Kenmore European Industrial Fund has reported a drop in the underlying real value of its property portfolio of 1.78% to EUR 568mln. At the end of the quarter the fund had debt levels representing gearing of 60% based on gross assets, well below the 70% gearing listed in the company's IPO prospectus. Kenmore’s adjusted net asset value closed at 121.9 pence per share, an increase of 0.3% over the first quarter and of 27.6% since admission in September 2006.
Kenmore European Industrial Fund has reported a drop in the underlying real value of its property portfolio of 1.78% to EUR 568mln. At the end of the quarter the fund had debt levels representing gearing of 60% based on gross assets, well below the 70% gearing listed in the company's IPO prospectus. Kenmore’s adjusted net asset value closed at 121.9 pence per share, an increase of 0.3% over the first quarter and of 27.6% since admission in September 2006.
Leasing activity was stronger for the company, showing an occupancy increase for the quarter of 0.39% to 87.81%, with 94,398 m2 leased through the period. An additional 7,224 m2 was signed but will be included in second quarter results. The successful leasing activity has resulted in a rise in the current portfolio yield of 20 basis points to 7.71%. Improved leasing activity is expected to continue to support yield overall yield performance throughout 2008. Lack of financing is expected to limit transactions throughout the year to single asset and small portfolio deals.
Giles Weaver, chairman of Kenmore, commented: 'Underlying European property market fundamentals have held up well in the first quarter of 2008. The planned geographic spread of the portfolio and strong income profile of the underlying assets has also benefited the Fund. Leasing activity has remained strong and voids continue to be reduced, which add to the defensive characteristics of the asset base.'
