27 Jan 2009 07:00
27 January 2009
The Advantage Property Income Trust Limited
("TAP" or the "Company")
Net Asset Value as at 31 December 2008
Net Asset Value
The unaudited net asset value per share of The Advantage Property Income Trust Limited ('TAP') as at 31 December 2008 is 56.7 pence. This represents a decline of 19.7 pence per share or 25.8 per cent from the unaudited net asset value per share as at 30 September 2008 of 76.4 pence.
The net asset value is calculated under International Financial Reporting Standards ("IFRS").
The net asset value includes all income to 31 December 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 31 December 2008 which is expected to be paid in February 2009.
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 September 2008 to 31 December 2008.
| Pence per share | % of opening NAV | |
| Net asset value per share as at 30 September 2008 | 76.4 | |
| Unrealised decrease in valuation of property portfolio (including the effect of gearing) | (16.4) | (21.5%) |
| Realised loss on sales of properties | 0.0 | 0.0% |
| Decrease in interest rate swap valuation | (3.4) | (4.5%) |
| Movement in revenue reserves | 0.1 | 0.1% |
| Net asset value per share as at 31 December 2008 | 56.7 |
Compliance with Banking Covenants
As at 31 December 2008 the Company was compliant with all banking covenants. The Company is currently in discussions with HBOS with regard to the covenants going forward. TAP expects to provide a further update on these discussions in the near future.
Property Portfolio Total Return
The Total Return of the property portfolio over the quarter to 31 December 2008 was -9.1% on an ungeared IPD basis.
| Portfolio analysis | % of Portfolio | Income Return % | Capital Growth % | Total Return % |
| Retail | 37.97% | 1.6% | -10.7% | -9.1% |
| Offices | 36.98% | 1.9% | -12.0% | -10.2% |
| Industrial | 21.01% | 1.7% | -8.7% | -7.1% |
| Leisure | 4.04% | 1.8% | -10.8% | -9.1% |
| All Sectors | 100.0% | 1.7% | -10.7% | -9.1% |
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 8.22% in December 2008.
Valuation gains as a result of asset management initiatives with regard to the Reading and Hemel Hempstead assets have resulted in the portfolio's outperformance in terms of capital growth. TAP's higher income return has assisted its total return performance as has the Company's strategy of not investing in Central London (where the volatility has been at its greatest). During the course of 2008, in excess of £540,000 pa of additional income was secured by way of new lettings, rent reviews and lease renewals.
| Total Returns | 3mths | 6mths | 12mths |
| TAP | -9.1% | -12.8% | -15.8% |
| IPD monthly | -13.5% | -17.6% | -22.5% |
The property portfolio will next be valued by an external valuer during March 2009 and the net asset value per share as at 31 March 2009 will be announced in April 2009.
For further information:
Chris Carter Keall/Fraser Kennedy, Valad Property Group 020 7659 6666
Jeremy Carey, Tavistock Communications Limited 020 7920 3150
James Maxwell/Brad Cheng, Singer Capital Markets 020 3205 7500
Anson Fund Managers Limited, Secretary 01481 722260
E&OE - in transmission
TAP.L (TAP)