Invista European Real Estate Trust has revealed a 10% fall in its net asset value to €0.415 (33.4p) a share in the quarter to the end of June.
The pan-European listed fund, which has been managed by Internos Real Investors since January, also reported a 2.9% slide in the value of its direct property portfolio from €434.9m at the end of March to €422m at 30 June.
IERET said the €12.9m drop was “a result of market sentiment in the eurozone and pressure on portfolio income from vacancy and approaching lease breaks”.
There were no property transactions during the quarter.
As the end of the quarter, the vehicle’s portfolio generated gross income of €34.3m pa, representing a gross income yield of 8.12% and a net income yield of 7.37%.
The portfolio weighted average lease term to break is 4.4 years and 5.7 years to expiry. The portfolio void level by income as at 30 June 2012 was 16.6%, however post quarter end portfolio vacancy by income increased to 20.6% following tenants vacating logistics sites in France and Czech Republic.
Net assets increased €22.7m quarter-on-quarter due to reclassification of an asset held for sale and liabilities attributable to it, to stand at €36.6m at the end of June.
As at 30 June 2012, IERET had drawn down a total of €286.7m of senior debt in respect of its €359.3m facility with the Bank of Scotland. In addition, the company had cash balances of €24.3m, giving a net debt position of €262.4m, reflecting a net loan-to-value ratio of 62.2%, and gross debt LTV, on which the bank covenants are tested and the margin determined, was 67.9%.
