Invista reports loss of £3.7m in 2008

Invista Real Estate reported a pre-tax loss of £3.7 mln (EUR 4.2 mln) for full-year 2008, compared to a pre-tax profit of just under £50 mln in 2007. The largest UK listed property fund manager blamed the loss on the 'unprecedented falls' in UK commercial real estate.

CEO Duncan Owen said the company's underlying performance was satisfactory in the light of 'exceptionally challenging conditions' faced by the business. 'The major upheaval in world financial markets and a rapidly deteriorating global economic climate have contributed to a collapse in commercial property values. We expect this tough and challenging economic environment to continue throughout 2009.'

Owen added: 'The company still has healthy cash balances of £87.5 mln at year-end) and when combined with our solid underlying recurring income and tight cost controls we remain well placed to take advantage of the opportunities which this environment will undoubtedly create.'

Invista REIM said the value of its assets under management dropped 28% from £8.7 bn in 2007 to £6.3 bn last year. Before adjustments for tax and the fair value decline, the group's profit was £23.7 mln.

Owen said the UK sector was likely to continue to weaken further before recovering. 'In Continental Europe, the picture is similar, although it took longer to experience the value falls witnessed in the UK. There is also significant variation between markets within the European region and we expect the larger Western markets to perform better. In general, however, we expect markets in Continental Europe to continue to weaken.'

Invista has 23 funds that manage both commercial and residential property across the UK and Continental Europe.