Invista Foundation Property Trust and Picton Property Income Trust updated the market this week ahead of Monday’s merger announcement deadline.
Invista Real Estate’s listed Foundation Property Trust reported a 4.6% fall in net asset value in Q3 due to the negative movement of interest rate swaps. The vehicle’s NAV fell to 47.3p per share in the three months to 30 September.
The negative movement of the company’s interest rate swaps of £4.1m over the quarter accounted for approximately half of the total decrease in NAV, the company said.
At the end of September, the total negative mark-to-market value of these swaps was -£30.6m, representing 18% of the total NAV.
The vehicle’s directly held property portfolio fell in value by £800,000 to £332m during the period.
Former ING vehicle, Picton Property Income Trust, posted a 1.1% increase in NAV to £211.3m, or 61p per share, in the same period.
Its underlying property portfolio increased in value by 0.5% to £425m.
Picton made a non-binding, indicative proposal about a merger with the rival listed trust to Invista Foundation’s board on 29 July.
It has now been given until 5pm on 31 October to “put up or shut up”.
