Industrial Multi Property Trust : 2017-03-03 Annual Report to 31 December 2016

Industrial Multi Property Trust

2016

Annual report and consolidated financial statements

For the year ended 31 December 2016

Industrial Multi Property Trust

Contents

1. Highlights

2. Company summary and objectives

1. Financial highlights

2. Chairman's statement

5 Investment Adviser and Manager's report

11 Directors

13 Directors' report

17 Corporate governance statement

1. Audit Committee report

2. Directors' statement pursuant to the Disclosure and Transparency Rules

3. Report of the Independent Auditors, KPMG Audit LLC

1. Consolidated statement of comprehensive income

2. Consolidated balance sheet

3. Consolidated and Company statement of changes in equity

4. Consolidated statement of cash flows

5. Company balance sheet

6. Company statement of cash flows

7. Notes to the consolidated financial statements

56 Directors and Advisers

www.industrialmultipropertytrust.com

Industrial Multi Property Trust plc : Annual report 2016 1

Industrial Multi Property Trust plc primarily invests in higher-yielding UK

commercial property. The key performance objectives for 2017 are to increase earnings and cash flow, enhance asset values,

and strengthen the balance sheet.

Highlights

• Net asset value ("NAV") per ordinary share increased 17.9% - 298.5 pence as at 31 December 2016 (253.2 pence as at 31 December 2015).

• Adjusted net asset value ("Adjusted NAV") per ordinary share increased 18.0% - 307.4 pence as at 31 December 2016 (260.6 pence as at

  31 December 2015).

• Earnings per ordinary share improved - profit of 45.3 pence for the year ended 31 December 2016 (profit of 42.8 pence for the year ended 31 December 2015).

• Adjusted earnings per ordinary share improved - loss of 11.3 pence for the year ended 31 December 2016 (loss of 18.1 pence for the year ended

  31 December 2015).

• Occupancy improved - the occupancy level measured by estimated rental value stood at 91.8% as at 31 December 2016 compared with 89.3% as at

  31 December 2015.

• Four light industrial units were sold above valuation - Four units were sold for a total of £1.3 million before sales costs; 51% above the most recent valuation.

• Portfolio valuation increased - the Group's property portfolio was valued at

  £85.3 million as at 31 December 2016 (£81.6 million as at 31 December 2015),

  an increase of £3.7 million (4.5%) during the year (5.6% on a like for like basis).

• New lettings achieved - 53 new lettings and 28 lease renewals achieved during 2016 (representing 17.4% of the estimated rental value ("ERV") of the total portfolio,

  based on the final achievable annual rent including stepped rent).

• Additional contracted rent - £0.16 million per annum of additional passing rent is contracted to start during 2017, directly benefiting cash flow.

307.4p

Adjusted NAV of 307.4 pence per share, an increase of 46.8 pence per share during the year

91. 8%

Occupancy rate, an increase of 2.5% during the year

£1. 3m

Three sales (comprising four buildings) at 51% above the most recent valuation

£85.3m

Portfolio valuation increase of 4.5% to £85.3 million

2 Industrial Multi Property Trust plc : Annual report 2016

Company summary and objectives

Objectives

Industrial Multi Property Trust plc ("the Company") was incorporated in the Isle of Man on 10 June 2002 as a closed-ended investment company. The Company and its subsidiaries (together "the Group") invest in higher yielding UK commercial property. The key objectives are:

• Increase earnings and cash flow - increase occupancy in the portfolio and reduce expenses.

• Protect and enhance asset values - prudent capital expenditure and investment in selected portfolio properties.

• Strengthen the balance sheet - reduce bank borrowings progressively, consistent with the investment programme for the property portfolio.

Management

The Company's Investment Adviser and Manager is Alpha Real Capital LLP ("Alpha"). Control of the Company rests with the non-executive Isle of Man based Board of Directors.

Dividends

The Company paid no dividends during the year and no dividend is currently proposed (2015: £nil).

Listing

The Company is a closed-ended Isle of Man registered investment company which has been declared under the relevant legislation

to be a closed-ended Collective Investment Scheme. Since

27 October 2014, its shares have traded on the Specialist Fund Segment of the London Stock Exchange, an EU regulated market, following a transfer of the shares from a listing on the Official

List of the UK Listing Authority. The shares have been traded on the London Stock Exchange since 4 April 2003. Following shareholders' approval at the Extraordinary General Meeting, on 26 September 2014 of the new Articles, the Company's

continuation vote has been removed. At an Extraordinary General Meeting held on 27 January 2017, a resolution was passed that the Company be required to obtain shareholder approval for a disposal of more than fifty percent of the Company's assets.

ISA /SIPP status

The Company's shares are eligible for Individual Savings Accounts (ISAs) and Self Invested Personal Pensions (SIPPs).

Website

www.industrialmultipropertytrust.com

Financial highlights

Year ended 31 December 2016

Year ended 31 December 2015

NAV (£'000)	25,101	21,291
Adjusted NAV (£'000) 1	25,853	21,916
NAV per ordinary share (pence)	298.5	253.2
Adjusted NAV per ordinary share (pence) 1	307.4	260.6
Earnings per ordinary share (pence) (basic and diluted)	45.3	42.8
Adjusted earnings per ordinary share (pence) 2	(11.3)	(18.1)

1. The adjusted net assets are presented to provide what the Board believes is a more relevant assessment of the Group's net asset position over the longer term, when certain fair value and accounting adjustments may not be realisable (see note 15).

2. The adjusted earnings are presented to provide what the Board believes is a more appropriate assessment of the operational income accruing to the Group's activities. Hence the Board adjusts basic earnings for income and costs which are not of a recurrent nature or which may be more of a capital nature (see note 14).