1st Sep 2006 07:00
ING UK Real Estate Income Trust Ltd01 September 2006 ING UK Real Estate Income Trust Limited 31 August 2006 Newsletter Q2 2006 About the Fund ING UK Real Estate Income Trust Limited is a closed-ended, Guernsey registered,investment company. The investment portfolio is managed by ING Real EstateInvestment Management (UK) Limited, a member of the ING Group. The Company waslaunched on the London and Channel Islands' Stock Exchange on 25 October 2005and to date has over 790 investors. Investment Objective The Company's aim is to provide shareholders with an attractive level of incometogether with the potential for capital growth. It will invest both directly andindirectly in an investment portfolio comprising UK, Isle of Man and ChannelIslands properties and will focus initially on five principal commercialproperty sectors: office, retail, retail warehouse, industrial and leisure. Itis the present intention that the Company's borrowings will be limited to amaximum of 50% of gross assets. Fund Performance As at 30 June 2006 the Net Asset Value of the Company was GBP 358.1 millionwhich amounts to 117.0 pence per share. This reflects an uplift of 7.4 pence pershare, or 6.8% over the quarter, including an adjustment which reflects themarked to market swap. Regional Diversification Central London 7.9%Greater London 7.4%South East 28.5%Midlands 18.1%South West 4.6%North 17.7%Wales 7.2%Scotland 4.1%Northern Ireland 2.9%Offshore UK 1.6% Sector Diversification Retail 20.7%Offices 41.4%Industrial 21.5%Leisure 7.3%Retail Warehouse 9.1% Key Information (As at 30th June 2006) Launch Date 25th October 2005Shares Issued 305 millionShare Price 114.75 penceMarket Capitalisation GBP 349.9 millionNet Asset Value GBP 358.1 millionProperty Value GBP 553.7 millionNAV per share 117 penceNumber of Properties 56Average Lot Size GBP 9.88 millionAverage Lease Length 8.81 yearsCurrent Debt GBP 200 millionGearing 36.1%Interest Rate 5.04%Financial Year End 31st December 2006Half Year 30th June 2006Dividend Payment Dates 31st August / 30th November 2006Fund Management Fee 0.9% of Gross Asset Value 10 Largest Assets The following table shows the 10 largest assets by value, which comprises some38.5% of the portfolio. Asset Principal Lot Size (GBP) SectorLutterworth - Unit 5320, Magna Park Industrial 30 - 50 millionSwansea - Phase II, Parc Tawe, Link Road Retail 30 - 50 million WarehouseChester - 36-42 Frodsham Street & Frodsham Retail 20 - 30 millionSquareColchester - Colchester Business Park, The Office 20 - 30 millionCrescentLondon - Lincoln Place, Farringdon Road Office 15 -20 millionLondon - Boundary House, Jewry Street Office 15 - 20 millionBelfast - Scot Prov Buildings, 1/11 Donegall Retail 15 - 20 millionSquareBirmingham - Regency Wharf, Broad Street Leisure 15 - 20 millionUK Wide - Scorpio Inns Portfolio Leisure 15 - 20 millionGreater Manchester - Angouleme Way, Bury Retail 10 - 15 million Warehouse 10 Largest Tenants The 10 largest individual tenants represent 30.4% of the portfolio by rent andare set out below. Tenant % of total Portfolio (by rent) 1 TNT UK Limited 6.7% 2 Merrill Lynch Europe PLC 3.5% 3 Tesco Stores Limited 3.3% 4 The Punch Pub Company (PTL) Limited 3.3% 5 Barclays Sharedealing 2.7% 6 Sybase (UK) Limited 2.6% 7 Computer Associates UK Ltd 2.2% 8 S P Group Limited 2.2% 9 KANA Communications Europe Limited 2.1% 10 Hotel Portfolio 11 UK Limited 1.7% Fund Highlights London, Boundary House, Jewry Street In May, the Fund purchased Boundary House on Jewry Street, London EC3, withinthe City of London. The purchase price of GBP 16.1 million reflects an initialyield of 5.2%. Boundary House is now the trust's 6th largest asset by value. Itcomprises over 4,180 sq.m. (45,000 sq.ft.) of office space and has eightoccupational tenants. This acquisition gives the Fund further exposure to theoccupational upswing in the office market. There is also further opportunity togain added value through refurbishment and active management. Following the quarter end, the Company completed the following: Securitisation In July, ING UK Real Estate Income Trust Ltd took the opportunity to utilise theadditional debt facility contained within the securitisation structureestablished in December 2005. An additional GBP 25 million of debt has beenissued in the form of AAA rated Reserve Notes and has been fully hedged until30 January 2013. The total debt on the portfolio has increased to GBP 225million at an effective all in rate of 5.10%. The additional debt will be usedto fund further acquisitions and assist with active management opportunitiesacross the portfolio. London, Notcutt House, Southwark Bridge RoadSimultaneous to the above, the Fund purchased Notcutt House, Southwark BridgeRoad, London, SE1. The purchase price of GBP 7 million reflects a net initialyield of 5.75%. The property comprises 1,175 sq.m. (12,653 sq.ft.) of air conditioned office space refurbished in 2001, which is let at GBP 426,586 perannum until September 2016 to Conchango UK plc. BrokerJP Morgan Cazenove20 Moorgate, London, EC2R 6DAT: 020 7588 2828 Investment and Property ManagerElliot CaldwellING Real Estate Investment Management (UK) Limited60 London Wall, London EC2M 5TQ Important Information This newsletter is issued by ING Real Estate Income Trust Limited ("IRET"). Itis based on information supplied by the Investment and Property Manager, INGReal Estate Investment Management (UK) Limited. This newsletter is intended forshareholders of IRET only. The provision of the information herein is permittedunder Article 43 of the Financial Services and Markets Act 2000 (FinancialPromotion) Order 2005. It is not a recommendation to deal or refrain fromdealing in the shares of IRET. The newsletter should not be passed to any personother than an existing shareholder in IRET or their professional adviser. Anyshareholder who requires advice on their investment in IRET should contact theirstock broker, bank or independent financial adviser. Please find below a link to the quarterly newsletter issued by the Company. http://www.rns-pdf.londonstockexchange.com/rns/2927i_-2006-8-31.pdf Enquiries The Company SecretaryNorthern Trust International Fund Administration Services (Guernsey) LimitedP.O. Box 255, Trafalgar Court, Les Banques,St Peter Port, Guernsey GY1 3QLT: 01481 745 439 END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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