Interim Management Statement
September 02 2011 - 6:01AM
UK Regulatory
TIDMIPI
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 2011 was -5.40 pence (31 March 2011: -5.17p). The
unaudited Net Asset Value per share was -16.01 pence (31 March 2011: -15.58p).
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 30 June 2011.
Analysis of movement in net asset value.
At 30 June 2011 At 31 March
2011
Investment Properties
UK (GBPm) 79.0 90.6
Europe (GBPm) 128.2 123.2
Investment Properties (total) 207.2 213.8
Other assets (GBPm) 26.5 28.9
Other liabilities (GBPm) (40.8) (42.0)
Bank borrowings (GBPm) (201.2) (208.6)
Adjusted Net Asset Value (GBPm) (8.3) (7.9)
Adjusted Net Asset Value per (5.40)p (5.17)p
share
Goodwill (GBPm) 6.3 6.1
Interest rate swaps (GBPm) (8.7) (9.8)
Deferred taxation (GBPm) (13.8) (12.2)
Net Asset Value (GBPm) (24.5) (23.8)
Net Asset Value per share (16.01)p (15.58)p
Portfolio Valuation
As announced on 6 July 2011, the Company's property portfolios were valued in
aggregate at GBP207.2 million as at 30 June 2011. The underlying like-for-like
changes in values, adjusted for disposals, over periods to 30 June 2011 are
shown below:
Periods to 30 June 2011
3m 6m 12m
UK portfolio (in Sterling) 0.0% 2.3% 2.0%
European portfolio (in 1.8% 0.5% -2.6%
Euros)
Total (in Sterling) 2.4% 4.2% 5.6%
The portfolio analysis as at 30 June 2011 is shown below:
UK France Belgium Spain Germany Total
Industrial 28.3% 12.7% 0.0% 3.7% 0.0% 44.7%
Offices 9.8% 28.0% 8.4% 0.0% 9.1% 55.3%
Retail 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total 38.1% 40.7% 8.4% 3.7% 9.1% 100.0%
The top ten investments by value are set out below:
Ranking Investment % of Ranking at
Portfolio
Now 31 March 2011
1 Le Directoire, St-Cloud, France 17.12 1
2 St-Michel sur Orge, France 10.02 2
3 SchickardSt, Boeblingen, Germany 9.43 3
4 Le Diapason, Paris, France 7.81 4
5 11 Old Jewry, London EC2, UK 5.58 7
6 Priory Business Park, Bedford, UK 5.32 9
7 Colonel Bourg, Brussels, Belgium 5.23 6
8 Le Verdun, Paris, France 4.26 -
9 Brackmills Industrial Estate, 4.25 8
Northampton, UK
10 Hellaby Lane, Rotherham, UK 3.96 10
Transactions
In the quarter to 30 June 2011 the Group completed the sale of Pegasus House,
Peterborough for GBP11.5m. Net sales proceeds were used to repay bank borrowings
and terminate interest rate swaps.
Asset Management
We continue to focus on securing tenants for the vacant elements of the
portfolio, and negotiate longer lease terms with existing tenants. We have been
particularly successful in letting vacant space in Paris, where 4 new leases
were signed during the quarter to 30 June 2011, and a further 2 leases have
been signed and one more has been agreed (but not yet documented). There remain
some 3,200 square metres of vacant offices in the Paris portfolio, though when
considered against the 3,500 square metres leased since 1 January 2011 it is
clear that positive progress has been made.
Elsewhere in the portfolio we continue to progress with the marketing of the
vacant industrial space in the UK, as well as the vacant warehouse in Paris,
having conducted a number of viewings in recent weeks. We are negotiating terms
for the letting of the remaining restaurant space at 11 Old Jewry, and hope to
be able to announce this transaction shortly.
It is encouraging to see that progress is being made across the portfolio
against challenging market conditions.
Financing
Sterling and Euro bank borrowings at 30 June 2011 were GBP75.3 million and EUR140.2
million respectively. GBP9.97 million of cash from the sale of the Pegasus
property was applied to repay sterling debt.
As at 30 June 2011 the Company was not in compliance with either of its key
existing banking covenants. The loan to value ratio was 97.2% compared with a
covenanted maximum of 65% and interest cover (calculated under the banking
agreement) stood at 135.1% against a permitted minimum of 145%. On 15 August
2011 the Company entered into a conditional agreement to amend the terms of its
banking facility. The proposed terms include revisions to the principal
covenants, with which the Group would have been compliant as at 30 June 2011
had the changes been effective then. The amendments to the banking facility
remain conditional on the approval by shareholders of resolutions to be
proposed at the EGM convened for 12 September 2011.
All enquiries:
Angus Pottinger
Invesco Asset Management Limited
020 7065 3714
Rory Morrison
Invesco Real Estate
020 7543 3500
2 September 2011
END
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