IMPT.L Regulatory News (IMPT)

15 May 2013

ALPHA UK MULTI PROPERTY TRUST PLC

(the "Company" or together with its subsidiaries the "Group")

INTERIM MANAGEMENT STATEMENT

Alpha UK Multi Property Trust PLC is today announcing an Interim Management Statement for the quarter ending 31 March 2013 and the period up until the date of this announcement. The information contained herein has not been audited.

Highlights:

• Adjusted net asset value ("NAV") per ordinary share - 241 pence as at 31 March 2013 (248 pence at 31 December 2012).

• Adjusted earnings per ordinary share - profit of 4.3 pence for the three months to 31 March 2013 (6.8 pence for the twelve months to 31 December 2012).

• Two sales completed above valuation - two properties were sold at a total sale price of £2.93 million in March and April 2013.

• Occupancy improved - the occupancy level by estimated rental value stood at 82.1% as at 30 April 2013, compared with 80.8% as at 31 December 2012.

• Borrowings reduced - bank borrowings reduced by £0.9 million during the quarter to 31 March 2013; a further £2.3 million was repaid in April 2013.

• Loan to value ("LTV") - the combined LTV across the Group on secured borrowings was 71.5% at 31 March 2013 (71.3% at 31 December 2012); and further reduced to 70.5% as at 30 April 2013.

Revaluation and NAV

The Company's adjusted NAV per Ordinary Share was 241 pence as at 31 March 2013 which represents a decrease of 2.8% from that reported at 31 December 2012 of 248 pence. Primarily this fall resulted from the revaluation of the property portfolio.

The Group's property portfolio was valued at 31 March 2013 by DTZ Debenham Tie Leung Limited at £82.7 million. One property was sold in March 2013 and therefore on a like for like basis the valuation of the portfolio decreased £1.1 million (-1.3%) from £83.8 million at 31 December 2012 to £82.7 million at 31 March 2013. The property portfolio will next be valued by an independent valuer as at 30 June 2013. 

Property Update

The Investment Adviser and Manager continues to progress the published strategy to deliver shareholder value, namely:

• To enhance net rental income.

• To amortise borrowing through surplus rental income and to reduce the LTV.

• To deploy capital when 'value add' opportunities are identified.

• To undertake limited strategic sales.

Occupancy across the portfolio has increased with 81.5% of the portfolio let as at 31 March 2013 (82.1% at 30 April 2013), based on the total estimated rental value, compared with 80.8% as at 31 December 2012. Progress continues to be made in letting void units; 16 new lettings and 6 lease renewals have been successfully completed in the quarter to 31 March 2013 at a final achievable annual rent, including stepped rent, of approximately £0.3 million per annum.

Tenant/letting activity can be summarised as follows:

Property sales

In keeping with the Board's strategy to undertake limited strategic sales, one vacant light industrial unit, which formed part of a larger multi-let investment, was sold in March 2013 to an owner-occupier. During April 2013 a part vacant multi-let office investment was also sold. Both investments, at a combined sale price of £2.93 million, sold in excess of their most recent valuation.

Financing

During the quarter to 31 March 2013, the Group reduced borrowings by a further £0.9 million. As a result of these repayments, the total secured borrowings of the Group have been reduced to £59.1 million at 31 March 2013. Following the repayment of £2.3 million in April 2013, the total secured borrowings stood at £56.8 million.

The combined LTV of the Group's secured borrowings was 71.5% at 31 March 2013 (71.3% at 31 December 2012 and 70.5% at 30 April 2013).

As previously reported:

The loan facility with a current outstanding balance of £48.2 million provided by Bank of Scotland in respect of the Company's wholly owned subsidiaries, CHIP (One) Limited, CHIP (Three) Limited, CHIP (Four) Limited and CHIP (Five) Limited, was originally due to expire on 31 October 2012 and has been extended to 31 July 2013. 

The loan facility with a current outstanding balance of £8.6 million provided by Nationwide in respect of the Company's wholly owned subsidiary, CHIP (Two) Limited was originally due to expire on 23 October 2012 and has been extended to 31 May 2013. 

Discussions with Bank of Scotland, Nationwide and alternative banks and providers of capital are continuing in order to pursue extensions to, or refinancing of, these borrowings.

The Convertible Unsecured Loan Stock ("CULS") are due to mature on 30 June 2013, and based on the current share price are not expected to be converted into equity, hence would be due for repayment. Although there are currently insufficient cash reserves to repay the CULS, the Company is in discussions with providers of mezzanine financing and the Board has reasonable expectations that suitable re-financing arrangements will be agreed within the remaining period to maturity.

Contact:

Jonathan Clague

Chairman, Alpha UK Multi Property Trust Plc

+44 (0) 1624 681250

Tom Pissarro

Fund Manager, Alpha Real Capital LLP

+44 (0) 20 7268 0300

For more information on the Company please visit www.alphaukmultipropertytrust.com.

For more information on the Company's Investment Manager please visit www.alpharealcapital.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.