Invesco's Property trust sees fall in loan-to-value ratio

Invesco is continuing to see signs of improvement in its troubled Property Income trust, with the vehicle's loan-to-value ratio falling from 96.1% to 93.5% over the final quarter of 2009.

The £244.5m trust, which continues to be in breach of its RBS banking covenants, saw its negative net asset value narrow by £7.5m to £24.8m over the three months to end December 2009. Its £105m UK portfolio rose 5.3% in sterling terms in Q4, more than offsetting a 1.2% fall in its European property assets, in euro terms. While the trust’s LTV ratio fell over the quarter, the company remains compliant with its minimum interest cover covenant of 145%, at 156.2%. The trust has since offloaded a building in Preston for £2.14m, which was in line with its 31 December valuation. The sale ...