This article is from the Australian Property Journal archive
ING Industrial Fund’s joint venture purchase of Canada’s Summer REIT has paid off, with the business contributing significantly to the fund’s half year net profit of $212.1 million, up 17.1% over the previous year.
In the six months to December 31, 2006, the fund’s net profit excluding non-cash items increased by 18.1% to $76.4, compared to $64.7 million in 2005. Revaluations during the 2006 half-year added $62.4 million, with net asset value per unit increasing by 3.4% to $2.15.
IIF has declared an interim distribution of 7.95 cents, up 3.2% from 7.70 cents.
IIF’s chief executive Paul Toussaint said contributing significantly to this increase is the fund’s investment in Canadian Summit REIT, continued acquisition of properties in Europe, and the fund’s active development programme.
The fund’s revenue increased by 28.3% to $124.2 million. Total assets increased by $1.4 billion or 49.2% to $4.25 billion over the half-year as a result of the investment in ING Real Estate Canada Trust and the acquisition of European and Australian properties.
“IIF has achieved strong earnings growth for unitholders and has substantially expanded its offshore property portfolio over the past six months. Management has delivered on its objective to provide investors with exposure to a diversified portfolio of prime industrial real estate in key global markets, whilst achieving strong investment returns on a risk adjusted basis.
“The property portfolio has continued to return excellent results, including a customer retention rate of 81%. Including the Fund’s investment in Canada, the portfolio has a long average lease term of 5.3 years and high occupancy level of 98%, underscoring the security of the Fund’s income stream,” he added.
Toussaint said the transaction has immediate and longer term benefits for unitholders.
IIF’s development pipeline is delivering excellent results. In Australia, over 140,000 sqm of new space will be completed during the year ending June 30, 2007, providing additional annual rental income of $13.2 million. Current and projected development activity is expected to exceed this level during the year ended 30 June 2008.
The development programme in Canada is also gaining momentum, with completions during the period to June 30, 2008 estimated to be in excess of 160,000 sqm.
All regions are expected to maintain the Fund’s consistently high occupancy levels and tenant retention rates, providing unitholders with a secure income stream and excellent prospects for future growth.
“The fund continues to gain traction in the European markets, whilst IIF’s development activities in Australia have also gathered momentum… the fund’s property portfolios in Australia, Canada and Europe are well positioned to continue to benefit from positive market fundamentals in these three regions.
“The economies of Australia and Canada are expected to remain strong, whilst conditions are improving in the major markets of Western Europe. Investor demand continues unabated, and all markets the Fund has invested in are enjoying positive rent growth and net absorption,” he added.
Toussaint said the fund will also continue to benefit from the global reach and service offering of ING Real Estate.
Australian Property Journal
