Last checked at 19 Nov 2009 16:32
19 November 2009
Alpha Pyrenees Trust Limited ("Alpha Pyrenees" or "the Trust")
Interim Management Statement
Alpha Pyrenees Trust Limited today publishes its interim management statement for the quarter ending 30 September 2009 and the period up until the date of this announcement. The information contained herein has not been audited.
KEY POINTS
ADJUSTED NAV* 35 PENCE PER SHARE AS AT 30 SEPTEMBER 2009
CURRENT PORTFOLIO VALUATION YIELD OF 8.7% AT 30 SEPTEMBER 2009
DIVIDEND OF 0.9 PENCE PER SHARE FOR THE QUARTER TO 30 SEPTEMBER 2009
86% OF PORTFOLIO INCOME COMES FROM GRADE A TENANTS
WEIGHTED AVERAGE LEASE LENGTH OF 7.8 YEARS TO EXPIRY AND 4.4 YEARS TO NEXT BREAK
LEASE EXTENSIONS AND NEW LEASE AGREEMENTS COVERING APPROXIMATELY 8,235 SQUARE METRES ACHIEVED IN THE QUARTER
ALL DEBT FIXED TO MATURITY AT A WEIGHTED AVERAGE INTEREST RATE OF 5.26% PER ANNUM
LOAN TO VALUE COVENANTS AT 85% OR HIGHER
NET LEVERAGE (AFTER CASH OF £19 MILLION) OF 75%
ADJUSTED NAV* 35 PENCE PER SHARE
As at 30 September 2009, Alpha Pyrenees' investment portfolio decreased in value on a Euro like-for-like basis by 2.42% compared to 30 June 2009.
PORTFOLIO YIELD AT VALUATION OF 8.7%
The Trust's investment portfolio was valued at £272 million (€297 million) on 30 September 2009 giving an average valuation yield of 8.7%.
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*Adjusted NAV - unaudited, after adjustments for the unrealised mark-to-market of the currency hedge, fixed rate loans and deferred taxation.
DIVIDEND
As previously indicated, the economic outlook makes predicting the timing and level of leasing of the Trust's remaining vacant units unusually difficult and the Board has taken into consideration the changes in market conditions and the progress on leasing and other initiatives that are currently being pursued. The Board recognises it is desirable to broadly align dividends with earnings and is therefore declaring a dividend of 0.9 pence per share for the third quarter of 2009. This is equivalent to a dividend of 3.6 pence per share on an annualised basis.
The dividend of 0.9 pence per share will be paid on 11 January 2010, with an associated ex-dividend date of 9 December 2009 and record date of 11 December 2009.
PROPERTY UPDATE
The Trust's Investment Manager has continued to concentrate its activities in asset management and property management initiatives and we are pleased to report a number of important achievements in the following areas:
extending lease terms, and
letting vacant units within the portfolio.
FRANCE
There have been a number of extensions of leases through lease renewals or unexercised break options:
Nimes - A new 9 year lease has been signed with the Conseil Général du Gard on approximately 2,780 square metres of office accommodation from 1 January 2010. This is equivalent to a 5 year extension of the existing lease.
Ivry-sur-Seine -the lease to Plastic Omnium on a 1,190 square metre warehouse unit has been extended until 30 April 2013.
Fresnes - the lease to Exaflor on a 245 square metre warehouse/office unit has had the next break option extended to 30 August 2013.
The following new lettings of vacant units occurred in the third quarter of 2009:
Vitry - A new 3/6/9 year lease has been signed with Go Sport on a 370 square metre vacant warehouse unit from 8 September 2009.
Aubervilliers - A new 3/6/9 year lease was signed with D'Haussy on 125 square metres of vacant office accommodation from 1 August 2009.
The Trust's Investment Manager continues to focus on an active re-letting campaign for the vacant 6,340 square metre office property at St Cyr and discussions are continuing with interested parties. St Cyr represents around 4.0% of the portfolio by value.
SPAIN
There have been a number of extensions of leases or unexercised break options:
Cordoba - The lease to Sprinter on a 2,000 square metre retail unit has had the next break option extended to 27 September 2011.
Alcala - The lease to Confecciones el Rubio on a 1,370 square metre retail unit has had the next break option extended to 1 June 2012.
Ecija - Arizona Jeans and Balmont Sport have extended their leases through unexercised break options (152 square metres of retail space)
The Trust's Investment Manager is focused on an active re-letting campaign for the vacant warehouse units at Zaragoza (9,520 square metres) and is currently in discussions with a number of parties who have expressed interest in the property. Zaragoza represents around 1.4% of the portfolio by value.
FINANCING
The Trust's total borrowings of £223m (€244m) and portfolio value of £272m (€297m) gives a net leverage of 75% after cash of £19m.
The Trust is in advanced discussions with its bank in relation to the Spanish facility and expects to be able to update shareholders further in the near future.
For further information:
Dick Kingston, Chairman, Alpha Pyrenees Trust Limited 01481 735 541
Paul Cable, Fund Manager, Alpha Real Capital LLP 020 7268 0300
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.