TAP.L Regulatory News (TAP)

8 Sep 2005 18:16

Teesland Advantage Property Inc Tst08 September 2005 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 January2005 to 30 June 2005 (the "Period") as follows:- CHAIRMAN'S STATEMENT I am pleased to report to shareholders that the Company has performed well sincelaunch in February of this year. The net asset value has grown 5.5% to£76,030,233 over the period and the first two quarterly dividends have been paidto shareholders, in line with projections made at the time of launch. The growth in the net asset value over the period is a result of a generalincrease in capital values, plus the effects of gearing and, most importantly,substantial valuation increases made as a result of asset management initiativescompleted by Teesland Asset Management, the Property Fund Adviser. The net assetvalue gain has also been achieved after absorbing the acquisition costs of anadditional purchase made shortly after launch. The growth in the net asset value to 100.0p per share as at 30 June 2005 meansthat investors have recovered the full costs of the launch of the Company andall of the initial property acquisition costs in less than five months. All netasset value figures are calculated under International Financial ReportingStandards (IFRS) on a total return basis. The Net Asset Value of the Group as disclosed in these interim report andaccounts differs from the figure of 100.2 pence announced on 27 July 2005 due tothe finalisation of the taxation provision. Commercial property yields have compressed further this year and consequentlycapital growth in the market has continued strongly, with the capital return inthe second quarter alone recorded by IPD at 3.0%. Whilst capital returns of thismagnitude are not forecast to continue into next year, the prospects for themarket remain good, with the main source of return in the medium term likely tobe from rental income. The Company's portfolio ("the Portfolio") is already fully invested and istherefore well placed to benefit from rental and capital growth in the marketand to deliver attractive returns to shareholders. The balance of the portfolioremains biased towards the favoured retail warehousing sector and we anticipatethat the property assets will at least keep pace with the performance of thegeneral market, with further improvements in values being created through theasset management opportunities identified in the Portfolio. Over the medium tolong term, total return is the crucial measure of investment performance and thePortfolio has been designed to deliver good total returns on a sustained basis. CHRISTOPHER N FISHChairman 8 September 2005 GROUP INCOME STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2005(UNAUDITED) Period Six months to 16 June to 31 to 30 June 2005 December 2004 £ £Revenue Rental income from investment 4,188,416 3,252,857properties Expenditure Property outgoings (129,421) (103,482)Asset manager's fee (480,463) (50,000)Other expenses (204,427) (64,601)Set up costs (419,765) (148,152) (1,234,076) (366,235) Net operating profit for the periodbefore finance costs 2,954,340 2,886,622 Finance income / (costs) Interest receivable 115,561 58,648Interest payable and similarcharges (1,496,140) (3,637,196)Amortised debt issue costs (42,435) (569,000) (1,423,014) (4,147,548) Net profit / (loss) on ordinaryactivities before taxation 1,531,326 (1,260,926) Taxation on net profit / (loss) onordinary activities (105,241) 66,949 Net profit / (loss) on ordinaryactivities after taxation 1,426,085 (1,193,977) Gain / (loss) from investments Gain / (loss) on revaluation ofinvestment properties 5,213,302 (609,720) Net result for the period 6,639,387 (1,803,697) Earnings per share 11.06p - GROUP BALANCE SHEET AS AT 30 JUNE 2005(UNAUDITED) As at As at 30 June 31 December 2005 2004 £ £ Non-current assets Investment properties 130,761,921 104,895,000Reverse lease premium 4,858,079 - 135,620,000 104,895,000 Current assets Cash and cash equivalents 3,703,503 633,727Debtors 2,279,690 1,745,669 5,983,193 2,379,396 Total assets 141,603,193 107,274,396 Non-current liabilities Bank loans (59,649,944) - Current liabilities Bank loans - (93,665,807)Shareholder loans and related accrued interest - (11,771,582)Other creditors due within one year (5,923,026) (3,635,649)Income tax payable - (5,053) Total liabilities (65,572,970) (109,078,091) Net assets / (liabilities) 76,030,223 (1,803,695) Represented by: Share capital 760,002 2Revenue reserves 77,664,423 (1,803,697)Other reserves (2,394,202) - Shareholders' funds / (deficit) 76,030,223 (1,803,695) 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 issued inthe period 760,000 75,240,000 - - 76,000,000 Share issue expenses - (1,721,187) - - (1,721,187) Share premiumreduction - (73,518,813) 73,518,813 - - Net result forthe period - - 6,639,387 - 6,639,387 Fair value losson hedginginstruments - - - (2,394,202) (2,394,202) Dividend paid - - (690,080) - (690,080) At 30 June 2005 760,002 - 77,664,423 (2,394,202) 76,030,223 GROUP CASH FLOW STATEMENTFOR THE SIX MONTHS ENDED 30 JUNE 2005(UNAUDITED) Period Six months 16 June to Ended 30 June 31 December 2005 2004 £ £ Operating activities Net operating profit for the period beforefinanceCosts 2,954,340 2,886,622Adjustment for:Increase in operating debtors (4,566,752) (1,673,667)Increase in operating creditors 1,911,334 2,501,514 298,922 3,714,469Interest received 115,561 58,648Interest paid (2,936,820) (1,701,114) Net cash (outflow) / inflow from operatingActivities (2,522,337) 2,072,003 Investing activities Purchase of investment properties (20,653,620) (105,425,585) Net cash outflow from investing activities (20,653,620) (105,425,585) Financing activities Proceeds from issue of ordinary share capital 76,000,000 2Share issue costs (1,721,187) -Movement on loans from shareholders (10,890,500) 10,890,500(Repayment) / draw down of bank loans (35,952,500) 94,014,500Debt issue costs paid (500,000) (917,693)Dividends paid (690,080) - Net cash inflow from financing activities 26,245,733 103,987,309 Net increase in cash and cash equivalents 3,069,776 633,727Opening cash and cash equivalents 633,727 - Closing cash and cash equivalents 3,703,503 633,727 For further information contact: Anson Fund Managers LimitedCompany Secretary Tel: Guernsey 01481 722260 8 September 2005 This information is provided by RNS The company news service from the London Stock Exchange