IERE.L Regulatory News (IERE)

19 Feb 2007 14:20

Invista European Real Estate Trust19 February 2007 Invista European Real Estate Trust SIC Key statistics Invista European Real Estate Trust SICAF Quarterly Factsheet - 31 December 2006 www.ieret.eu Key highlights • Listing on main market of the London Stock Exchange in December 2006 • Property portfolio now at €411m; €45m commitments funded from IPO to 31 December 2006; €84m committed assets outstanding • Strong portfolio fundamentals • Deliverable asset management initiatives • Significant transaction pipeline - over €200m under offer Investment objective To provide shareholders with an attractive level of income return together withthe potential for income and capital growth through investing in diversifiedcommercial real estate in Continental Europe. The current geographical focus ofthe Company remains the Western European countries due to pricing opportunitiesand the relative stability, transparency and liquidity of these markets. Key statistics NAV per share (12/06)* €2.87Mid share price (16/02/07) 222.5pGross property value (01/07)** • 410.8mNet debt (12/06) €81.1mGearing (12/06)*** 60.4% LTVDividend dates May/November * Adjusted to exclude deferred tax liabilities ** December valuations adjusted to include acquisition in January *** Gross debt divided by portfolio value Company performance overview IPO - Invista European Real Estate Trust ("IERET") listed on the main market ofthe London Stock Exchange on 20 December 2006 via a placing and public offer of88.3m shares at an issue price of 200p. Asset activity - Since publication of the Prospectus on 24 November 2006, theCompany has completed the acquisition of two assets in Germany and also anoffice in Lyon, France (all of which were previously committed assets). Theother committed assets are expected to be completed during the first half of2007. Property portfolio - The value of the property portfolio as at 31 December 2006was €388.6m and consisted of 14 properties. The recent acquisition of an officein Lyon in January 2007 increases the value to €411m. The Company is alsocommitted to purchasing 6 assets valued at €84m as at 31 December 2006. InvistaReal Estate Investment Management continues to see a strong level ofintroductions and is actively pursuing a number of attractive investmentopportunities. Portfolio fundamentals - The property portfolio including committed assets iswell diversified by both country and sector and benefits from good quality,relatively long income (Experian credit rating of 72 and over 10yrs weightedaverage lease length to expiry). These portfolio characteristics are fullyconsistent with the objective of the fund to provide an attractive level ofincome return with the potential for capital growth. In addition, there are anumber of asset management initiatives currently being pursued to optimisereturns which, together with the benefits of lease indexation, positions theportfolio well for future value growth. Portfolio structure Portfolio structure Sector Office 48%Logistics 33%Retail 19% Note: Valuation as at end December 2006, including committed assets Geographic Germany 47%France 31%Spain 8%Netherlands 5%Belgium 4%Czech Republic 3%Poland 2% Note: Valuation as at end December 2006, including committed assets 10 largest holdings Value %*Campus Heusenstamm, 54-64 Jahnstrasse, Heusenstamm, €90.7m 16.7%GermanyRiesapark 2, 01587 Riesa, Germany €58.3m 10.8%Le Delta, Cergy-St-Christophe, France €40.3m 7.4%Vor der Hecke, 34355 Lutterberg, Germany €36.0m 6.6%1 Chemin de la Sauvegarde, 69130 Ecully, Rhone, €33.3m 6.1%FrancePlot 14A&B, Avenida Rio Henares, Alovera, €27.0m 5.0%Guadalajara, 19208 Madrid, SpainSun, 180 Avenue De L'Europe, 38330 €21.1m 3.9%Grenoble-Montbonnot, FranceFos-Distriport Logistics Park, Fos sur Mer, 13270 €19.9m 3.7%Marseille, FranceCampus Remy, Remylaan 4B/4C, 3018 Wijgmaal, Belgium €18.8m 3.5%Straussplatz 1, 42697 Solingen, Germany €15.9m 2.9%Total €361.3m 66.7% * Percentage of aggregate asset value (excluding committed assets) plus cash 10 largest tenants Rent %**Deutsche Telekom €5.3m 20.9%DHL €2.3m 8.9%Tech Data €1.7m 6.7%Valeo €1.6m 6.4%Sun Microsystems €1.5m 5.7%Real €1.1m 4.1%Strauss Innovation €1.0m 3.9%Toom €0.9m 3.7%Bax Global €0.9m 3.5%Compagnie IBM France €0.8m 3.2%Total €17.1m 67.0 ** Percentage of aggregate gross rent (excluding committed assets) Asset Management Highlights Acquisitions Further to information contained in the Company's Prospectus, the €9m logisticsproperty in Warsaw, Poland was acquired prior to the Company's IPO in December.This property is fully let to Gefco and provides an attractive income return.Two other large transactions were closed post-IPO, including a 52,000sqm retailpark located in Riesa, Germany and a brand new logistics asset let to DHLlocated in Lutterberg, Germany. Lutterberg is a well-established warehousing /distribution location and this acquisition represents an excellent addition tothe portfolio. Since the quarter end the Company has also acquired a 6,000sqm office propertyin Villeurbanne, Lyon let for 9 years to Merial for a consideration of €21m. Theremaining committed assets, outlined below, are expected to be acquired in thefirst half of 2007. Committed Assets* The total value of committed assets is €84.2m, split across the followingsectors: Retail: • Rheda-Wiedenbruck, Germany (€13.2m) • Roth, Germany (€21.5m) Logistics • Amsterdam, Netherlands (€6.3m) • Tiel, Netherlands (€18.9m) • Prague, Czech Republic (€13.0m) • Girona, Spain (€11.3m) * Values shown as at 31 December 2006 Pipeline Invista REIM continues to receive a substantial amount of introductions acrossall markets and, on behalf of IERET, is actively pursuing a number of attractiveinvestment opportunities which are appropriate for the income and growthcharacteristics of the Company. As stated in the Prospectus the Companycontinues to target the largest and most liquid real estate markets as theInvestment Manager considers these to offer the best combination of incomereturn and NAV growth potential. Active Management The vacant accommodation in the office property in Wijgmaal (Leuven), Belgiumhas now been let - this asset is now fully income producing. In accordance withthe business plans produced by the Investment Manager, a number of assetmanagement initiatives are being pursued across the portfolio, includingactively managing the leasing campaigns in Cergy, Paris and Marseille, France,undertaking lease re-negotiations to improve value and investigating thepotential use of the surplus land in the portfolio. Contacts Brokers: JP Morgan Cazenove 20 Moorgate London, EC2R 6DA Tel: +44 (0) 20 7588 2828 Richard Cotton (Managing Director, Corporate Finance) Angus Gordon Lennox (Managing Director, Corporate Finance) Citigroup Citigroup Centre Canada Square Canary Wharf London E14 5LB Tel: +44 (0) 20 7986 0062 Tim Harvey Samuel (Managing Director) Tel: +44 (0) 20 7986 0520 Alex Carter (Director) PR: M:Communications 1 Ropemaker Street Ninth Floor London EC2Y 9HT Tel: +44 (0) 207 153 1523 Edward Orlebar Tel: +44 (0) 207 153 1516 Louise Hatch 19 February 2007 This information is provided by RNS The company news service from the London Stock Exchange