TIDMALPH
RNS Number : 5912F
Alpha Pyrenees Trust Limited
13 November 2015
13 November 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 30 September 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 APRIL 2016
-- TRUST HAS THE SUPPORT OF ITS LENDER FOR AN ORDERLY REALISATION OF ITS INVESTMENT PROPERTY
-- SALES PROCESS IS UNLIKELY TO RESULT IN ANY RETURN TO ORDINARY SHAREHOLDERS
-- ADJUSTED NAV* 0.0 PENCE PER SHARE AS AT 30 SEPTEMBER 2015 (30
JUNE 2015: 2.4 PENCE PER SHARE)
VALUATION AND NET ASSET VALUE ("NAV")
The Trust's current investment portfolio, excluding the Cordoba
property which was sold in July, was last valued on 30 June 2015 at
EUR254.1m (GBP188.4m at 30 September 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 31 December 2015.
As at 30 September 2015 the adjusted NAV* is 0.0 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, property revaluation, adverse foreign exchange
effects and the contingent liability for deferred arrangement fees,
described below.
*Adjusted NAV - unaudited, after adjustments for the interest
rate swap derivatives (only relevant for the 31 December 2014
comparative), 50% of the deferred tax provisions and part of the
contingent liability for deferred arrangement fees.
FINANCING
It was announced on 15 October 2015 that the Trust's loan
facilities with Barclays Bank PLC ("Barclays") have been extended
and the maturity date of all its borrowings (EUR257.3m) has been
extended to 15 April 2016.
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.
SALES PROCESS
As reported in the half year report, in July the Trust sold the
Connecta retail park at Cordoba for EUR15.3m which represented its
valuation as at 30 June 2015 and the sales proceeds were used to
reduce the Trust's bank borrowings.
The Trust has the support of its lender for an orderly
realisation of its investment property. The Investment Manager is
focussed on this process and formal marketing of the majority of
the Trust's properties is progressing with the aim of realising
sales proceeds to support the settlement of the bank borrowings as
they mature. The results of the marketing process to date indicate
that although there is no certainty that any transactions will take
place, if they do, the Board does not expect that there will be any
value to return to ordinary shareholders after repayment of its
bank borrowings has taken place.
The Trust will provide further updates in due course.
DIVIDEND
The Trust does not propose to pay dividends.
PROPERTY UPDATE
The Trust's Investment Manager has continued to concentrate on
active asset management and property management initiatives. Since
30 June 2015, new leases and lease extensions covering
approximately 1,685 square metres (0.7% of the Trust's current
portfolio by area) have been achieved as detailed below.
FRANCE
-- Goussainville - A new 6/9/12 year lease from November 2015
was signed with Leonor Greyl, a hair care products and treatments
company, on 1,280 square metres of warehouse space.
-- Mulhouse - A new 6/9/12 year lease from January 2016 was
signed with Allen System Group, a computer software company, on 190
square metres of office space
SPAIN
-- Alcala - A new 5/8/12 year lease was signed from October 2015
with restaurant operator, Pomodoro, on a 215 square metre retail
unit.
GENERAL
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 79% (80% at 30 June 2015), measured by rental income as a
percentage of potential total income. The weighted average lease
length as at 30 June 2015 was 9.1 years to expiry and 6.4 years to
next break with 90% of the current portfolio income coming from
Grade A tenants. By value, 98% of the Trust's portfolio is in
France and 89% is in the Paris region.
RENTAL INDEXATION
The INSEE Construction Cost Index ("ICC"), applicable to the
Trust's leases in France, showed an annualised decrease of 0.4% for
the latest published quarter, Q2 2015, following an annualised
decrease of 1.0% for Q1 2015.
The Spanish Consumer Price Index, applicable to the Trust's
leases in Spain, was running at an annualised rate of decrease of
0.7% as at the end of October 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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