IERE.L Regulatory News (IERE)

6 Sep 2007 07:01

Invista European Real Estate Trust06 September 2007 Invista European Real Estate Trust SICAFQuarterly Factsheet - 30 June 2007www.ieret.eu 6 September 2007 Key Highlights • Listing on main market of the London Stock Exchange in December 2006• Adjusted NAV growth of 8.6% since IPO. Including dividends, total return since IPO was 10.4%• Property portfolio valued at €731m, of which €233m funded since 31 March 2007 and including €51m committed assets• Well diversified portfolio with strong income and capital growth characteristics• Increased exposure to France positions the Company well for growth 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. This objective is achieved throughtop down and bottom up analysis of all major Continental European propertymarkets. This analysis is used to track market cycles, identify areas of valueand drive investment strategy - more recently this has caused the Company toincrease its exposure to the French market. Key Statistics NAV per share (06/07)* €3.06Mid share price (30/08/07) 203pNet property value (06/07)** €730.7mNet debt (06/07) €322.9mGearing (06/07)*** 59.8%Dividend dates May/November * Adjusted to exclude deferred tax liabilities** Includes committed assets*** Gross debt divided by portfolio value Company Performance Overview IPO - Invista European Real Estate Trust listed on the main market of the LondonStock Exchange on 20 December 2006 via a placing and public offer of 88.3mshares at an issue price of 200p. Adjusted NAV has grown 8.6% since IPO. Thetotal NAV return, including dividends, from IPO to 30 June 2007 was 10.4%. Property Portfolio - The value of the property portfolio as at 30 June 2007 was€680m and consisted of 43 properties. The Company is committed to acquiring afurther 4 assets valued at €51m. The Company has made a number of acquisitionsduring the quarter, completing the purchase of a large logistics portfolio -comprising 27 assets - in France and a retail warehouse in Pocking, Germany.These properties provide further market and sector diversification and fit thestrategy of income and growth set down at IPO. The purchase of the logisticsportfolio was accompanied by a placing of 10.4m new shares at 220p. TheCompany's existing portfolio, including the recently acquired properties,increased in value over the quarter by 1.9%, which recouped almost entirely thecosts associated with the recent acquisitions. Portfolio Fundamentals - The property portfolio including committed assets iswell diversified by both country and sector and benefits from good quality,relatively long income characteristics ("Low risk" Experian/Dun & Bradstreetcredit rating and over 7yrs weighted average lease length to expiry). Theseportfolio characteristics are fully consistent with the objective of the fund toprovide an attractive level of income return with the potential for capitalgrowth. In addition, there are a number of asset management initiativescurrently being pursued to optimise returns which, together with the benefits oflease indexation, positions the portfolio well for future value growth. Portfolio Structure Sector Retail 14%Offices 33%Logistics 53% Note: Valuation as at 30 June 2007, including committed assets Geographic France 52%Germany 34%Spain 5%Belgium 3%Netherlands 3%Czech 2%Poland 1% Note: Valuation as at 30 June 2007, including committed assets 10 largest holdings* Value %**Campus Heusenstamm, 54-64 €93.9m 11.6%Jahnstrasse, Heusenstamm, Germany Riesapark 2, 01587 Riesa, Germany €61.1m 7.5%Le Delta, 95800 Cergy, France €41.1m 5.1% Vor der Hecke, 34355 Lutterberg, €36.5m 4.5%Germany 21 Chemin de la Sauvegarde, 69130 €34.2m 4.2%Ecully, Lyon, France Plot 14A&B, Avenida Rio Henares, €27.9m 3.4%Alovera, Guadalajara, 19208 Madrid,SpainZAC des Escampades I, 84170, €24.7mMonteux, France 3.0%13 Avenue Albert Einstein, 69100Villeurbanne, Lyon, France €23.8m 2.9%Fos-Distriport Logistics Park, 13270 €23.7m 2.9%Fos sur Mer, 13270 Marseille, France Sun, 180 Avenue de l'Europe, 38330 €21.8mMontbonnot St Martin, Grenoble,France 2.7%Total €388.7m 47.9% *Includes committed assets **Percentage of aggregate asset value plus cash (including committed assets) 10 largest tenants* Rent %**Norbert Dentressangle €7.8m 16.7%Deutsche Telekom €5.4m 11.5%DHL €3.5m 7.5%Tech Data Espana €1.7m 3.6%Valeo €1.6m 3.5%Merial SAS €1.5m 3.1%Sun Microsystems €1.5m 3.1%Carrefour €1.4m 2.9%Copal Logistics €1.1m 2.3%Real €1.1m 2.2%Total €26.5m 56.5% * Includes committed assets **Percentage of aggregate gross rent (including committed assets) Asset Management Highlights Acquisitions The Company completed the purchase of a French logistics portfolio valued at€214m with exposure to growth markets in regional France. The portfolio ispredominantly leased to European logistics operator Norbert Dentressangle (52%by gross rent) and provides a weighted lease term to expiry of 6.4 years. Theportfolio was acquired at a net initial yield of 6.5% and provides a range ofopportunities to add value through active management. The Company also funded apre-committed retail park in Pocking, Germany, anchored by German DIY retailerObi, valued at €19m. These two transactions are consistent with the strategy ofthe Company and ensures that capital raised at IPO has been deployed ahead ofschedule. Committed Assets The total value of committed assets is now €51m. This excludes a retailwarehouse asset in Rheda Wiedenbruck, Germany, where the Company has withdrawnfrom negotiations due to the vendors' non-performance of a condition precedent.The committed assets comprise logistics assets as follows: • Amsterdam, Netherlands (€6.4m) • Tiel, Netherlands (€19.4m) • Prague, Czech Republic (€13.5m) • Girona, Spain (€11.5m) Pipeline Although the Company is now almost fully invested Invista Real Estate InvestmentManagement continues to review a number of potential transactions. The Companyis in active negotiations to acquire an office portfolio which has upsidepotential through the implementation of an active asset management strategy,including, for example, assuming leasing risk where increased returns can becreated by achieving lettings at higher rents than those used to underwrite thepurchase. The Company sees strong deal flow in France on a single asset andportfolio basis providing returns consistent with its strategy. Invista RealEstate Investment Management continues to focus on the best performing marketsand will trade in and out of market cycles to capture value where appropriate. Active Management Implementing asset management initiatives in accordance with asset levelbusiness plans continues to have a positive effect on the performance of theCompany. Notable successes include leasing the last bay of the logistics unit inMarseille Port, undertaking negotiations to lease vacancy at one of thelogistics assets in Amiens - thereby taking the recently acquired Frenchlogistics portfolio to full occupancy - and negotiating with prospective tenantsfor the office asset in Cergy, west of Paris. Once complete such assetmanagement initiatives are expected to have a positive valuation impact. Contacts Brokers:JP Morgan Cazenove20 MoorgateLondonEC2R 6DATel: +44 20 7588 2828Richard Cotton (Managing Director, Corporate Finance)Angus Gordon Lennox (Managing Director, Corporate Finance) CitiCitigroup CentreCanada SquareCanary WharfLondonE14 5LBTel: +44 20 7986 4000Tim Harvey Samuel (Managing Director)Alex Carter (Director) This information is provided by RNS The company news service from the London Stock Exchange