Industrial Multi Property Trust : 2016-11-18 Trading update

18 November 2016 INDUSTRIAL MULTI PROPERTY TRUST PLC (the "Company" or together with its subsidiaries the "Group")

Industrial Multi Property Trust plc is today announcing its trading update for the quarter ending 30 September 2016 and the period up until the date of this announcement. The information contained herein has not been audited.

Highlights:

• Adjusted net asset value ("NAV") per ordinary share - 296 pence as at 30 September 2016 (296 pence at 30 June 2016)
• Earnings per ordinary share ("EPS") - profit of 32 pence for the nine months to 30 September 2016 (profit of 31 pence for the six months to 30 June 2016)
• Adjusted earnings per ordinary share ("Adjusted EPS") - loss of 9.6 pence for the nine months to 30 September 2016 (loss of 6.1 pence for the six months to 30 June 2016)
• One light industrial unit was sold above valuations - One sale at £160K before sales costs; 30% above the most recent valuations
• Portfolio valuation increased - the Group's property portfolio was valued at £85.3 million as at 30 September 2016 (£85.1 million as at 30 June 2016), an increase of £0.2 million (+0.24%) during the quarter (+0.37% on a like for like basis)
• Occupancy improved - the occupancy level measured by Estimated Rental Value ("ERV") stood at 91.6% as at 31 October 2016 compared with 90.8% as at 30 September 2016 and 89.9% as at 30 June 2016
• New lettings achieved - 11 new lettings and 7 lease renewals achieved during the quarter ending 30 September 2016 (representing 3.1% of the estimated rental value ("ERV") of the total portfolio, based on the final achievable annual rent including stepped rent)
• Units under offer to let - a further 7 units are currently under offer to let representing 1.5% occupancy measured by ERV Revaluation and NAV

  The Group's property portfolio was valued at 30 September 2016 by DTZ Debenham Tie Leung Limited trading as Cushman & Wakefield at £85.3 million and will next be valued by an independent valuer as at 31 December 2016. Excluding the valuation of one light industrial unit sold during the quarter, the valuations increased by 0.37% on a like for like basis.

  The Company's adjusted NAV per ordinary share was 296 pence as at 30 September 2016 which is unchanged from 296 pence reported at 30 June 2016.

  Adjusted EPS

  The Company's adjusted EPS was a loss of 9.6 pence during the nine month period ended 30 September 2016. Despite the improved occupancy and underlying rental income, the adjusted EPS loss is primarily due to finance costs.

  Property Update

  Tenant/letting activity can be summarised as follows:

  Quarter ending 30 September 2016	Number of Tenants	Rent p.a £	As % of total Estimated Rental Value
  Tenant lease breaks exercised	1	5,880	0.06
  Tenant vacated at lease end	5	47,200	0.52
  Tenant insolvency	1	6,000	0.07
  New lettings completed	11	*150,731	1.66
  Tenant leases renewed	7	*132,196	1.45
  *Final achievable annual rent including stepped rent

  The Investment Adviser and Manager continues to progress the strategy to deliver shareholder value, namely:

• To enhance net rental income

• To reduce borrowings and to reduce the loan to value through limited strategic sales

• To deploy capital when 'value add' opportunities are identified

• To actively progress refinancing options, at an optimum time to mitigate the effects of the loan facilities early repayment penalties

• To actively review the potential to resume payments of dividends

Occupancy across the portfolio has increased with 91.6% of the portfolio let as at 31 October 2016 based on ERV, compared with 90.8% as at 30 September 2016 and 89.9% as at 30 June 2016. Progress continues to be made in letting void units; 11 new lettings and 7 lease renewals have been successfully completed in the quarter to 30 September 2016 at a final achievable annual rent, including stepped rent, of approximately £0.3 million per annum.

Property Update

The Board's objective, as previously announced, has been to target a refinancing of the portfolio around the last quarter of 2016 and if a refinancing is not possible to continue to review alternative ways to improve shareholder value. To that end, the four independent directors have been evaluating options for a refinancing of the Company. Mark Rattigan, a non-executive director of the Company, is not considered independent in light of his position as Chief Operating Officer of Alpha Real Capital LLP, the investment adviser and manager to the Company. Alpha Real Capital LLP is also the investment manager of Alpha Real Trust, the Company's largest shareholder and the provider of an unsecured subordinated loan facility to the Company.

The independent directors believe it is important that a refinancing structure should be both deliverable and lower the Company's financing costs materially, yet also be stable enough to withstand a range of sensitivities which may occur over the medium term.

While recent growth in the Company's net asset value has been good, reflecting the strong development in the value of the portfolio, the independent directors are conscious of the significant discount at which the Company's shares trade to net asset value. Although the discount has narrowed substantially over the last 12 months, it is still significant and the independent directors believe that a structure with a more modest and appropriate level of gearing to enable the Company to pay a material and sustainable dividend would help to deliver further discount narrowing.

Since the overwhelming majority of the Company's shareholders are private individuals the independent directors are well aware of the importance of dividend income together with the ability of the Company to deliver shareholder value, not only in net asset value terms but also in price terms.

As previously stated, if a refinancing on suitable terms to achieve the above objectives cannot be achieved the Board will be considering alternative ways to deliver shareholder value, including a sale of the portfolio.

As announced on 14 November 2016, the independent directors have recently been in discussions with representatives of Alpha Real Trust regarding refinancing options and are all disappointed that Alpha Real Trust has now decided to requisition an EGM to vote on removing two of the independent directors of the Company. The Company will be writing to shareholders in due course to convene an extraordinary general meeting and to present more fully its views on the resolutions.

Contact: Jonathan Clague

Chairman, Industrial Multi Property Trust Plc

[phone]

Tom Pissarro

Fund Manager, Alpha Real Capital LLP

[phone]

Alastair Moreton

Financial Adviser and Broker, Stockdale Securities Ltd

[phone]

For more information on the Company please visit www.industrialmultipropertytrust.com

For more information on the Company's Investment Manager please visit www.alpharealcapital.com.

FORWARD LOOKING STATEMENTS

This trading update contains forward-looking statements which are inherently subject to risks and uncertainties because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are based on the Board's current view and information known to them at the date of this statement. The Board does not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this trading update should be construed as a profit forecast