for Fund Quotisti unit-holders

Transcription

1 Report Summary sintetico Report per i for Fund Quotisti unit-holders Secondo Secondsemestre Half

2 Presentation of the Fund Fondo Beta is the second closed-end public contribution real estate fund set up by Fimit SGR on 18 February 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. Type of fund Date of establishment 18 February 2003 Duration Type of real estate Independent expert Custodian bank Auditing firm Profit distribution Contributing entity Closed-end public contribution property fund (pursuant to article 14 bis of Law 86/1994) 8 years from the date of establishment, plus a possible 2-year extension and a 3-year grace period The Fund s assets may be invested in real estate of any kind, primarily retail/office and residential property, and/or real property rights. The assets may also be invested in developable land, in respect of which the building permits (or equivalent) have already been issued, for development purposes, or properties requiring requalification, refurbishment, upgrading, improvement or restoration. Board of Independent Experts Banca Intesa San Paolo Ernst & Young Yearly, or on an interim basis, in an amount not lower of 70% of the distributable profits, from the 2nd year of operation if fund rules requirements are satisfyed as at art. 3 Proventi della Gestione del Fondo INPDAP Date of contribution 1 January 2004 Value at contribution Number of units issued at contribution Nominal value of each unit Quotation Overall net value of fund at 31 December 2008 Unit value of fund units at 31 December 2008 Market value of fund-owned properties at 31 December 2008 MTF segment Class 2 Closed-end funds (now MIV) listed on the Italian Stock Exchange since 24 October , (includes the market value of the investment in the Forte Village Resort and the market value of the property owned by the subsidiary Da Vinci S.r.l. )

3 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. Value enhancement of current real estate assets In 2008, 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 prepared by the Fund. Overall, the extraordinary maintenance works carried out in the half-year period totalled million euros, with respect to both the properties still owned by the Fund at the end of the second half of the year, and those disposed during the first half. The buildings requiring the highest capital expenditure were those situated in Via Longoni 53/65, Via Cavour 6 and Via Cesare Balbo 39/41, in Rome, and in Largo Salvo d Acquisto 1, Siena, and the Forte Village Resort. Investment & divestment policies During the year, in view of the approaching maturity date of Fondo Beta, Fimit SGR launched a process aimed at accelerating the disposal of the real estate owned by the Fund. In particular, on 30 June 2008, a total of 14 buildings were sold as a package, for million euros. The capital gain on the sale totalled million euros, including the capitalized costs, totalling million euros, incurred in the half-year period before the disposal. Compared to the contribution value (at 1/1/2004) of the properties, the Fund achieved a positive delta of million euros (+106%). During the first quarter 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 work carried out) of million euros (+68.7%). Moreover, as regards the 51% interest in the special purpose vehicle Via Cavour S.r.l. owner of the complex in Via Cavour/Via Sforza/Via Lanza/Largo Venosta, Rome this stake was sold off on 23 September 2008, with a return on investment for the Fund of million euros. On 30 december 2008 Fondo Beta acquired units of Fondo Omicron Plus, closed-end Fund reserved to qualified investors managed by Fimit SGR. In particular, the Fund acquired n Fund units and, in line with the shortterm disposal strategy, on 9 march 2009 the Fund dismissed the units with a capital gain equal to 1% of the purchase price. The remaining 8 properties plus the 27% interest owned by the Fund in the Forte Village Resort still represent an interesting investment opportunity for potential investors.

4 Fund Performance Summary of financial statements ( ) BALANCE SHEET dec-06 % dec-07 % dec-08 % Assets % % % Real estate and beneficial rights % % % Stakes in real estate companies % % % Movable property and cash % % % Other assets % % % Liabilities % % % Loans 0 0% % % Payables and other liabilities % % % Net asset value (NAV) INCOME STATEMENT dec-06 dec-07 dec-08 Gross results from typical operations Financial instruments Rents receivable and other revenues Valuation gains/losses Profit/losses from property sales Property management expenses Other Financial expenses Net results from typical operations Management expenses Other revenue and expenses Operating results before tax Profit for the year At 31/12/2008, 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 14.6%. Moreover, from the property contribution date to the end of 2008, the Fund posted an Internal Rate of Return (IRR) of 11.95%, based on the initial value, outgoing cash flows and NAV at 31 December The ROE for 2008, determined as the ratio of the operating profit to the NAV at 31/12/2008, stood at 18.34%. Balance sheet figures show that over 65% of the Fund s assets are invested in real estate assets and real property rights, while the remaining 14% is invested in interests in real estate companies. The gross operating results from typical operations at the end of 31/12/2008 totals 75.6 million euros, most of which from rents receivable and from the profit made on the sale of property during the year (71.8%). Key Financial Ratios Financial statements at 31/12/2008 IRR 11,95% ROE 18,34% Dividend Yield 14,6%

5 Fund Performance Units value and distributed earnings half05 II sem 1 half06 I sem 2 half06 II sem 1 half07 I sem II 2 half07 sem 1 half08 I sem 08 2 half08 II sem 08 Provento Profit Rimborso Repay Valore Profit al minus netto profit di proventi and repayment e rimborsi ment From the date of contribution of the property to the Fund to the end of the second half of 2008, the unit value of the Fondo Beta units dropped by 38.6%, compared to profit distributions and unit repayments from the 1st year of listing for a total of million euros (equal to 95% the placement value). The unit value on the Italian Stock Exchange market despite the general trends of the real estate market in the last few months was substantially stable and in line with the unit s book value. Leverage LTV:12% LTV:14% LTV: 0% LTV: 0% Leva Maximum utilizzabile Leverage Leva Leverage esercitata of the Fund With regard to the value of the properties held by the Fund, the loan to value ratio totals approx. 14%. At 31/12/2008, 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.

6 Real estate asset allocation Breakdown by type of investment Breakdown by geographical area Development 11,7% South & Islands 28,9% Core 88,3% Centre 71,1% Breakdown by property use Other 11,8% Breakdown of rents by type of tenant Private Companies 32% Touristic/ Hotel 28,9% Retail 1,4% Offices 57,8% Governments 68%

7 The real estate portfolio Details of the real estate portfolio The property assets directly owned by Fondo Beta comprise the buildings as follows: Rome, Via Eugenio Grà n. 19 Rome, Via Prospero Alpino n Rome, Via Cesare Balbo nn Rome, Via Cavour n. 6 Rome, Via Odone Belluzzi n Latina, Viale P.G. Nervi n. 270 Perugia, Via Palermo n 108 Spoleto, Viale Trento e Trieste n. 136 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 million euros, and a controlling stake in Da Vinci S.r.l.. The Portfolio comprises 8 buildings located in central Italy, primarily Rome, with a total area of approx. 92,121 sq.m. The Portfolio features an overall average occupancy of 98%, with annual rents of approx million euros, equivalent to about 121 euro/sq.m. per year (calculated based on the useful area). Rents are guaranteed by 34 property leases (4 properties out of 8 are single-tenant), with diversified lease expiry dates, which reduces the risk of excessive exposure resulting from simultaneous or excessive lease expiries.

8 The real estate portfolio Lazio Address Roma, via Cavour 6 Single tenant Fully let Lease expires on 27/04/2013 Total rents (31/12/2008) Lazio Address Roma, via C. Balbo 39 Single tenant Fully let Lease expires on Charge Total rents (31/12/2008) Lazio Address Roma, via Belluzzi 11 Multiple tenants 80% Lease expiry interval Total rents (31/12/2008) Lazio Address Roma, via E. Grà 19 Single tenant Fully let Lease expires on Total rents (31/12/2008)

9 The real estate portfolio Umbria Address Perugia, via Palermo 108 Multiple tenants 86% Lease expiry interval Total rents (31/12/2008) Umbria Address Spoleto, via Trento e Trieste Single tenant Fully let Lease expires in 2014 Total rents (31/12/2008) Lazio Address Roma, via P.Alpino 16 Multiple tenants Fully let Lease expiry interval 2013 Total rents (31/12/2008) Address Lazio Latina, via P.G.Nervi 270 Multiple tenants Fully let Lease expires on Charge Total rents (31/12/2008)

10 The real estate portfolio The Forte Village Resort is a four and five-star luxury resort, comprising hotels and bungalows, set in green surroundings amidst maritime pine woods. The resort is open eight months a year, from March to October, and covers an area of approx. 46 hectares. Alongside the hotels, the resort features a large array of sports and leisure facilities, restaurants and other amenities. In particular, the sports facilities are scattered throughout the resort. There are five exclusive restaurants attached to the hotels, and another eleven dedicated restaurants serving traditional and international cuisine, for a total of 2480 covers. Then there are five snack points open for lunch and eleven bars, all located within the perimeter of the resort. Location: The resort is located at Santa Margherita di Pula, near Pula, in the province of Cagliari. Occupancy: The resort is entirely let to Mita Resort Srl, under a lease expiring on 31/12/2016, after which the tenant may choose to renew the lease for another ten years, subject to at least 12 months notice. Location Number of rooms Lease expires on Total rents (31/12/2008) Sardinia Santa Margherita di Pula Monotenant Fully rent /12/

11 Development projects Da Vinci Center Development Project: 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 sq.m, of which over 36,400 sq.m dedicated to office space. Location: The Da Vinci Center office development is a highly significant urban planning, architectural and functional project, which combines the attraction and privileges of a prime location in Rome, with the advantages of a large and modern trade show and office district. The development is scheduled for completion in the first half of Progetto Alfiere: 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 31/12/2008, the value of this (non-controlling) stake was 6.2 million euros.

12 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 programmes, 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 the next period and to use the last period for the remaining liquidations without any particular deadline constraints. 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 at 31 December 2008, 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 IT 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.