TIDMALPH
RNS Number : 3063P
Alpha Pyrenees Trust Limited
05 June 2015
5 June 2015
Alpha Pyrenees Trust Limited (the "Trust" or the "Company")
Trading Update
Alpha Pyrenees Trust Limited today publishes its trading update
statement for the quarter ending 31 March 2015 and the period up
until the date of this announcement. The information contained
herein has not been audited.
KEY POINTS
-- MATURITY OF BORROWINGS EXTENDED TO 15 OCTOBER 2015
-- TRUST HAS THE SUPPORT OF ITS LENDER FOR AN ORDERLY REALISATION OF ITS INVESTMENT PROPERTY
-- WEIGHTED AVERAGE LEASE LENGTH IS 10.3 YEARS TO EXPIRY AND 6.6 YEARS TO NEXT BREAK
-- 88% OF PORTFOLIO INCOME COMES FROM GRADE A TENANTS
-- 92% OF THE TRUST'S PORTFOLIO BY VALUE IS IN FRANCE AND 84% IS IN THE PARIS REGION
-- ADJUSTED NAV* 3.9 PENCE PER SHARE AS AT 31 MARCH 2015 (31
DECEMBER 2014: 6.0 PENCE PER SHARE)
VALUATION AND NET ASSET VALUE ("NAV")
The Trust's investment portfolio was last valued on 31 December
2014 at EUR271.2m (GBP198.4m at 31 March 2015 exchange rate) giving
an average valuation yield across the portfolio of 8.3% (French
portfolio 8.2% and Spanish portfolio 9.0% respectively).The next
independent revaluation will take place as at 30 June 2015.
As at 31 March 2015 the adjusted NAV* is 3.9 pence per share.
The decrease in adjusted NAV from 31 December 2014 (6.0 pence per
share) is due to the combined effect of the loss incurred in the
period and adverse foreign exchange effects.
*Adjusted NAV - unaudited, after adjustments for the interest
rate swap derivatives (only relevant for the 31 December 2014
comparative) and 50% of the deferred tax provisions.
FINANCING
It was announced on 8 May 2015 that the Trust's loan facilities
with Barclays Bank PLC ("Barclays") have been extended and the
maturity date of all its borrowings (EUR271.5m) has been extended
to 15 October 2015.
The current interest rates will continue to apply to the
facilities during the extension period. Arrangement fees (charged
at 2% per annum pro-rated) on the initial and new extensions will
all be deferred to the new maturity date and will be payable to the
extent that the Trust has sufficient cash funds at that time. The
Trust is currently compliant with its borrowing covenants.
The Trust has the support of its lender for an orderly
realisation of its investment property. To further this endeavour,
the Trust has entered into a formal agreement with Barclays in
which an operational framework is being developed to achieve this
realisation in a consensual manner. The Trust will also continue to
consider refinancing options including the potential refinancing of
assets by third party lenders.
The Trust will provide further updates in due course.
DIVIDEND
The Trust does not currently propose to pay dividends.
PROPERTY UPDATE
The Trust's Investment Manager has continued to concentrate on
active asset management and property management initiatives within
the portfolio to secure the Trust's income and there has been
further progress in the letting of vacant areas and the extension
of leases.
Since 1 January 2015, new leases and lease extensions covering
approximately 3,915 square metres (1.6% of the Trust's current
portfolio by area) have been achieved as detailed below.
FRANCE
-- Goussainville - A new 3/6/9 year lease from January 2015 was
signed with JAG Diffusion, a cleaning company, on 180 square metres
of office space.
-- Fresnes - A new 3/6/9 year lease from April 2015 was signed
with existing tenant, Anteos on 730 square metres of warehouse
space; and a new 3/6/9 year lease from April 2015 was signed with
LBF CREA, a public relations and exhibition company, on 245 square
metres of vacant office and warehouse space.
-- Mulhouse - A new fixed 9 year lease from October 2015 was
signed with Credit Mutuel, a major French bank, on 215 square
metres of vacant ground floor space for a branch; and a 3 year
lease extension to August 2018 was signed with existing tenant UFCV
on 315 square metres of office space.
SPAIN
-- Cordoba - Juguetilandia extended their lease on a 1,030
square metre retail unit until January 2016; Dia extended their
lease on a 1,200 square metre supermarket unit until September
2016.
-- Ecija - Existing tenant, Burger King, have purchased their
245 square metre restaurant unit.
GENERAL
The Investment Manager is also focussed on developing the
operational framework with Barclays to achieve an orderly
realisation of the Trust's investment property and realising equity
in asset sales to support the settlement of the bank borrowings as
they mature and further updates on this process will be provided in
due course.
The Investment Manager remains focussed on ensuring service
charges are controlled; the annual level of property costs is
closely monitored and additional sources of income are
identified.
The Trust's portfolio has an overall level of average occupancy
of 80% (82% at 31 December 2015), measured by rental income as a
percentage of potential total income, and the vacancy rate has
increased from 18% to 20% during the period primarily due to the
termination of a number of smaller leases. The weighted average
lease length as at 31 March 2015 was 10.3 years to expiry and 6.6
years to next break with 88% of the current portfolio income coming
from Grade A tenants.
RENTAL INDEXATION
The INSEE Construction Cost Index ("ICC"), applicable to the
Trust's leases in France, showed an annualised growth of 0.62% for
the latest published quarter, Q4 2014, following an annualised
growth rate of 0.93% for Q3 2014.
The Spanish Consumer Price Index, applicable to the Trust's
leases in Spain, was running at an annualised rate of growth of
-0.6% as at the end of April 2015.
For further information:
Dick Kingston, Chairman, Alpha Pyrenees Trust Limited 01481 231100
Paul Cable, Fund Manager, Alpha Real Capital LLP 020 7391 4700
For more information on the Company, please visit
www.alphapyreneestrust.com.
FORWARD-LOOKING STATEMENTS
This interim management statement contains forward-looking
statements which are inherently subject
to risks and uncertainties because they relate to events and
depend upon circumstances that will
occur in the future. There are a number of factors that could
cause actual results to differ materially
from those expressed or implied by such forward-looking
statements. Forward-looking statements are
based on the Board's current view and information known to them
at the date of this statement. The
Board does not make any undertaking to update or revise any
forward-looking statements, whether as
a result of new information, future events or otherwise. Nothing
in this interim management statement
should be construed as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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