Net Asset Value and Interim Management Statement
September 02 2010 - 10:58AM
UK Regulatory
TIDMIPI
REMINDER - TO BE SENT TO CISX
Invesco Property Income Trust Limited
Net Asset Value and Interim Management Statement
The unaudited Adjusted Net Asset Value per share of Invesco Property Income
Trust Limited as at 30 June 2010 was -5.38 pence (31 March 2010: -4.72p). The
unaudited Net Asset Value per share was -19.17 pence (31 March 2010: -19.86p).
The Net Asset Value per Ordinary Share is calculated under International
Financial Reporting Standards, and the Adjusted Net Asset Value per share in
accordance with the prospectus.
The net asset values incorporate the external valuation of the Group's property
assets as at 30 June 2010.
Analysis of movement in net asset value.
At 30 June 2010 At 31 March 2010
Investment Properties
UK (GBPm) 103.2 103.9
Europe (GBPm) 118.7 134.8
Investment Properties (total) 221.9 238.7
Other assets (GBPm) 20.5 22.5
Other liabilities (GBPm) (34.6) (40.8)
Bank borrowings (GBPm) (216.0) (227.6)
Adjusted Net Asset Value (GBPm) (8.2) (7.2)
Adjusted Net Asset Value per (5.38) (4.72)
share (p)
Goodwill (GBPm) 5.9 6.5
Interest rate swaps (GBPm) (15.4) (15.9)
Deferred taxation (GBPm) (11.6) (13.8)
Net Asset Value (GBPm) (29.3) (30.4)
Net Asset Value per share (p) (19.17) (19.86)
Portfolio Valuation
As announced on 19 July 2010, the Company's property portfolios were valued in
aggregate at GBP221.9 million as at 30 June 2010, with approximately 46.5% by
value of assets located in the UK and 53.5% in continental Europe. The
underlying like-for-like changes in values over periods to 30 June 2010 are
shown below:
Periods to 30 June 2010
3m 6m 12m
UK portfolio (in Sterling) -0.6% +0.1% +5.4%
European portfolio (in -3.0% -5.3% -7.6%
Euros)
Total (in Sterling) -7.1% -8.4% -4.7%
The portfolio analysis as at 30 June 2010 is shown below:
UK France Belgium Spain Germany Total
Industrial 29.8% 10.7% - 3.4% - 43.9%
Offices 15.0% 23.5% 8.2% - 7.6% 54.3%
Retail 1.7% - - - - 1.7%
Total 46.5% 34.2% 8.2% 3.4% 7.6% 100%
The top ten investments by value are set out below:
Ranking Investment % of Ranking at
Portfolio
Now 31 March 2010
1 Le Directoire, St-Cloud, France 14.1 1
2 St-Michel sur Orge, France 8.0 2
3 SchickardSt, Boeblingen, Germany 7.6 3
4 Le Diapason, Paris, France 6.0 4
5 Colonel Bourg, Brussels, Belgium 5.3 5
6 11 Old Jewry, London EC2, UK 4.5 6
7 Brackmills Industrial Estate, 4.2 7
Northampton, UK
8 Priory Business Park, Bedford, UK 4.1 8
9 Afton Centre, Bracknell, UK 3.7 11
10 Pegasus Building, Peterborough, UK 3.6 12
Transactions
On 5 August the Company announced the exchange of contracts for the sale of
Fleet House, an office building in Peterborough, for GBP6.125m. On completion the
net proceeds will be used to repay bank borrowings.
In deciding whether to proceed with further disposals, the Board will have
regard to the impact of any proposed transactions on the Group's banking
covenants and cash flow.
Asset Management
While it could be argued that it is becoming a little more challenging to
secure tenant commitments, we continue to progress discussions at a number of
properties with a view to signing new tenants, as well as lease extensions and
amendments.
Two new leases completed during the quarter, both lettings at Old Jewry. The
first was a new 10 year lease (5 year certain) which completed for part of the
1st floor, 11 Old Jewry, with a rent level of GBP139,350 pa. The second, a new 10
year lease (5 year certain) completed for the 4th floor of 11 Old Jewry, with a
rent level of GBP205,605 pa.
The vacancy rate remains at a relatively low level across the portfolio in
spite of the continuing economic uncertainty across Europe, through successful
asset management, and a very low rate of business failure.
We continue with negotiations across the portfolio, with a view to leasing up
vacant accommodation and enhancing the average unexpired lease term.
Financing
Sterling and Euro Bank borrowings at 30 June 2010 were GBP104.6m and EUR140.2m
respectively. The Company remains compliant with its interest cover covenant,
which stood at 156.7% against a minimum of 145%.
The Company remains in discussions with third parties and its lending bank
regarding proposals received, which include the possibility of an offer being
made for the Company's shares. There is no guarantee that such discussions will
lead to a successful outcome or that any offer will be made. Accordingly the
Company is also seeking to agree terms with its lending bank for future
financing arrangements.
All enquiries:
Angus Pottinger
Invesco Asset Management Limited
020 7065 3714
Rory Morrison
Invesco Real Estate
020 7543 3500
2 September 2010
END
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