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 2013 was -15.02 pence (30 September 2013:
-11.43p). The unaudited Net Asset Value per share was -22.76 pence (31 March
2013: -21.40p).
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 2013.
Analysis of movement in net asset value.
At At
31 December 30 September
2013 2013
Investment Properties
UK (£m) 66.2 72.4
Europe (£m) 93.9 110.0
Investment Properties (total) 160.1 182.4
Other assets (£m) 23.3 25.2
Other liabilities (£m) (31.5) (34.5)
Bank borrowings (£m) (174.9) (190.6)
Adjusted Net Asset Value (£m) (23.0) (17.5)
Adjusted Net Asset Value per (15.02)p (11.43)p
share
Interest rate swaps (£m) (2.4) (3.1)
Deferred taxation (£m) (9.4) (12.1)
Net Asset Value (£m) (34.8) (32.7)
Net Asset Value per share (22.76)p (21.40)p
Portfolio Valuation
As announced on 14 January 2014, the Company's property portfolios were valued
in aggregate at £160.1 million as at 31 December 2013. The underlying
like-for-like changes in values, adjusted for disposals, over periods to 31
December 2013 are shown below:
Periods to 31 December 2013
3m 6m 12m
UK portfolio (in Sterling) 1.3% 2.1% 2.35
European portfolio (in -8.7% -9.0% -10.6%
Euros)
Total (in Sterling) -5.0% -6.2% -4.4%
The portfolio analysis as at 31 December 2013 is shown below:
UK France Belgium Spain Germany Total
Industrial 27.0 9.9 - 2.2 - 39.1
Offices 14.3 32.3 3.8 - 10.5 60.9
Total 41.3 42.2 3.8 2.2 10.5 100.0
The top ten investments by value are set out below:
Ranking Investment % of Ranking at
Now Portfolio 30 September
2013
1 Le Directoire, St-Cloud, France 20.8% 1
2 St-Michel sur Orge, France 10.4% 2
3 SchickardSt, Boeblingen, Germany 8.6% 3
4 Le Diapason, Paris, France 8.4% 4
5 11 Old Jewry, London EC2, UK 7.0% 5
6 Unipath Building, Bedford, UK 4.9% 8
7 Hellaby Lane, Rotherham, UK 4.7% 6
8 Interface Business Park, Wootton Bassett, 4.5% 7
UK
9 Colonel Bourg, Brussels, Belgium 3.8% 12
10 Walworth Industrial Estate, Andover, UK 3.4% 14
Transactions
During the quarter two sales were completed:
* The warehouse leased to Travis Perkins at Brackmills, Northampton was sold
for £9.00m on the 21st November 2013. £8.92m of debt was repaid to RBS.
* Rozendal in Belgium completed on the 9th December at a net price of €7.96m.
€7.71m of debt was repaid to RBS.
Since the quarter end the following sales have completed:
* Gerrards Cross, for £3.21m on the 6th January 2014. £2.49m debt was repaid.
* Huntingdon for £3.94m on the 23rd January. £3.85m debt repaid
* Wootton Basset for £7.47m on the 21st January. £7.28m debt repaid.
Asset Management
The vacancy rate for the Portfolio had increased slightly by the quarter end to
13.2% due mostly to the UK where leases for the 1st floor unit at Old Jewry and
at Amersham expired in the quarter. A new lease completed in January on the Old
Jewry space (at a higher rent than previously) and we have interest in two
floors at Amersham.
The expiry of the lease at St Michel in January 2014 will be reflected at the
next quarter end. This lease represents nearly 20% of the European rent, taking
the European vacancy over 30% and the overall vacancy above 20%.
Financing
Sterling and Euro bank borrowings at 31 December 2013 were £66.4 million and €
130.6 million respectively, (30 September 2013: £75.3 and €138.3). At 31
December the LTV ratio was 109.6% (30 September 2013: 104.9%) and the interest
cover ratio was 144.7% (30 September 2013: 145.7%). Whilst the Group is
compliant with the bank facility's interest cover covenant, the LTV ratio is in
excess of the maximum permitted and discussions are ongoing with the lending
bank with the aim of amending the terms of the loan facility.
Outlook
The group has been able to complete further disposals and reduce its
borrowings, a process which will continue. However the balance sheet still
shows substantial net liabilities for the Group and the Directors do not expect
this situation to improve to the extent of being able to provide any return for
shareholders.
All enquiries:
Angus Pottinger
Invesco Asset Management Limited
020 7065 3714
Rory Morrison
Invesco Real Estate
020 7543 3500
13 February 2014