INVESTORS in ING Industrial Fund can look forward to a distribution for FY10 after the trust was able to lower its gearing level below 45% in the first half year.
However lowering its gearing level has come at a cost, IIF’s operating income fell to $28.7 million for the six months to December 31 2009, compared to $88.4 million in the previous corresponding period.
IIF delivered a statutory loss of $204 million – an improvement from $449.5 million in the pcp.
During the period, adjusted funds from operations was $16.8 million – a decrease from $77 million in the pcp.
And there was no distribution for the half year compared to 5.30 cents per unit in the pcp.
Net tangible assets now stands at 60 cpu down from $1.66 cpu this time last year.
CEO Paul Toussain said 2009 was a difficult and challenging year and the fund was very focused on executing strategies to both stabilise the fund’s capital position and improve its operational performance.
During the period, the fund disposed of $209 million worth of property and successfully raised $700 million of equity raising, which help reduce gearing to 37.1%. IIF’s look through gearing is still at a high of 48.6%.
During the period, the fund leased 368,200 sqm of space across Australia, Canada and Europe.
Work has recommenced on securing pre-commitments for the fund’s strong development book, which consists of the potential to deliver 325,000 sqm in the short to medium term and over 330,000 sqm of further capability through future redevelopment of existing facilities and expansion capabilities.
Toussaint said the fund is now well positioned to capitalise on the pent up demand for quality industrial space caused by development constraints of the previous two years.
He has also forecast a distribution of 3.21 cents for FY10 – IIF had to suspend distributions in March last year until it was able to reduce its balance sheet gearing below 45%.
Australian Property Journal
