Company Background
Invista Foundation Property Trust Limited (referred to as the Company) is a closed-ended, Guernsey registered investment company, managed by Invista Real Estate Investment Management Limited. The Company invests in a diversified portfolio of UK commercial property. The Company has an indefinite life but shareholders will have the opportunity to vote on its continuation at the Annual General Meeting to be held in 2014.
Investment Objective
The Company's objective is to provide shareholders with an attractive level of income together with the potential for income and capital growth from investing in a diversified portfolio of UK commercial property.
The Company's focus is to own commercial properties where it believes it can create value and grow income. Its portfolio comprises a mix of retail, office and industrial property throughout the UK.
Debt
The Company has the power to borrow up to an amount equal to 65 per cent of the Group's Gross Assets (as defined in its Articles). However, it is the current intention of the Board that borrowings will be limited to a maximum of 50 per cent of the Company's total assets.
Investment Portfolio
The Company's direct property portfolio was valued at £442.3 million as at 30 September and comprises 66 assets spread across the main retail, office and industrial sectors.
Dividends and Net Asset Value
During the last annual accounting period to end March 2008 the Company paid out a gross dividend totalling 6.75 pence per annum in four quarterly instalments of 1.6875 pence per Ordinary Share. However, given the deterioration of the general economy and more specifically the real estate market the Board has undertaken an intensive review of the Company’s strategy and also examined the sustainability of the Company’s dividend. The decision has been taken to reduce the quarterly dividend paid from 1.6875 pence per share to 0.88 pence per share, taking effect after the payment of the dividend due to be declared in July 2008.
This step was part of a package of initiatives taken by the Board following the strategic review which also includes reducing debt by £50 million and repurchasing up to £20 million of the Company’s shares. As a result of these steps the Board aims to have the quarterly dividend fully covered by earnings by the end of 2008. It is also the Board’s intention to grow the dividend again as market conditions improve.
Further information about the outcome of the strategic business review can be found in the Company's latest report and accounts.
Investment Manager
The Investment Manager is Invista Real Estate Investment Management and is the largest UK listed real estate fund management group. The Group manages both commercial and residential property across the UK and continental Europe, and has a total of £8.0 billion of assets under management as at end June 2008.
The Investment Manager is also responsible for maintaining this web site.