TIDMIRET
RNS Number : 5450F
ING UK Real Estate Income Trust Ltd
27 April 2011
ING UK Real Estate Income Trust Limited
27 April 2011
ING UK Real Estate Income Trust Limited (IRET) - Net Asset Value
as at 31 March 2011 and Interim Dividend
The unaudited Net Asset Value ('NAV') of ING UK Real Estate
Income Trust Limited (the "Company") as at 31 March 2011 increased
by 1.1% over the quarter to GBP 209.2m, reflecting approximately 61
pence per share.
The Company also announces an interim dividend of 1 pence per
share in respect of the period 1 January 2011 to 31 March 2011. The
dividend payment will be made on 27 May 2011 to shareholders on the
register on 13 May 2011. The ex-dividend date will be 11 May
2011.
The NAV attributable to the Ordinary Shares is calculated under
International Financial Reporting Standards ('IFRS') and reflects
an increase of approximately 1 pence per share compared to the
previous quarter. At an underlying property level there has been a
like for like increase in the property portfolio valuation over the
period of 0.5%.
This NAV figure incorporates the external portfolio valuation as
at 31 March 2011. It includes income for the current quarter and is
calculated after the deduction of dividends paid prior to 31 March
2011, but it does not include provision for the next quarterly
dividend which is expected to be paid in May 2011.
The unaudited NAV is as follows:
31 Mar 31 Dec 30 Sept 30 Jun
2011 2010 2010 2010
GBPm GBPm GBPm GBPm
Investment properties 425.6 424.3 422.6 422.7
Other assets 41.9 42.4 49.1 56.0
Other liabilities (16.2) (15.6) (18.2) (20.2)
Borrowings: Securitised
loan (171.6) (171.6) (171.6) (175.0)
Liquidity facility (10.7) (10.7) (10.7) (10.9)
RBS loan (20.1) (20.4) (20.4) (20.3)
Loan stock (2.3) (2.6) (2.6) (3.3)
ZDP's (28.0) (27.6) (31.0) (30.5)
Market value of interest
rate swaps (9.4) (11.3) (13.8) (15.5)
Net Asset Value 209.2 206.9 203.4 203.0
Net Asset Value per
share 61p 60p 59p 59p
EPRA Net Asset Value 218.5 218.2 217.2 218.5
EPRA Net Asset Value 63p 63p 63p 63p
per share
The European Public Real Estate Association (EPRA) NAV ignores
mark to market swap liability or gains and increased to GBP 218.5m
from GBP 218.2m
The movements in the NAV can be summarised as follows;
Total Per share movement
GBPm Pence %
NAV at 31 December 2010 206.9 60
Gains in property values
(realised and unrealised
) 0.6 - -
Movement in swap value 2.0 1 1
Net income for the period
(after distributions) (0.3) - -
NAV at 31 March 2011 209.2 61 1
An external valuer will next value the property portfolio during
June 2011 and the NAV per share as at 30 June 2011 will be issued
in July 2011.
Investment Manager Commentary
BACKGROUND
Capital growth across the wider market remains muted with the
IPD Monthly Index showing an increase of 0.6% over the quarter, at
a marginally better rate than seen in Q3 or Q4 2010. Rental growth
has still yet to turn positive at 0% over the quarter, nevertheless
this is the eighth consecutive quarter on quarter improvement since
Q2 2009.
Capital growth appears to be regionally split and in particular
Central London continues to be a robust market.
Average occupancy rates across the market continued to remain
broadly stable and stand at circa 90%.
PORTFOLIO COMPOSITION
Weighting
Sector 31 March 2011
Retail 19.7
Offices - Central/Greater
London 13.8
Offices - Rest of UK 21.1
Industrial 33.7
Leisure 4.5
Retail Warehouse 7.2
Total 100%
GEOGRAPHICAL WEIGHTINGS
Weighting
Geography 31 March 2011
Central London 13.7
Greater London 7.2
South East 31.0
South West 4.6
East Midlands 12.2
West Midlands 4.6
Yorkshire & the Humber 4.7
North West 11.0
North East 2.4
Scotland 2.5
Wales 5.5
Northern Ireland 0.6
Total 100%
TOP TEN ASSETS
Weighting
Asset 31 March 2011
Unit 5320, Magna Park, Lutterworth 6.9
River Way Industrial Estate,
Harlow 6.4
Stanford House, 12/14 Long
Acre, WC2 4.7
Phase II, Parc Tawe, Swansea 4.2
Colchester Business Park, Colchester 3.5
Angouleme Way, Bury 3.0
Boundary House, 7-17 Jewry
Street, EC3 2.9
50 Farringdon Road, EC1 2.9
1-3 Chancery Lane, WC2 2.6
Crown & Mitre Hotel Complex,
Carlisle 2.5
Total 39.6%
PORTFOLIO UPDATE
Capital value movements within the portfolio have stabilised in
line with the wider market seeing a like for like uplift of 0.5%
for the quarter. This movement was driven by a strong performance
of the Central and Greater London assets with the remainder of the
portfolio showing little movement.
The Company is continuing with its disposal programme of non
core assets and during the period completed the successful sale of
two assets and exchanged contracts on a further two. The disposals
were for a combined consideration of GBP 2.1m, in line with
valuation. Two of these properties were non income producing.
Letting activity across the portfolio was encouraging with the
completion of nine lettings, seven lease renewals and five active
management transactions spread across the portfolio both
geographically and by sector. Of particular note was the holding in
Carlisle where we have restructured Topshop's lease, agreeing terms
for a new 10 year lease at GBP 230,000 per annum ahead of their
break in August of this year. In addition, we renewed a further
lease with Specsavers for a minimum term of 10 years at a rent of
GBP 63,500 per annum.
The scheme at 50 Farringdon Road, EC1 was completed during the
period and the building now provides approximately 32,000 sq ft
(3,000 sq m) of fully refurbished office accommodation. Quoting
terms reflect GBP35 per sq ft and the rent roll is expected to be
in excess of GBP 1.0m per annum once fully income producing. The
property is now being formally marketed and is generating good
occupier interest.
As at the 31 March 2011 the portfolio had a net initial yield of
7.1% and a net reversionary yield of 7.8%. The occupancy rate
remains stable at 90% and the average lease length is 7.8
years.
DEBT
The Company continues to reduce the overall level of borrowings
where disposals are made and as such repaid GBP 0.3m of the RBS
loan in January.
As part of the process of winding up of the Rugby REIT structure
the Company also repaid GBP 0.3m of loan stock.
INTERNALISATION UPDATE
During the period the Company announced its intention to change
its name to Picton Property Income Limited and will ask for
shareholder approval for the name change at the forthcoming AGM in
May.
The Company has created a wholly owned Investment Management
subsidiary called Picton Capital Limited which is located in part
of one of the Company's assets at 28 Austin Friars, EC2. Michael
Morris, former fund manager, will become Chief Executive and Andrew
Dewhirst, former Director of Client Accounting at ING REIM, will
become Finance Director.
Commenting, Nick Thompson, Chairman of the Company, said:
"Operationally, our central focus for the Company remains to
actively manage the portfolio in order to enhance income and we
have continued to make good progress on this over the period.
Letting activity has been encouraging and we have signed a number
of new leases across the portfolio, with the completion of our
Farringdon refurbishment providing potential for significant
additional income to be achieved.
"The process towards internalisation is progressing well and we
look forward to delivering the significant benefits of this to our
shareholders."
For further information:
All Enquiries
David Sauvarin
The Company Secretary
Northern Trust International Fund Administration Services
(Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Tel: 01481 745529
Fax: 01481 745085
ING Real Estate Investment Management (UK) Limited
Helen Stott, 020 7767 5648 helen.stott@ingrealestate.co.uk
Financial Dynamics
Dido Laurimore, 020 7831 3113, dido.laurimore@fd.com
Laurence Jones, 020 7831 3113, laurence.jones@fd.com
Picton Capital Limited
Michael Morris, 020 7628 4800,
michael.morris@pictoncapital.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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