AXA Property Trust Net Asset Value 30 June 2017 (Unaudited)
August 29 2017 - 8:23AM
UK Regulatory
TIDMAPT
To: Company Announcements
Date: 29 August 2017
Company: AXA Property Trust Limited
Subject: Net Asset Value 30 June 2017 (Unaudited)
CAPITAL REDEMPTION
* During the Financial year ending 30 June 2017 the Company returned GBP24.0
million capital to Shareholders by means of two capital redemptions: GBP18.4
million on 17 February 2017 and GBP5.6 million on 23 June 2017, bringing the
total capital returned to Shareholders to GBP48.1 million.
CORPORATE SUMMARY
* The Company's unaudited Consolidated Net Asset Value as at 30 June 2017 was
GBP15.83 million and the NAV per share was 67.65 pence. This reflects a
slight increase of 0.98 pence per share compared to 31 March 2017 when the
NAV per share was 66.67 pence (consolidated Net Asset Value was GBP21.21
million) and a decrease of 1.28 pence per share compared to 31 December
2016 (consolidated Net Asset Value was GBP39.69 million).
* The Company and its subsidiaries made a net loss after tax of GBP1.36 million
for the twelve month period ended 30 June 2017 and a loss of GBP0.75 million
in the three month period ended 30 June 2017.
MANAGED WIND-DOWN STATUS
* During the year disposals of all but one of AXA Property Trust Limited's
properties were completed for aggregated sales proceeds of EUR52.67 million
* The sales completed over the past 12 months leave one asset to be disposed
of. Despite ongoing marketing, this last sale has been difficult to realise
and although interest is being followed up, it is considered a sale may not
now materialise until the first half of 2018.
PORTFOLIO UPDATE
The sole remaining asset comprises the cinema investment in Curno, Italy.
Investment name Country Sector Percentage of
portfolio
Curno, Bergamo Italy Leisure 100%
Despite the challenging liquidity constraints, the tenant remains committed to
the location and cash flow generation is strong, with rents. There are
currently no unforeseen expenditure requirements.
MARKET UPDATE
Eurozone GDP growth accelerated by a seasonally adjusted 0.6%
quarter-on-quarter (q-o-q) in Q1 2017, the fastest rate of growth in two years.
Household consumption and fixed investment were the main drivers, whereas
imports offset exports, with the net result that the external sector provided a
neutral contribution to growth. Among the major Eurozone economies, Spain
remained the strongest performer, with GDP growth reaching 0.8%, followed by
Germany (0.6%), France (0.5%) and Italy (0.4%). In contrast, GDP growth in the
UK slowed to 0.2% in Q1 2017, its weakest quarter since Q1 2016, partly in
response to a rise in inflation and a weakening of growth in the large services
sector. Having increased to 2% in February 2017, harmonised CPI in the Eurozone
had moderated to 1.3% in June, largely because energy prices rises decelerated.
Harmonised CPI in the UK declined from 2.9% in May to 2.6% in June. Growth
appears to have picked up further momentum in the Eurozone in Q2, according to
recent data and surveys that point to rising output and greater confidence.
Despite stronger momentum in the first half of the year, Eurozone GDP is
forecast to grow at around the same rate in 2017 as in 2016 (1.8%). Higher
inflation and political uncertainty - notably as a result of Article 50 being
triggered by the UK government in March 2017 and elections during the year in
the Netherlands, France, the UK, Germany and, potentially, Italy - are expected
to affect spending by both businesses and households. Consumer spending is
expected to remain a key driver of economic growth but, in the absence of
strong wage growth, higher inflation (forecast to be 1.6% in 2017, after 0.2%
in 2016) is projected to have an overall negative impact on growth. However,
exports are expected to increase, reflecting a strengthening and broadening of
the global recovery. Although there is still considerable disparity in
conditions, some convergence between GDP growth rates in Eurozone countries is
expected. While still low by historical standards, long-term government bond
yields are forecast to rise modestly in 2017, in a continuation of the pattern
seen in the final quarter of 2016. However, increased volatility is expected
throughout 2017, given the wider geo-political risks and the uncertain outlook
for asset-purchase tapering and interest rate normalisation.
Italy's GDP growth accelerated from 0.3% quarter-on-quarter (q-o-q) in Q4 2016
to 0.4% in Q1 2017. Growth was driven by an acceleration in inventory building
and household spending, with the latter boosted by a rise in employment; the
unemployment rate stood at 11.3% in May 2017, after peaking at 13% in November
2014. However, fixed investment and net exports contributed negatively to
growth.
Italy's economy faces some severe headwinds and underlying growth momentum is
weak; AXA IM's forecast is for GDP growth of 1.2% in 2017 as a whole, after 1%
in 2016, one of the weakest growth rates in the Eurozone. A key risk is Italy's
fragile banking sector. In June, the European Commission approved the use of
Italian public funds for a precautionary recapitalisation of Monte dei Paschi
di Siena and the liquidation of two failing regional banks. While these plans
will remove bad loans, improve confidence and increase consolidation in Italy's
banking sector, they will also increase public debt, and there is a risk that
other regional banks may yet need aid. There is also a risk that continued
political uncertainty and the government's narrow agenda will constrain
economic growth. General elections are required by early 2018. Matteo Renzi won
back control of the ruling Democratic Party (PD) in an April 2017 primary and
the PD and populist Five Star Movement (M5S) are currently leading national
polls. However, while Forza Italia (FI) and the Northern League (LN) are
currently trailing far behind, their popularity has increased according to
recent polls and candidates from FI and LN won several key municipal elections
in June.
CONSOLIDATED PERFORMANCE SUMMARY
Audited Unaudited
Year ended 30 June 2017 Quarterly
30 June 2016 Movement
Pence per Pence per Pence per share
share share /(%)
Net Asset Value per share 67.20 67.65 0.45 0.67%
Share price (mid-market) 55.13 61.25 6.12 11.10%
Share price discount to Net 18.0% 9.5% -8.5 percentage
Asset Value points
Total annual return Audited Unaudited
Year ended Year ended
30 June 2016 30 June 2017
Net Asset Value Total Return 11.2% 2.9%
Share Price Total Return
- AXA Property Trust 29.6% 23.0%
- FTSE All Share Index 2.2% 18.1%
- FTSE Real Estate Investment -8.3% 9.2%
Trust Index
Source: AXA Investment Managers UK Limited and Stifel
Nicolaus Europe Limited.
Total net loss was GBP1.35 million (-2.82 pence per share) for the twelve months
to 30 June 2017, analysed as follows:
Unaudited Unaudited Unaudited
6 months ended 6 months ended 12 months ended
31 December 2016 30 June 2017 30 June 2017
GBPmillion GBPmillion GBPmillion
Net rental and related income 1.39 0.65 2.04
Valuation loss on investment (0.68) (0.40) (1.07)
properties
Loss on disposal of a subsidiary (0.65) (0.58) (1.23)
and investment properties
General and administrative (0.41) (0.44) (0.85)
expenses
Operating loss (0.34) (0.77) (1.11)
Net foreign exchange gain 0.29 (0.31) (0.03)
Net gain on financial instrument 0.06 (0.04) 0.02
Share in profit of a joint 0.05 (0.01) 0.04
venture
Net finance cost (0.19) 0.02 (0.17)
Loss before tax (0.13) (1.12) (1.25)
Income tax expenses (0.20) 0.10 (0.10)
Loss for the period (0.34) (1.02) (1.35)
The Company will be releasing further details in its audited Annual Report and
Financial Statements for the year ended 30 June 2017.
NET ASSET VALUE
The Company's unaudited Consolidated Net Asset Value as at 30 June 2017 was GBP
15.83 million and the NAV per share was 67.65 pence per share. This reflects an
slight increase of 0.98 pence per share compared to 31 March 2017 when the NAV
per share was 66.67 pence per share (consolidated Net Asset Value was GBP21.21
million) and a decrease of 1.28 pence per share compared to 31 December 2016
(consolidated Net Asset Value was 39.69 million).
The Net Asset Value attributable to the Ordinary Shares is calculated under
International Financial Reporting Standards. It includes all current year
income after the deduction of dividends and capital return paid prior to 30
June 2017.
The variation of Net Asset Value over the 6-month period ended 30 June 2017 can
be analysed as follows:
Unaudited Unaudited Unaudited
6 months ended 6 months ended 12 months ended
31 December 2016 30 June 2017 30 June 2017
GBPmillion GBPmillion GBPmillion
Opening Net Asset Value 38.69 39.69 38.69
Net (loss) / profit after tax (0.34) (1.02) (1.35)
Unrealised movement on - - -
derivatives
Share Redemption - (24.00) (24.00)
Foreign exchange translation gains 1.33 1.17 2.50
Closing Net Asset Value 39.69 15.83 15.83
On a like-for-like basis the Euro valuation of the property portfolio decreased
by 1.4% to EUR14.0 million for the quarter compared to previous quarter (EUR14.2
million) and by 3% compared to 31 December 2017 (EUR14.5 million).
GBP/EUR foreign exchange rate applied to the Company's Euro investments in its
subsidiary companies at 30 June 2017 was 1.1389 (1.1689 at 31 March 2017 and
1.1680 at 31 December 2016).
FUND GEARING
The bank loan from CA-CIB Crédit Agricole and Crédit foncier was fully repaid
in December 2016 prior to the loan maturity, using sales proceeds from
Agnadello transaction. As at 30 June 2017 the Company has no outstanding bank
loan.
MATERIAL EVENTS
Except for those noted above, the Board of the Company is not aware of any
significant event or transaction which occurred between 30 June 2017 and the
date of the publication of this Statement which would have a material impact on
the financial position of the Company.
Company website:
http://www.axapropertytrust.com
All Enquiries:
Real Estate Adviser
AXA Real Estate Investment Managers UK Limited
Broker Services
7 Newgate Street
London EC1A 7NX
Tel: +44 (0)20 7003 2345
Email: broker.services@axa-im.com
Broker
Stifel Nicolaus Europe Limited
150 Cheapside
London EC2V 6ET
Tel: +44 (0)20 7710 7600
Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
GY1 3QL
Tel: +44 (0)1481 745324
END
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