24 Oct 2008 07:00
24 October 2008
The Advantage Property Income Trust Limited
("TAP" or the "Company")
Net Asset Value as at 30 September 2008
Net Asset Value
The unaudited net asset value per share of The Advantage Property Income Trust Limited ('TAP') as at 30 September 2008 is 76.4 pence. This represents a decline of 11.2 pence per share or 12.8 per cent from the unaudited net asset value per share as at 30 June 2008 of 87.6 pence.
The net asset value is calculated under International Financial Reporting Standards ("IFRS").
The net asset value includes all income to 30 September 2008 and is calculated after deduction of all dividends paid prior to that date. It does not include a provision for the dividend for the quarter to 30 September 2008 which is expected to be paid in November 2008.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net asset value per share calculated under IFRS over the period from 30 June 2008 to 30 September 2008.
| Pence per share | % of opening NAV | |
| Net asset value per share as at 30 June 2008 | 87.6 | |
| Unrealised decrease in valuation of property portfolio (including the effect of gearing) | -9.1 | (10.4%) |
| Realised loss on sales of properties | -0.1 | (0.1%) |
| Decrease in interest rate swap valuation | -1.3 | (1.5%) |
| Movement in revenue reserves | -0.7 | (0.8%) |
| Net asset value per share as at 30 September 2008 | 76.4 |
Property Portfolio Total Return
The Total Return of the property portfolio over the quarter to 30 September 2008 was -4.1% on an ungeared IPD basis.
| Portfolio analysis | % of Portfolio | Income Return % | Capital Growth % | Total Return % |
| Retail | 37.85% | 1.5% | -7.5% | -6.1% |
| Offices | 36.82% | 1.8% | -4.5% | -2.7% |
| Industrial | 21.30% | 1.6% | -4.4% | -2.9% |
| Leisure | 4.03% | 1.5% | -4.6% | -3.1% |
| All Sectors | 100.0% | 1.6% | -5.6% | -4.1% |
Portfolio return against IPD
The analysis below shows the continued outperformance of TAP assets on an un-geared property level. TAP has seen its equivalent yield increase from 5.95% in June 2007 to 7.45% in September 2008. (According to CBRE the market prime yield at September 2008 is 6.5% i.e. 95bps less than the TAP equivalent yield).
TAP's higher income return has assisted its total return performance as has the Company strategy of not investing in Central London (where the volatility has been at its greatest). In addition, since June 2007, the Company has completed 29 rent reviews and lease renewals at an average of 8.8% above the preceding rent, and 16 lettings securing over £530,000 of new income.
| Total Returns | 3mths | 6mths | 12mths |
| TAP | -4.1% | -5.4% | -12.7% |
| IPD monthly | -4.8% | -7.3% | -18.1% |
The property portfolio will next be valued by an external valuer during December 2008 and the net asset value per share as at 31 December 2008 will be announced in January 2009.
For further information:
Chris Carter Keall/Fraser Kennedy, Valad Property Group 020 7659 6666
Jeremy Carey, Tavistock Communications Limited 020 7920 3150
Graham Swindells/Brad Cheng, Kaupthing Singer & Friedlander 020 3205 7500
Anson Fund Managers Limited, Secretary 01481 722260
E&OE - in transmission
TAP.L (TAP)