Worsley Inv Ltd Regulatory News (WINV)

10 Oct 2008 15:19



NEWS RELEASE, LONDON, 10 October 2008 

AXA Property Trust Limited 

Final Results for the year ended 30 June 2008 

Total Return on Net Asset Value (NAV) was 18.8%1 since 30 June 2007

NAV per share increased by 14.8%1 since 30 June 2007

Earnings per share 3.81 pence per share

Dividends covered by "revenue" profit 

NAV ranking, first over 3 years2

One of the most conservatively geared Company in its peer group with gearing maintained at relatively low level of 45.0% 

The net rental yield on valuation was 6.4%

1 Source, AXA Investment Managers, as at 30 June 2008

2 Source, Trustnet, total return in sterling, as at 29 September 2008 

AXA Property Trust Limited (The Company) today announced results for the year ended 30 June 2008. Managed by Martin McGuire, Fund Manager, AXA Real Estate Managers, the Company generated a consolidated net profit for the year of £3.8million.

The Company share price total return was -25.5% for the year to 30 June 2008 compared to the FTSE Real Estate Index which returned -39.1% over the same period.  The Company generated a dividend yield of 4.0% per annum on the issue price and 5.6% on the mid market share price at 30 June 2008. The dividends declared are 113.1% covered by 'revenue' profit (profit excluding capital items) for the year.

Commenting on performance, Charles Hunter, Chairman said "The Company benefits from its ownership of property concentrated in Germany, holdings with a strong tenant covenant and income flow profile.  The income stream is well secured both in terms of tenant covenant and duration, with an average unexpired weighted lease length of 6.4 years. 

Charles Hunter continued, "Core retail and retail related sectors in the stronger economies are expected to be more resilient. In spite of a more negative outlook than hitherto, the Real Estate Adviser still believes that valuations in the main Continental markets are unlikely to suffer the same level of reduction as that seen in the UK."

Commenting on markets and the outlook for the Company, Fund Manager, Martin McGuire said, "The markets across Europe are facing two negative forces - relatively high inflation which is causing central banks to maintain higher interest rates than would otherwise be ideal for the economy and almost unprecedented falls in liquidity of financial assets. The former is gradually becoming less of a problem, although lending margins (even in the inter-bank market) are still at exceptionally high levels and may be expected to remain high for some time. The liquidity issue is now the more serious and will have negative implications at the consumer and corporate level.". 

"Against a background of weakening economic growth in Europe, Germany may well prove to be the most defensive. However, it will not be immune from the downturn and a number of German economic indicators deteriorated significantly in August."  

Outlook:

Given the difficult market conditions the Investment Manager continues to work to enhance and protect the investment portfolio's income stream which having a low vacancy rate is well secured against strong covenants. A focus on diligent asset management, including dealing early on with those situations where lease expires are approaching, aims to both strengthen rental income and enhance the portfolio value.

The Investment Manager continues to keep the portfolio composition under review and may undertake selective disposals, depending upon the identification of sufficiently attractive reinvestment opportunities that the current market provides where distressed sellers are increasingly to be seen.

Due to the strong fundamentals of the constructed property portfolio, together with a conservative level of gearing, the Real Estate Adviser is confident that the Company is well positioned to deliver dependable income while at the same time protecting value.

ENDS

Press contacts:

Notes to editors:

AXA Property Trust Limited

AXA Property Trust Limited is a limited liability, closed-ended investment company incorporated in Guernsey. Its objectives are to secure attractive Sterling-based total returns for shareholders through a combination of dividends and capital appreciation from European properties.

The Company aims to achieve this by investing in commercial properties which are predominately freehold and in the following segments of the commercial property market: office, retail, industrial and other sectors, including leisure and hotels. 

The Company was launched on 23 May 2005 with an equity raising of £100 million for 100 million shares at nil par value. The Company has an indefinite life.  Shareholders will have the opportunity to vote on its continuation at the Annual General Meeting to be held in 2015.

Visit our website www.axapropertytrust.com

AXA Investment Managers 

AXA Investment Managers (AXA IM) is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with approximately €527 billion in assets under management as of the end of June 2008. AXA IM employs over 3,000 people around the world and operates out of 21 countries.

www.axa-im.co.uk

AXA Real Estate Asset Managers

AXA Real Estate Investment Managers UK Limited (the Real Estate Adviser) is part of the real estate arm of AXA Investment Managers SA (AXA REIM). AXA REIM is a specialist in European real estate investment management which operates in 19 countries, with approximately €43.2bn of real estate assets under management as at 30 June 2008.

www.axa-reim.com 

This press release is issued as dated. This does not constitute a Financial Promotion as defined by the Financial Services Authority and is for information only. No financial decisions should be made on the basis of the information provided.