TIDMIPT
RNS Number : 9389G
ISIS Property Trust Limited
19 May 2011
ISIS Property Trust Limited
Interim Management Statement
For the Three-Month Period from 1 January 2011 to 31 March
2011
Investment Objective
The investment objective is to provide shareholders with an
attractive level of income together with the potential for capital
and income growth from investing in a diversified UK commercial
property portfolio.
Performance Summary
For the three
month period
ended 31
Total Return * March 2011
Net asset value per
share +2.7%
Ordinary share price -9.8%
Portfolio total return
per IPD +1.7%
IPD UK quarterly and
monthly funds index +2.4%
FTSE All-Share Index +1.0%
As at As at
Capital Values - 3 31 March 31 December
months 2011 2010 % Change
Net asset value per
share 104.1p 103.4p +0.7%
Ordinary share price 93.5p 105.8p -11.6%
FTSE All-Share Index 3,067.7 3,062.9 +0.2%
(Discount) / premium
to net asset value (10.2)% 2.3%
Net gearing # 31.3% 31.0%
Sources: F&C Investment Business Limited, Investment
Property Databank ('IPD'), Datastream.
* - All total returns are based on net dividends re-invested
# - Gearing: Bank debt (less net current assets) / fair value of
investment properties
Dividends
The fourth interim dividend for the year to 31 December 2010 of
2.0 pence per share was paid on 25 February 2011, giving dividends
paid for the year to 31 December 2010 of 8.0 pence per share. A
first interim dividend of 2.0 pence per share for the year to 31
December 2011 will be paid on 27 May 2011. The Board remains
comfortable with the Company's position relative to its banking
covenants and with its level of income collection. It is therefore
pleased to confirm that, in the absence of unforeseen
circumstances, it intends to continue to pay quarterly interim
dividends of 2.0 pence per share.
Review of the first quarter
The past three quarters have seen property revert to the
traditional model with total returns driven largely by income and
with modest positive capital growth. In the first quarter of 2011,
the all property total return was 2.4% as measured by the IPD
Quarterly Index for standing investments, with capital growth of
0.8%. Rental growth during the quarter rose by 0.2% at the all
property level but this masks differences between sectors. IPD
initial yields stabilised during the quarter at 6.1%. The market
has continued to see a strong performance from Central London shops
and offices contrasting with weakness in the provincial markets.
Investment activity edged back in the first quarter of 2011 after a
surge in investment transactions at the end of 2010. This has
partly been caused by a lack of stock being marketed during the
quarter, especially at the prime end. Banks are starting to release
some stock onto the market but are still restricting new lending.
Investors remain risk averse and focused on core product in
established locations, concerned to protect the income stream and
favouring long leases to sound covenants.
The value of the Company's portfolio as at 31 March 2011 was
GBP124.775m. During the quarter, the portfolio had an income return
of 1.8%, ahead of the benchmark income return of 1.5%. Total
returns for the quarter were 1.7% compared with 2.4% for IPD
Quarterly Index.
The majority of the performance derived from the Company's
industrial properties but relative performance from the Company's
portfolio was held back by the office properties. In particular,
performance was hit by the voids at Berkeley Street, London, W1
where 2 floors are vacant. These floors are to be refurbished and
in doing so, it is anticipated that rental values will increase.
The Company's best performing asset during the quarter was High
Street, Rayleigh where a total return of 8.2% was recorded.
At 31 March 2011, the Company's portfolio has a relatively low
void rate of 3.3% of ERV compared with the IPD benchmark of 7.5%.
The average unexpired lease length was 8.96 years, assuming all
breaks exercised.
Over the 12 month period the portfolio delivered a total return
of 9.5% compared with the IPD Quarterly Index of 11.3%. Over 36
months the total return of the portfolio was 2.4% annualised
compared to the benchmark of minus 0.8%.
During the quarter there were no sales or purchases of property;
however, as previously announced, terms have been agreed to
purchase by way of a forward commitment, Halls Mill Retail Park in
Bury. The purchase price of GBP7.05 million represents a net
initial yield of 6.95%. The retail park is fully let and practical
completion is due in May 2011.
Top Ten Holdings
31/03/2011
Percentage of
Property Sector Portfolio
London W1, 14 Berkeley
Street Offices 11.9
Chelmsford, County House,
County Square Offices 7.8
Luton, Enterprise Way Retail warehouses 6.7
New Malden, 7 Beverley
Way Retail warehouses 6.2
Andover, Keens House,
Anton Mill Offices 5.5
Swindon, 18/19 Regent
Street Retail 5.5
Hull, King William House,
Market Place Offices 5.1
St. Albans, 16,18 & 20
Upper Marlborough Road Offices 5.0
Bracknell, 1/2 Network
Bracknell, Eastern Road Industrial 4.8
Weybridge, Unit D300,
Brooklands Industrial
Estate Industrial 4.8
Total 63.3
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Geographical Analysis
31/03/11 31/12/10
Percentage Percentage
Location of Portfolio of Portfolio
South East 40.7 40.9
Eastern 16.2 16.0
Rest of London 12.1 12.0
West End 11.9 11.9
Yorkshire and Humberside 6.0 6.0
South West 5.5 5.5
East Midlands 3.2 3.2
West Midlands 2.8 2.8
North East 1.6 1.7
Total 100.0 100.0
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Sector Analysis
31/03/2011 31/12/2010
Percentage Percentage
Location of Portfolio of Portfolio
Offices 37.6 37.8
Industrial 24.4 24.4
Retail 22.0 21.8
Retail Warehouse 16.0 16.0
Total 100.0 100.0
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The Board is not aware of any significant events or transactions
which have occurred since 31 March 2011 and the date of publication
of this statement which would have a material impact on the
financial position of the Company.
Quarterly and Key Information
Further information regarding the Company, including performance
since launch and the most recent annual and interim reports, can be
found at the Company's website www.isispropertytrust.com , or at
www.fandc.com.
This interim management statement has been prepared solely to
provide information to meet
the requirements of the UK Listing Authority's Disclosure and
Transparency Rules.
For further information please contact:
Ian McBryde/Scott Macrae
F&C Investment Business Limited
Tel: 0207 628 8000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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