4th Feb 2008 07:00
Public Service Properties Inv Ltd04 February 2008 4 February 2008 Public Service Properties Investments Limited ("PSPI" or "the Company") Trading Update for the Year to 31 December 2007 PSPI (AIM: PSPI), the specialist European real estate investment and financingcompany, announces a trading update for its financial year to 31 December 2007,prior to announcing preliminary results on 4 April 2008. Asset ValuesThe Company continues to enjoy 100% occupancy of its investment properties with91% of revenue underpinned by index linked leases adjusted on an annual basis.Indexed increases in rents on the UK investment property portfolio averaged 4%per annum during 2007 and the weighted average unexpired term of the leases, atthe end of the year, was approximately 28 years. The value of the Company's care home assets in the UK, representingapproximately 85% of PSPI's investment property portfolio, remained steadyduring the second half of the year, a period which saw other sectors of thecommercial real estate market come under considerable pressure. Valuations forthese assets at the year end are expected to be in line with those on 30 June2007. The values of the investment properties in the US and Switzerland, representingapproximately 13% of PSPI's investment property portfolio, are expected to havesoftened since the 30 June 2007 valuations; however any reduction is notanticipated to be material. Overall, we expect to be reporting PSPI's gross assets in excess of £250 millionat the year end compared with £228 million at 30 June 2007 and £186 million at31 December 2006. DividendsThe Board anticipates recommending a final dividend in respect of 2007 of 4p pershare, which together with the 2p interim dividend would make a total for theyear of 6p per share - in line with the level indicated at the time of theCompany's IPO in March 2007. Subject to approval by shareholders the finaldividend will be paid on 30 May 2008. StrategyAt the end of the year, the Company announced its first two acquisitions of carehomes in Germany for an aggregate consideration of approximately Euro 10m. Theseproperties are both being acquired on attractive yields and will enhance theoverall yield of our portfolio. The Company remains well positioned to continueits acquisition policy in continental Europe and the UK. Borrowings are atconservative levels with cash and additional credit lines available. As always,the Company is taking a very selective and cautious approach to acquisitions,focusing on high quality assets that can be purchased at prices which cangenerate long term value for shareholders. We are in negotiations regarding anumber of properties and are hopeful that we will exchange contracts on theacquisition of a further two care homes in Germany during February and thatadditional acquisitions will follow during the first half of this year. -ends- For further information please visit www.pspiltd.com or call: Dr D Srinivas Tim Worlledge Rachel DrysdaleRalph Beney Jeremy Ellis Simon HudsonRichard Borg Chris ClarkeRP&C International Evolution Securities Tavistock Communications LimitedTel: 020 7766 7000 Tel: 020 7071 4300 Tel: 020 7920 3150 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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