F&C Asset Management’s ISIS Property Trust 2 this morning reported a 17% drop in net asset value per share to 132.5 pence for the interim period to the end of December.
The Guernsey-registered fund’s share price fell by 29.5% to 88.5p per share, representing a discount of 33.2% to NAV at the close of a “turbulent six months”.
The property portfolio recorded a capital return of -11.0% which compared with a capital return of -11.7% as measured by the IPD UK Monthly Index.
Total property return dipped 8.5%, although it still outperformed the IPD UK Monthly Index total return of -9.5%.
Looking towards 2008 the fund, one of three offshore property trusts run by F&C Asset Management, predicts another weak year with the market eventually levelling out, and therefore expects that there will be positive real rates of return, with performance being largely income driven.
Chairman Quentin Spicer said: “The company has a significant level of distributable reserves and no pressures with regards to its existing borrowings.”
He added: “The manager will continue to work on enhancing income returns within the existing portfolio and will proceed cautiously with regards to any capital transactions until it is clear that value can be added.”
