Net Asset Value(s)

RNS Number : 5596Z

ING UK Real Estate Income Trust Ltd

22 July 2008

 



ING UK Real Estate Income Trust Limited

22 July 2008

ING UK Real Estate Income Trust Limited (IRET) - Net Asset Value as at 30 June 2008 

The unaudited Net Asset Value ('NAV') per share of ING UK Real Estate Income Trust Limited (the 'Company') as at 30 June 2008 was GBP 319.4 m, reflecting approximately 96.7 pence per share. This is a decrease of approximately 5.5 pence per share, or 5.4%, since the previous quarter. 

This NAV figure incorporates the external portfolio valuation as at 30 June 2008. It includes income for the current quarter and is calculated after the deduction of dividends paid prior to 30 June 2008, but it does not include provision for the next quarterly dividend which is expected to be paid in August 2008. 

The NAV attributable to the Ordinary Shares is calculated under International Financial Reporting Standards ('IFRS') and includes an upwards adjustment in respect of the mark to market value of the interest rate swaps by GBP 10.5m. Excluding asset sales there has been a GBP 29.0m reduction in NAV, representing a 5.15% reduction in the underlying property portfolio over the period.

The unaudited NAV is as follows:

	30 June 2008 £m	31 March  2008 £m	31 December 2007 £m
Investment properties	536.1	599.0	633.2
Other assets	70.5	35.7	57.2
Other liabilities	(19.0)	(18.2)	(19.5)
Borrowings	(282.2)	(282.2)	(307.0)
	305.4	334.3	363.9
Market value of interest rate swaps	14.0	3.5	5.6
Net Asset Value	319.4	337.8	369.5

The property portfolio will next be valued by an external valuer during September 2008 and the NAV per share as at 30 September 2008 will be issued in October 2008.

The Company is preparing its Interim Report to 30 June 2008, and this will be issued to shareholders in August 2008. The figures at that date are subject to review by our auditors.

Investment Manager Commentary

As measured by the IPD monthly index capital growth was -4.2% over the quarter with the IPD Monthly Index showing an increased rate of decline towards the end of the quarter reflecting further negative sentiment towards the sector as a result of concerns over economic growth, rising inflation and a marked increase in the cost of debt.  

The underlying property portfolio saw outward yield movement across all sectors. These movements and current sector weightings are detailed below:

Sector	Capital Valuation Movement	Weighting 31 March 2008
Retail	-5.06%	13.8%
Offices	-5.34%	47.2%
Industrial	-4.58%	27.7%
Leisure	-5.69%	3.8%
Retail Warehouse	-5.99%	7.5%
Total	-5.15%	100.0%

Sales of assets in Stevenage and Chester during the quarter for £34.6 million contributed to performance, with proceeds, excluding sales costs, at GBP 1 million ahead of March 2008 valuation.

Total debt now stands at GBP 282.2m with a Weighted Average Cost of Debt of 5.09%, sales have increased cash balances to GBP 63.8 million. As at 30 June net debt represents a loan to value ratio of 40.9%. 

As at 30 June 2008 the portfolio has a net initial yield of 6.2% and a reversionary yield of 7.03%, a 94% occupancy rate and a weighted average lease term of 8.87 years.  

For further information:

All Enquiries

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

Guernsey

GY1 3QL

Tel:    [phone]

Fax:    [phone]

ING Real Estate Investment Management (UK) Limited

Helen Stott, 020 7767 5648 [e-mail]

Financial Dynamics

Dido Laurimore, 020 7831 3113, [e-mail]

Stephanie Highett, 020 7831 3113, [e-mail]

 

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