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Net Asset Value 31 March 2016 (unaudited)

Fri, 27th May 2016 13:49

AXA PROPERTY TRUST LTD - Net Asset Value 31 March 2016 (unaudited)

PR Newswire

London, May 27

To: Company Announcements Date: 27 May 2016 Company: AXA Property Trust Limited

Subject: Net Asset Value 31 March 2016 (Unaudited)




  • The Company’s unaudited Consolidated Net Asset Value as at 31 March 2016 was £38.55 million (31 December 2015: £47.14 million)
  • The unaudited Net Asset Value per share at 31 March 2016 was 66.95 pence (31 December 2015: 62.06 pence per share)
  • The Company made a net profit after tax of £1.58 million in the nine months period to 31 March 2016 and £0.27 million in the 3 months period from 1 January to 31 March 2016.


  • The Company continues to progress the managed wind-down of its portfolio with a view to realising its investments by December 2016 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 Company returned £11.0m to Shareholders by means of a capital redemption on 6 January 2016 bringing the total return amount to £24.1 million
  • No assets were sold during the quarter. As at the end of the quarter, all assets, with the exception of Rothenburg were on the market available for sale.
  • The two Italian assets were marketed on a targeted, open market basis during the quarter and whilst no bids were received, management remain focussed on achieving successful sales during the year.
  • In Germany the potential sale of the Dasing asset was delayed by the proposed purchaser and is now targeted for mid-year. At Rothenberg, negotiations with an anchor tenant continued towards finalising a new long-term lease which is supportive of the value-creation at this asset. Once the lease negotiation is signed, the asset will be placed in the market.


Country Allocation at 31 March 2016 (by asset value)

Country % of portfolio

Germany 52%

Italy 48%

Sector Allocation at 31 March 2016 (by asset value)

Sector % of portfolio

Retail 39%

Industrial 34%

Leisure 27%


German Retail

During 2015 over 525,000 sq m of retail lettings were transacted, approximately 10% less than the previous year. Prime German retail rents remained stable during the first quarter of 2016 and according to CBRE were largely unchanged compared to the first quarter of 2015. Retail investment volumes amounted to €1.5bn in the first quarter of 2016, down 56% Year-on Year (YoY), reducing the share of retail investments relative to total real estate investment from 37% in Q1 2015 to 18% in Q1 2016. This fall appears to reflect a lack of non-German investors compared to previous years which itself may have been caused by the lower volume of prime retail assets brought to the market.. Overall, portfolios comprised the largest share of retail investment during the quarter, amounting to €860 million (57%). In addition, the major share of retail transactions were across generally secondary and tertiary locations, reflecting also the lack of availability of core investments for sale. Yield compression has continued across all types of locations and properties over the past 12 months. According to Colliers’ recent market indices, prime gross yields for retail-office mixed-use assets in the ‘Big 7’ centres are currently in the order of 3.00% in Munich rising to 4.20% in Cologne. Warehouse stores and retail parks are currently priced at yields of between 5.50% and 6.00%.

German Logistics

During the first quarter of 2016, Germany benefited from a 45% YoY increase in logistics and industrial take up, at 1.5m sq m. CBRE reports this as the highest take-up figure for a first quarter and was driven by transactions outside of the top 5 city markets. Of these major markets, Frankfurt recorded the highest level of activity with take-up amounting to approximately 170,500 sq m. Generally, prime rents remained stable, although those in Munich and Berlin each recorded increases of approximately 4%, amounting to €6.75/sq m and €4.80/sq m respectively as at Q1 2016.

Investment volumes into German logistics and industrial properties during the quarter amounted to €910m, almost twice the amount invested during Q1 2015. According to Colliers, this sector accounted for 11% of the overall commercial investment volume in Q1 2016, higher than the 7.2% achieved over the whole of 2015.This may reflect a desire by investors to maintain yield in a low-return environment and a consequent switch away from other commercial sectors. As with the leasing markets, a large majority (75%) of transactions occurred outside of the top 7 markets. Colliers report gross initial yields declined by 50 basis points over the quarter, to 5.9%. The lowest prime level was registered in Munich at 5.4%

Italian Industrial

The Italian industrial market is continuing to benefit from the country’s economic recovery and its central location along the European logistics corridor. The north of Italy, in particular Lombardy and Emilia Romagna continue to benefit from healthy industrial take-up. Q1 2016 prime rents grew by 4.2% YoY in the Milan region , whilst remaining stable in Rome. Current prime rents now stand at €52.00/sq m/year in Rome and at 50/sq m/year in Milan. Investment into the Italian logistics sector amounted to a quarterly volume of €30 million, down 65% YoY according to CBRE. Prime yields remaining unchanged at 6.5% in both Milan and Rome, however CBRE comment that this is a 80bps reduction from Q1 2015, reflecting sustained overall demand from international investors.


Year to date Year to date
31 December 2015 31 March 2016 Quarterly Movement
Pence per share Pence per share Pence per share /(%)
Net Asset Value per share 62.06 66.95 4.89 7.88%
Share price (mid-market) 54.50 53.88 -0.62 -1.14%
Share price discount to Net Asset Value 12.2% 19.5% 7.3 percentage points

Total Return per Share Unaudited Unaudited
12 months ended 12 months ended
31 March 2015 31 March 2016
Net Asset Value Total Return -5.4% 18.8%
Share Price Total Return
- AXA Property Trust 12.7% 32.0%
- FTSE All Share Index 6.6% -3.9%
- FTSE Real Estate Investment Trust Index 28.3% -5.3%
Source: AXA Investment Managers UK Limited and Stifel Nicolaus Europe Limited.

Total net profit £0.27 million (0.46 pence per share) for the three months from 1 January to 31 March 2016 analysed as follows:

Unaudited Unaudited
3 months ended 3 months ended
31 December 2015 31 March 2016
£million £million
Net property income 0.87 0.35
Net foreign exchange (losses) / gains 0.00 0.00
Investment Manager's fees (0.08) (0.02)
Other income and expenses (1.70) (0.14)
Net finance costs (0.28) (0.13)
Revenue (loss)/profit (1.19) 0.06
Unrealised (losses) / gains on revaluation of investment properties 1.95 0.04
Net losses on disposal of investment properties 1.06 0.02
Net (Losses) / gains on derivatives 0.19 0.12
Share in (losses) / Profit of Joint Venture 0.06 0.10
Finance costs (0.00) 0.00
Net foreign exchange losses 0.17 0.00
Deferred tax 0.05 (0.08)
Capital profit 3.49 0.21
Total profit 2.30 0.27


The Company’s unaudited Consolidated Net Asset Value decreased by £8.59 million during the quarter mainly as a result of the £11.00 million of capital redemption and a favourable movements in the Euro/Sterling exchange rate (£2.09 million):

Unaudited Unaudited Unaudited
6 months ended 3 months ended 9 months ended
31 December 2015 31 December 2015 31 March 2016
£million £million £million
Opening Net Asset Value 49.37 47.14 49.37
Net (loss) / profit after tax 1.31 0.27 1.58
Unrealised movement on derivatives 0.53 0.04 0.57
Share Redemption (5.20) (11.00) (16.19)
Foreign exchange translation losses 1.14 2.09 3.23
Closing Net Asset Value 47.14 38.55 38.55

Net Asset Value per share as at 31 March 2016 was 66.95 pence (62.06 pence as at 31 December 2015).

The Net Asset Value attributable to the Ordinary Shares is calculated under International Financial Reporting Standards (IFRS). It includes all current year income after the deduction of dividends and capital redemptions paid prior to 31 March 2016.

On a like-for-like basis the Euro valuation of the property portfolio decreased by 0.87% to €57.1 million for the quarter. In Sterling currency terms, the property valuation was £45.2 million in March 2016 (including the effects of valuation movements, capital expenditure and foreign exchange movements). The £/EUR foreign exchange rate applied to the Company’s Euro investments in its subsidiary companies at 31 March 2016 was 1.261 (31 December 2015: 1.357).

The Company’s net property yield on current market valuation (after acquisition and operating costs) as at 31 March 2016 was 9.0%.


As at close of business on 31 March 2016, the mid-market price of the Company’s shares on the London Stock Exchange was 53.88 pence, representing a discount of 19.5% to the Net Asset Value of 66.95 pence per share.


Unaudited Unaudited
31 December 2015 31 March 2016 Movement
£million /% £million /% £million /%
Property portfolio * 42.41 45.23 2.82 -6.2%
Borrowings 15.72 14.24 -1.48 10.4%
Total gross gearing 37.1% 31.5% -5.6 percentage points
Total net gearing ** 28.2% 27.2% -1.0 percentage points
* Value based on independent valuation, Agnadello valuation included
** Net Gearing is calculated as overall debt, net of unallocated cash held by the Goup over the portfolio at fair value

Fund gearing is included to provide an indication of the overall indebtedness of the Company and does not relate to any covenant terms in the Company’s loan facilities.


Gross Loan to Value (LTV) Covenants Unaudited Unaudited
31 December 2015 31 March 2016 Maximum
Main loan facility 50.7% 42.6% 60.00%

As at 31 March 2016, the loan-to-value ratio on the main loan facility was 42.6% based on the bank asset valuation. The loan has an LTV covenant of 60%.

Interest Cover Ratio at 31 March 2016 Historic Minimum Projected Minimum
Unaudited Unaudited
Main loan facility covenant 2.54x 2.0x 3.32x 1.85x

Interest Cover Ratio (ICR) is calculated as net financing expense payable as a percentage of net rental income less movement in arrears.


The Company and its subsidiaries (Agnadello included) held total cash of £8.93 million at 31 March 2016. The Company returned £11.00 million to shareholders in January 2015. Cash is held within the Trust’s holding structure to cover potential liabilities arising from outstanding representations and warranties, as well as running costs.


Except for those noted above, the Board of the Company is not aware of any significant event or transaction which occurred between 31 March 2016 and the date of the publication of this Statement which would have a material impact on the financial position of the Company.

Company website:


All Enquiries:

Investment Manager AXA Investment Managers UK Limited Broker Services 7 Newgate Street London EC1A 7NX Tel: +44 (0)20 7003 2345 Email: broker.services@axa-im.com

Sponsor and Broker Stifel Nicolaus Europe Limited 150 Cheapside London EC2V 6ET Tel: +44 (0)20 7710 7600

Company Secretary Northern Trust International Fund Administration Services (Guernsey) Limited Trafalgar Court Les Banques St Peter Port GY1 3QL Tel: +44 (0)1481 745324

Date   Source Headline
13th Dec 201911:16 amRNSChange of Ticker Symbol
11th Dec 20194:16 pmRNSResult of AGM & Change of Company Name
29th Nov 20194:05 pmRNSNet Asset Value(s)
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