Timbercreek Global Real Estate Fund Announces 2010 Operating Results

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:

Capital Preservation:

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. 

Stable distributions:

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:

  • Common equities:

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. 

  • Preferred Shares:

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 www.timbercreekfunds.com.

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.
Carrie Morris
416-306-9967 x250
cmorris@timbercreekfunds.com

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Timbercreek Global Real Estate Fund

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