Invesco Property Income Trust suffered a 66% plunge in its net asset value in the fourth quarter of last year.
The property income trust revealed in its interim management statement a drop in its NAV from 43.5p to 14.7p a share. The quarter saw significant changes in the sterling value of the company’s bank borrowings, currency swaps and interest rate swaps.
The company’s UK properties, which account for 44% of the £297m portfolio, dropped by 18.3% in value, while the continental European properties fell by 5.4%. The overall drop in sterling terms was 2.1%.
The gross portfolio yield of the portfolio at the end of December was 8.62%, with a weighted average unexpired lease term of 4.8 years.
The company continues to discuss its financing arrangements with its banks.
Its loan-to-value ratio of 84.7% is in breach of the 70% covenant. It remains compliant with its interest-cover covenant – currently 155.4% against a minimum of 145%.