Invista Real Estate Investment Trust said it is continuing to pursue its winding-down process, and hopes to return more money to shareholders this year.
In its full-year results for 2011, the investment manager, which is 55% owned by Lloyds, reduced its assets under management from £5.2bn to £749m in the 12 months to the end of December.
The company added that the figure has fallen “some £0.2bn as at March 2012”, and while it has made progress in realising value “there is more to be done given that its two largest assets by value and complexity remain on the balance sheet”.
These are two unlisted funds in which it owns significant stakes and continues to manage: the Invista Real Estate International Fund and the Invista Real Estate Opportunity Fund.
Invista has capital commitments outstanding in respect of these two investments that amount to £23m.
Executive chairman Douglas Ferrans (pictured) said: “There remains the clear possibility that the market environment for the execution of asset sales does not maximise the company’s ability to realise value for shareholders. Accordingly, it remains a realistic option that the company will continue to trade for the foreseeable future, albeit on a significantly reduced scale of operations”.
He said the board remains firmly committed to an orderly realisation of value from Invista’s assets and the return of that value to shareholders.
Ferrans added: “In addition, we seek a successful resolution of the outstanding legal dispute we have with our 55% shareholder and previous client, Lloyds Banking Group, our aim being, as far as possible, to do so in a manner that overall achieves the best financial outcome for all shareholders.”
He said that ongoing discussions with third parties in relation to specific assets could realise value at a discount to net asset value, and that cash proceeds ultimately returned to shareholders may be at a discount to the company’s NAV.
During the year, Invista’s revenue fell by 19% to £22.6m, while pretax profit dropped 85% to £2.3m. It paid out £48m, or 18p per ordinary share, to shareholders.
It also completed the sale of Invista Castle – its residential division – and its residual stake in one of its listed funds, the Invista Foundation Property Trust.
Other highlights of the period included: completing the early termination of its HBOS contracts; selling its stake in the IPD Group; and transferring the mandate of Invista European Real Estate Trust in December 2011 and Invista Foundation Property Trust in January 2012.
bridget.oconnell@estatesgazette.com
