundation Property Tst Ltd29 August 2006 Insight Foundation Property Trust Limited QUARTERLY FACTSHEET - AUGUST 2006 NAV 127.8 pence (30 June 2006)Total Shares Issued 353,560,000Mid share price 133.5 pence (23 August 2006)Gross Property Value £602.07 million (30 June 2006)Number of properties 75 (23 August 2006)Average lot size £8.13 million (23 August 2006)Average lease length 8.4 years (23 August 2006)Ex dividend dates 2 November 2006Next financial year end 31 March 2007Current Debt £190 millionArranger NM RothschildGearing 30% loan to value (see below)Currency 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 30 June 2006 and prior to the dividend payment, the Company's Net AssetValue ('NAV') increased to 127.8 pence per share. This reflects an uplift of 8.2pence per share, or 6.9% over the three months to June, reflecting the strongestquarterly uplift since the company's launch. Over the 12 months to June the NAVincreased 21.4 pence per share or 20.1%. Combined with the dividend,shareholders received a twelve month total NAV return of approximately 27%. As at 30 June 2006 the Company had property assets valued at £602.07 million, anuplift over the quarter of £29 million or 5%. The Company's London officeproperties continue to perform strongly. The Company's stake in PlantationPlace, London EC3 increased in value to £31.6 million, an uplift of £11.1million or 54%. MidCity Place, London WC1 generated an uplift of £3.3 millionover the quarter, reflecting an uplift of 19%. Following the recent acquisitionof Tokenhouse Yard in the City of London and letting of the vacant floors, theproperty value as at June 2006 was £23 million relative to the purchase price of£20.8 million. Since the quarter end the Company completed the acquisition of astake in the West End office building, Portman Square House, London W1 resultingin total property assets, as at 23 August, of £631.2 million. The UK IPD property index has independently assessed the un-geared performanceof the property portfolio. Over the 3 months to June 2006 the total return was6.5% relative to the benchmark of 4.9%. Over the 12 months to June 2006 thetotal return was 24.5% relative to its peer group benchmark of 19.9%. Portfolio Activity The equity raised in 2005 has now been successfully invested in the Londonoffice markets ahead of plan. Considerable asset management activity is inprogress and a number of select acquisitions and disposals are being considered. The portfolio structure incorporates valuation data as at 30 June 2006, but alsoincluding the recent acquisition of Portman Square House. Retail 18.8%Office 55.5%Industrial 21.5%Other 4.2% Central London 34.1%South East excl. CL 30.8%Rest of South 8.0%Midlands and Wales 15.6%North and Scotland 11.5% Property market performance The UK IPD Monthly Index produced a total return of 5.1% for the quarter toJune. The difference of rental growth between the sectors over the six months toJune continued to grow. This ranged from West End offices at 5.3% to theindustrial sector at 0.6%. The rest of the office sector lagged Central Londonin rental growth. This trend was also reflected in total returns over the samesix month period with West End and City offices producing 15.6% and 11.5%respectively, relative to commercial property market as a whole of 9.6%. TheTrust has maintained a balanced and diversified profile with 75 assets spreadacross the country in the retail, office and industrial sectors. Asset management highlights Acquisitions On the 3 July the Company acquired a 21.6% stake in Portman Square House W1 for£27.55 million. This has subsequently been valued at £29.16 million, reflectinga yield of 4.5% assuming an average rental value of £60 per sq ft, offeringsignificant rental growth prospects. Further new investment of up to £50 millionis planned in 2006. The strategy will focus on buying good fundamentals withasset management opportunities, and Special Situation investments such as therecent industrial estate acquisition in Crendon. Disposals Contracts have exchanged to sell the Company's retail and office property inEpsom. The price of £3.5 million reflects a net initial yield of 4.5% andfollows rent review settlements ahead of plan. The price compares to the Marchvaluation of £3.3 million and the acquisition price in July 2004 of £2 million.The Company is marketing its office on Tudor Street, London WC1 for disposal. Financing Portfolio In addition to the securitised loan facility of £152.5 million, the Company nowhas £26.5 million drawn against a short term facility with N M Rothschild and aseparate loan of £14.58 million secured against Portman Square House. Thisresults in total on-balance sheet borrowings of £190 million or a loan to valueof 30%, increasing to 46% if the off-balance sheet borrowings at PlantationPlace, MidCity Place and Crendon are included. Plantation Place The debt facility used to fund the acquisition of Plantation Place EC3 has beensuccessfully re-financed through a securitisation. The Company owns 28% of theproperty and now benefits from a loan at a low total interest cost of 5.19%. Active Management Coventry Road, Hinckley Detailed negotiations in relation to the planning application for 100,000 sq ftof retail warehouse space and 50,000 sq ft of warehouse space continue. Apre-letting of a retail warehouse unit of 40,000 sq ft is agreed. A planningdecision is likely to be received by the end of October. The end value of thescheme is estimated at £30 million, relative to the current valuation of £9million. Largest Ten Holdings Value %*National Magazine House, 10/20, Carnaby Street, £51,000,000 8.1% Soho, London W1Minerva House, 5&6, Montague Close, London SE1 £49,000,000 7.8%Plantation Place, Fenchurch Street, London EC3 £31,623,420 5.0%Portman Square House, London W1 £29,160,000 4.6%6, 7, 8, Tokenhouse Yard, London EC2 £23,000,000 3.6%Victory House,Trafalgar Place, Brighton £19,500,000 3.1%Reynard Business Park, Brentford £19,000,000 3.0%20/22 Tudor Street, London WC2 £18,750,000 3.0%Olympic Office Centre, Fulton Road, Wembley £16,800,000 2.7%The Albion Centre, Bath Street, Ilkeston £15,500,000 2.5%Total as at June 2006** £273,333,420 43.3% * Percentage of Gross Asset Value ** Includes Portman Square House acquired post June 2006 Largest Ten Tenants Rent %*The National Magazine Company Limited £2,270,000 7.05%Australia & New Zealand Banking Group Ltd £1,460,000 4.54%Mott MacDonald Ltd £1,307,148 4.06%Reed Smith Services £1,295,374 4.02%Freshfields Services Company £1,279,600 3.98%The British Broadcasting Corporation £830,750 2.58%Grand Metropolitan Estates Ltd £795,975 2.47%Recticel SA £713,538 2.22%Total Fitness UK Limited £678,540 2.11%Cushman & Wakefield £574,128 1.78%Total rent per annum as at June 2006** £11,205,053 24.8% * Percentage of portfolio rent ** Includes Portman Square House acquired post June 2006 Contacts rent per annum as at June 2006 £11,205,053 24.8% Broker JP Morgan Cazenove 20 Moorgate London, EC2R 6DA Tel: 020 7588 2828 Richard Cotton (Managing Director, Corporate Finance) Angus Gordon Lennox (Managing Director, Corporate Finance) Fund Administration RBSI Fund Services (Guernsey) Limited PO Box 482 Royal Bank Place Glategny Esplanade St Peter Port Guernsey, GY1 6BH Tel: 01481 743 000 Paul Smith (Managing Director, RBSI Guernsey) Investment Manager Insight Investment Management (Global) Limited 33 Old Broad Street London, EC2N 1HZ Tel: 020 7930 5474 Duncan Owen (Managing Director, Property) The Company's website is www.ifpt.co.uk Total as at June 2006 £273,333,420 43.3% Insight Investment Management (Global) Limited. Registered office 33 Old BroadStreet, London EC2N 1HZ. Registered in England and Wales. Registered number827982. Authorised and regulated by the Financial Services Authority. Issued inaccordance with Section 21 of the Financial Services and Markets Act 2000 byInsight Investment Management (Global) Limited. The price of shares and theincome from them may go down as well as up and investors may not get back thefull 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 smallmovement 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 guaranteethat the market price of shares in Investment Trusts will fully reflect theirunderlying NAV. This Investment Trust should be considered only as part of abalanced portfolio, of which it should not form a disproportionate part. Underno circumstances should this newsletter be considered as an offer, orsolicitation, to deal in the shares of the company. All figures correct as at 30June 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:
Schroder Real