BATTERED and bruised LPT fund managers reeling from the loss of $11 billion across the sector on Monday have moved to reaffirm and regain investors' trusts.
Yesterday, small to big size LPTs and listed property companies simultaneously released statements reiterating their funding arrangements, following Centro’s Black Monday.
Centro’s rival Macquarie CountryWide, said as at November 30 2007, the trust’s gearing was 52% and the weighted average term to maturity of all debt facilities is 3.4 years.
Macquarie CountryWide’s chief executive Steven Sewell said the trust’s debt profile remains solid.
“We have remained focused on capital management, asset sales of over $A340 million and proactively maximising our debt and equity positions. This combined with the trust’s quality portfolio, long unexpired lease term and strong asset management skills, positions the trust well to continue to enhance investor returns.” Sewell concluded.
Rival Macquarie DDR Trust also provided an update, confirming there are no debt facilities due to expire within the current financial year and as at September 30 2007, the trust’s gearing level was 52%.
The trust’s chairman Richard Sheppard said despite the current challenging credit environment, the trust remains in a solid position.
Meanwhile Australian focused retail property investor CFS Retail Property Trust also weighed in, saying it is currently rated A/A-1 by Standard & Poor’s.
CFX’s fund manager Michael Gorman said the trust is provided with diversified sources of debt funding and a staggered maturity profile or weighted average maturity of approximately 4.7 years.
“The trust’s strong balance sheet coupled with its credit rating being the highest in the listed property trust sector and no debt maturities in the 2008 financial year position the trust well in light of the current volatility in the credit market,” Gorman continued.
Also from the Colonial First State Global Asset Management stable, the Commonwealth Property Office Fund said it is currently rated A-/A-2 by S&P and A3/P-2 by Moody’s.
CPA’s fund manager
“Given the quality of CPA’s credit rating, its low gearing and strong financial position and the fact that there are no debt maturities in the 2008 financial year, the fund is well positioned to tolerate the current volatility in the credit market,”
Outside of the retail property sector, Macquarie Office Trust announced its gearing level was 44%.
MOF’s chief executive Adrian Taylor said the Trust’s debt position remains strong through recent asset sales of over $A430 million realising profits, active management of debt and equity sources of capital.
Rival Tishman Speyer Office Fund’s chief executive Thomas Feldstein said as at June 30 2007 TSO’s share of outstanding debt on a “look-through” basis was $US1.1 billion and none the trust’s debt facilities are due to expire or be renegotiated prior to December 2009.
He added that TSO’s share of current outstanding debt has not changed materially since June 2007. TSO currently has un-drawn capacity on its corporate facility in excess of $US200 million and at June 2007 the trust was geared on a “look-through” basis at 47.7%.
Meanwhile, the highly geared triplets, Rubicon America Trust (72.5%), Rubicon Europe Trust (60%) and Rubicon Japan Trust (60%) also clarified their positions.
RAT’ said it has $US1.34 billion of debt with a remaining average term of 8.2 years and a weighted all in interest rate of 6.19% and less than 2% of its debt are maturing over the 12 month period.
REU said it has €640.5 million of debt with a remaining average term of 5.0 years and a weighted all in interest rate of 5.33% and has less than 8% of its debt maturing over the 12 month period.
And RJT’ said it has ¥86.4 billion ($A892 million) in debt with a remaining average term of 2.2 years and a weighted all in interest rate of 2.50%. RJT has less than 6% of its debt maturing over the period to June 30 2008.
Finally, diversified property group
Del Borrello said it is looking forward to announcing a sound half year result early in 2008.
The property trust indices made up some lost ground yesterday gaining 58.9 points to close at 2088.9 points.
Valad Property Group led the gains in the sector up 18 cents or 14.40% to close at $1.43; followed by GPT up 28 cents or 7.05% to $4.25; DB REEF Trust up 11.5 cents or 5.91% to $2.06; CFS Retail Property Trust closed 12 cents or 5.17% higher at $2.44 and Westfield recoup some of its losses by posting a 72 cents or 3.68% gain to $20.28.
Australian Property Journal
