Invista European Real Estate Trust had an unaudited net asset value of EUR0.536 (43.4p) per share at 30 June 2010, reflecting a decrease of EUR0.019 or 3.4 per cent over the quarter.

The like for like property portfolio valuation increased by EUR3.6m, or EUR0.01 per share.

The adverse movement in the mark-to-market valuation of the company’s interest rate and foreign exchange swaps contributed to a decrease in NAV of EUR2.3m, equating to EUR0.01 per share.

After having deducted the foreign exchange gain of EUR1.8m on the GBP cash balance, the net effect of the increase in preference share liability due to GBP:EUR exchange rate fluctuations and amortization is EUR0.9m, equating to EUR0.01 per share.

There was also a decrease in senior debt of EUR2.6m, or EUR0.01 per share, due to a net repayment made in the quarter.

As at 30 June 2010, the company’s property portfolio was valued at EUR510.4m and comprised 43 assets (excluding one asset conditionally committed to acquire in Girona, Spain). This compares with the property portfolio as at 31 March 2010, which comprised 44 assets valued at EUR514.8m.

The like-for-like increase in the property valuation over the quarter (excluding the committed asset and disposals over the three month period to 30 June 2010) was 0.7 per cent, an increase of EUR3.6m. The company sold one office property in Brussels, Belgium for EUR7.7m during the quarter, with net proceeds from the sale used to pay down senior debt.

As at 30 June 2010, the group’s portfolio generated gross income of EUR42.5m per annum, representing a gross income yield of 8.20 per cent and a net initial yield of 7.56 per cent. This excludes vacant accommodation which, as at 30 June, stood at 7.79 per cent by income. Should this vacancy be leased the net initial yield would rise to 8.26 per cent.

Invista expects property total returns to increase in 2010 as a result of improved investor demand and in spite of continuing weakness in rents across most segments of the market. Income returns are expected to be the principal driver of performance in the short to medium, placing increased emphasis on the capable and active asset management of portfolios and meaning that higher-yielding markets such as France and Netherlands, and the logistics sector generally, may outperform the wider market.

As reported in the half year accounts, the company disposed of a EUR7.7m office asset in Brussels, Belgium in April 2010. More recently, the company sold a logistics property in Cabries, France for a price which was 27.3 per cent above the March 2010 valuation; this sale generated total sales proceeds of EUR2.75m. Proceeds from both sales have been used to reduce senior debt, undertake further de-leveraging and return surplus equity to cash reserves.

As at 30 June 2010, the company had drawn down a total of EUR345.6m of senior debt in respect of its EUR359.3m facility with the Bank of Scotland and its EUR12.0m facility with Credit Foncier. In addition, the company had cash balances of EUR56.1m (excluding tenant deposits of EUR4.4m) at that date, giving a net debt position of EUR289.5m.