IPI Invesco Pty

 
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 31 December 2010 was -7.53 pence (30 September 2010: 
-7.27p). The unaudited Net Asset Value per share was -19.93 pence (30 September 
2010: -21.35p). 
 
The Adjusted Net Asset Value per share is calculated in accordance with the 
Company's prospectus , and the Net Asset Value per Ordinary Share under 
International Financial Reporting Standards. 
 
The Net Asset Values incorporate the external valuation of the Group's property 
assets as at 31 December 2010. 
 
Analysis of movement in net asset value. 
 
                                    At 31 December  At 30 September 
                                              2010             2010 
 
Investment Properties 
 
UK (GBPm)                                      100.6             96.8 
 
Europe (GBPm)                                  121.5            125.9 
 
Investment Properties (total)                222.1            221.9 
 
Other assets (GBPm)                             19.9             22.8 
 
Other liabilities (GBPm)                      (37.0)           (38.7) 
 
Bank borrowings (GBPm)                       (216.6)          (217.2) 
 
Adjusted Net Asset Value (GBPm)               (11.5)           (11.1) 
 
Adjusted Net Asset Value per               (7.53)p          (7.27)p 
share 
 
Goodwill (GBPm)                                  6.0              6.3 
 
Interest rate swaps (GBPm)                    (12.9)           (15.4) 
 
Deferred taxation (GBPm)                      (12.1)           (12.4) 
 
Net Asset Value (GBPm)                        (30.5)           (32.7) 
 
Net Asset Value per share                 (19.93)p         (21.35)p 
 
Portfolio Valuation 
 
As announced on 20 January 2011, the Company's property portfolios were valued 
in aggregate at GBP222.1 million as at 31 December 2010, with approximately 45.3% 
by value of assets located in the UK and 54.7% in continental Europe. The 
underlying like-for-like changes in values over periods to 31 December 2010 are 
shown below: 
 
                                    Periods to 31 December 2010 
 
                                  3m            6m            12m 
 
UK portfolio (in Sterling)       +3.9%         +3.3%         +2.4% 
 
European portfolio (in           -2.3%         -3.1%         -8.3% 
Euros) 
 
Total (in Sterling)              +0.1%         +2.8%         -6.5% 
 
The portfolio analysis as at 31 December 2010 is shown below: 
 
                    UK     France     Belgium      Spain     Germany      Total 
 
Industrial       29.4%      11.2%           -       3.4%           -      44.0% 
 
Offices          14.1%      24.0%        8.1%          -        8.1%      54.3% 
 
Retail            1.7%          -           -          -           -       1.7% 
 
Total            45.2%      35.2%        8.1%       3.4%        8.1%       100% 
 
The top ten investments by value are set out below: 
 
 Ranking  Investment                                      % of    Ranking at 
                                                     Portfolio 
   Now                                                           30 September 
                                                                     2010 
 
    1     Le Directoire, St-Cloud, France           14.3              1 
 
    2     St-Michel sur Orge, France                8.5               2 
 
    3     SchickardSt, Boeblingen, Germany          8.0               3 
 
    4     Le Diapason, Paris, France                6.1               4 
 
    5     Pegasus Building, Peterborough, UK        5.2               13 
 
    6     Colonel Bourg, Brussels, Belgium          5.1               5 
 
    7     11 Old Jewry, London EC2, UK              4.8               6 
 
    8     Brackmills Industrial Estate,             4.1               7 
          Northampton, UK 
 
    9     Priory Business Park, Bedford, UK         4.0               8 
 
   10     Hellaby Lane, Rotherham, UK               3.7               9 
 
Transactions 
 
No transactions were concluded in the quarter to 31 December 2010. However 
since then the Group has completed the sale of its vacant property at Hounslow, 
as announced on 20 January 2011. All net sales proceeds will be used to repay 
bank borrowings. 
 
Asset Management 
 
Details of the key asset management successes achieved since 30 September 2010 
were announced on 20 January 2011. The lease restructurings completed at the 
Pegasus Building, Peterborough and at Bedford have added 12 and 5 years 
respectively to the previous lease expiries and the letting at Old Jewry in the 
City of London means that the office space in that building is now fully let. 
These have resulted in lower vacancy rates and longer average unexpired lease 
terms across the UK portfolio. 
 
We are progressing a number of strategies for managing the recent increase in 
vacancy rates in Europe, which have been focused solely within the Paris 
portfolio. We are hopeful that the Manager's local Paris team can repeat the 
successes achieved in the UK, but at this point we are early in this process 
and discussions have yet to translate into lettings. 
 
Financing 
 
Sterling and Euro bank borrowings at 31 December 2010 were GBP96.5 million and EUR 
140.2 million respectively, unchanged over the quarter. Net proceeds from the 
sale of the Hounslow property, amounting to GBP4,276,650, will be applied to debt 
reduction at the earliest opportunity. 
 
As at 31 December 2010 the Company was not in compliance with either of its key 
banking covenants. The loan to value ratio was 97.8% compared with a covenanted 
maximum of 65% and interest cover (calculated under the banking agreement) 
stood at 132.2% against a permitted minimum of 145%. The Company continues to 
negotiate terms with its lending bank regarding its future financing 
arrangements. 
 
All enquiries: 
 
Angus Pottinger 
 
Invesco Asset Management Limited 
 
020 7065 3714 
 
Rory Morrison 
 
Invesco Real Estate 
 
020 7543 3500 
 
3 March 2011 
 
 
 
END 
 

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