Dramatic fall in half-year profits for Invista REIM

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by Lin Freestone

Invista Real Estate Investment Management Holdings has recorded a fall in its first-half pre-tax profit on lower revenue. The company expects market conditions to deteriorate further in the troubled commercial property market.

Invista is the largest UK listed real estate fund management group. The group manages both commercial and residential property across the UK and continental Europe, and had a total of £8.2bn assets under management at the end of May 2008. The value of assets at the end of 2007 was £8.7bn.

For the six months to the end of June, the company’s pre-tax profit fell to £11m, from £26.8m for the same period a year earlier. Group revenues fell to £23.8m from £37m in 2007.

The outlook in the UK continues to be poor and a 15% negative total return is expected in 2008. The business model is considered to be robust and a significant part of the company’s balance sheet remains in cash awaiting investment, if appropriate.