Listed property trusts raise their dividends

Given reports in the press today that some of the open-ended property funds have moved to bid pricing because of investor outflows, please see announcements just issued to the London Stock Exchange by ISIS Property Trust Ltd and ISIS Property Trust 2 Ltd.

Both are Guernsey based UK commercial property companies, listed in London, whose assets are managed by F&C.

ISIS Property Trust has announced a 3.3% rise in NAV over the last quarter and has increased its interim dividend by 11%. Given the stated intention of the Company to maintain its quarterly divdend at the current level of 2 pence per share, this should lead to an annual dividend of 8 pence per share by end of 2008.

ISIS Property Trust 2 has also announced a 3.2% NAV rise over the quarter and increased its fourth interim dividend by 1.6% to 1.81 pence per share with the future annual dividend expected to be 7.2 pence.

The dividend increases have been made following the rental growth achieved since launch and the interest rate savings achieved from re-financing in January 2007.

While our property team have been saying for some time that future capital returns are likely to be at more sustainable levels than those posted in recent years, commercial property still offers attractive yields and acts as a portfolio diversifier.