TIDMALPH
RNS Number : 2757H
Alpha Pyrenees Trust Limited
16 May 2014
16 May 2014
Alpha Pyrenees Trust Limited (the "Trust" or the "Company")
Interim Management Statement
Alpha Pyrenees Trust Limited today publishes its interim
management statement for the quarter ending 31 March 2014 and the
period up until the date of this announcement. The information
contained herein has not been audited.
KEY POINTS
-- NEW LEASES AND LEASE EXTENSIONS COVERING 14,235 SQUARE METRES
(5.4% OF THE TRUST'S PORTFOLIO BY AREA) ACHIEVED SINCE 1 JANUARY
2014
-- ADJUSTED NAV* 21.9 PENCE PER SHARE AS AT 31 MARCH 2014 (31
DECEMBER 2013: 22.8 PENCE PER SHARE)
-- 82% 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
-- WEIGHTED AVERAGE LEASE LENGTH IS 8.1 YEARS TO EXPIRY AND 4.2
YEARS TO NEXT BREAK FOLLOWING LEASE EXTENSIONS
VALUATION AND NET ASSET VALUE ("NAV")
The Trust's investment portfolio was last valued on 31 December
2013 at EUR297.2m (GBP245.6m at 31 March 2014 exchange rate) giving
an average valuation yield across the portfolio of 8.2% (French
portfolio 8.2% and Spanish portfolio 8.6%). The next independent
revaluation will take place as at 30 June 2014.
As at 31 March 2014 the adjusted NAV* is 21.9 pence per share.
The decrease in adjusted NAV from 31 December 2013 (22.8 pence per
share) is primarily due to the depreciation of the Euro during the
quarter.
*Adjusted NAV - unaudited, after adjustments for the interest
rate swap derivatives and 50% of the deferred tax provisions.
FINANCING
As at 31 March 2014, the Trust has total borrowings of GBP221.0m
(EUR267.4m) under its facilities with Barclays Bank PLC. All
borrowings mature in February 2015 and there are no Loan to Value
("LTV") covenant tests before maturity on any of the Trust's
borrowings. The Board continues to pursue a combination of
realising equity through selective asset sales and alternative
financing options in order to support the settlement of the bank
borrowings as they mature.
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 we are pleased to
report further progress in the letting of vacant areas and the
extension of leases.
Since 1 January 2014, new leases and lease extensions covering
approximately 14,235 square metres (5.4% of the Trust's portfolio
by area) have been achieved. Of this total, 5,150 square metres
were previously detailed in the annual report and new leases and
lease extensions covering approximately 9,085 square metres have
been completed since the annual report was published as detailed
below.
FRANCE
-- Gennevilliers - in line with the asset management strategy to
extend lease maturity, the Trust has signed a new 6/9 year lease
with Husqvarna France from April 2014. Husqvarna France occupy the
whole of the office and light industrial building totalling 3,410
square metres and the previous lease had a break option at
September 2014.
-- Goussainville - A new 3/6/9 year lease starting in April 2014
was signed with Fly Aviation, an aeronautical services company, on
285 square metres of vacant office space and existing tenant,
Hurco, extended their lease on a 900 square metre warehouse unit to
May 2017.
SPAIN
-- Cordoba - Dia extended their lease on a 1,200 square metre
retail unit until September 2015 and UCC extended their lease on a
3,000 square metre cinema until June 2015.
-- Ecija - Burger King extended their lease on a 250 square
metre retail unit until August 2015 and Mis Tacones extended their
lease on a 40 square metre retail unit until July 2015.
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 85% (84% at 31 December 2013), measured by rental income as a
percentage of potential total income, with 82% of the portfolio
income coming from Grade A tenants and a weighted average lease
length of 8.1 years to expiry and 4.2 years to next break.
RENTAL INDEXATION
The INSEE Construction Cost Index ("ICC"), applicable to the
Trust's leases in France, showed an annualised growth of -1.46% for
the latest published quarter, Q4 2013, following an annualised
growth rate of -2.18% as at Q3 2013.
The Spanish Consumer Price Index, applicable to the Trust's
leases in Spain, was running at an annualised rate of growth of
-0.1% as at the end of March 2014 but estimates for the end of
April 2014 show that this had increased to 0.4% (0.3% as at the end
of December 2013).
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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