BREI.L Regulatory News (BREI)

29 Nov 2007 10:21

ISIS Property Trust 2 Limited29 November 2007 To: Company Announcements Date: 29 November 2007 Company: ISIS Property Trust 2 Limited Subject: Property Sales, Dividend and Trading update Sale of properties In line with the Company's strategy of repositioning the portfolio away fromretail and smaller properties, ISIS Property Trust 2 Ltd has disposed of thefollowing two properties, acquired on 17 June 2004: 97 High Street, Sutton. Book cost £910,856, market value at 30 September 2007 £1,110,000 Gross sale proceeds £1,017,500 on 16 November 2007. 9 High Street, Hereford Book cost £1,470,000, market value at 30 September 2007 £1,810,000 Gross sale proceeds £1,660,000 on 27 November 2007. Interim Dividend (this has also been announced separately) ISIS Property Trust 2 Limited today announces a first interim dividend inrespect of the year ending 30 June 2008, of 1.80 pence per share, as follows: Ex-Dividend Date - 5 December 2007 Record Date - 7 December 2007 Payment Date - 21 December 2007 Trading update Further to the interim management statement issued on 1 November, the Board ofISIS Property Trust 2 Limited announces the following additional informationregarding the Company's property portfolio as at 30 September 2007: •The running yield on the property portfolio was 5.2%. •Covenant strength was as follows: negligible risk - 50.0%, low risk - 18.9%, low to medium risk - 20.5%, medium risk - 4.8%, high risk - 2.1% and unmatched 3.7%. Accordingly, 68.9% of the property portfolio's income was rated as negligible or low risk. (Per IPD) •The top five tenants accounted for 32.3% of the total rental income. Since launch the dividend has been increased twice from an original 6.5p pershare to the forecast level of 7.2p per share for the four quarters to 30 June2008 (this is not a profit forecast). At the closing price of 96.75.p on 28November 2007, the gross dividend yield was 7.4%. The current utilised borrowings for the Company are £60 million with a revolvingcredit available of up to £75 million. The net gearing as at 30 September was26.2% of gross secured assets with a covenant limit of 60%. Although the market is anticipating further reductions in the capital value ofthe UK commercial property sector moving into 2008, the Board is of the viewthat the portfolio remains well placed to maintain the current level of rentalincome and therefore that the Company will continue to pay an attractive levelof dividends to shareholders. The Board feels that current market conditions may result in forced sellers ofUK commercial property and that this may provide attractive opportunities forthe Company. The Board therefore believes that, although share buybacks atcurrent prices may add some shareholder value in the short term, they mayprejudice the ability of the Company to exploit attractive investmentopportunities in the medium to long term. All Enquiries: The Company Secretary Northern Trust International Fund Administration Services (Guernsey) Limited Trafalgar Court Les Banques St Peter Port Guernsey GY1 3QL Tel: 01481 745338 Fax: 01481 745085 Ian McBryde Scott Macrae F&C Investment Business Ltd Tel: 0207 628 8000 Fax: 0131 225 2375 This information is provided by RNS The company news service from the London Stock Exchange