TIDMIRET
RNS Number : 3779A
ING UK Real Estate Income Trust Ltd
31 January 2011
ING UK Real Estate Income Trust Limited
31 January 2011
ING UK Real Estate Income Trust Limited (IRET) - Net Asset Value
as at 31 December 2010 and Interim Dividend
The unaudited Net Asset Value ('NAV') of ING UK Real Estate
Income Trust Limited (the "Company") as at 31 December 2010
increased by 1.7% over the quarter to GBP 206.9m, reflecting
approximately 60 pence per share.
The Company also announces an interim dividend of 1 pence per
share in respect of the period 1 October 2010 to 31 December 2010.
The dividend payment will be made on 28 February 2011 to
shareholders on the register on 11 February 2011. The ex-dividend
date will be 9 February 2011.
The NAV attributable to the Ordinary Shares is calculated under
International Financial Reporting Standards ('IFRS') and reflects
an increase of 1 pence per share compared to the previous quarter.
At an underlying property level there has been a like for like 0.5%
increase in the property portfolio valuation over the period.
This NAV figure incorporates the external portfolio valuation as
at 31 December 2010. It includes income for the current quarter and
is calculated after the deduction of dividends paid prior to 31
December 2010, but it does not include provision for the next
quarterly dividend which is expected to be paid in February
2011.
The unaudited NAV is as follows:
31 Dec 30 Sept 30 Jun 31 Mar
2010 2010 2010 2010
GBPm GBPm GBPm GBPm
Investment properties 424.3 422.6 422.7 351.7
Other assets 42.4 49.1 56.0 49.9
Other liabilities (15.6) (18.2) (20.2) (15.8)
Borrowings: Securitised
loan (171.6) (171.6) (175.0) (175.0)
Liquidity facility (10.7) (10.7) (10.9) (10.9)
RBS loan (20.4) (20.4) (20.3) -
Loan stock (2.6) (2.6) (3.3) -
ZDP's (27.6) (31.0) (30.5) -
Market value of interest
rate swaps (11.3) (13.8) (15.5) (13.6)
Net Asset Value (IFRS) 206.9 203.4 203.0 186.3
Net Asset Value per share
(IFRS) 60p 59p 59p 56p
Net Asset Value (EPRA) 218.2 217.2 218.5 199.9
Net Asset Value per share 63p 63p 63p 60p
(EPRA)
The European Public Real Estate Association (EPRA) NAV ignores
mark to market swap liability or gains.
The movements in the NAV can be summarised as follows;
Total Per share movement
GBPm Pence %
NAV at 30 September 2010 203.4 59
Gains in property values
(realised and unrealised
) 1.9 0.5 1.0
Movement in swap value 2.5 1.0 1.5
Net income for the period
(after distributions) (0.9) (0.5) (0.5)
NAV at 31 December 2010 206.9 60 2.0
An external valuer will next value the property portfolio during
March 2011 and the NAV per share as at 31 March 2011 will be issued
in April 2011.
Investment Manager Commentary
BACKGROUND
Considering the wider UK Real Estate Market, the IPD Monthly
Index recorded capital growth of 0.09%, 0.11% and 0.30% for
October, November and December respectively, at similar levels
recorded during Q3 2010.
Rental value growth at 0.08% over the period, whilst positive,
remains inconsistent across sectors (Retail -0.02%, Office 0.51%,
Industrial -0.39%). In particular there was a strong positive bias
towards Central London offices and Southern retail warehousing.
Occupancy rates have remained stable over the last three months
and stand at c. 90%.
PORTFOLIO COMPOSITION
Weighting
Sector 31 December 2010
Retail 19.8%
Offices - Central/Greater
London 12.8%
Offices - Rest of UK 21.5%
Industrial 34.2%
Leisure 4.5%
Retail Warehouse 7.2%
Total 100%
GEOGRAPHICAL WEIGHTINGS
Weighting
Geography 31 December 2010
Central London 12.9%
Greater London 7.0%
South East 31.3%
South West 4.7%
East Midlands 12.5%
West Midlands 4.6%
Yorkshire & the Humber 4.8%
North West 11.2%
North East 2.4%
Scotland 2.5%
Wales 5.5%
Northern Ireland 0.6%
Total 100%
TOP TEN ASSETS
Weighting
Asset 31 December 2010
Unit 5320, Magna Park, Lutterworth 7.0%
River Way Industrial Estate,
Harlow 6.3%
Stanford House, Long Acre,
London 4.6%
Phase II, Parc Tawe, Swansea 4.2%
Colchester Business Park, Colchester 3.5%
Angouleme Way Retail Park,
Bury 3.0%
1 Chancery Lane, London 2.6%
Boundary House, Jewry Street,
London 2.6%
Crown & Mitre Hotel Complex,
Carlisle 2.5%
50 Farringdon Road, London 2.5%
Total 38.8%
PORTFOLIO UPDATE
The valuation movements across the portfolio remained consistent
with the wider market and activity on the portfolio.
The Company continues to dispose of non-core assets and made two
disposals over the quarter and one following the quarter end for
combined proceeds of GBP 1.55m, at an average 13% premium to
valuation. Two of the assets were non income producing.
In terms of other activity, the Company also completed ten new
lettings, which following the expiry of rent free periods, will
provide an annualised rent roll of GBP 0.5m.
Good progress has been made at 50 Farringdon Road where the
Company is due to complete the refurbishment of approximately
30,000 sq ft of office space next month. Strong occupier interest
has been shown ahead of Practical Completion of the scheme.
As at 31 December 2010 the portfolio had a net initial yield of
6.9% and a net reversionary yield of 7.8%. The occupancy rate is
90.3% and the average lease length is 7.9 years.
DEBT
During the period, the Company achieved a listing of its Zero
Dividend Preference Shares ('ZDP'), which were issued as part of
the acquisition financing of Rugby Estates Investment Trust
Plc.
The Preference shares, which have a coupon of 6.875% and mature
in October 2012, are listed under the ticker IREZ.
The Company took the opportunity as part of the listing process
to acquire GBP 4m of ZDPs, utilising existing cash proceeds from
previous disposals and thereby continuing to reduce overall
indebtedness of the group, and improving dividend cover
further.
MANAGEMENT CHANGES
During the quarter, the Company announced its intention to
internalise the investment management function of the Company with
effect from 31 December 2011. Michael Morris, the current Fund
Manager who has been involved since launch, and who is a senior
director of ING REIM the Company's investment manager has agreed
that he will oversee the implementation of the Board's
internalisation plan to ensure continuity in the management of the
Company's assets. He will be appointed Chief Executive of the
Company's wholly owned investment management subsidiary once it has
been established. This will be an ongoing process during the course
of 2011 and the Company will make further announcements to
shareholders in due course.
Commenting, Nick Thompson, Chairman of the Company, said:
"During this quarter we have progressed two key strategic
activities, the continued reduction in overall indebtedness of the
Group ahead of any refinancing and the decision to internalise the
management. In respect of the internalisation, we expect this will
bring a number of benefits to the Company, including delivering a
significant cost saving over the short to medium term and an
aligned management team which will be focussed soley on the assets
of the Company. Our opportunistic acquisition of GBP 4m ZDPs not
only reduced the Company's overall cost of debt but further
enhances dividend cover.
"We regard all these activities as extremely positive to the
Company's aim of continuing to deliver shareholder value."
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
NAVLLFVVLSILVIL
Ing Uk Real Estate Income Trust (LSE:IRET)
Historical Stock Chart
From May 2024 to Jun 2024
Ing Uk Real Estate Income Trust (LSE:IRET)
Historical Stock Chart
From Jun 2023 to Jun 2024