TORONTO, Feb. 7 /CNW/ - Timbercreek Global Real Estate Fund (the
"Fund"), managed by Timbercreek Asset Management Ltd. (the "Fund
Manager") is pleased to announce the release of its financial
statements and management report of fund performance for the period
ending December 31, 2010.
Some of the Fund's 2010 highlights include:
Following the IPO of the class A units of the Fund (the "Class A Units")
and Class B units of the Fund (the "Class B Units"), the net asset
value ("NAV") per unit was $11.21 and $11.56, respectively. By
December 31, 2010 NAV per unit was $11.61 and $12.00 per Class A Unit
and Class B Unit respectively. In addition, Class A Units Closed on the
Toronto Stock Exchange on December 31, 2010 at $12.00.
Overall, from August 26th, 2010 to December 31st, 2010, the Fund generated a total return of 9.3% on a gross basis and
6.1% on a net of management fee basis.
The Fund paid two quarterly cash distributions to unitholders during the
Period of $0.28 per Class A Unit and $0.295 per Class B Unit. This
equates to an annualized cash distribution of approximately 7% based on
the $12.00 per unit issue price, in line with the Fund's initial
targeted distribution outlined in the August 5, 2010 prospectus.
Focus on obtaining the best global real estate across the capital stack:
At December 31, 2010 the approximately 59% was invested in common
equities; 26% was invested in preferred shares; and 15% in private
direct real estate investments. A summary of the holdings include:
The Fund invested in companies that own high-quality real estate located
in major international urban markets. As at December 31, 2010 the
Fund's common equity holdings were invested in publicly listed real
estate companies with exposures to Singapore, Japan, Hong Kong, New
Zealand, Australia, South Africa, the Netherlands, France, Canada and
the United States.
The Manager believes there is a pricing inefficiency in the U.S. REIT
preferred market. The publicly traded securities of U.S. REIT's are
generating yields in excess of 200 to 300 basis points higher than
where the underlying assets are trading in the private market as well
as where similar preferred securities are trading in other developed
markets, such as Canada. The Fund's preferred share holdings were
invested in the United States.
Direct private real estate investments:
The Fund's direct real estate investments are focused on
multi-residential buildings or direct mortgages that are secured by
income-producing assets where interest on the loan can be serviced from
cash flows generated by the underlying assets. At December 31, 2010
the Fund held an interest in Canadian multi-residential real estate and
private mortgage investments secured by Canadian real estate.
Increase in Net Assets:
From inception of the Fund to December 31, 2010 (the "Period"), net
assets have increased by $3.4 million. The increase is attributed to
the net proceeds from issuance of Class A Units and Class B Units on
IPO and class I units of the Fund (the "Class I Units") issued under
private placement of $60.8 million, plus investment performance of $3.5
million less distributions to unitholders of $1.5 million. Although
there were no redemptions of units of the Fund during the Period, there
were exchanges of Class B Units into 68,892 Class A Units and the
automatic conversion of all existing Class I Units on December 29, 2010
into Class B Units. As a result of the automatic exchange, there are
no Class I Units outstanding at year end. The investment performance of
the Fund includes earned income and expenses and an unrealized gain on
value in the investments. The Fund's expenses are greater for the
Period due to certain expenses of the Fund being incurred over a short
fiscal year, including audit fees, and unitholder reporting costs.
Full reports and financial results for the Fund for the year are
outlined in the audited financial statements and management report of
fund performance is available at www.sedar.com. In addition
supplemental information is available at the Fund's website at
ABOUT THE FUND:
The Fund was established to invest in a globally diversified portfolio
of premier real estate securities (the "Portfolio"). The Portfolio
includes common equity, preferred shares and debt of both public and
private real estate investment trusts and real estate companies in
Canada, United States, United Kingdom, Continental Europe, Japan,
Australia, Hong Kong and other countries. The Manager has engaged FSX
Securities Canada, Inc. (the "Global Investment Advisor") to provide
portfolio management services to the Fund. Through the Manager's
partnership with the Global Investment Advisor, the Fund will be
supported by a team of real estate analysts based in Toronto, New York,
London and Hong Kong that are strictly dedicated to analyzing and
investing in real estate securities.
SOURCE Timbercreek Global Real Estate Fund
For further information:
Timbercreek Asset Management Ltd.