18th Aug 2006 07:30
Teesland Advantage Property Inc Tst18 August 2006 FOR IMMEDIATE RELEASE 18 AUGUST 2006 Teesland Advantage Property Income Trust Limited "TAP-in" - Quarterly Factsheet - Summer 2006 Property Fund Adviser's comments Highlights and Portfolio Activity •Net Asset Value increased 4% over the quarter to 112.7p £€14.8m of assets were acquired, reflecting an income yield of 6.63% on cost and comprising six office and industrial properties located in strong regional locations across England and Scotland •New assets included the purchase of the Gleeson portfolio comprising five properties for £9.6 million and the Blackpole Trading Estate, Worcester for £5.2 million. Income is secured to a range of strong covenants including M J Gleeson PLC, Lidl, Exel Europe Limited, Scottish Enterprises and NWS Bank Plc •Significant progress was also made through the implementation of rent reviews, lease renewals and added value initiatives across the portfolio, together with the successful completion of five lease renewals and two rent reviews at The Brunel Shopping Centre, Bletchley, where rental values have increased to £31.00 psf. Property Market The UK investment market remains strong with All Property total returns for thesecond quarter of 5.1% of which 3.7% was capital growth. This reflects a totalreturn for All Property of 21.6% over the last 12 months, outperforming equities(19.7%) and gilts (0.3%). (Source: IPD UK Monthly Index end June 2006). Demand for UK property is primarily from the institutions who have an appetitefor prime and good secondary opportunities across all sectors. Propertycompanies have largely withdrawn from the market as there are few opportunitiesto benefit from an income arbitrage over the cost of debt due to the currentlevel of yields. The Central London and provincial office markets as well asopen A1 warehouse parks, where there is scope to create value through activeasset management, remain top performers with future prospects for rental growthin the sectors. Further yield compression is likely to continue up to the end ofthe year but predicted to slow down in 2007 as prices begin to stabilise. Key Financial StatisticsLaunched Feb 2005 Total property assets £246,175,000Total shares issued 142,747,300Share price 108.0p (09.08.06)Long term debt £96,472,000Gearing 39.2% LTVDividend dates Feb, May, Aug, NovNumber of properties 68Average lot size £3.62 millionAverage lease length 7.8 yearsVoid rate 3.4% of ERV Top 10 property investments Value Weighting The Brunel Centre, Bletchley £15,700,000 6.4%Waterfront Business Park, Fleet £12,400,000 5.0%The Links, Warrington £11,625,000 4.7%Kingscourt Leisure Complex, Dundee £10,800,000 4.4%Southgate Retail Park, Derby £9,850,000 4.0%Silver Court, Welwyn Garden City £9,500,000 3.9%National Westminster House, Guernsey £9,300,000 3.8%Geoffrey House, Maidenhead £9,100,000 3.7%Fujifilm House, Hemel Hempstead £6,050,000 2.5%Associates House, Castle Street, Reading £5,570,000 2.3% Source: This announcement 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. 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. Top 10 tenants Annual rent Weighting Halfords Limited £2,264,991 14.5%Nisaba Group Limited £720,000 4.6%National Westminster Bank Plc £645,000 4.1%Toys R Us Limited £590,000 3.8%Odeon Multiplex Limited £521,673 3.3%Fujifilm Electronic Imaging Limited £515,950 3.3%Citi Financial Europe Plc £425,000 2.7%Exel Europe Limited £377,000 2.4%Securicor ADI Group Ltd £264,880 1.7%Europa European Express Limited £261,900 1.7% Financial structure The Company has long term debt of £96.47m from two lenders. The first loan isfor £58.06m from the Bank of Scotland until Feb 2015 at a margin of 0.79% overLIBOR, until May 2008, and 0.75% thereafter. The interest cost on £43.8m of thisdebt (before margin) has been fixed until Feb 2015 using interest swaps at anaverage rate of 5.14%; the balance is floating. The second long term loan isfrom Capmark for £38.41m until Jan 2013 at a margin of 0.76%. The interest cost(before margin) on £31.0m of this debt has been fixed at 4.59%; the balance isfloating. Sector breakdown % 31.8 Offices23.5 Retail20.8 Retail Warehousing19.5 Industrial4.4 Leisure Geographic breakdown % 40.3 South East11.3 Scotland9.8 East Midlands9.5 North West8.5 West Midlands5.8 Outer London3.9 Channel Islands3.8 Yorkshire & Humberside3.4 Eastern2.0 South West1.7 Wales Contact details Broker KBC Peel Hunt111 Old Broad StreetLondon EC2N 1PHDavid Davies - T: 020 7418 8900 Company Secretary Anson Fund Managers LimitedAnson HouseSt. George's PlaceSt. George's EsplanadeSt. Peter PortGuernsey GY1 2BET: 01481 722260 Property Fund Adviser Teesland Asset Management Limited1 Mount StreetLondon W1K 3NBDarren Fennell - T: 020 7659 6730 This announcement 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 2006. Past performance cannot be relied uponas a guide to future performance. Teesland Advantage Property Income Trust Limited (TAP)Anson House, St George's Place, St George's Esplanade, St Peter Port, GuernseyGY1 3WX T 01481 722260 F 01481 729829 E [email protected] W www.teeslandiog.com/our-funds/tap END OF ANNOUNCEMENT This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TAP.L