- Unit value: EUR 3,777.009
- 126.63% increase in unit value from the date the fund became operational (1 March 2001) to 30 June 2012
- Request to extend the fund duration for a maximum of 15 years in view of the current market situation approved
- Unit value: EUR 102.872
- Profit for the period: EUR 6,838,772
Rome, 30 July 2012 – The Board of Directors of IDeA FIMIT Sgr today approved the interim reports to 30 June 2012 of the Alpha and Delta real estate funds.
The Net Asset Value (NAV) of the Alpha Fund fell from EUR 394,550,636 at 31 December 2011 to EUR 392,336,766 at 30 June 2012.
The unit value posted a decline of 0.56% from EUR 3,798.321 at 31 December 2011 to EUR 3,777.009 at 30 June 2012. From the contribution date (1 March 2001), to 30 June 2012, the unit value increased by 51.08%, from EUR 2,500 to 3,777.009. Taking into account the income distributions made up to 31 December 2011 (totalling EUR 1,888.85 for each unit), which had an impact of 75.55% on the initial unit value (EUR 2,500), the value increased by 126.63%.
The Internal Rate of Return (IRR), calculated on the Fund’s initial value, cash outflows and the NAV, was 9.95% at 30 June 2012, while the IRR calculated on the fund investment value (EUR 2,600) was 11.43%. The fund made a loss for the period of EUR 2,213,869, mainly due to capital losses from valuations. On the assets side, at 30 June 2012, the fund had real estate totalling EUR 418,700,000, other assets of EUR 20,336,046, of which the largest item comprised receivables from lessees totalling EUR 18,885,655, liquidity of EUR 6,727,076, financial instruments of EUR 13,685,527, and receivables from others of EUR 17,329,818.
Liabilities totalled EUR 84,441,702, and mainly comprise mortgages worth EUR 66,518,395. Today, the Board of Directors of IDeA FIMIT Sgr also approved, pursuant to article 2.2(b) of the Alpha Fund’s management regulation, the exercise of the option to extend the duration of the Alpha Fund for a maximum of a further 15 years starting from 27 June 2015, bringing the Fund’s expiry date to 27 June 2030.
The decision to exercise this option was taken in the interests of subscribers and purchasers, in whatever capacity, of units in the Alpha Fund. It had become necessary in light of the difficulties encountered in selling real estate in the timescales previously stipulated unless property prices were considerably discounted, compromising the Alpha Fund’s target rates of return and unitholders’ expectations. In view of the current state of the property market and the approaching expiry date of the Alpha Fund, in the interests of subscribers and any purchasers of Fund units, it was therefore considered appropriate to exercise the option to extend the Fund’s duration for these additional reasons:
- to redraft the timescale of the real estate disposal plan, mainly so that properties can be sold under the most advantageous conditions compared with those that can be obtained in the current market situation;
- notwithstanding ongoing measures to recover the arrears within the Fund and to improve rental profitability, to introduce measures (with specific reference to the real estate rented by the Public Administration) intended to release the assets from tenants in arrears;
- to enhance the value of the assets by drawing up an extraordinary maintenance plan.
The Net Asset Value (NAV) of the Delta Fund rose from EUR 209,739,751 euro at 31 December 2011 to EUR 216,578,523 at 30 June 2012.
The unit value posted an increase of 3.26% from EUR 99.624 at 31 December 2011 to EUR 102.872 at 30 June 2012.
The Internal Rate of Return (IRR) calculated on the Fund's initial value and the NAV at 30 June 2012 was 0.51%
On the assets side, the fund had real estate totalling EUR 342,531,667, liquidity of EUR 13,618,171, other assets of EUR 4,187,163, of which the largest item comprised receivables from lessees totalling EUR 3,862,403, and financial instruments of EUR 6,401.
Liabilities totalled EUR 143,765,788 and mainly comprise loans received worth EUR 141,164,486 and the item “other liabilities” of EUR 2,576,319.
Profit for the period was EUR 6,838,772. However, the conditions stipulated by the Fund regulation for distributing profits were not met. Please consult the funds’ interim reports to 30 June 2012 for further details and explanations.