TAP.L Regulatory News (TAP)

12 Dec 2006 13:00

Teesland Advantage Property Inc Tst12 December 2006 FOR IMMEDIATE RELEASE 12 December 2006 Teesland Advantage Property Income Trust Limited "TAP-in" - Quarterly Factsheet - AUTUMN 2006 Property Fund Adviser's comments Highlights and Portfolio Activity •Net Asset Value increase 2.4% over the 3rd quarter to 115.2p €2 new assets were acquired totaling £3.3m and reflecting an income yield of 6.73% on cost. The properties were the second tranche of the original Gleeson portfolio agreed in Q2 and comprise an office on Balliol Business Park in Newcastle and an industrial unit in Milton Keynes •The office in Isleworth acquired as part of the first tranche of the Gleeson portfolio has been sold for £3.15m to reflect a profit of £0.4m •The Property Fund Adviser has continued to focus on asset management within the portfolio and activity has remained high. Portfolio income has been enhanced with the letting of 3 vacant units and the settlement of 4 rent reviews and 1 lease renewal Property Market The performance of the property market remained strong for the quarter althoughas anticipated total returns slowed to 3.7%. Strong yield compression evidentin the first 6 months of the year dampened and as a result capital growthreduced to 2.4% from 3.7% the previous quarter. (IPD Monthly Index) Property is again heading for a strong comparative performance and the AllProperty total return for the 12 months to end of September 2006 now stands at20.7% compared to equities (FTSE All Share) at 14% and gilts (5-15 yrs) at 2.5%(source: IPD UK Monthly Index end September 2006). Average yields in the property market are now at 4.67% (IPD UK Monthly Index)down only 0.03% on the month but a decrease from 6.4% recorded in September2005. The reduction in the average yield has been in part caused by thenarrowing of the yield differential between prime and secondary property. Thisnarrowing has now ceased and investors are becoming more discerning with goodproperty fundamentals including location and building quality key todecision-making. There remains a large amount of relatively cheap "retail" money in the marketraised from private placings and also high net worth individuals/ overseasinvestors. This demand combined with the strength of institutional buyers hasbeen the driving force behind the market and is expected to sustain yields forgood quality property into the near future. Rental growth and good asset management opportunities will be the key drivers tofuture capital appreciation as yield compression across the asset classstabilises. Key Financial Statistics Launched Feb 2005Total property assets £251,432,000Total shares issued 142,747,300Share price 113.5p (24.11.06)Long term debt £96,472,000Gearing 38.3% LTVDividend dates Feb, May, Aug, NovNumber of properties 76Average lot size £3.31 millionAverage lease length 7.6 yearsVoid rate 3.3% of ERV Top 10 property investments The Brunel Centre BletchleyWaterfront Business Park FleetThe Links WarringtonKingscourt Leisure Complex DundeeSouthgate Retail Park DerbyNational Westminster House GuernseySilver Court Welwyn Garden CityGeoffrey House MaidenheadFujifilm House Hemel HempsteadAssociates House, Castle Street Reading Source: This announcement has been approved for issue by Teesland AdvantageProperty Income Trust Limited, which accepts responsibility for the informationcontained herein save for the content of the Property Fund Adviser's comments. Investment objective To provide shareholders with an attractive level of income together with thepotential for income and capital growth derived from investment in the Group'sdiversified portfolio of commercial property in the United Kingdom and theChannel Islands. Top 10 tenants WeightingHalfords Limited 14.5%Nisaba Group Limited 4.6%National Westminster Bank Plc 4.1%Toys R Us Limited 3.8%Odeon Multiplex Limited 3.3%Fujifilm Electronic Imaging Limited 3.3%Citi Financial Europe Plc 2.7%Exel Europe Limited 2.4%Securicor ADI Group Ltd 1.7%Europa European Express Limited 1.7% Financial structure The Company has long term debt of £96.47m, from two lenders. The first loan isfor £58.06m from the Bank of Scotland until Feb 2015 at a margin of 0.79% overLIBOR until May 2008 and 0.75% thereafter. The interest cost on £43.8m of thisdebt (before margin) has been fixed until Feb 2015 using interest swaps at anaverage rate of 5.14%; the balance is floating. The second long term loan isfrom Capmark for £38.41m until Jan 2013 at a margin of 0.76%. The interest cost(before margin) on £31.0m of this debt has been fixed at 4.59%; the balance isfloating. Sector breakdown % 31.2 Offices23.3 Retail20.9 Retail Warehousing20.3 Industrial4.3 Leisure Geographic breakdown % 40.0 South East12.5 Scotland9.6 North West9.4 East Midlands8.3 West Midlands4.5 Outer London3.9 Channel Islands3.8 Yorkshire & Humberside3.3 Eastern2.7 South West1.6 Wales0.4 North East Contact details Broker KBC Peel Hunt111 Old Broad StreetLondon EC2N 1PHDavid Davies - T: 020 7418 8900 Company Secretary Anson Fund Managers LimitedAnson HouseSt. George's PlaceSt. George's EsplanadeSt. Peter PortGuernsey GY1 2BET: 01481 722260 Property Fund Adviser Teesland Asset Management Limited1 Mount StreetLondon W1K 3NBDarren Fennell - T: 020 7659 6730 This announcement is not, and is not intended to be an invitation, inducement,offer, or solicitation, to deal in the shares of the company. The price ofshares in the company and the income from them may go down as well as up andinvestors may not get back the full amount invested on disposal of shares in thecompany. An investment in the company should be considered only as part of abalanced portfolio of which it should not form a disproportionate part.Investments in property are relatively illiquid and may be more difficult torealise than equities or bonds. Yields may vary and are not guaranteed. Allfigures are correct as at 30th September 2006. Past performance cannot be reliedupon as a guide to future performance. Teesland Advantage Property Income Trust Limited (TAP)Anson House, St George's Place, St George's Esplanade, St Peter Port, GuernseyGY1 3WXT 01481 722260 F 01481 729829 E reception@anson-group.com W www.teeslandiog.com/our-funds/tap END OF ANNOUNCEMENT E&OE - in transmission This information is provided by RNS The company news service from the London Stock Exchange