First Half Summary Report for Fund unit-holders

Transcription

1 Summary Report for Fund unit-holders First Semester 2009

2 Presentation of the Fund Fondo Alpha is the first example of disposal of public-sector real estate, and the first unit-linked property fund to be listed on the Stock Exchange. Established in 2001, the Fund which comprises 26 commercial and office properties contributed by INPDAP, located in Milan, Bologna and Rome was successfully placed with retail investors, and is listed on the Italian Stock Exchange since Fund Characteristics Type of fund Contribution Management activities Leases During the semester, the Fund continued its lease rationalization projects, renewed any expiring leases and unified the separate leases entered into with a single tenant. Due to negative economic situation, the Fund received withdrawal requestes from pivate tenants for severe reasons (ex art. 29 of Law 392/78), showing incresing difficulties to be credit to lease agreements. Entitycontributingthe property Inpdap Type of real estate Offices (77%) Duration Investors 15 years Date of contribution 01/03/2001 Scadenza indicativa 27/06/2015 Number of units issued at contribution Profit distribution Quotation Unit value of fund units at 30/06/2009 ( ) and Qualified Investors Yearly or on an interim basis in an amount not lower than 80% of distributable profits Segmento Fondi Chiusi of MIV since 04/07/2002 4, Capital value enhancement of real estate assets In line with the project for bringing the properties up to standard, in accordance with the 2009 budget, maintenance, upgrading and improvement works continued, in respect of several buildings included in the fund s real estate portfolio, and totalling approx. 3.9 million euros. Among the buildings entailing the highest cost was that in Via delgiorgione59-63,foratotalamountofca.2million euros for facade renew. Investment& divestment policies The analysis, assessment and study of investment opportunities continued in first half 2009, for the purpose of improving the Fund s asset allocation and performance. Following a wider divestment process started in september 2008, on 29 may 2009 the Fund stipulated a deed of sale, with payment of the first instalment, for the building located in Via Cristoforo Colombo 70, purchased last decemberforatotalpriceof25.5million euroswithacapital gainof2millioneuros. Initial value( ) 259,687,500 NAV at 30/06/2009 ( ) 416,553,307 Total assetsat 30/06/2009 ( ) Market value of fundowned properties at 30/06/2009 ( ) 537,703, ,021,463 (includes market value of the property owned by the subsidiary Da Vinci S.r.l. )

3 Summary of financial statements at 30/06/2009( ) BALANCE SHEET jun-09 % Asset % Real estate and beneficial rights in real estate % Stakes in real estate companies % Movable property and cash % Other assets % Liabilities % Loan % Payable and other liabilities % Net asset value (NAV) Unit value of fund units 4.009,95 INCOME STATEMENT jun-09 Gross results from typical operations Financial instruments Rents receivable and other revenues Valuation gains/losses Property management expenses Other Financial expenses Net results from typical operations Management expenses Other revenue and expenses Operating results before tax Profit Key Financial Ratios Financial Statements at 30/06/2009 IRR 12.57% Dividend Yield 6.96% At 30/06/2009, the average annual dividend yield, determined as the ratio of the earnings distributed by the Fund to theunit valueat theplacement date, stood at 6.96%. 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 12,57%. Balance sheet figures show that over 90% of the Fund s assets are invested in real estate and the relevant beneficial rights. The gross operating results from typical operations at the end of 31/12/2008 totals 23,0 million euros, most of which from rents receivable and valuation gains. Performance From the date of contribution of the property to the Fund (i.e. 1 March 2001) to 30 june 2009, the unit value of the Fondo Alpha units rose from to euros, with a compound annual growth rate of 6.4%. For first half 2009, the Fund will distribute earnings for 4,965 million euros Units value and distributed earnings 2,600 Leverage 3,719 3,764 3,755 3, ,878 3, , At 30/06/2009, the loan to value ratio of the Fondo Alpha stood at ca. 22%, with broad margins for an increase of external debt. Fund s total debt considering the Fund s share of the loan taken out by the part-owned company Da Vinci S.r.l. stands at approx. 111 million euros Profits LTV 15,9% LTV 12,6% giu-09 Leva Maximum utilizzabile Leverage LTV 16,7% LTV 18,9% Leva Leverage esercitata of the Fund Jun LTV 21,7%

4 The Real Estate Portfolio Property assets directly owned by the Fondo Alpha at 30/06/2009 comprise 20 buildings, as follows: 1) Via Cavour 5 11) Via Longoni 3 2) Via del Giorgione 59/63 12) Via Casilina 3 3) Vicolo Casal Lumbroso 77 13) Via C. Colombo 70 4) Via di Tor Cervara 285/C 14) Milan, Via Vitruvio 43 5) Via Capitan Bavastro 92/94 15) Agrate Brianza Via Colleoni 6) Via Capitan Bavastro ) Assago Milanofiori Palazzo 5B 7) Via Cristoforo Colombo 44 17) Basiglio, Palazzo Volta / Galilei 8) Via N. Parboni 6 / Via I. Nievo 18) Melzo, Via C. Colombo 24 9) Via Lamaro 51 19) Milan, Via Crespi 12 10) Via Longoni 92 20) Bologna, Via Aldo Moro The Portfolio comprises of 20 buildings located in central and northern Italy with a total gross area of 321,8291 sqm. Plusa25%stakeintheprivatelimitedcompany DaVinciS.r.l.. About 81.9% of the properties owned are currently income generating. At the end of the period, 99 lease-related items were recorded (property leases and other occupation-related charges), 86 of which relating to tenants belonging to the private sector and 13 to tenants consisting of public-sector entities. Breakdown by type of investment Development 5% Value added 12% Breakdown by geographical area North-East 5,2% North-West 14,1% Core 83% Centre 80,8% Logistica 8,5% 3,2% Breakdown by property use Other 11,0% Breakdown of rents by type of tenant Private Companies 44,0% Offices 77,3% Administrati on 56,0%

5 The Real Estate Portfolio Via Cavour 5 Area of leased premises (sqm) Lease expiration Total rents 30/06/2009 ( ) Via del Giorgione 59 Industrial, retail Area of leased premises (sqm) Lease expiration Total rents 30/06/2009 ( ) Via Lamaro 51 Industrial, retail Area of leased premises (sqm) Lease expiration Total rents 30/06/2009 ( ) Via Longoni 92 Area of leased premises (sqm) /12/201 Lease expiration 0 Total rents 30/06/2009 ( ) Via N.Parboni 6 Area of leased premises (sqm) Total rents 30/06/2009 ( ) Via Longoni 3 Area of leased premises (sqm) Total rents 30/06/2009 ( ) Via C. Bavastro 92 Area of leased premises (sqm) Lease expiration Total rents 30/06/2009 ( ) Via C. Bavastro 174 Area of leased premises (sqm) Total rents 30/06/2009 ( )

6 The Real Estate Portfolio Melzo(MI) Via C. Colombo 24 Bologna, Via Aldo Moro Industrial, retail Area of leased premises (sqm) Lease expiration Total rents 30/06/2009 ( ) Area of leased premises (sqm) Total rents 30/06/2009 ( ) Assago Milanofiori(MI) Palazzo 5B Industrial, retail Area of leased premises (sqm) Total rents 30/06/2009 ( ) Basiglio(MI) Palazzo Volta Galilei Industrial, retail Area of leased premises (sqm) Total rents 30/06/2009 ( ) Milano, Via Crespi 12 Agrate Brianza (MI) Via Colleoni Industrial, retail Area of leased premises (sqm) Total rents 30/06/2009 ( ) Industrial, retail Area of leased premises (sqm) Lease expiration Total rents 30/06/2009 ( ) Roma, Via C. Colombo 44 Roma, Via Casilina 3 Area of leased premises (sqm) Total rents 30/06/2009 ( ) Area of leased premises (sqm) Total rents 30/06/2009 ( )

7 The Real Estate Portfolio Via C.Colmbo 70 Area of leased premises (sqm) Total rents 30/06/2009 ( ) Da Vinci Center Fondo Alpha holds a 25% stake in Da Vinci S.r.l. (totalling approx. 3.8 million euros). The purpose of the company part owned by other Funds managed by Fimit 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 nearthenewtradefair NuovaFieradiRoma. The Da Vinci Center development consists of two separate blocks sitting on a connecting platform; the total area is over 56,600 sq.m, of which over 36,400 sq.m dedicated to office space. The development is scheduled for completion in the first half of Vicolo Casal Lumbroso 77 Vacant Area of leased premises (sqm) - Lease expiration - Total rents 30/06/2009 ( ) - Via di Tor Cervara285 Area of leased premises (sqm) Lease expiration oltre il 2018 Total rents 30/06/2009 ( ) On 29 June2004, Fondo Alpha subscribed to 28 units, at the price of 250,000 per unit, of the Pirelli RE Office Fund Cloe, a closed-end property fund reserved to qualified investors, for an investment totaling 7 million. The value of the investment, at 30 june 2009, stands at million euros.

8 Strategy& Outlook The aim of the Fund is to maximize the return on investments for unit holders, which can be achieved by diversifying investments in the real estate industry and implementing a more aggressive commercial policy, as in recent years, also in consideration of the wait-and-see attitude prevailing on the market today. Following is an overview of the key management policy guidelines: optimizing the existing real estate portfolio, to further develop and maximize returns; real estate divestments, targeting both vacant or multitenant premises, and properties capable of securing interesting rates of return in the short term; real estate investments, also through company vehicles, and/or the development of innovatory real-estate activities, with a view to exploiting the wait-and-see attitude on the market; possible use of the financial lever, consistently with the applicable regulations; investments in financial instruments; building partnerships with industry operators, for the purpose of launching development projects. With regards to medium-to-long-term policies, these are focused on: management strategies aimed at achieving the systematic distribution of profits to unit-holders; asset management planning, providing for a lower time horizon than originally planned, if expedient, in order to exploit any market peaks/opportunities. 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 Alpha 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 at 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,oritscontents,orasaresultoftheuseofthisdocument,exceptinthecaseoffraudorgrossnegligence. 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. ThisdocumentdoesnotconstituteanofferoraninvitationtopurchaseorsubscribetounitsoftheFondoAlphaImmobiliareFund,nordoesitconstituteinany way acontractor acommitmenttoenter into acontract, anditcannotbe usedasabasis for entering into any type ofcontractor committingoneselftoany form of undertaking. Any decision relating to investments in the Fondo Alpha Immobiliare Fund shall be based exclusively on the analyses and information set outintherelevantprospectusandnotonthecontentsofthisdocument. TheFondoAlphaFundunitsaretradedontheMIVmarketofBorsaItalianaS.p.A.Therelevantnegotiation codeisqfalandtheisincodeisit 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.