28th Mar 2006 17:05
Insight Foundation Property Tst Ltd28 March 2006 Quarterly Factsheet - Number Seven, March 2006 Insight Foundation Property Trust Limited NAV 114.01 pence (31 December 2005)Total Shares Issued 353,560,000Mid share price 125.25 pence (23 March 2006)Gross Property Value £505 million (31 December 2005)Number of properties 73 (31 December 2005)Average lot size £6.91 million (31 December 2005)Average lease length 8 years (31 December 2005)Ex dividend dates 3 May 2006Next financial year end 31 March 2006Current Debt 152.5mArranger NM RothschildGearing 26.3% 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 December 2005 and prior to the dividend payment, the NAV of the Companyincreased to 114.01 pence per share. This reflects an uplift of 2.5 pence pershare, or 2.3% over the three months to December. Since the launch of theCompany in July 2004 the Company's NAV has increased by 16.51 pence per share.Over the 12 month period to December, combined with the dividend, shareholdershave received a total NAV return of approximately 17%. The negative accountingimpact of marking the Company's debt to market has again increased to 1.8 penceper share, and the stated NAV of 114.01 pence per share takes this negativeimpact into account.The Company paid its sixth dividend of 1.6875 pence per share on 17 February2006. Following a share placing during the quarter by Clerical Medical, theCompany now has a 100% free float.The December valuation was £505 million, reflecting a £20.9 million like forlike capital uplift over the quarter. The performance of the Company's propertyportfolio over the 12 months to December 2006 has been independently assessed byInvestment Property Databank ('IPD'). For the period to December the portfolioproduced a total ungeared return of 19.6% relative to its peer group benchmarkof 17.7%. This margin of outperformance was achieved despite materially higheracquisition costs than the Benchmark average. Portfolio Activity Since the last Factsheet and in accordance with the strategy, the Company hascommitted to invest almost £50 million in two London offices and exchangedconditional contracts to acquire a retail warehouse for £11.9m. The Company hasalso sold three retail shops at a material premium to valuation followingsuccessful asset management. Significant asset management activity is ongoingacross the portfolio. Portfolio Structure The portfolio structure incorporates valuation data as at 31 December 2005,before the recent acquisitions described below: Retail 25.8%Office 49.7%Industrial 24.5% The Trust has maintained a balanced and diversified profile with 73 assetsspread across the country in the retail, office and industrial sectors: Central London 24.1%South East excl. CL 35.9%Rest of South 9.4%Midlands and Wales 18.8%North and Scotland 11.8% Property market performance The IPD Monthly Index for the final quarter of 2005 produced a total return of6.1%. This represented the UK's strongest quarterly return since May 1993. Thiscontrasts with the total return from equities and gilts over the same period of4.3% and 2.2% respectively.For the year to December 2005 the property market produced a total averageproperty return of 18.8% that comprised an income return of 6% and capitalgrowth of 12.2%. This contrasts with equities of 22% and gilts of 7.4%. Acrossthe sectors, retail produced the strongest return of 19.3%, with offices at18.4% and industrial at --- Asset management highlights Acquisitions On the 3 March the Company exchanged contracts to fund the development of afreehold retail warehouse investment in Basingstoke let to Wickes on a new 25year lease. The funding is conditional on planning. The acquisition reflects anet income yield of 5.7% and provides retail warehouse exposure at a discount tocurrent pricing.On the 17 March the Company exchanged contracts to acquire a £27.55 millionstake in the joint acquisition of Portman Square House, W1. This is a longleasehold prime office and retail building in a core West End of London locationoffering excellent rental growth prospects. The acquisition reflects anequivalent yield of 5% assuming current rental values.Finally, on the 21 March the Company completed the acquisition of a 28% stake inPlantation Place, Fenchurch Street, EC3 for £19.6 million. Plantation Place is aprime freehold office building in the City of London totalling over 550,000 sqft, let to very strong tenants for almost 20 years. The Company has investedalongside Clients of Insight Investment and an external investor. Theacquisition price of £527 million reflects a property yield of 5.1%. Theseacquisitions continue the Company's strategy of acquiring high quality Londonoffices. Disposals The Company has sold three shops in Harrow, Chatham and Scunthorpe at auctionfor a total consideration of £4.54 million. The disposals follow assetmanagement initiatives that improved value, reflecting an uplift of 35% or £1.18million relative to the July 2004 acquisition prices. The Company will considerfurther disposals of small retail property where asset management initiativeshave been completed. Active Management Victoria Plaza, Bolton The Company has been pursuing a strategy of securing a new tenant in theunoccupied part of this retail property. This has involved a number of separatenegotiations with tenants to improve the planning use and reconfigure theproperty. The Company has now obtained planning consent for the proposal and hasin addition exchanged a conditional Agreement for Lease with a major sportsretailer to trade in the upper floors. MidCity Place, London WC1 A significant lease restructuring of a major tenants lease has been completed tobring forward rent reviews and restructure leases to increase the rent on thetenants retained office space by approximately 20% relative to the rental valueon acquisition. This should have a material impact on the next propertyvaluation. Largest Ten Holdings Value %**Percentage of Gross Asset Value National Magazine House,10/20,Carnaby Street,Soho,London,W1 £47,400,000 9.4% Minerva House,5&6,Montague Close, London,SE1 £45,300,000 9.0% Victory House,Trafalgar Place,Brighton £18,500,000 3.7% 20/22,Tudor Street,London,EC4 £18,200,000 3.6% Reynard Business Park,Brentford £17,800,000 3.5% Olympic Office Centre,8,Fulton Road,Wembley £15,840,000 3.1% The Albion Centre,Bath Street,Ilkeston £14,630,000 2.9% Union Park,Fifers Lane,Norwich £14,025,000 2.8% The Gate Centre,Syon Gate Way,Brentford £12,400,000 2.5% Mid City Place £10,700,000 2.1% Total as at December 2005 £214,795,000 42.5% Largest Ten Tenants Rent % The National Magazine Company Limited £2,270,000 7.6% Mott MacDonald Ltd £1,307,148 4.3% Reed Smith Services £1,295,374 4.3% Freshfields Services Company £1,279,600 4.3% Australia & New Zealand Banking Group Ltd £1,244,583 4.1% The British Broadcasting Corporation £830,750 2.8% Grand Metropolitan Estates Ltd £795,975 2.6% Recticel SA £713,538 2.4% Jarvis Porter (Property Holdings) Ltd £700,000 2.3% Mid City Place £534,852 1.8% Total rent per annum as at December 2005 £10,791,820 36.5% Contacts BrokerJP Morgan Cazenove20 MoorgateLondon, EC2R 6DATel: 020 7588 2828Richard Cotton(Managing Director, Corporate Finance)Angus Gordon Lennox(Managing Director, Corporate Finance) Fund AdministrationRBSI Fund Services (Guernsey) LimitedPO Box 482Royal Bank PlaceGlategny EsplanadeSt Peter PortGuernsey, GY1 6BHTel: 01481 740 820Paul Smith(Managing Director, RBSI Guernsey) Investment ManagerInsight 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 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 backthe 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 tovolatility 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 at30th September 2005. 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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