Invesco Uk Property Income Trust Share Discussion Threads

[barrywhit] 20/1/2011 14:43

Well at least things are starting to move forward.

INVESCO PROPERTY INCOME TRUST LIMITED

HEADLINE: Disposal and leasing activity

The Directors are pleased to announce the successful completion of a number of
asset management initiatives within the UK portfolio and the unconditional
exchange of contracts for the sale of one UK property.

Unconditional contracts were exchanged on 18th January for the sale of Staines
Road, Hounslow, for GBP4.35m, with completion due on 15th February. This price
is 16%, or GBP600,000, ahead of the December 2010 valuation. This sale will
benefit IPIT as the property is currently vacant and as a result the holding
costs negatively impact IPIT's cash flow. The net proceeds from the sale of
this property will be used for the repayment of debt.

Prior to the end of December 2010 a new lease was completed at the Pegasus
House property in Peterborough. The existing tenant, whose lease was due to
expire in June 2013, signed a new 15 year lease at the same rent. The tenant
benefits from an initial 12 month rent free period, and an incentivised break
option at the end of the 10th year. The value of this asset was substantially
enhanced as a result of this new lease arrangement, rising by GBP3.06m at 31
December 2010 as compared to the September 2010 valuation.

In early January a lease re-structuring deal also completed at the Bedford
property, where the existing lease to Unilever was surrendered with the
outgoing tenant and sub-tenant paying a combined surrender premium/
dilapidations settlement of c. GBP4.58m. Simultaneously a new lease for the
office building completed with SPD Ltd at an annual rent of GBP753,000 for a term
of 10 years. The positive impact of this transaction on the value of this
asset was not fully reflected in the 31 December 2010 valuation as completion
had not taken place at that time.

Finally during December 2010, a new lease was completed for the last remaining
unoccupied office space at IPIT's City of London asset at 11 Old Jewry. A new 5
year lease was completed with FBR Capital Markets Ltd for c. 3,000 sqft at a
rent of GBP 35 per sqft per annum. This letting achieves the full occupation of
the entire c. 49,000 sqft of office space within the building. This is the
first time this has been achieved since the acquisition of the asset in 2006,
and is the result on an intensive asset management plan of rolling
refurbishment and re letting. There remains one vacant area on the ground
floor, which has planning permission for use as restaurant/bar where detailed
discussions are well advanced with a prospective occupier

Commenting on these transactions Chairman Richard Barnes said "it is pleasing
to see further positive activity within the UK portfolio, achieving the full
occupancy of the office space at Old Jewry and securing substantial lease
extensions in Peterborough and Bedford. The sale of the vacant property in
Hounslow is also positive progress, at a price well ahead of the recent
revaluation."

All enquiries

Invesco Asset Management Ltd

[carterit] 20/1/2011 12:20

Flying swan - a 0.3% rise in december,following a 0.1% rise in november - is not going to move the NAV out of the negative.

It won't happen overnight.

I'll be happy if they are still about this time next year. Hopefully by then we will have a clearer indication of the recovery path.

[flyingswan] 20/1/2011 10:17

Carterit... Property prices are moving up:

British commercial property values record faster growth

LONDON -- Commercial property values in the United Kingdom rose 14.5% in 2010 as annual income return and capital growth both hit positive territory for the first time in three years, data from Investment Property Databank (IPD) showed on Monday.
IPD's Monthly Index showed the 0.3% rise in December property prices followed a 0.1% gain in November. For 2010, property prices recorded a total return of 14.5%, from a 2.2% gain in 2009.

"Yield compression was the principal driver of capital growth, with initial yields falling 50 basis points to 6.5% by June, after which, yields shortened by 10 basis points for the final six months of the year," IPD said.

"Over the full year, rental value growth fell by a modest 0.8%," IPD said in a statement...

[carterit] 20/1/2011 09:18

And one reason why its unlikely that we are going anywhere fast in the near future......

"And most commercial property companies have already risen sharply since the depths of despair a couple of years ago. Of those that haven't, there's usually a very good reason........

......There are excellent opportunities out there for long-term investors to find lowly-geared property companies, with a good yield, that sit at a decent discount to excellent assets...."

..ie we are highly geared and already sitting on a premium to asset values,and while that will help us if,as and when the valuations start to improve,currently its not helping.

While i am invested here and hopeful long term to start the move back towrads where we were and paying dividends,we just don't meet the criteria currently,and won't until those property valuations start moving upwards.

[carterit] 20/1/2011 09:18

And one reason why its unlikely that we are going anywhere fast in the near future......

"And most commercial property companies have already risen sharply since the depths of despair a couple of years ago. Of those that haven't, there's usually a very good reason........

......There are excellent opportunities out there for long-term investors to find lowly-geared property companies, with a good yield, that sit at a decent discount to excellent assets...."

..ie we are highly geared and already sitting on a premium to asset values,and while that will help us if,as and when the valuations start to improve,currently its not helping.

While i am invested here and hopeful long term to start the move back towrads where we were and paying dividends,we just don't meet the criteria currently,and won't until those property valuations start moving upwards.

[knowing] 19/1/2011 16:00

Will take a look. The dip on WEST looks good to buy. Undervalued and a good core business.

[flyingswan] 19/1/2011 09:51

Yes, knowing... I agree the whole commercial property sector is looking ready for re-rating, I have just bought a few REO too, in the same sector; ready for the rise. IMHO

[knowing] 18/1/2011 16:28

Looking cheap again.

[flyingswan] 17/1/2011 14:36

Invesco Video on this link:

[knowing] 17/1/2011 13:47

It's like shares when the prices are going up everyone wants a slice of the action.

[flyingswan] 17/1/2011 13:45

Well other property companies in the sector are going up like MNR today - up 14%.

I am sure over the coming weeks, we will see IPI moving up too. After all as knowing link above states - London Property is recovering.

In my own town, there used to be lots of empty secondary property. But now it all appears to be re-opening and being refurbished.

The whole property sector is making a quick recovery. IMHO

[carterit] 17/1/2011 09:51

They may well be in a position to start paying dividends again if the debt (EVER) gets back below 60% of NAV - but that is a long long long way off. A damn sight further than 1 or 2 years.

I just want to see them survive,and the future will take care of itself.

But if you are hoping/expecting dividends of 6p a share within a year or two - you are most definately in the wrong place.

As investor_tp points out - most of your links are just not relevant to IPI.

Most of IPI's property is in UK (Mainly industrial as opposed to offices) and France (mostly office rather than industrial).

Their properties are also mainly in what is called secondary property rather than prime - and secondary property prices really haven't shown much if any signs of improvement as yet,although they are stabilising (according to the last report).

So it really is going to be a long haul from here - but IF they survive,i'm sure we will be well rewarded.

To have a chance of survival,they need to keep the properties occupied and bringing in an income to cover the interest payments and chipping away at the debt - while at the same time making selective disposals (especially if they can sell any unoccupied properties at above last valuation).

[strongbuy] 16/1/2011 19:04

yeah pal, stop the comments until we have all steamed in !!

[investor_tp] 16/1/2011 18:59

> Will there be another offer for IPI? Or will the
> NAV improve allowing dividends to be paid again,
> in the coming months?

Don't know what planet you're living on. There's no chance whatsoever that dividends will be re-instated in the near future. Might want to read the last report again. If you think otherwise, I'd love to see the calculations that make you believe that. Most of the links you're posting here have little relevance at all to IPI..

[flyingswan] 16/1/2011 18:23

There will soon be a shortage of property again, as now even the Chinese are buying up the city:



Minerva MNR also in takeover talks according to the Telegraph, Looks like I got in at just the right time:



Will there be another offer for IPI? Or will the NAV improve allowing dividends to be paid again, in the coming months?

[flyingswan] 15/1/2011 14:24

Hi Knowing, no I topped up a little in IPI and also in MNR; as I feel both should do well, as we move towards the spring time and the property market comes back to life.

The next NAV figures should be interesting with Commercial property rising over the last few months in value and income. Do you think they will start to pay the 6p dividends if the borrowing gets to below 65% of NAV, in the next year or two and the bank premiums are removed?

[knowing] 11/1/2011 15:08

Thought you had migrated ;-)

[flyingswan] 11/1/2011 14:34

London market boosts commercial property returns
Tuesday 11th January 2011

The CB Richard Ellis UK Monthly Index recorded a return of 1.1% for commercial property in December, rounding off a strong year which saw values increase by 8.9% and total returns of 16.1%.

The robust annual headline result was buoyed by a stellar return for Central London offices of 27.3%...

[knowing] 10/1/2011 21:26

French commercial real estate investment market has seen a 41% increase with €6.9 billion transacted in the first nine months of the year, according to a new report.




French property market emerges from 2 year slump



Going to be interesting to see the valuations next time they are published.

[knowing] 10/1/2011 21:16

Nice to have some support ;-)

[warranty] 10/1/2011 18:45

You're not alone Knowing there are more of us than you think keeping the faith.

[chrysippus] 10/1/2011 15:37

Exactly my thoughts...