APT Axa Property Trust Limited

 
TIDMAPT 
 
To:                    Company Announcements 
Date:                26 February 2015 
Company:         AXA Property Trust Limited 
Subject:            Half Year Report 
 
AXA Property Trust Limited 
 
AXA Property Trust Limited has today, in accordance with DTR 6.3.5, released 
its Half Year Report and Condensed Consolidated Financial Statements for the 
six months ended 31 December 2015. The Half Year Report and Condensed 
Consolidated Financial Statements will shortly be available from the 
Company's website retail.axa-im.co.uk/axa-property-trust 
 
Key Financial Information 
 
For the six months ended 31 December 2015 
 
  * Sterling currency Net Asset Value ("NAV") increased to GBP60.24 million on a 
    pro-forma basis before deduction of share redemptions paid (GBP47.14 million 
    after deduction of redemption paid). 
  * Profit was 1.65 pence per share 
  * No dividends were paid relating to the period 
  * Redemptions of shares paid during the period were GBP5.2 million (2014: GBP3.8 
    million) 
 
As at 31 December 2015 
 
  * NAV was 62.06 pence per share (30 June 2015: 57.61 pence) 
  * Share price1 was 54.50 pence per share (30 June 2015: 44.75 pence) 
  * Gearing2 was 37.1% (gross) and 28.2% (net) (30 June 2015: 35.7% and 31.1%) 
 
Performance Summary 
 
                                    Six month ended Six month ended    % change 
                                   31 December 2015    30 June 2015 
 
NAV per share                                62.06p          57.61p       7.73% 
 
Gains per share                               1.65p           8.63p         n/a 
 
Share redemptions paid                        GBP5.2m           GBP3.8m         n/a 
 
Share price1                                 54.50p          44.75p      21.79% 
 
Share price discount to NAV                   12.2%           22.3%         n/a 
 
Gearing (gross)2                              37.1%           35.7%         n/a 
 
Total assets less current                    64,706          66,910     (3.29%) 
liabilities (GBP000s)3 
 
 
 
                                   Six month period       Six month 
Total return                       31 December 2015          period 
                                                        30 December 
                                                               2014 
 
NAV Total Return4                            (4.5)%            3.6% 
 
Share price Total Return 
 
- AXA Property Trust                          24.5%            4.2% 
 
- FTSE All Share Index                        -2.0%          (0.4%) 
 
- FTSE Real Estate Investment                  3.9%           12.3% 
Trust Index 
 
Source: AXA Investment Managers UK Limited and Stifel Nicolaus Europe Limited. 
 
1 Mid market share price (source: Stifel Nicolaus Europe Limited). 
 
2 Gearing is calculated as overall debt, either gross or net of cash held by 
the Group over property portfolio at fair value. 
 
3 Includes bank debt classified as a current liability. 
 
4 On a pro-forma basis which includes adjustments to add back any prior NAV 
deductions from share redemptions. 
 
Past performance is not a guide to future performance. The value of investments 
can go down as well as up. 
You may not get back the original amount invested. 
 
Chairman's Statement 
 
The Investment Manager has continued its steady progress in the disposal of the 
holdings of AXA Property Trust Limited (the "Company"). The shopping centre at 
Fuerth Bavaria was sold for EUR 34 million some 36% in excess of valuation at the 
time of the commencement of the Company's disposal strategy in 2013. The 
industrial property at Venray Netherlands was sold in December 2015 for EUR6.6m, 
some 23 % below the 2013 valuation, after an extensive and lengthy marketing 
process with little serious interest. 
 
Results 
 
The Company and its subsidiaries (together the "Group") made a total net profit 
after tax of GBP1.3 million for the period to 31 December 2015. The Net Asset 
Value ("NAV")  per share of the Company at 31 December 2015 was 62.06 pence (30 
June 2015: 57.61 pence), an increase 7.7% compared to 30 June 2015. 
 
The Company's net property yield on current market valuation (after acquisition 
and operating costs) as at 31 December 2015 was 8.8% (30 June 2015: 9.0%). A 
detailed yield analysis is included in the Investment Manager's Report. 
 
The mid-market price of the Company's shares on the London Stock Exchange on 31 
December was 54.50 pence (30 June 2015: 44.75 pence),  representing a discount 
of 12.2% to the Company's NAV at 30 June 2015 (30 June 2015: 22.3%). 
 
Return of Capital to Shareholders 
 
No dividends were declared during the period and the dividend policy remains 
unchanged. 
 
During the period. the Company returned GBP5.2 million to Shareholders by means 
of a capital redemption on 30 July 2015. An additional post closing capital 
redemption of GBP11.0 million was paid to investors on 6 January 2016. 
 
Bank Finance and Deleveraging 
 
The Group continues to comply with the 60% loan-to-value ("LTV") covenant of 
the main loan facility with Crédit Agricole and Crédit Foncier. Further 
repayments are made as assets are sold under the disposal programme. At 31 
December 2015 the total bank debt stood at GBP14.76 million (EUR31.07 million) 
(before capitalised debt issue costs) with an LTV of 50.7%. The loan is due to 
mature on 1 July 2016. 
 
Prospects 
 
Following the sale of the industrial property at Dasing Bavaria, due to 
complete by April, the Company's remaining holdings will consist of the 
shopping centre at Rothenburg, also in Bavaria, a multiplex cinema complex 
outside Bergamo Lombardy and a 50% share in a distribution warehouse east of 
Milan. 
 
While no real estate transaction is certain until it is done, the Board and 
Manager are quite confident of a good disposal of the German property. The two 
Italian properties are intrinsically sound but their disposal is much less 
certain in context of the sub sector property markets in Italy. Nevertheless we 
remain certain that a steady, persistent and targeted marketing process is 
worthwhile and in the Company's interest, rather than a "forced sale" approach. 
 
Charles Hunter 
Chairman 
26 February 2016 
 
 
 
Investment Manager's Report 
 
AXA Investment Managers UK Limited (the "Investment Manager", "AXA IM") is the 
UK subsidiary of AXA Investment Managers, a dedicated asset manager within the 
AXA Group. AXA Investment Managers is an innovative and fast-growing 
multi-expertise investment manager with EUR669 billion of assets under management 
and over 2,500 employees, at 30 September 2015. 
 
AXA Real Estate Investment Managers UK Limited (the "Real Estate Adviser") is 
part of the real estate management arm of AXA Investment Managers S.A. ("AXA IM 
Real Assets"). AXA IM Real Assets offers a 360° view of real asset markets, 
investing in both equity and debt, across different geographies and sectors, 
and via private and listed instruments with over EUR62 billion of assets under 
management and about 600 staff, operating in 23 countries as at 31 December 
2015. 
 
Source: AXA Investment Managers UK Limited 
 
Fund Manager 
 
Ian Chappell was appointed as the Fund Manager for AXA Property Trust in 
November 2015. He has very broad experience across Europe's real estate 
markets, having worked through several market cycles over the past 20 years and 
transacting and managing real estate assets covering core, core plus and value 
added strategies. 
 
Ian graduated from Nottingham Trent University in 1991 and also holds a Master 
of Arts from the University of Newcastle Upon Tyne (1992). He was elected as 
Member of the Royal Institution of Chartered Surveyors in 1993. Ian is also a 
member of AXA IM Real Assets' Executive Committee. 
 
 
Market Outlook 
 
German Retail 
 
The German seasonally-adjusted harmonised unemployment rate remained steady at 
4.5% in November, staying at its lowest level since 1981 for the fourth 
consecutive month. This also fed through into German consumer strength. Q4 2015 
saw a repeatedly solid development in German real retail sales, up 2.3% in 
November 2015 compared to November 2014. Retail  take-up in the last quarter of 
2015 was the strongest of the year with 150,700 sqm. Over the year lease 
contracts for 525,700 sqm were closed, 10% below last year's take-up. At the 
same time the absolute number of contracts increased to the highest level in 
five years. Prime rents in Munich's prime pitch, the most expansive of the 
German markets, have remained stable over the fourth quarter at EUR360/sq m/month 
and  remained also unchanged over the year according to JLL. High Street rents 
in 2015 saw an increase of 6.7% in Berlin and 1.8% in Hamburg and remained 
stable in the other top German retail markets. 
 
Overall, in 2015 German retail investment volume doubled according to CBRE to 
around EUR18.1bn, with especially large portfolio disposals causing substantial 
investment turnover. International investors dominated the German retail 
investment market. Net prime yields are still in decline, with both shopping 
centres and retail parks reporting yield compression. Prime high street yields 
fell by 10bps in all German markets in Q4 2015 with the exception of Munich 
where they remained stable at 3.5%.  The strongest decline over the year was 
registered in Hamburg (30bps). 
 
German Logistics 
 
The high demand from the industrial sector, a continuation of the trend to 
outsource as well as the strong dynamics in the e-commerce sector led to 
another positive year in the German logistics market. As a result take-up in 
Germany was reported as the highest level ever recorded, 5% above the previous 
record figures of 2011. Overall letting transactions of 6.1m sq m in the German 
warehouse and logistics market were closed in 2015. 
 
Large-scale lettings drove the market with the largest five lettings accounting 
for more than 10% of the overall take-up. By far the most active individual 
tenant was BMW who leased 400,000 sq m of space in three different locations. 

February 29, 2016 04:10 ET (09:10 GMT)

Company until Mr Spaninks resignation from the Boards of Property Trust 
Luxembourg 1 S.à r.l., Property Trust Luxembourg 2 S.à r.l. and Property Trust 
Luxembourg 3 S.à r.l. on 11 October 2013. 
 
Mr Farrell, a Director of the Company, is also a Partner in Mourant Ozannes, 
the Guernsey legal advisers to the Company. The total charge to the 
Consolidated Income Statement during the period in respect of Mourant Ozannes 
legal fees was nil (2014: nil). 
 
Mr Lawson, a Director of the Company, was a Director of the Administrator and 
Secretary, Northern Trust International Fund Administration Services (Guernsey) 
Limited until 13 December 2013, when Mr Lawson became a Director of Northern 
Trust (Guernsey) Limited, the Company's bankers and member of the same group as 
the Administrator and Secretary. The total charge to the Consolidated Income 
Statement during the year in respect of Northern Trust administration fees was 
GBP72,500 (31 December 2014: GBP72,500) of which GBPnil (31 December 2014: GBP36,250) 
remained payable at the year end. 
 
Under the Investment Management Agreement, fees are payable to the Investment 
Manager, Real Estate Adviser and other entities within the AXA Group. These 
entities are involved in the planning and direction of the Company and Group, 
as well as controlling aspects of their day to day activity, subject to the 
overall supervision of the Directors. During the period, fees of GBP0.24 million 
(31 December 2014: GBP0.23 million) were expensed to the Consolidated Income 
Statement. Following the two asset disposals, transaction fees of 35 bps on the 
gross sales price were expensed; totaling GBP0.14 million on all sales (31 
December 2014: GBP0.03 million). During the period, a provision for the 
performance fee was increased by GBP0.48 million The amount had been provided 
under the terms of the Investment Management Agreement. 
 
All the above transactions were undertaken at arm's-length. 
 
14.      Commitments 
 
Guarantees 
 
The Company has provided mortgages over the properties in favour of the 
lenders, Crédit Agricole and Crédit Foncier, as security for the main loan 
facility. 
 
15    Subsequent events 
 
These financial statements were approved for issuance by the Board on 26 
February 2016. Subsequent events have been evaluated until this date. 
 
Capital redemption 
 
A capital redemption of GBP11.0 million was approved by the directors with a 
redemption date of 6 January 2016. 
 
 
Corporate Information 
 
Directors (All non-executive) 
C. J. Hunter (Chairman) 
G. J. Farrell 
S. C. Monier 
S. J. Lawson 
A Spaninks 
 
Registered Office 
PO Box 255 
Trafalgar Court 
Les Banques 
St Peter Port 
Guernsey GY1 3QL 
Channel Islands 
 
Investment Manager 
AXA Investment Managers UK Limited 
7 Newgate Street 
London EC1A 7NX 
United Kingdom 
 
Real Estate Adviser 
AXA Real Estate Investment Managers UK Limited 
155 Bishopsgate 
London EC2M 3XJ 
United Kingdom 
 
Sponsor and Broker 
Stifel Nicolaus Europe Limited 
150 Cheapside 
London EC2V 6ET 
United Kingdom 
 
Administrator and Secretary 
Northern Trust International Fund 
Administration Services (Guernsey) Limited 
P.O. Box 255 
Trafalgar Court 
Les Banques 
St Peter Port 
Guernsey GY1 3QL 
Channel Islands 
 
Registrar 
Computershare Investor Services (Guernsey) Limited 
3rd Floor 
Natwest House 
Le Truchot 
St Peter Port 
Guernsey 
GY1 1WD 
Channel Islands 
 
Independent Auditor 
KPMG Channel Islands Limited 
Glategny Court, Glategny Esplanade 
St Peter Port 
Guernsey 
GY1 1WR 
Channel Islands 
 
 
 
 
END 
 

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