31st May 2007 07:02
Invista European Real Estate Trust31 May 2007 Invista European Real Estate Trust SICAFQuarterly Factsheet - 31 March 2007www.ieret.eu Key Highlights • Listing on main market of the London Stock Exchange in December 2006 • Property portfolio valued at €528m and includes €45m commitments funded since 31 December 2006 and €83m committed assets remaining • Well diversified portfolio with exposure to growth markets • Strong income and capital growth characteristics • Significant Q2 acquisition and placing transaction means fund almost fully invested (incl commitments) Investment Objective To provide shareholders with an attractive level of income return together withthe potential for income and capital growth through investing in diversifiedcommercial real estate in Continental Europe. The current geographical focus ofthe Company remains the Western European countries due to attractive pricingopportunities and the relative stability, transparency and liquidity of thesemarkets Key Statistics NAV per share (03/07) * €3.00Mid share price (21/05/07) 224pGross property value (04/07)** €743.4mNet debt (03/07) €126.8mGearing (03/07)*** 58.7%Dividend dates May/November * Adjusted to exclude deferred tax liabilities** Includes committed assets*** Gross debt divided by portfolio value Company Performance Overview IPO - Invista European Real Estate Trust listed on the main market of the LondonStock Exchange on 20 December 2006 via a placing and public offer of 88.3mshares at an issue price of 200p. Asset Activity - The Company has been highly active during the quarter,including the acquisition of a committed asset in Roth, Germany and an office inLyon, France. In addition, the Company has committed to purchase a retailwarehousing property in Pocking, Bavaria (Germany). Post quarter end the Companycompleted the acquisition of a large French logistics portfolio valued at €215m.This was accompanied by a placing of 10.4m additional shares at 220p. Property Portfolio - The value of the property portfolio as at 31 March 2007 was€446m and consisted of 15 properties. The recent acquisition of the €215mportfolio on 3 April 2007 plus outstanding conditional commitments increased thevalue to €743.4m. Invista Real Estate Investment Management continues to receivea strong level of introductions including a number of attractive investmentopportunities to acquire properties in off-market situations. Portfolio Fundamentals - The property portfolio, including committed assets, iswell diversified by both country and sector and benefits from good quality,relatively long income characteristics (Experian credit rating of 72 and 9yrsweighted average lease length to expiry). These portfolio characteristics arefully consistent with the objective of the fund to provide an attractive levelof income return with the potential for capital growth. In addition, there are anumber of asset management initiatives currently being pursued to optimisereturns which, together with the benefits of lease indexation, positions theportfolio well for future value growth. Portfolio Structure Sector Office 46%Logistics 32%Retail 22% Note: Valuation as at 31 March 2007, including committed assets Geographic Germany 49%France 30%Spain 7%Netherlands 5%Belgium 4%Czech Republic 3%Poland 2% Note: Valuation as at 31 March 2007, including committed assets 10 largest holdings Value %*Campus Heusenstamm, 54-64 Jahnstrasse, Heusenstamm, Germany €93.9m 16.2%Riesapark 2, 01587 Riesa, Germany €60.9m 10.5%Le Delta, 95800 Cergy, France €41.1m 7.1%Vor der Hecke, 34355 Lutterberg, Germany €36.5m 6.3%21 Chemin de la Sauvegarde, 69130 Ecully, Lyon, France €34.3m 5.9%Plot 14A&B, Avenida Rio Henares, Alovera, Guadalajara, 19208Madrid, Spain €27.9m 4.8%13 Avenue Albert Einstein, 69100 Villeurbanne, Lyon, France €23.8m 4.1%Sieh-Dich-Fuer-Weg, 91154 Roth, Germany €21.6m 3.7%Sun, 180 Avenue de l'Europe, 38330 Montbonnot St.Martin,Grenoble, France €21.5m 3.7%Fos-Distriport Logistics Park, 13270 Fos sur Mer, 13270Marseille, France €20.9m 3.6% Total €382.2m 65.8% *Percentage of aggregate asset value plus cash (excluding committed assets) 10 largest holdings Rent %* **Deutsche Telekom €5.3m 18.8%DHL €2.3m 8.0%Tech Data €1.7m 6.1%Valeo €1.6m 5.8%Merial €1.5m 5.2%Sun Microsystems €1.5m 5.2%AVA Marktkauf €1.1m 4.0%Real €1.1m 3.7%Strauss Innovation €1.0m 3.5%Toom €0.9m 3.3% Total €18.0m 63.6% * Percentage of aggregate gross rent (excluding committed assets)** On acquisition of the French €215m portfolio the weighting to NorbertDentressangle would be 16.1% which would in turn dilute the other tenantweightings Asset Management Highlights Acquisitions This quarter has witnessed a very busy acquisition period for the Company,funding a pre-committed office building in Lyon valued at €23.8m let on a 9 yearlease to Merial and completing the purchase of a retail property in Roth,Germany valued at €21.5m. This retail property is located in Bavaria in a highlysought after region of Germany for retail investment properties - and an areawhich continues to experience significant yield compression. By far the largestand most exciting acquisition by the Company took place since the quarter end on3rd April when a large French logistics portfolio was purchased valued at €215mand 52% let to Norbert Dentressangle the French logistics operator. Thistransaction is excellent news for the Company and means that capital raised atIPO in December has been substantially deployed 6 months ahead of schedule. Theportfolio offers significant asset management potential - more details andinformation will be included in next quarter's factsheet. Committed Assets The Company committed to purchase an additional retail warehouse park inPocking, Bavaria (Germany) valued at €18.8m which will add further critical massto the Company's retail assets and its exposure to a strong catchment. The totalvalue of committed assets is now €82.8m, split across the following sectors: Retail: • Rheda Wiedenbruck, Germany (€13.5m) • Pocking, Germany (€18.8m) Logistics • Amsterdam, Netherlands (€6.4m) • Tiel, Netherlands (€19.4m) • Prague, Czech Republic (€13.2m) • Girona, Spain (€11.5m) Pipeline Invista Real Estate Investment Management continues to see very active deal flowacross all markets and, on behalf of the Company, has reviewed a number ofattractive investment opportunities which are appropriate for the income andgrowth characteristics of the Company. As stated in the IPO Prospectus theCompany is targeting the largest and most liquid real estate markets e.g.France, Germany, The Netherlands etc, as Invista Real Estate InvestmentManagement considers these to offer the best combination of income return andNAV growth potential. Active Management Lease re-negotiations are taking place at one of the Company's assets in Lyonwhich is expected to have a positive effect on valuation, however suchnegotiations may take 3-6 months to complete. Negotiations are also advancing tolease the last bay of the logistics asset in Marseille which will further reducethe Company's exposure to vacant accommodation. In accordance with asset levelbusiness plans produced by Invista Real Estate Investment Management, a numberof additional asset management initiatives are being pursued across theportfolio, including actively managing the leasing campaigns in Cergy, Paris andinvestigating the potential use of the surplus land in the portfolio. Contacts Brokers:JP Morgan Cazenove20 MoorgateLondonEC2R 6DATel: +44 20 7588 2828Richard Cotton (Managing Director, Corporate Finance)Angus Gordon Lennox (Managing Director, Corporate Finance) CitigroupCitigroup CentreCanada SquareCanary WharfLondonE14 5LBTel: +44 20 7986 0062Tim Harvey Samuel (Managing Director)Alex Carter (Director)Tel: +44 20 7986 0520 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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