21st May 2007 13:18
Invista Foundation Property Tst Ltd21 May 2007 Invista Foundation Property Trust LimitedFactsheet - 31 March 2007 Key highlights • Quarterly NAV uplift to March 2007 of 4.45 pence per share or 3.25%• Total NAV return for the year to December 2006 of 24.6%• Significant asset management success across the portfolio Investment Objective To provide shareholders with an attractive level of income together with thepotential for income and capital growth from investing in UK commercialproperty. Key Statistics NAV per share (31/03/2007) 141.42 pence per shareMid share price (14/05/2007) 129.25 pence per shareGross property value (31 March 2007) £709.5 millionOn-balance sheet debt (LTV) £221.6 million (31.2%)Consolidated debt (LTV) £407.6 million (45.5%)Ex Div date 2 May 2007 Company performance overview Net Asset Value - As at 31 March 2007 the Company's NAV was 141.42 pence pershare (pps), an uplift of 4.45 pence per share or 3.5% over the December figureof 136.97 pps. The sustained NAV growth for this quarter is slightly ahead ofthat which was achieved for the three months to 31 December 2007 of 4.1 pps or3.1%. Over the 12 months to 31 March 2007 the Company's NAV increased by 21.84pps or 18.26% and combined with the dividend provided our Shareholders with atotal NAV return of approximately 24.6%. These results are after the accrual ofa performance fee to the Investment Manager. Property performance relative to peer group - The UK IPD Property Index hasindependently assessed the underlying performance of the Company's propertyportfolio. Over the quarter to 31 March 2007, IPD calculate a total return forthe Company of 5.0%, reflecting capital growth over the quarter of 3.5%. Thiscompares to the Company's IPD peer group benchmark of 2.2% and 1% respectively.The Company is placed top in its IPD Benchmark of 63 Funds for the 12 months toMarch 2007. Portfolio value - The Company's property portfolio was valued at £709.5 millionas at 31 March 2007, comprising 72 properties with an average lot size of £9.85million. The like-for-like capital uplift of properties held over the over thequarter was £21.7 million. Central London properties contributed £14 million ofthis uplift, driven by sustained investor demand, rental growth and assetmanagement successes. The six key Central London offices acquired in late 2005and early 2006 for a total consideration of £165 million are now valued at£251.5 million, reflecting an uplift of £86.5 million or 52%. Market - Capital growth across the UK property market is slowing although thereis a distinct difference in performance across sectors. IPD calculate CentralLondon office total returns for the 12 months to 31 March 2007 of 25.1%,significantly ahead of retail which delivered 12.7% and industrial 15.4%. Portfolio structure Sector weightings Retail 21%Offices 53%Industrial 21%Other 5%Total 100% Note: As at 31/03/2007, excluding Lancaster and including the retail warehousedevelopment funding at Basingstoke at the maximum commitment Regional weightings Central London 33%South East excl. Central London 33%Rest of South 10%Midlands and Wales 14%North and Scotland 10%Total 100% Note: As at 31/03/2007, excluding Lancaster and including the retail warehousedevelopment funding at Basingstoke at the maximum commitment 10 largest holdings Value (£) %*National Magazine House, Broadwick Street, London W1 57,400,000 8.0%Minerva House, London SE1 57,400,000 8.0%Plantation Place, London EC3 50,293,000 7.0%Portman Square, London W1 31,710,000 4.4%6 - 8 Tokenhouse Yard, London EC2 24,750,000 3.4%MidCity Place, London WC1 21,789,000 3.0%The Galaxy, Luton 21,750,000 3.0%Reynards Business Park, Brentford 20,500,000 2.8%Victory House, Brighton 20,500,000 2.8%Olympic Office Centre, Wembley 18,500,000 2.6%Total as at March 2007 324,593,000 45.0% *Percentage of Gross Asset Value 10 largest Tenants Rent %*The National Magazine Co Limited 2,300,587 7.7%Mott MacDonald Limited 1,307,374 4.4%Reed Smith Services 1,295,374 4.3%The British Broadcasting Corporation 850,100 2.9%Diageo PLC 795,975 2.7%Recticel SA 727,128 2.4%Total Fitness (UK) Limited 678,540 2.3%Motorhouse 2000 Limited 570,150 1.9%Partners of Irwin Mitchell Solicitors 547,000 1.8%Partners of Veale Wasborough Solicitors 507,345 1.7%Total as at March 2007 9,579,347 32.1% *Percentage of Total Rental Income per annum Acquisitions The Company acquired a retail warehouse investment in Salisbury for £15.02million. The property adjoins a Waitrose supermarket and one of the three unitsis vacant. Good progress is being made in letting the vacant unit, with termsagreed ahead of rental expectations, leading to an increase in value to £15.75million. Following receipt of planning consent for the pre-let retail warehouseinvestment in Basingstoke, the Company acquired the site for £3.925 million andhas begun funding development with completion expected in late 2007. Theproperty will be let to Wickes for 25 years at circa £692,250 per annum. TheCompany has committed to invest £11.9 million which reflects a yield of 5.7%. Disposals The Company has continued to make opportunistic disposals, particularly ofsmaller retail properties. During the quarter two shops in Peterborough andLancaster were sold for a total consideration of £4.38 million. The shop inLancaster sold for £1.85 million, 20% ahead of the December valuation of £1.54million. Active Asset Management At Minerva House, London SE1, the lease to ANZ Bank of the lower ground tosecond floor at £1.485 million per annum has been taken back with the tenantpaying a premium of £2.4 million. Simultaneously, the Company has completed anagreement for lease with Synovate, guaranteed by Aegis Group PLC, for a new 15year lease at £1.9 million per annum. The Company will refurbish the space aspart of granting the new lease. Rental income from the asset will increase to£3.23 million per annum, an increase of £470,000 per annum, or 17% above therent receivable upon acquisition in August 2005. The average lease length atthe building will also increase from eight to approximately 13 years. At Hinckley, outline planning consent has been secured for a 100,000 sq ftretail warehouse park and 20,000 trade counter development. This developmentwill be sited on the existing 159,500 sq ft industrial building where the leasewas recently taken back with the tenant paying a premium of £700,000. TheCompany is considering development with pre-lets. At Uxbridge, a planning application has been submitted to extend andcomprehensively refurbish the office building, increasing the area from 39,000sq ft to 71,000 sq ft. The Company hopes to obtain the planning consent shortlybefore the tenant's lease expires in September 2007. Finance The Company expects to issue £120 million of additional securitised debt duringMay 2007, termed 'Reserve Notes'. This will be used to repay existingoff-balance sheet debt that is not securitised, make selective new acquisitionsand pay for major asset management projects such as Minerva House and Hinckley. Contacts Broker: JP Morgan CazenoveTel: 0207 588 2828Richard Cotton (Managing Director, Corporate Finance)Angus Gordon Lennox (Managing Director, Corporate Finance) Public Relations: Financial DynamicsTel: 020 7831 3113Stephanie HighettDido Laurimore This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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