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. 
 

(MORE TO FOLLOW) Dow Jones Newswires

August 28, 2015 05:14 ET (09:14 GMT)

Axa Property (LSE:APT)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Axa Property Charts.
Axa Property (LSE:APT)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Axa Property Charts.