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Presentation of the Fund
Fondo Beta is a closed-end public contribution real estate
fund set up by Fimit SGR on 18 February 2003. The Fund
consist of real estate assets contributed by INPDAP, which,
basing on the previous experience of the Fondo Alpha real
estate fund, on 29 December 2003 decided to contribute a
part of its assets to be managed by Fimit SGR. The Fund is
operative since 1 January 2004; a part of the Fund units were
subscribed by retail investors and, on 24 October 2005, the
Fund was listed on the Italian Stock Exchange.
Summary Report for Fund unit-holders
Fund Characteristics
Type of fund Public Contribution
Entity contributing the
propertyINPDAP
Type of real estate Offices (62%)
Duration 8 years
Investors Retail and Qualified Investors
Date of contribution 01/01/2004
Management activities
Leases
Property letting activities focused on the regularization of the
situations in the Fund’s real estate portfolio that give rise to
occupation-related charges, and on the objective of
exploiting the (albeit limited) number of vacant premises for
revenue producing purposes, with a view to increasing rent
levels.
Capital value enhancement of real estate assets
In first half 2009, projects were implemented with a view to
enhancing the value of the properties and bringing them up
to standard, in line with the improvement and upgrading
targets set out in the business plan of the Fund. Overall, the
extraordinary maintenance works carried out in the half-year
period totalled ca. 639,000 euros, with respect to the
properties still owned by the Fund with the exception of the
Forte Village Resort. The buildings requiring the highest
capital expenditure were those situated in Rome, Via Cavour
6 e Via Eugenio Grà 19 and in Spoleto, Viale Trento e
Trieste 136. During the semester, works for the extension
First Half 2009
Date of contribution 01/01/2004
Expiration date 18/02/2011
Number of units
issued at contribution268,474
Profit distribution
Yearly, or on an interim basis, in an
amount not lower of 70% of the
distributable profits
QuotationSegmento Fondi Chiusi of MIV since
24/10/2005
Unit value of fund
units at 30/06/2009
(€)
597.437
Initial value (€) 268,474,000
NAV at 30/06/2009
(€)160,396,248
Total assets at
30/06/2009 (€)234,984,808
Market value of fund-
owned properties at
30/06/2009 (€)
180.038.122
Trieste 136. During the semester, works for the extension
and requalification of Forte Village Resort for a total amount
of 2.2 million euros, were completed.
Investment & divestment policies
During the first semester of the current year, on 27 February
2009, the Fund continued its divestment policy selling a
building located in Largo Salvo d’Acquisto 1, Siena, for the
price of 5.55 million euros, generating a capital gain (taking
into account the extraordinary maintenance works carried
out) of 2.083 million euros (+68.7%).
Moreover, on 9 march 2009 Fondo Beta dismissed units of
Fondo Omicron Plus, a closed-end Fund reserved to qualified
investors managed by Fimit SGR, with a capital gain equal to
1% of the purchase price.
Summary of financial statements at 30/06/2009 (€)
From the date of contribution of the property to the Fund to
the end of the first half of 2009, the unit value of the Fondo
Beta units dropped by 40.2%, compared to profit
distributions and unit repayments from the 1st year of listing.
Considering profits distribution (527,97 euros per unit) and
repayments per unit (475,75 euros per unit), total increase is
64.62%.
For first half 2009, the Fund will distribute earnings for 3.074
million euros.
Performance
INCOME STATEMENT jun-09
Gross results from typical operations 4.849.332
Financial instruments -1.006.400
Rents receivable and other revenues 7.601.609
Valuation gains/losses -1.432.974
Property management expenses -507.678
Summary Report for Fund unit-holdersFirst Half 2009
1,228
331€ 400
€ 600
€ 800
€ 1.000
€ 1.200
€ 1.400
Units value and distributed earnings
1,149 1,1501,1121,195 1,179
676
598
BALANCE SHEET jun-09 %
Asset 234.984.808 100%
Real estate and beneficial rights in real estate 180.038.122 77%
Stakes in real estate companies 8.897.378 4%
Movable property and cash 7.442.832 3%
Other assets 38.606.476 16%
Liabilities 74.588.560 100%
Loan 40.216.246 54%
Payable and other liabilities 34.372.314 46%
Net asset value (NAV) 160.396.248
Unit value of fund units 597,437
IRR 11.57%
Dividend
Yield11.89%
Financial Statements at 30/06/2009Key Financial Ratios
At 30/06/2009, the average annual dividend yield,
determined as the ratio of the earnings distributed by the
Fund to the unit value at the placement date, stood at
11.89%. From the property contribution date to the first
semester of 2009, the Fund posted an Internal Rate of Return
(IRR), based on the initial value, outgoing cash flows and NAV
at 30 june 2009, of 11.57%.
Balance sheet figures show that over 77% of the Fund’s assets
are invested in real estate assets and real property rights,
while the 4% is invested in interests in real estate companies.
The gross operating results from typical operations totals 4.8
million euros.
With regard to the value of the properties held by the Fund,
the loan to value ratio totals approx. 22.34%.
At 30/06/2009, the total debt of Fondo Beta – equal to 40.2
million euros – consists of the loan taken out by the Fund to
purchase the Forte Village Resort.
Leverage
0
50.000
100.000
150.000
200.000
250.000
2005 2006 2007 2008 giu-09
Leva Max utilizzabile Leva esercitata
LTV
0%
LTV
0%
LTV
22,3%
LTV
17,2%
LTV
21,8%
-507.678
Other 194.775
Financial expenses -761.722
Net results from typical operations 4.087.610
Management expenses -1.774.467
Other revenue and expenses -129.868
Operating results before tax 2.183.275
Profit 2.183.275
Maximum
Leverage
Leverage of the
Fund
169
1880
11 34
18873
11
130
331
14
€ 0
€ 200
H2 05 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 H1 09
Profits Repayments Unit value minus profits and repayments
The Real Estate Portfolio
The property assets directly owned by Fondo Beta comprise the buildings as follows:
The Portfolio comprises 8 buildings located in central Italy, primarily Rome, with a total area of approx. 92,121 mq.
In addition to the assets above, Fondo Beta also holds a joint investment in the Forte Village Resort, consisting of a 27% interest
in the property, from which it receives rents totalling 3.240 million euros, and a controlling stake in “Da Vinci S.r.l.”.
The Portfolio (including the stake in the forte Village Resort) features an overall average occupancy of 97.3 %, with annual rents
of approx. 14.3 million euros, equivalent to about 131 euro/sq.m. per year (calculated based on the useful area).
Rents are guaranteed by 33 property leases 26 of which relating to tenants belonging to the private sector and 7 to tenants
consisting of public-sector entities, with diversified lease expiry dates, which reduces the risk of excessive exposure resulting
from simultaneous or excessive lease expiries.
Breakdown by type of investment Breakdown by geographical area
1) Rome, Via Eugenio Grà n. 19 5) Rome, Via Odone Belluzzi n. 11 - 31
2) Rome, Via Prospero Alpino n. 16-20 6) Latina, Viale P.G. Nervi n. 270
3) Rome, Via Cesare Balbo nn. 39-41 7) Perugia, Via Palermo n 108
4) Rome, Via Cavour n. 6 8) Spoleto, Viale Trento e Trieste n. 136
Summary Report for Fund unit-holdersFirst Half 2009
Core
88,3%
Development
11,7%
Centre
71,1%
South &
Islands
28,9%
Offices
62,1%Retail
1,4%
Hotels
28,9%
Other
7,6%
Breakdown by property use
Private
Companies
32%
Public
Administrati
on 68%
Breakdown of rents by type of tenant
Breakdown by type of investment Breakdown by geographical area
Latina,
Via P.L.
Nervi 270
Il Portafoglio Immobiliare
Summary Report for Fund unit-holdersFirst Half 2009
Type of tenant Industrial, retail
Area of leased premises (sqm) 4.329
Lease expiration 2015-2016
Total rents 30/06/2009 (€) 295.026
Type of tenant Public Administration
Area of leased premises (sqm) 14.442
Lease expiration 31/12/2010
Total rents 30/06/2009 (€) 1.342.000
Type of tenant Industrial, retail
Area of leased premises
(sqm) 9.274
Lease expiration 2013-2014
Total rents 30/06/2009 (€) 853.691
Perugia,
Via Palermo
108
Type of tenant Public Administration
Area of leased premises
(sqm) 37.721
Lease expiration 2013-2014
Total rents 30/06/2009 (€) 3.360.056
Spoleto,
Viale Trento e
Trieste 136
Rome,
Via O. Belluzzi
11-31
Rome,
Via Prospero
Alpino 16-20
Rome,
Via Eugenio
Grà 19
Type of tenant Retail
Area of leased premises (sqm) 2.443
Lease expiration 2013-2014
Total rents 30/06/2009 (€) 220.503
Type of tenant Retail
Area of leased premises (sqm) 4.857
Lease expiration 2013-2014
Total rents 30/06/2009 (€) 536.156
Type of tenant Public Administration
Area of leased premises (sqm) 4.722
Lease expiration 40543
Total rents 30/06/2009 (€) 1.096.876
Type of tenant
Public
Administration
Area of leased premises (sqm) 11.814
Lease expiration 2013-2014
Total rents 30/06/2009 (€) 3.418.741
Rome,
Via Cesare
Balbo 39-41
Rome,
Via Cavour 6
Le Partecipazioni
Fondo Beta holds a 19% stake in Progetto Alfiere S.p.A.,
which itself has a 50% interest in Alfiere S.p.A. The latter
company owns the high-rise development called “Torri
dell’Eur”, in viale Europa 242, in the EUR district of
Rome, and is a key partner in the project for the value
enhancement and refurbishment of the property.
At 30/06/2009, the value of this (non-controlling) stake
was 6.5 million euros.
Progetto
AlfiereForte Village
Resort
Santa Margherita
di Pula (CA)
Summary Report for Fund unit-holdersFirst Half 2009
Type of tenant Retail
Area of leased premises (sqm) 17.550
Lease expiration 2015-2016
Total rents 30/06/2009 (€) 3.240.000
Fondo Beta holds a 25% stake (worth approx. 3.8 million euros) in “Da Vinci S.r.l.”.
The purpose of the company – part owned by other Fimit Funds – is to build and then
let/sell office premises in the “Da Vinci Center” office complex. The complex is
located in an office/hotel development area on the “Rome - Fiumicino” motorway, in
a strategic location near the new trade fair “Nuova Fiera di Roma.
The Da Vinci Center development consists of two separate blocks sitting on a
connecting platform; the total area is over 56,600 sqm, of which over 36,400 sqm
dedicated to office space.
The development is scheduled for completion in the first half of 2010.
Da Vinci
Center
Strategy & Outlook
The aim of the Fund is to maximize return on investments for unit holders, which can be achieved by implementing the
policy guidelines as follows:
� pursuance of asset divestment programms, within a timeframe compatible with the remaining life of the Fund;
� systematic distribution of the revenues from the ordinary and extraordinary management of the Fund and partial
proportional repayments to the unit holders, in respect of the property divestments.
According to this outlook, since the Fund has a remaining life of only two years, the divestment plan finalized for the
winding up of the Fund must continue apace.
Considering the current situation of the real estate market, which shows a reverse trend – or just a slowdown – compared
to the upward trend of the previous period, and taking into account the fact that the Fund’s residual life will hardly allow it
to exploit any new market “windows of opportunity”, it would be expedient to accelerate the divestment operations in
2009 and to use the last period for the remaining liquidations without any particular deadline constraints. The Fund
strategic planning report envisages the disposal of 6 on 8 assets, foreseeing also the chance to sell buildings for which the
sale is not yet commissioned.
Summary Report for Fund unit-holdersFirst Half 2009
Disclaimer
This document has been prepared by Fondi Immobiliari Italiani Società di Gestione del Risparmio S.p.A. solely as a study on the development of the Fondo Beta
property fund by parties with a special interest in this type of financial product.
The data set out in this presentation have been extracted from the financial statements as 30 june 2009, and other previous half-year statements, to which
reference should be made for further information.
The information contained in this document has not been audited by an independent body and no implicit or explicit guarantees can be provided with respect
to the fairness, accuracy, completeness and precision of the information and opinions contained herein. Several parts of this presentation contain outlook
statements/data which should be viewed as mere estimates and which might even significantly differ from any actual future results. Neither FIMIT SGR, nor its
directors, employees, consultants or representatives can be held in any way responsible for any damage, charge or loss deriving from the use of this
document, or its contents, or as a result of the use of this document, except in the case of fraud or gross negligence.
The performance figures are the result of estimates made by independent expert assessors. The right to repayment can be exercised only at maturity and
according to the terms and conditions of the Fund Management Rules.
This document does not constitute an offer or an invitation to purchase or subscribe to units of Fondo Beta Immobiliare, nor does it constitute in any way a
contract or a commitment to enter into a contract, and it cannot be used as a basis for entering into any type of contract or committing oneself to any form of
undertaking. Any decision relating to investments in Fondo Beta Immobiliare shall be based exclusively on the analyses and information set out in the relevant
Prospectus and not on the contents of this document.
The Fondo Beta units are traded on the MIV market of Borsa Italiana S.p.A. The relevant negotiation code is QFAL and the ISIN code is IT0003049605.
Before purchasing any units please read the Prospectus/Listing particulars, the Rules, the financial statements and operating reports relating to the Fund.
By accepting this document you agree to be bound by the foregoing limitations and/or prohibitions.
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