Invesco Uk Property Income Trust Share Discussion Threads

[flyingswan] 17/10/2011 11:35

Central London offices continue to outperform wider UK market

CBRE reports marginal increase in UK commercial property values in September

Article posted: 12 Oct 2011

According to CBRE's latest Monthly Index, UK commercial property values grew marginally in September, with total returns for All Property increasing to 0.6% compared to 0.5% in August 2011...



Prime rents and yields stable across Europe

11 October 2011

Amid the flow of significantly negative economic news and nervousness in the financial markets, prime commercial property rents and yields held firm in the third quarter, according to the latest figures released by CBRE.

Continuing the pattern that has emerged over recent quarters, prime rents saw little overall change across Europe in Q3 2011 in any sector. The CBRE EU-15 Prime Office Rent Index was unchanged in the third quarter, with the vast majority of constituent locations seeing no change in the prime rent level. Industrial rents were similarly flat, while high street retail rents continue to see the strongest growth albeit up by only 0.7% this quarter...

[asmodeus] 01/9/2011 18:40

SP "up 24.4%" today, it says here.

[carterit] 31/8/2011 07:29

I wouldn't bank on a substantial improvement when the next valuation takes place - not based on the last few valuations. High vacancy rates won't help valuations.

If we are exceeding valuations on sale,then that at least gives hope that the valuations are,if anything,not very taxing.

However,if they can continue to stabilize and inch up,and if/when they are sold,they bring in more cash than expected,then hopefully,along with the decrasing liability of interest/currency swaps, the NAV may turn positive before the wind up date.

[flyingswan] 29/8/2011 19:54

In the post above you mention September 2010 Valuation.

Does that mean next month, the property will be revalued for the coming year?

If so we may see an imprivement in the NAV from this re-valuation?

[carterit] 24/8/2011 21:29

I believe you are right Specuvestor.

I believe that the managements focus over the next 3 years will be to get tenants in where possible,particularly for the european portfolio - and then sell,as that should get the higher valuations.

The 3 properties sold in the last year were at a combined price of 22% above the September 2010 valuation,so where sales are taking place,they are in excess of recent valuations.

As the investment objective will be to repay the bank loans by sep 2014,the portfolio is going to diminish over the next 3 years,and so some of the currency/interest rate swaps may be terminated before maturity - but according to the detail in the "Financial Proposal" release,these will/could probably be terminated for less than their current liability valuation - adding,as you say,some valuation to NAV.

I've not lost hope yet,but its just going to be a case of not being able to get my hands on the money for at least 3 years.

[specuvestor] 24/8/2011 19:27

Hello Carterit

I note that the currency and interest rate swap liabilities have reduced over the past year by about £8.2 million. Will they continue to reduce to zero over the next 3 years as the loan approaches maturity?
I believe that in the case of Invista Foundation Trust and IRP Property the interest rate swap liability reduces to zero on maturity of the loans adding 9p and 7p respectivly to their NAV.

If this is the case with IPI then the interest rate swap alone is worth 6.4p a share.
I have read through the accounts but cannot see any reference to this. Do the swaps here work in the same way as the companies I have mentioned? If so then if they can stay the course they will receive a nice NAV uplift over the next 3 years.
Would welcome comments about this.

[qvg] 24/8/2011 10:54

carterit
i had not done the numbers, but my instinct was the same as your conclusion. so thanks for confirming it. i also continue to hold my (very small) stake as a reminder of the dangers of leverage ....

[carterit] 24/8/2011 10:37

I will continue to hold until its wound up,and hope that after everything has been sold that there will be some money for distributing to the shareholders - well at least more than the current share price anyway.

The adjusted NAV in the annual report shows that it was (end of march 2011), £7.9M underwater.

...and for that year,the report shows that Net cash inflow from operating activities (rent/service charges minus bank charges/operating expenses) was approx £10M.

...so IF,the net cash inflow,continues to be positive for the next 3 years,and at a similar level AND property valuations continue to stabilise and inch upwards AND they continue to dispose of property at a price above the last valuation,then there must be a fighting chance of turning the £7.9M deficit into something positive.

Even a £15M turnaround (ie 3 years net cash inflow of £5M per year OR a sale of the properties at 8% above the last valuation,would bring this about).

...and if there were £8M for distribution amongst the shareholders at the end,would equate to approx 5p per share,so must be worth taking a chance on

[mister md] 24/8/2011 09:20

there was a holdings RNS few days ago on RBS - can anyone decipher it?

[bsg] 24/8/2011 09:19

This was a good buy, good bye to all my money !!

[carterit] 16/8/2011 14:21

And to back up what it says in the "latest news",i have received a reply back from a query i raised with them 2 weeks ago....

My query was "I have been an investor in the Invesco Property Income Trust since 2009,and having read the the Annual Financial Report just released,would like to ask if the intention is for the trust to be wound down by Sept 2014 (the date by which the borrowings have to be repaid in full,assuming the "new" agreement is accepted),or whether the intention is to try and continue after this date if new/additional borrowings can be secured either from the the existing source or elsewhere" and their response is.......

Thank you for your email on 3rd August 2011 about the Invesco Property Income Trust. I've spoken to our Investment Trust team and they've given the following reply to your enquiry.

At this stage it is the intention of the Company and the lending bank to ensure that the loan in place is fully paid down – this, on shareholder approval, will be the essence of its investment objective. Depending on market conditions and the values properties are realised at, will determine the amount returned to shareholders post liquidation of the portfolio. At this stage the Company is concentrating on repaying the bank debt with no intention at this stage to extend the life beyond this event.

[flyingswan] 13/8/2011 12:16

INVESCO PROPERTY INCOME TRUST LD OR 1.65 26.92%

[the avoint] 12/8/2011 15:47

Nice rebound

[carterit] 10/8/2011 21:29

Thats because it will probably be wound up by sep 2014,and is currently underwater.

[the avoint] 09/8/2011 11:17

Damn this is cheap.

[flyingswan] 19/7/2011 12:20

..."This year's survey shows that European institutional investors are again embracing alternatives with a total allocation of 11.5% of respondents' portfolios invested in the sector. The allocation level is back up to and beyond the levels of 2007, when 10% was allocated to the sector. As in the previous two years, real estate forms the lion's share of this allocation, with 7% of investor's total assets in this category, compared with 6.6% in 2009."

Real estate investing is now most popular with investors from Benelux, who have pushed Swiss investors into second place, followed by Great Britain and Ireland. Invesco reports smaller investors are also demonstrating increased confidence in real estate. "26% of investors are poised to raise their real estate allocations, with only 7% planning to reduce this component in their multi-asset portfolios. Indeed, real estate is now at its highest level for the past three years and remains the cornerstone of alternatives investing," says Redman.

The survey also shows that domestic real estate investment now makes up 63% of the average institution's overall property allocation, compared to just 18% in equities portfolios.

[flyingswan] 18/7/2011 16:54

Looks like the IPI share price, has good support at this level. IMHO

[the avoint] 17/7/2011 19:02

The second quarter of 2011 (Q2) marked a continued period of general stability in values across the European commercial property market, with prime rents and yields seeing little movement, according to the latest figures released by CB Richard Ellis (CBRE).

While value gains are still evident, the pace of recovery remains slow, according to CBRE.

[asmodeus] 12/7/2011 10:24

IPI now "up 18%" (14.00) Edit - well, they're not "up 18% now! (16.47). They're "down 3.3%".

[flyingswan] 12/7/2011 09:53

CBRE Monthly Index – market supported by continued growth in Central London

London, 8 July 2011 – Latest figures from CB Richard Ellis for June show that overall the UK Commercial property market continued to perform in line with the previous month, with capital growth of 0.2% and total returns of 0.7%. Aside from the continuation of buoyant performance in Central London offices and retail warehouses, driven largely by growth in rental values, nearly all remaining sub-markets saw values either flat over the month or under slight downward pressure. Equivalent yields were unchanged over the month at 6.6%...