IPI Invesco Pty

 
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 2013 was -12.21 pence (31 March 2013: -11.47p). The 
unaudited Net Asset Value per share was -22.69 pence (31 March 2013: -22.87p). 
 
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 2013. 
 
Analysis of movement in net asset value. 
 
                                              At              At 
                                    30 June 2013   31 March 2013 
 
Investment Properties 
 
UK (GBPm)                                     71.9            71.9 
 
Europe (GBPm)                                112.5           111.5 
 
Investment Properties (total)              184.4           183.4 
 
Other assets (GBPm)                           25.1            24.5 
 
Other liabilities (GBPm)                    (35.1)          (34.2) 
 
Bank borrowings (GBPm)                     (193.1)         (191.3) 
 
Adjusted Net Asset Value (GBPm)             (18.7)          (17.6) 
 
Adjusted Net Asset Value per            (12.21)p        (11.47)p 
share 
 
Interest rate swaps (GBPm)                   (3.8)           (4.7) 
 
Deferred taxation (GBPm)                    (12.3)          (12.8) 
 
Net Asset Value (GBPm)                      (34.8)          (35.0) 
 
Net Asset Value per share               (22.69)p        (22.87)p 
 
Portfolio Valuation 
 
As announced on 9 July 2013, the Company's property portfolios were valued in 
aggregate at GBP184.4 million as at 30 June 2013. The underlying like-for-like 
changes in values, adjusted for disposals, over periods to 30 June 2013 are 
shown below: 
 
                                    Periods to 30 June 2013 
 
                                 3m           6m          12m 
 
UK portfolio (in Sterling)      0.0%        -0.5%        -3.7% 
 
European portfolio (in         -0.6%        -1.6%        -3.2% 
Euros) 
 
Total (in Sterling)             0.6%         1.6%         0.2% 
 
The portfolio analysis as at 30 June 2013 is shown below: 
 
                    UK     France     Belgium      Spain     Germany      Total 
 
Industrial        27.9       12.2           -        2.0           -       57.9 
 
Offices           11.1       30.3         7.2          -         9.3       42.1 
 
Total             39.0       42.5         7.2        2.0         9.3      100.0 
 
The top ten investments by value are set out below: 
 
 Ranking  Investment                                      % of    Ranking at 
                                                     Portfolio 
   Now                                                          31 March 2013 
 
    1     Le Directoire, St-Cloud, France           17.8%             1 
 
    2     St-Michel sur Orge, France                9.6%              3 
 
    3     SchickardSt, Boeblingen, Germany          9.3%              2 
 
    4     Le Diapason, Paris, France                8.8%              4 
 
    5     11 Old Jewry, London EC2, UK              6.6%              5 
 
    6     Unipath Building, Bedford, UK             4.8%              6 
 
    7     Hellaby Lane, Rotherham, UK               4.3%              7 
 
    8     Interface Business Park, Wooton Bassett,  4.3%              8 
          UK 
 
    9     Brackmills Industrial Estate,             3.9%              9 
          Northampton, UK 
 
   10     Le Verdun, Gentilly, France               3.7%              10 
 
Transactions 
 
No transactions took place in the quarter to 30 June 2013. The Directors and 
Investment Manager evaluate the prospects and local market conditions for each 
asset and will consider opportunities to make disposals where this is judged to 
be in the Company's interests. 
 
There has been some sales activity in the Company since June. Contracts have 
been exchanged for the sale of the asset in Gerrards Cross in the UK, at a 
price in excess of the most recent valuation with a target close scheduled for 
January 2014. In addition, the marginal improvement in market sentiment has 
allowed us to consider further potential disposals. We are pleased to report 
that one further property is currently under offer, and we hope that completion 
of this transaction will take place before the end of 2013. 
 
Asset Management 
 
The beginnings of a gradual change in sentiment have continued over the last 
few months in the UK, and activity in the real estate sectors has continued to 
widen beyond the `core' markets. In particular we are observing more secondary 
assets being marketed. 
 
We have again proved higher rents at the Old Jewry asset in the City with a 
lease re-gear to an existing tenant. We have also agreed a new 10 year lease at 
the industrial property in Leighton Buzzard to the existing tenant. 
 
At Verdun the lease has expired but the tenant is holding over pending further 
negotiations, while two of the single-let warehouses, one in the UK and one in 
France, are moving to within a year of expiry and negotiations for renewal are 
on-going. 
 
Financing 
 
Sterling and Euro bank borrowings at 30 June 2013 were GBP75.3 million and EUR138.3 
million respectively, unchanged over the quarter. At 30 June the LTV ratio was 
105.0% (31 March 2013: 104.6%) and the interest cover ratio was 160.5% (31 
March 2013: 149.2%). Discussions are ongoing with the Company's lending bank 
with the aim of agreeing an extension to the loan facility and revisions to 
covenants. 
 
Outlook 
 
The indicators of an improvement in sentiment towards real estate in the UK are 
welcome, but prospects for a return to shareholders must be viewed in the 
context of substantial net liabilities for the Group. A significant and rapid 
recovery in values is likely to be required to restore a positive NAV, an 
outcome the Directors view as very unlikely. 
 
All enquiries: 
 
Angus Pottinger 
Invesco Asset Management Limited 
020 7065 3714 
 
Rory Morrison 
Invesco Real Estate 
020 7543 3500 
 
24 September 2013 
 
 
 
END 
 

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