Quarterly Fact Sheet No.8
Insight Foundation Property Tst Ltd
01 June 2006
QUARTERLY FACTSHEET - June 2006
NAV 119.6 pence (31 March 2006)
Total Shares Issued 353,560,000
Mid share price 125.25 pence (15 May 2006)
Gross Property Value £556.38 million (31 March 2006)
Number of properties 72 (31 March 2006)
Average lot size £7.73 million (31 March 2006)
Average lease length 8 years (31 March 2006)
Ex dividend dates 2 August 2006
Next financial year end 31 March 2007
Current Debt £152.5m
Arranger NM Rothschild
Gearing 20.9% loan to value
Currency GBP
Registered Office Guernsey
Investment objective
To provide investors with an attractive level of income together with potential
for income and capital growth from investing in UK commercial property.
IFPT performance overview
As at 31 March 2006 and prior to the dividend payment, the Net Asset Value
('NAV') of the Company increased to 119.6 pence per share. This reflects an
uplift of 5.59 pence per share, or 4.9% over the three months to March. Over the
12 months to March the NAV increased 14.3 pence per share or 13.6%. Combined
with the dividend, shareholders have received a twelve month total NAV return of
approximately 20.3%. The negative accounting impact of marking the Company's
debt to market rates has reduced over the quarter from 1.77 pence per share to
0.92 pence per share. The Company paid a dividend of 1.6875 pence per share on
26 May 2006. Also reflected in the NAV is a performance fee provision of £5
million, that is likely to be payable to Insight.
The December valuation was £556.38 million, reflecting a £24 million (4. 8%)
like for like capital uplift over the quarter. The Company's London office
properties are performing strongly, with the net asset value of MidCity Place
increasing by £6.9 million over the quarter to £17.6 million. Minerva House and
National Magazine House increased by 5% and 4.4% respectively over the quarter,
now having a combined value of £97.1 million as compared to their combined
acquisition prices of £87.18 million.
The performance of the property portfolio over the 12 months to March 2006 has
been independently assessed by Investment Property Databank ('IPD'). The
un-geared total return of 22.22% relative to its peer group benchmark of 19.3%
places the portfolio on the 13th percentile. This margin of outperformance
continues to be derived despite higher acquisition costs due to higher levels of
activity than the peer group.
Portfolio Activity
The Company has continued its strategy of acquiring high quality London offices
and targeting mis-priced opportunities across all the main sectors. Significant
asset management activity continues across the whole portfolio.
Portfolio Structure
The portfolio structure incorporates valuation data as at 31 March 2006.
Retail 23.5%
Office 51.4%
Industrial 23.1%
Other 2.0%
The Trust has maintained a balanced and diversified profile with 72 assets
spread across the country in the retail, office and industrial sectors.
Central London 27.6%
South East excl. CL 33.5%
Rest of South 8.8%
Midlands and Wales 17.2%
North and Scotland 12.9%
Property market performance
The IPD Monthly Index for the first quarter of 2006 produced a total return of
4.4% for the property market. This contrasts with the total return from equities
and gilts over the same period of 8.1% and -1.1% respectively. Offices are now
the best performing property sector over three, six and twelve months. Total
returns across the property market are expected to slow gradually over 2006,
following the rise in interest rates, but returns between the sectors are likely
to be more discriminate, with London offices outperforming. There continues to
be substantial unsatisfied demand for UK commercial property from a range of
institutional and private investors.
Largest Ten Holdings Value %*
National Magazine House, 10/20, Carnaby Street,Soho,London,W1 £49,500,000 8.9%
Minerva House, 5&6, Montague Close, London, SE1 £47,600,000 8.6%
Plantation Place, London EC3 £20,600,000 3.7%
Victory House,Trafalgar Place, Brighton £19,100,000 3.4%
Reynard Business Park, Brentford £18,850,000 3.4%
20/22 Tudor Street, London WC2 £18,200,000 3.3%
Mid City Place, London WC2 £17,600,000 3.2%
Olympic Office Centre, Fulton Road, Wembley £16,500,000 3.0%
Union Park, Fifers Lane, Norwich £14,990,000 2.7%
The Albion Centre, Bath Street, Ilkeston £14,950,000 2.7%
Total as at March 2006 £237,890,000 42.8%
*Percentage of Gross Asset Value
Asset management highlights
Acquisitions
On 28 March the Company completed the acquisition of a modern health and fitness
club in Sefton, near Liverpool. The price of £10.75 million reflected an
attractive yield of 6.2%. The property is let for a further 22 years and has a
minimum fixed rental uplift in 2007 that will increase the yield on cost to 7%.
On 24 May the Company completed the acquisition of an office on Tokenhouse Yard,
London EC2 for £20.825 million. The property comprises 28,079 sq ft of very high
quality newly developed accommodation behind a period facade. The property is
40% vacant by area and is let off an average rent of £39 per sq ft. Immediately
following the acquisition terms have been agreed to let all of the vacant space
and the yield on completion of this letting will be approximately 5.25%.
On 12 May the Company acquired a 50% stake in Crendon Industrial Partnership
Limited, a Joint Venture set up specifically to acquire a multi-let industrial
estate and land in Oxfordshire for £20.5 million. The Company has invested £3
million alongside Joint Venture partners with the balance of the purchase price
comprising non-recourse debt from Nationwide. There is a three year business
plan to increase the quality of the estate and build new warehouse units on the
13.5 acres of development land.
Disposals
A small number of disposals are being considered having completed asset
management initiatives.
Active Management
MidCity Place, London WC1
Completion of a major lease restructuring and a significant valuation uplift
has led to a refinancing of the debt secured against this asset. The Company
will receive back £7.8 million of the £9.8 million original equity invested,
whilst still retaining its 19.7% ownership. This is very strong performance
within nine months of acquiring the asset.
Abingdon Street, Northampton
This asset delivered an un-geared total return of 30.3% for the 12 months to
December 2005. Having realised this growth a new lease has been agreed for a new
15 year lease at a record rent. Income has increased from £107,500 per annum to
£121,000 per annum. The value increased further from £2.2 million at December
2005 to £2.45 million at March 2006 upon completion of the deal.
Coventry Road, Hinckley
The Company has accepted a lease surrender for a premium of £750,000 and has
made a planning application for 150,000 sq ft of retail warehousing with
ancillary distribution space.
Largest Ten Tenants Rent % *
The National Magazine Company Limited £2,270,000 7.24%
Australia & New Zealand Banking Group Ltd £1,460,000 4.66%
Mott MacDonald Ltd £1,307,148 4.17%
Reed Smith Services £1,295,375 4.13%
Freshfields Services Company £1,279,600 4.08%
The British Broadcasting Corporation £830,750 2.65%
Grand Metropolitan Estates Ltd £795,975 2.54%
Recticel SA £713,538 2.28%
Jarvis Porter (Property Holdings) Ltd £700,000 2.23%
Total Fitness UK Limited £678,540 2.16%
Total rent per annum as at May 2006 £11,330,925 36.13%
*Percentage of portfolio rent
Contacts
Broker:
JP Morgan Cazenove
20 Moorgate
London, EC2R 6DA
Tel: 020 7588 2828
Richard Cotton
(Managing Director, Corporate Finance)
Angus Gordon Lennox
(Managing Director, Corporate Finance)
Fund Administration:
RBSI Fund Services (Guernsey) Limited
PO Box 482
Royal Bank Place
1 Glategny Esplanade
St Peter Port
Guernsey, GY1 6BH
Tel: 01481 743 000
Paul Smith
(Managing Director, RBSI Guernsey)
Investment Manager:
Insight Investment Management (Global) Limited
33 Old Broad Street
London, EC2N 1HZ
Tel: 020 7930 5474
Duncan Owen
(Managing Director, Property)
The Company's website is www.ifpt.co.uk
Insight Investment Management (Global) Limited.
Registered office 33 Old Broad Street, London EC2N 1HZ.
Registered in England and Wales. Registered number 827982.
Authorised and regulated by the Financial Services Authority.
Issued in accordance with Section 21 of the Financial Services and Markets Act
2000 by Insight Investment Management (Global) Limited. The price of shares and
the income from them may go down as well as up and investors may not get back
the full amount invested on disposal of the shares. Investments in property are
relatively illiquid and more difficult to realise than equities or bonds. Yields
may vary, and are not guaranteed. The use of gearing is likely to lead to a
volatility in the Net Asset Value (NAV), meaning that a relatively small
movement either down or up in value of the trust's total assets, will result in
a magnified movement in the same direction, of that NAV. There is no guarantee
that the market price of shares in Investment Trusts will fully reflect their
underlying NAV. This Investment Trust should be considered only as part of a
balanced portfolio, of which it should not form a disproportionate part. Under
no circumstances should this newsletter be considered as an offer, or
solicitation, to deal in the shares of the company. All figures correct as at
31 March 2006. Past performance is not a guide to future performance.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 8 hours ago Luceco
- 8 hours ago Helios Towers
- 8 hours ago Wise Class A
- 9 hours ago EDX Medical Group Plc
- 9 hours ago Naked Wines