AXA Property Trust Net Asset Value(s)
August 28 2015 - 05:14AM
UK Regulatory
TIDMAPT
To: Company Announcements
Date: 28 August 2015
Company: AXA Property Trust Limited
Subject: Net Asset Value 30 June 2015 (Unaudited)
CAPITAL REDEMPTION
* The company paid a capital redemption of GBP1.8 million on 26 May 2015 and GBP
5.2 million on 30 July 2015, bringing the total capital returned to
Shareholders to GBP13.1 million.
CORPORATE SUMMARY
* The Company's unaudited Consolidated Net Asset Value at 30 June 2015 was GBP
49.46 million (57.73 pence per share), an increase of GBP1.87 million (4.17
pence per share) since 31 March 2015 when the Consolidated Net Asset Value
was GBP47.60 million (53.56 pence per share);
* The Company and its subsidiaries made a profit after tax of GBP8.03 million
(9.37 pence per share) in the twelve month period to 30 June 2015;
MANAGED WIND-DOWN STATUS
* The Company continues to progress the managed wind-down of its portfolio
with a view to realising its investments by December 2015 in a manner that
achieves a balance between maximising the value from the Company's
investments and making timely returns of capital to shareholders.
* The sales of Altenstadt-Lindheim and Kraichtal have been completed during
the quarter.
* Marketing of the properties at Curno and Agnadello was progressed as part
of an Italian portfolio including a third asset owned by European Added
Value Fund S.à.r.l. (a subsidiary of European Added Value Fund Limited)
which is also the Company's 50% Joint Venture partner in Agnadello.
* Marketing of Venray and Fuerth is ongoing, while at Dasing and Rothenburg
asset management initiatives are being finalised before approaching
potential purchases.
* Year end 2015 remains the target for the completion of all sales, however
at present it is considered that the completion of the sale of certain
assets may not occur until early 2016.
PORTFOLIO UPDATE
Country Allocation at 30 June 2015 (by value)
Country % of portfolio
Germany 63%
Italy 30%
Netherlands 7%
Sector Allocation at 30 June 2015 (by value)
Sector % of portfolio
Retail 55%
Industrial 28%
Leisure 17%
MARKET UPDATE
German Retail
The performance of monthly retail sales support the view that consumption
remains a strong pillar of the German economy as they continued to increase in
May 2015 by 0.5%. One of the main reasons behind the recent rise in retail
sales had been the positive effect of falling oil prices, leading to enhanced
spending on other items. As oil prices are likely to firm over the coming
months, this effect could weaken.
In the first half of 2015, investments in German retail soared to EUR9.8bn.
Volumes have more than doubled in comparison to H1 2014. Portfolio sales
contributed strongly to the overall investment volume and were responsible for
65% of all sales. Also regional centres and second-tier cities have gained in
popularity which reflects the higher risk affinity of investors. High street
investment volumes were boosted by the takeover of 43 Galeria Kaufhof
department stores by Canada based Hudson's Bay Company.
Prime yields have remained flat in all markets with the exception of Munich and
Hamburg, where yields fell by 10bps and 9bps respectively. Yields in all
German markets are at their lowest level on record. Prime rents have been flat
over the last quarter in all markets.
Italian Industrial
The take-up of industrial space in Italy in Q2 2015 reached 204,650 sq m, an
increase of almost 250% on the previous quarter and a 1% decrease on same
period of 2014. Quarterly take-up involved existing buildings and no pre-let
transactions have been recorded. With 27% of quarterly take-up, 3PL operators
were once again the most active occupiers, followed by retailers which are
increasingly gaining influence as a driver of demand. Milan and its environs
continued to be the region with the strongest letting activity. Overall, prime
rents increased in the first quarter to EUR50/sq m/year in Milan, up from EUR48/sq
m/year of the previous quarter, according to CBRE. In the second quarter of
2015, no significant investment transactions have been recorded in the
Logistics sector. Half-yearly volume remained slightly below EUR 90m.
Netherlands Logistics
In the Netherlands, the industrial market is continuing to benefit most from
the country's economic recovery, due to its central location along the European
logistics corridor. The Central and East Brabant and Limburg regions, which are
focused on European distribution and high-tech sectors, continue to benefit
from cheaper rents and good accessibility to the rest of Europe. Occupiers are
actively looking to relocate to more modern facilities with good accessibility
but overall demand growth looks set to remain weak over the next few quarters,
given the current uncertainty in the Eurozone. Following strong growth in
along the European corridor (up 4.2% in Rotterdam) in the first quarter, prime
rents have remained stable in the second quarter of 2015 at EUR75/sq m/year. The
investment market has, however, revived in the second quarter, with EUR408m
invested into industrial property, which represents a 8% year-on-year increase.
While anticipated improvement in demand had pushed prime yields down in Q1
2015, prime yields remained stable in Q2 2015. In Amsterdam and Rotterdam, they
now stand at 6%.
CONSOLIDATED PERFORMANCE SUMMARY
Unaudited Unaudited
9 months ended 12 months ended
31 March 2015 30 June 2015 Quarterly
Movement
Pence per Pence per Pence per
share share share /(%)
Net Asset Value per share 53.56 57.73 4.17 7.8%
Earnings per share 3.84 9.37 5.53
Share price (mid market) 43.38 44.75 1.37 3.2%
Share price discount to Net 3.5
Asset Value 19.0% 22.5% percentage
points
Total Return per Share Unaudited Unaudited
9 months ended 12 months ended
31 March 2015 30 June 2015
Net Asset Value Total Return -1.7% -4.0%
Share Price Total Return
- AXA Property Trust 6.1% 10.5%
- FTSE All Share Index 4.2% 2.6%
- FTSE Real Estate Investment 23.6% 19.5%
Trust Index
Source: Datastream; AXA Real Estate
Total net profit was GBP8.03 million (9.37 pence per share) for the twelve months
to 30 June 2015, including GBP1.53 million of "revenue" profit (excluding capital
items such as revaluation of property) and GBP6.49 million "capital" gain,
analysed as follows:
Unaudited Unaudited Unaudited
9 months ended 3 months ended 12 months
ended
31 March 2015 30 June 2015 30 June 2015
GBPmillion GBPmillion GBPmillion
Net property 3.53 1.17 4.71
income
Net foreign exchange (losses) / gains (0.36) (0.06) (0.42)
Investment Manager's fees (0.33) (0.09) (0.43)
Other income and expenses (1.28) 0.27 (1.01)
Net finance (1.06) (0.26) (1.32)
costs
Revenue profit 0.50 1.03 1.53
Unrealised (losses) / gains on revaluation of investment 1.91 4.79 6.70
properties
Net losses on disposal of investment properties - (0.71) (0.71)
(loos) / Gain on disposal of shares in subsidiary - - -
Net (Losses) / gains on derivatives 0.59 0.13 0.72
Share in (losses) / Profit of Joint Venture 1.41 0.05 1.45
Finance costs (0.46) (0.09) (0.56)
Net foreign exchange losses (0.13) (0.06) (0.19)
Deferred (0.40) (0.52) (0.92)
tax
Capital loss 2.91 3.58 6.49
-
Total (net loss) / profit 3.41 4.61 8.03
NET ASSET VALUE
The Company's unaudited Consolidated Net Asset Value per share as at 30 June
2015 was 57.73 pence (53.56 pence as at 31 March 2015), an increase of 4.17
pence.
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 paid prior to 30 June 2015.
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