TIDMIFD
RNS Number : 1161W
Invista Foundation Property Tst Ltd
25 January 2012
25 January 2012
Invista Foundation Property Trust Limited
(the 'Company' / 'Group')
INTERIM MANAGEMENT STATEMENT, ANNOUNCEMENT OF NAV AND INTERIM
DIVIDEND
Net Asset Value
Invista Foundation Property Trust Limited (the 'Company') today
announces an unaudited net asset value ('NAV') of GBP168.9 million
or 47.5 pence per share ('pps') as at 31 December 2011. This
reflects an increase of 0.2 pps or 0.3% compared with the NAV as at
30 September 2011 of GBP168.4 million.
On a like for like basis and allowing for capital expenditure,
the directly held property portfolio fell in value by GBP1 million
or -0.3%. However, the completion of the acquisition of the BT
Building in West Bromwich on 24 October 2011 led to a total uplift,
allowing for capital expenditure and all acquisition costs, of
GBP2.1 million or 0.6% across the entire portfolio.
As at 31 December 2011, the negative mark-to-market of the
Group's interest rate swaps was -GBP29.8 million, a reduction of
GBP0.8 million or 2.7%. This represents 8.4 pps or 17.6% of the
Company's NAV.
Over the quarter the Company incurred the balance of costs
arising from Picton Property Income Limited's merger proposal and
the process to appoint Schroder Property Investment Management
Limited as Investment Manager totalling GBP0.9 million. This was
partially offset by a lease surrender payment of GBP0.3 million.
Excluding these exceptional items, pre-tax dividend cover of 68%
was achieved over the quarter.
The Company is also today announcing an interim dividend of 0.88
pps for the period 1 January 2012 to 31 March 2012. The dividend
payment will be made on 17 February 2012 to shareholders on the
register on 3 February 2012. The ex-dividend date will be 1
February 2012.
31/12/2011 30/09/2011 3 month 3 month
change change
(%)
(GBPm) (GBPm) (GBPm)
Direct property independent
valuation 349.8 331.5 18.3 5.6
Rent incentive adjustment (7.6) (7.0) (0.6) (8.6)
Valuation of acquisition* 18.9
Capital expenditure and
acquisition costs during
the quarter** 1.5
Direct portfolio after
capital expenditure and
acquisition costs 349.8 351.8 2.1 0.6
Joint venture investments 4.2 4.1 0.1 2.5
Market value of interest
rate swap (29.8) (30.6) 0.8 2.7
Net current assets*** 35.4 53.3 (17.9) (33.6)
On-balance sheet loan(***) (183.1) (182.9) (0.2) (0.1)
Net Asset Value 168.9 168.4 0.5 0.3
Net Asset Value per share
(pps) 47.5 47.3 0.2 0.3
Net Asset Value per share
excluding swaps (pps) 55.8 55.9 (0.1) (0.2)
* Previously announced acquisition of the BT Building in West
Bromwich that completed on 24 October 2011
** Also includes acquisition costs associated with the BT
Building in West Bromwich
(***) Both net current assets and on-balance sheet loan include
GBP11.2 million following draw down of the Liquidity Facility (see
Finance below). The Liquidity Facility cash is held in a blocked
account and the loan is excluded from related securitised financial
covenants
Management Arrangements
On 13 January 2012 the Company announced completion of an
Investment Management Agreement with Schroder Property Investment
Management Limited ('Schroders') to manage the Company's portfolio.
Schroders is providing investment management and accounting
services and will receive a fee of 1.1% per annum of the Company's
NAV. As previously reported, Schroders' appointment is expected to
give the Company future annual cost savings in the region of GBP1.8
million. As a result of the termination of the existing contract
with Invista Real Estate Investment Management ('IREIM'), a
termination fee of GBP0.3 million was paid to IREIM in lieu of fees
outstanding under their agreement which totalled GBP0.7 million.
Although paid in January, the termination fee has been accrued and
is part of the GBP0.9 million costs referred to in the Net Asset
Value section above.
Following the appointment of Schroders, shareholder approval
will be sought to change the name of the Company to Schroder Real
Estate Investment Trust Limited.
Property Portfolio and Performance
As at 31 December 2011 the Company's direct property portfolio
comprised 58 properties independently valued at GBP349.8 million.
The direct property portfolio produces a rent of GBP23.72 million
per annum which, based on the Knight Frank independent valuation,
reflects a net initial income yield of 6.4%. The portfolio rental
value is GBP27.8 million per annum, resulting in a reversionary
yield of 7.5%.
As noted above, on 24 October 2011 the Company completed the
acquisition of the BT building in West Bromwich for GBP14.9
million. The property was re-valued at GBP18.9 million as at 31
December 2011 which compares to the gross acquisition cost of
GBP15.8 million. British Telecommunications Plc is now the
Company's largest tenant, paying GBP1.2 million per annum.
The acquisition of West Bromwich and other completed activity
over the quarter increased the portfolio rental by GBP0.2 million
per annum and reduced the void rate slightly to 11.8%. Asset
management and transactional activity also increased the total
future contracted rental uplifts to GBP2.73 million by the end of
2014. These increases are fixed and mainly follow the expiry of
rent free periods and fixed rental increases. The two most
significant of these contracted rental increases are the BUPA
letting in Brighton, generating GBP0.96 million per annum, and the
Buckinghamshire New University in Uxbridge, generating GBP0.45
million per annum, commencing with effect from April and May 2012
respectively.
The tables below reflect the position based on the 31 December
2012 valuation, prior to the acquisition of West Bromwich:
Sector weightings
Sector Weighting %
-----------
Retail 22.2
-----------
Offices 49.4
-----------
Industrial 24.3
-----------
Other 4.1
-----------
Regional weightings
Region Weighting %
-----------
Central London 7.9
-----------
South East excl. Central London 45.9
-----------
Rest of South 12.7
-----------
Midlands and Wales 20.2
-----------
North and Scotland 13.3
-----------
Top ten properties
Value
(GBPm) %
1 London SE1, Minerva House 27.8 7.9
---------------------------------- -------- -----
2 Brighton, Victory House 25.0 7.2
---------------------------------- -------- -----
3 West Bromwich, BT Building 18.9 5.4
---------------------------------- -------- -----
4 Salisbury, Churchill Way West 15.2 4.4
---------------------------------- -------- -----
5 Uxbridge, 106 Oxford Road 14.7 4.2
---------------------------------- -------- -----
6 Luton, The Galaxy 14.3 4.1
---------------------------------- -------- -----
7 Wembley, Olympic Office Centre 12.8 3.7
---------------------------------- -------- -----
8 Brentford, Reynards Business Park 12.3 3.5
---------------------------------- -------- -----
9 Brentford, The Gate Centre 11.7 3.3
---------------------------------- -------- -----
10 Basingstoke, Churchill Way 10.7 3.0
---------------------------------- -------- -----
Total as at 31 December 2011 163.4 46.7
---------------------------------- -------- -----
Top ten tenants
Rent per annum
(GBP) %
--- -----
1 British Telecommunications PLC(1) 1,200,000 12.8
2 Wickes Building Supplies Limited 1,092,250 11.7
Norwich Union Life and Pensions
3 Ltd 1,039,191 11.1
4 Lloyds TSB Bank PLC(2) 1,024,000 11.0
5 BUPA Insurance Services Limited(3) 960,555 10.3
6 Synovate Limited(4) 950,000 10.2
7 The Buckinghamshire New University(5) 900,000 9.6
8 Mott MacDonald Ltd(6) 790,000 8.5
9 Recticel SA(7) 731,038 7.8
10 Winkworth Sherwood LLP(8) 663,095 7.1
Total as at 31 December 2011 163,250,000 39.4
(1) Acquisition completed 24 October 2011. Lease benefits from
annual fixed uplifts of 3% p.a.
(2) Lloyds Bank on Church Street Liverpool and Bank of Scotland
PLC at Keith House, Edinburgh
(3) Currently subject to rent free period that expires April
2012
(4) Aegis Group plc is guarantor. Figures based on 50% ownership
of Minerva House. The lease is in the process of being assigned to
MORI UK Limited
(5) The Buckinghamshire New University is currently benefiting
from a half rent period equating to GBP450,000 per annum from March
2009 which will increase to GBP900,000 per annum in June 2012. The
lease benefits from a further fixed uplift to GBP1.02 million per
annum in May 2014
(6) Mott MacDonald Group Limited are Guarantor
(7) The tenant is currently benefiting from a half rent period
equating to GBP365,519 per annum which will increase to GBP731,038
per annum in January 2014
(8) On assignment from Reed Smith Ramboud Charot LLP. Figures
based on 50% ownership of Minerva House
Transactions and Asset Management
At Reynards Business Park in Brentford, a revised planning
application has been submitted for a residential scheme of 275
units totalling 224,000 sq ft. From our discussion with Council
officers, we understand that a residential scheme is acceptable in
principle and a decision is expected over the coming months.
Assuming a planning consent is received for the higher-value use,
the property will be sold.
At Kingsland Trading Estate in Bristol, the Company has received
GBP0.3 million as a dilapidations settlement in connection with a
44,000 sq ft warehouse unit that became vacant in early 2011. The
unit is being refurbished at a total cost of GBP470,000, of which
GBP153,000 was incurred over the quarter. Terms have been agreed to
let the property at a rent of GBP0.19 million per annum and legal
negotiations are progressing.
Market Background
The latest Investment Property Databank ('IPD') Monthly Index
for the three months to 31 December 2011 confirmed that average UK
commercial property capital values fell slightly by -0.03%, in
comparison with a small increase of 0.21% over the previous
quarter. For 2011 as a whole, the IPD Monthly Index produced a
total return of 8.1%, with capital value growth of 1.2% and an
income return of 6.8%. Average rental growth over the period was
marginally positive at 0.1%. Between the sectors, offices produced
the highest return of 9.3%, and were the only sector to produce
positive rental value growth of 2%. The industrial and retail
sector lagged behind with total returns of 7.7% and 7.2%
respectively, and negative rental value growth of -1% and -0.9%
respectively.
Joint Ventures
The Company has three joint ventures with separate non-recourse,
off-balance sheet debt:
Merchant Property Unit Trust ('MPUT') - 19.5% share
The NAV of the Company's 19.5% share in MPUT as at 31 December
2011 increased by GBP0.13 million, or 4.5%, to GBP2.94 million. The
value of the underlying portfolio increased to GBP41.33 million
over the quarter, an increase of GBP0.35 million or 0.9%. As
previously highlighted, with effect from December 2011 the interest
cover ratio covenant increased from 125% to 150%, and the loan to
value ('LTV') covenant ratio fell from 100% to 85%, tapering to 75%
by loan maturity by September 2013. MPUT remains comfortably within
these covenants with LTV and ICR ratios of 59.3% and 168%
respectively. As at 31 December 2011 the total negative marked to
market value of the interest rate swap is -GBP1.52 million, meaning
that the Company's share of NAV is diluted by approximately -GBP0.3
million. The swap is matched to the term of the loan and will
therefore erode to nil by loan maturity.
Crendon Industrial Partnership Limited ('CIPL') - 50% share
The NAV of the Company's 50% share in CIPL as at 31 December
2011 was unchanged over the quarter at GBP1.27 million. The
underlying property valuation also remained unchanged at GBP24.75
million. Over the quarter GBP2.4 million of the loan secured
against the property was repaid from CIPLs existing cash resources,
reducing the loan to GBP23.66 million. Following this repayment the
net loan to value is approximately 94%. There is no loan to value
covenant prior to loan maturity in May 2013 and the interest cover
is well within compliance at 153% compared to the covenant of 125%.
Due to the current high LTV and ongoing asset management
initiatives, an approach has been made to the lender to extend the
maturity of the existing loan.
One Plantation Place Unit Trust ('OPPUT') - 29% share
The valuation of OPPUT's underlying property, Plantation Place,
London, EC3 increased slightly to GBP496.50 million over the
quarter, an uplift of GBP0.90 million or 0.18%, reflecting a net
initial yield of 5.50%. The independent valuation continues to be
prepared on the basis of a disposal of the unit trust in which the
property sits rather than the property itself, and therefore does
not include any deduction for SDLT. As at 31 December 2011, OPPUT's
net debt is GBP428.7 million, resulting in a net loan to value of
86.7% compared to the net loan to value covenant of 82.14%. The
negative marked to market value of the interest rate swap, which is
matched to the loan maturity in July 2013, reduced by GBP4.9
million to -GBP28.3 million over the quarter.
Due to the uncertainty associated with the continuing LTV breach
and as there is no certainty that any disposal will be of the unit
trust, the Company continues to hold its interest at GBPnil. The
Manager continues to explore strategies to realise the
investment.
Finance
Details of the Company's debt and two swaps are set out in the
table below:
Rating Loan Swap Rate Margin Total Swap Maturity M2M M2M
amount (%) (%) interest 31/12/2011 30/09/2011
(GBPm) rate
(%)
-------------
5.099%
AAA 62.5 Fixed 0.20 5.299 15/07/2014 (6.8) (7.47)
5.713%
AAA 111 Fixed 0.20 5.913 15/07/2016 (23.0) (23.16)
Loan 5.420%
total 173.5 Fixed 0.20 5.692 N/A (29.8) (30.63)
Liquidity 0.56
facility** 11.2 Libor*** 0.662 1.2 N/A N/A N/A
* M2M or marked to market
** Securitised debt facility has a Liquidity Facility of GBP11.2
million provided by Lloyds Banking Group ('Lloyds'). Liquidity
Facility Agreement requires the provider to have a minimum Standard
& Poor's ('S&P') credit rating of A-1+, which Lloyds
breached in March 2009 when they were downgraded by S&P to A-1.
Breach requires the Liquidity Facility to be drawn down in full and
placed in a blocked deposit account or alternatively a new provider
put in place. Accordingly, on the 23 September 2009 the Liquidity
Facility was drawn down.
*** Libor as at 19 January 2012
The Company has a single on-balance sheet loan facility of
GBP173.5 million that matures in July 2014, with no other
on-balance sheet financing maturing prior to this date. The Company
is considering longer term re-finance strategies that reduce the
overall interest cost and avoid crystallising swap break costs.
As at 31 December 2011, the Company's on-balance sheet loan to
value ratio, net of cash, was 42.7% against a net loan to value
ratio covenant of 60%. The Company continues to have significant
headroom on its Interest Cover Ratio of 240% compared with the
covenant of 150%, calculated on a simplified basis of rental income
as a proportion of interest cost.
-ENDS-
For further information:
Schroders Property Investment Management
Limited
Duncan Owen / Nick Montgomery 020 7658 6000
------------------------------------------ --------------
Northern Trust
David Sauvarin 01481 745529
FTI Consulting
Stephanie Highett / Dido Laurimore 020 7831 3113
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSLLFEDLSISFIF
Invista (LSE:IFD)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Invista (LSE:IFD)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024
