RNS Number : 7080L
ING UK Real Estate Income Trust Ltd
11 May 2010
 

ING UK Real Estate Income Trust Limited

Interim Management Statement

 

GENERAL TEXT AMENDMENT

 

The following amendment(s) has (have) been made to the 'Interim Management Statement' announcement released on 11 May 2010 at 12.44pm under RNS No 7068L.

 

PDF Quarterly Newsletter announcement was not attached.

 

http://www.rns-pdf.londonstockexchange.com/rns/7080L_-2010-5-11.pdf

 

All other details remain unchanged.

 

The full amended text is shown below.

 

 

Further to the Q1 NAV announcement issued on 15 April 2010, please find attached via the link below, the Interim Management Statement/Newsletter for ING UK Real Estate Income Trust Limited for the period 31 December 2009 to 31 March 2010:

 

http://www.ingreit.co.uk/default.aspx?page=investor-relations-quarterly&folder=1

 

With guidance from the FSA/AIC we have included the unedited full text of the announcement below:-

 

ING UK Real Estate Income Trust Limited

Q1 Interim Management Statement

 

Facts & Figures (as at 31 March 2010)

 

Launch Date

25 October 2005

Shares in issue

330.4 million

Share Price

48 pence

Dividend

1 pence per share paid 26/02/2010

Market Capitalisation

GBP 158.6 million

Net Asset Value

GBP 186.3 million

Property Value

GBP 352.4 million

Net Asset Value per Share

56 pence

Number of Properties

41

Average Lot Size

GBP 8.60 million

Average Lease Length

8.13 years

Net Gearing*

41.1%

Weighted Average Cost of Debt**

4.88%

Current Debt***

GBP 175 million

Financial Year End

31 December 2010

Half Year

30 June 2010

Dividend Payment Dates

Aug/Nov/Feb/May

Total Expense Ratio

1.00% Annualised to 31/03/2010

 

*           Net gearing is calculated as total debt less cash deposits as a proportion of gross property asset value.

**          Excluding loan arrangement costs

***        This ignores the liquidity facility of GBP 10.9 million.

 

Source:  ING Real Estate Investment Management UK Limited

 

 

Key Highlights

 

>   Increase of GBP 7.2 million in the underlying property portfolio value over the quarter, representing an increase of 2.1% on a like-for-like basis.

>   Rise in NAV per share of approximately 2.9% over the quarter, reflecting an increase of c. 1 pence per share.

>   Repayment of GBP 15 million of securitised debt over the quarter, at a 5% discount to the nominal value.

>   Disposal of office asset at a 19% premium to the December 2009 valuation.

>   Announcement of offer for Rugby REIT plc following the end of the quarter.

 

 

About The Company

 

The Company is a closed-ended, Guernsey registered investment company. The Company was launched on the London and Channel Islands' Stock Exchanges on 25 October 2005. The property portfolio is managed by ING Real Estate Investment Management (UK) Limited, a member of the ING Group.



Investment Objectives and Process

 

The Company's aim is to provide shareholders with an attractive level of income together with the potential for capital growth, through investment both directly and indirectly in UK commercial real estate.

 

The Company can invest in commercial real estate in the UK, the Isle of Man and the Channel Islands. It can invest principally in five commercial property sectors: office, retail, retail warehousing, industrial and leisure. It also has the ability to invest in other property funds and the residential sector.

 

Performance

 

As at 31st March 2010 the Net Asset Value of the Company was GBP 186.3 million, reflecting c. 56 pence per share. The underlying property portfolio saw a capital increase of 2.1%, which combined with a negative mark to market movement in the swap valuation, resulted in an increase in the NAV of c. 2.9% over the quarter.

 

IRET - NAV & Share Price

Date

NAV

Share Price (as at quarter end)

31 March 2007

129 pence

121 pence

30 June 2007

133 pence

106.25 pence

30 September 2007

124 pence

101.5 pence

31 December 2007

112 pence

69.5 pence

31 March 2008

102 pence

69 pence

30 June 2008

97 pence

47.5 pence

30 September 2008

84 pence

46 pence

31 December 2008

64 pence

22.5 pence

31 March 2009

52 pence

19 pence

30 June 2009

49 pence

30.5 pence

30 September 2009

49 pence

42.5 pence

31 December 2009

55 pence

53.8 pence

31 March 2010

56 pence

48 pence

 

Changes in Capital Structure

 

In January 2010 the Company pre-paid GBP 15 million of its securitised loan at a discount to its nominal value, reducing the total debt outstanding under the facility to GBP 175 million.

 

Diversification

 

Sector

Weighting (%)

Retail

13.9%

Offices

39.3%

Industrial

33.1%

Leisure

5.1%

Retail Warehouse

8.6%

(Source: ING REIM Mar 2010)

 

Geographical

Weighting (%)

Central London

8.5%

Greater London

5.3%

South East

21.8%

East

10.2%

Midlands

20.6%

South West

4.7%

North

19.2%

Wales

6.6%

Scotland

3.0%

Northern Ireland

0.0%

Offshore UK

0.0%

(Source: ING REIM Mar 2010)

 

Security of Income

 

The property portfolio has an average unexpired lease term of 8.1 years. As a percentage of current net annual rent, the length of the lease to the first termination is summarised below.

 

Lease Length

%

0 - 5 years

49.7%

5 - 10 years

29.5%

10 - 15 years

9.6%

15 - 25 years

8.0%

25 + years

3.2%

(Source: ING REIM Mar 2010)

 

The covenant strength, based as a percentage of current passing rent by risk rating, is shown in the chart below. The Company also holds GBP 1.2 million in rental deposits.

 

Risk Rating


Negligible (%)

Low

(%)

Low-Med (%)

Med-High

(%)

High

(%)

Max

(%)

Un-Scored + Ineligible (%)

ING UK REIT

52.03%

26.86%

4.92%

1.50%

4.51%

7.24%

2.94%

IPD Benchmark

42.33%

27.06%

9.06%

3.10%

5.59%

8.70%

4.16%

(Source: IPD Dec 2009)

 

Acquisitions and Disposals

 

Over the quarter no acquisitions were made. The Company completed on the disposal of Bath Road, Slough for a total consideration of GBP 8.91 million, reflecting a 19% premium to the December 2009 valuation.

 

 

Fund Managers Commentary

 

The IPD Monthly Index delivered strong capital growth over the quarter of 3.9%, albeit this was substantially lower than the record rise seen in the last quarter of 2009. The rate of rental value declines in each sector also slowed markedly over the period, and in March the Office sector returned its first positive rental growth for 2 years. The void rate on the Index decreased over the quarter, and at the end of March stood at 10.8%.

 

On a like-for-like basis, the Company's property portfolio rose in value by GBP 7.2 million over the 3 months.

 

Notable transactions over the period included a new letting at Northampton Business Park to Ricoh at a rent of GBP 350,000 pa; and the agreement to accept a surrender on its Farringdon building for over GBP 4 million- these monies will in part allow the building to be refurbished and relet.

 

Following the period end the Company announced that it had made an offer for Rugby REIT plc. More details are available on the Company's website.

 

 

Important Information

 

This newsletter is issued by ING UK Real Estate Income Trust Limited ("IRET"). It is based on information supplied by the Investment and Property Manager, ING Real Estate Investment Management (UK) Limited. This newsletter is intended for shareholders of IRET only. It is not a recommendation to deal or refrain from dealing in the shares of IRET. This newsletter should not be passed to any person other than an existing shareholder in IRET or their professional adviser. Any shareholder who requires advice on their investment in IRET should contact their stock broker, bank or independent financial adviser.

 

 

 

 

 

 

Contact Information

 

Fund Administration

 

David Sauvarin

Northern Trust International Fund

Administration Services (Guernsey) Limited

P.O. Box 255, Trafalgar Court, Les Banques,

St Peter Port, Guernsey GY1 3QL

T: 01481 745 001

 

Broker

 

William Simmonds

JP Morgan Cazenove

20 Moorgate, London, EC2R 6DA

T: 020 7588 2828

 

Investment and Property Manager

 

Michael Morris

ING Real Estate Investment Management (UK) Limited

1st Floor, 60 London Wall, London, EC2M 5TQ

T: 020 7767 5600

 

Website

www.ingreit.co.uk

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IMSABMTTMBMBBMM