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 (£m) 71.9 71.9
Europe (£m) 112.5 111.5
Investment Properties (total) 184.4 183.4
Other assets (£m) 25.1 24.5
Other liabilities (£m) (35.1) (34.2)
Bank borrowings (£m) (193.1) (191.3)
Adjusted Net Asset Value (£m) (18.7) (17.6)
Adjusted Net Asset Value per (12.21)p (11.47)p
share
Interest rate swaps (£m) (3.8) (4.7)
Deferred taxation (£m) (12.3) (12.8)
Net Asset Value (£m) (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 £184.4 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 £75.3 million and €138.3
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