IRET back into the black with £31.9m profit

ING UK Real Estate Income Trust bounced back into the black in the year to the end of December with pre-tax profits of £31.9m against a loss of £19.3m last time. The net asset value rose to £206.9, - or 60p per share - from £181.m - 55p per share - in 2009. The company said its assets have continued to outperform the IPD benchmark over a three and five year time horizon at the end of December 2010 and delivered an income return some 20% ahead of the market. Chairman Nicholas Thompson said: "Our aim is to ensure that the company is the vehicle of choice for those investors seeking income biased exposure to the UK commercial property market. "At present the company is focussed on three key initiatives which will help to achieve this. "Firstly, the management of the existing portfolio and maintenance of cashflow remains paramount. "In 2010 the company has delivered considerable success in this regard, restructuring a number of leases and maintaining income in a fragile occupier market. "Secondly, the company is focussed on achieving an optimal solution to the refinancing of its securitised facility that is due for renewal within the next 18 months. "The company is already progressing plans for this in conjunction with its advisers." He added: "Thirdly, following a review during 2010, and after much consideration, the Board has made a decision to internalise the investment management function with effect from 1 January 2012. "The internalisation is expected to deliver a number of potential benefits to the company." Thompson said the company intends to change its name to Picton Property Income and create a wholly-owned investment management subsidiary called Picton Capital. The company will ask for shareholder approval for the name change at the annual general meeting in May. At 1:15pm: (LON:IRET) share price was -0.12p at 52.63p Story provided by StockMarketWire.com

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