TAP.L Regulatory News (TAP)

20 Sep 2006 12:00

Teesland Advantage Property Inc Tst20 September 2006 TEESLAND ADVANTAGE PROPERTY INCOME TRUST LIMITED (the "Company") PRELIMINARY ANNOUNCEMENT OF INTERIM RESULTS The Directors announce the statement of results for the period from 1 January2006 to 30 June 2006 (the "Period") as follows:- CHAIRMAN'S STATEMENT I am pleased to report that Teesland Advantage Property Income Trust Limited ("TAP") was very active during the half year to 30 June 2006, with the assetsgrowing 75% from £141 million to over £246 million. The year commenced with the successful completion of an equity raising to secure£71 million of capital through a "C Share" Placing with institutional investors.This, together with debt, gave TAP the capacity to increase the portfolio toover £250 million. The equity raised was partially utilised to finance the immediate acquisition ofa £79.2 million portfolio of properties (the "Impact Portfolio"), whichcomprised 33 properties and, at the time of purchase, had an income return of6.6%. The portfolio, which was acquired from a joint venture owned by TeeslandioG and Capmark, includes properties with opportunities for active management,adding to the potential upside for our investors. Following the purchase of the Impact Portfolio, the Company had up to£50 million available for further investment and I am pleased to confirm thatTAP completed the acquisition of an additional £14.8 million of property inJune. After the end of the period under review TAP acquired two furtherproperties at Milton Keynes and Newcastle and sold a property at Isleworth.These transactions are reported in further detail in the Property Fund Adviser'sreport. The Company is also negotiating further prospective acquisitions whichare expected to complete within the next two months. The Company is now close to being fully invested and, in line with our statedinvestment strategy, the portfolio provides a well rounded and balanced range ofproperties with an income return of 6.3%, together with good prospects forrental growth and capital gains from active management. Results The net asset value of the Company at 30 June 2006 increased 12.5% to 112.55pcompared to last year (2005: 100.04p) and 4.32% from 107.89p at 31 December 2005. Most of the growth experienced during the period occurred in the secondquarter, since the costs of acquiring the Impact portfolio held back the growthin the published NAV during the first three months of the year. With theCompany now very close to being fully invested, we expect transaction costs tohave a much smaller impact on NAV growth going forward. Profit before tax, excluding gains on investments, for the first half of theyear totalled £2.34 million. Unrealised gains on the investment propertiesamounted to £7.9 million during this same period. The property market in the UK has continued to achieve strong performance overthe last six months with capital growth of over 5% experienced in the first halfyear, with further growth predicted to continue to the end of 2006. The high income returns and relatively stable performance offered by theproperty sector have led to continued demand for property investment from bothinstitutional and private investors alike. Interest in the property investment company sector of which TAP is part hasgrown, particularly following the Government's announcement of proposals tointroduce REITs (real estate investment trusts) in 2007. A number of leading property companies have stated their intention to convert toREITs, with further announcements expected to follow. This will increasecritical mass in this sector and whilst TAP and the other offshore companiesalready in this market are not expected to benefit from the one-off tax gains ofthe property companies (as they do not pay capital gains tax), it is expectedthat the introduction of REITs will lead to a wider following of this type ofsecurity. TAP was added to the FTSE EPRA/ NAREIT Global Real Estate Index Series on 19June 2006, providing both exposure to a wider investment audience andbenchmarking against our peers globally. These results, together with the opportunities to increase value afforded by theenlarged portfolio, mean that the Company is well positioned to benefit fromgrowth in the UK property market. CHRISTOPHER N FISHChairman 20 September 2006 GROUP INCOME STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2006(UNAUDITED) Six months to Six months to Year to 31 30 June 2006 30 June 2005 December 2005 £ £ £REVENUERental income from investment 7,078,455 4,188,416 9,385,211properties EXPENDITUREProperty outgoings (537,345) (129,421) (485,623)Asset manager's fee (982,986) (480,463) (1,075,034)Other expenses (285,118) (204,427) (428,132)Set up costs - (419,765) (514,254) (1,805,449) (1,234,076) (2,503,043) NET OPERATING PROFIT FOR THEPERIOD BEFORE FINANCE COSTS 5,273,006 2,954,340 6,882,168 FINANCE INCOME / (COSTS)Interest receivable 523,248 115,561 238,588Interest payable and similar (3,331,239) (1,496,140) (3,202,871)chargesAmortised debt issue costs (127,612) (42,435) (85,707) (2,935,603) (1,423,014) (3,049,990) NET PROFIT ON ORDINARYACTIVITIES BEFORE TAXATION 2,337,403 1,531,326 3,832,178 TAXATION ON NET PROFIT ONORDINARY ACTIVITIES (76,273) (105,241) (366,005) NET PROFIT ON ORDINARYACTIVITIESAFTER TAXATION 2,261,130 1,426,085 3,466,173 GAIN FROM INVESTMENTSGain on revaluation ofinvestment properties 7,909,722 5,213,302 11,482,293 NET RESULT FOR THE PERIOD 10,170,852 6,639,387 14,948,466 Earnings per share 8.11p 11.06p 21.95pDividend per share 3.25p 1.625p 4.16p GROUP BALANCE SHEET AS AT 30 JUNE 2006(UNAUDITED) As at As at As at 30 June 30 June 31 December 2006 2005 2005 £ £ £ NON-CURRENT ASSETSInvestment properties 241,807,080 130,761,921 137,087,117Reverse lease premium 4,367,920 4,858,079 4,527,883 246,175,000 135,620,000 141,615,000 CURRENT ASSETSDebtors 2,937,835 2,279,690 2,371,722Cash and cash equivalents 12,817,183 3,703,503 2,983,110 15,755,018 5,983,193 5,354,832 TOTAL ASSETS 261,930,018 141,603,193 146,969,832 CURRENT LIABILITIESCreditors due within one year (6,285,565) (5,923,026) (5,336,200)Income tax payable - - (94,460) (6,285,565) (5,923,026) (5,430,660) NON-CURRENT LIABILITIESBank loans (96,472,000) (58,062,000)Fair value of swap instrument (295,326) (2,394,202)Debt issue costs 1,785,171 806,258 (94,982,155) (59,649,944) NET ASSETS 160,662,298 76,030,223 81,996,899 REPRESENTED BY:Share capital 1,427,473 760,002 760,002Reserves 159,234,825 75,270,221 81,236,897 SHAREHOLDERS' FUNDS 160,662,298 76,030,223 81,996,899 Net Asset Value per share 112.55p 100.04p 107.89p Approved by: Christopher N Fish Nicholas C M RennyDirector Director Date: 20 September 2006 GROUP STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 JUNE 2006(UNAUDITED) Issued share Share Revenue Other capital premium reserves reserves Total £ £ £ £ £ Opening at 1January 2006 760,002 - 72,630,577 8,606,320 81,996,899Shares issuedin the period 667,471 70,332,529 - - 71,000,000 Share issue - (1,488,416) - - (1,488,416)expenses Net result - - 2,261,130 7,909,722 10,170,852for the period Fair value gain onhedging instruments - - - 1,970,927 1,970,927 At 30 June 1,427,473 68,844,113 71,903,743 18,486,969 160,662,2982006 GROUP STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 JUNE 2005(UNAUDITED) Issued share Share Revenue Other capital premium reserves reserves Total £ £ £ £ £ Opening at 1January 2005 2 - (1,803,697) - (1,803,695)Shares issuedin the period 760,000 75,240,000 - - 76,000,000 Share issue - (1,721,187) - - (1,721,187)expenses Net result - - 1,426,085 5,213,302 6,639,387for the period Fair value loss onhedging instruments - - - (2,394,202) (2,394,202) At 30 June 760,002 - 72,451,121 2,819,100 76,030,2232005 GROUP CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2006(UNAUDITED) Six months Six months Year ended ended 30 June ended 30 June 31 December 2006 2005 2005 £ £ £ OPERATING ACTIVITIES Net operating profit for theperiod before finance costs 5,273,006 2,954,340 6,882,168Adjustment for:Decrease / (increase) in 1,406,389 (4,566,752)operating debtors(Decrease) / increase in (2,487,999) 1,911,334operating creditorsReverse premium amortisation 159,963 - 4,351,359 298,922 Interest received 523,248 115,561 238,588Interest paid (4,432,020) (2,936,820) (4,234,080)Taxation paid (32,072) - (178,341)Net cash (outflow) / inflowfrom operatingActivities 410,515 (2,522,337) 2,594,665 INVESTING ACTIVITIESPurchase of investment (15,501,579) (20,653,620) (20,709,824)propertiesPurchase of subsidiary (100) - -undertakingCash acquired with subsidiary 2,076,052 - -undertakingReverse premium paid - - (3,287,846) Net cash outflow from investing (13,425,627) (20,653,620) (23,997,670)activities FINANCING ACTIVITIESProceeds from issue of ordinary 71,000,000 76,000,000 76,000,000share capitalShare issue costs (1,488,416) (1,721,187) (1,721,532)Repayment of loans from (5,334,436) (10,890,500) (10,890,500)shareholdersRepayment of bank loans (37,213,197) (35,952,500) (35,603,807)Debt issue costs paid (1,126,803) (500,000) (871,687)Dividends paid (2,987,964) (690,080) (3,160,086) Net cash inflow from financing 22,849,184 26,245,733 23,752,388activities Net increase in cash and cash 9,834,072 3,069,776 2,349,383equivalentsOpening cash and cash 2,983,111 633,727 633,727equivalents CLOSING CASH AND CASH 12,817,183 3,703,503 2,983,110EQUIVALENTS For further information contact: Anson Fund Managers LimitedCompany Secretary Tel: Guernsey 01481 722260 20 September 2005 This information is provided by RNS The company news service from the London Stock Exchange