LONDON (Alliance News) - Invista European Real Estate Trust Friday said it used EUR1.9 million from its cash balances to make a further repayment of its senior debt facility.
Invista said its loan to value ratio, a lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage, has been reduced to below 70% as a result. In general, higher loan to value ratios are seen as higher risk.
The payment follows a September valuation that found the trust's portfolio value had declined 2.09% to EUR325.55 million.
The company said the further repayment of the debt facility would allow it to benefit from a continuation of the current interest rate margin while meeting the debt LTV covenants currently set at 70% LTV.
Invista said it would continue to review the strategic use of cash with reference to its investment objectives.
Invista shares Friday closed at 3.55 pence, up 0.05 pence, or 1.40%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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