Net Asset Value(s)

RNS Number : 3211G

ING UK Real Estate Income Trust Ltd

21 October 2008

 

ING UK Real Estate Income Trust Limited

21 October 2008

ING UK Real Estate Income Trust Limited (IRET) - Net Asset Value as at 30 September 2008 

The unaudited Net Asset Value ('NAV') per share of ING UK Real Estate Income Trust Limited (the 'Company') as at 30 September 2008 was GBP 276.9 million, reflecting approximately 83.8 pence per share.  

The NAV attributable to the Ordinary Shares is calculated under International Financial Reporting Standards ('IFRS') and reflects a decrease of approximately 12.9 pence per share, or 13.3%, since the previous quarter. It includes a downwards adjustment in respect of the mark to market value of the interest rate swaps of GBP 8.9 million. Excluding asset sales there has been a GBP 33.5 million reduction in NAV, representing a 6.4% reduction in the underlying property portfolio valuation over the period.

This NAV figure incorporates the external portfolio valuation as at 30 September 2008. It includes income for the current quarter and is calculated after the deduction of dividends paid prior to 30 September 2008, but it does not include provision for the next quarterly dividend which is expected to be paid in November 2008. 

The unaudited NAV is as follows:

	30 September 2008 £million	30 June 2008 £million	31 March 2008 £million
Investment properties	488.7	536.1	599.0
Other assets	84.4	70.5	35.7
Other liabilities	(19.1)	(19.0)	(18.2)
Borrowings	(282.2)	(282.2)	(282.2)
	271.8	305.4	334.3
Market value of interest rate swaps	5.1	14.0	3.5
Net Asset Value	276.9	319.4	337.8

The property portfolio will next be valued by an external valuer during December 2008 and the NAV per share as at 31 December 2008 will be issued in January 2009.

The Company will be preparing its next Annual Report to 31 December 2008, and this will be issued to shareholders in April 2009. The figures at that date are subject to audit.

The Company also today announces that it has repaid in full all of its outstanding £57.2 million of non-securitised borrowings as notified to the market on 8 September 2008. Since September 2007 the Company made £82.3 million of asset disposals in eight separate transactions and repaid a total of £87.3 million of higher rate debt.

This leaves the Company with £225 million of securitised debt which has a maturity in January 2013 and is at a blended fixed rate of 4.86%. The company continues to operate within its principal banking covenants and monitor its position against current market conditions.

Investment Manager Commentary

The UK Commercial Real Estate market, which according to the IPD Monthly Index has now re-priced by approximately 25% since June 2007, has been further affected by extreme global instability in the capital markets over the quarter. Limited transactional activity, the availability and cost of bank finance have also adversely affected real estate pricing. As such capital growth, as measured by the IPD Monthly Index was -6.2% over the quarter.

The re-pricing across all sectors continued to affect the underlying property portfolio. The movements and current sector weightings are detailed below:        

Sector	Capital Valuation Movement	Weighting 30 September 2008
Retail	-4.2%	12.7%
Offices	-7.1%	48.0%
Industrial	-6.3%	28.5%
Leisure	-4.4%	4.0%
Retail Warehouse	-8.0%	6.8%
Total	-6.4%	100.0%

Over the quarter the company completed on the sales of assets in Balham and Mitcham for GBP 15 million and exchanged contracts for the sale of an asset in Fulham for GBP 4.7million.  

As at 30 September 2008 the portfolio had a net initial yield of 6.7% and a reversionary yield of 7.6%, a 93% occupancy rate and a weighted average lease term of 8.8 years.

For further information:

All Enquiries

The Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

Guernsey

GY1 3QL

Tel:    [phone]

Fax:    [phone]

ING Real Estate Investment Management (UK) Limited

Helen Stott, 020 7767 5648 [e-mail]

Financial Dynamics

Laurence Jones, 020 7831 3113, [e-mail]

Stephanie Highett, 020 7831 3113, [e-mail]

 

END

 

 

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