CLOGIX Property Fund delivered a 10.6% total return for the first half of 2006 with an interim dividend of €17 per share, up 5.6% on pcp. The Fund's net asset value ('NAV') grew by 8.0% (to €440.4 million) for the six month period to 30 June 2006. The Fund is managed by Arlington Securities.
Performance of CLOGIX has been in line with the market and expectations, with strong market fundamentals and investor demand leading to tightening cap rates across the sector. The Fund's weighted average cap rate is still high relative to recent market transactions, which should lead to further NAV growth in the short to medium term.
Strong rental growth for the period reflected exposure to indexed leases and positive releasing within the portfolio. Further management initiatives should improve weighted average lease term across the portfolio and occupancy position, supporting returns in the second half of 2006.
The global logistics industry grew by more than 10% in 2005 and is expected to grow at a similar pace in 2006, fuelled by Eurozone and Asian economic expansion and demand for outsourcing. This environment continues to be supportive of the valuation fundamentals of the industry as a whole.
Source: Arlington Securities