Worsley Inv Ltd Regulatory News (WINV)

15 Nov 2007 10:02

AXA Property Trust Ld15 November 2007 To: Company Announcements Date: 15 November 2007 Company: AXA Property Trust Limited Subject: Interim Management Statement INTERIM MANAGEMENT STATEMENT - Three months to 30 September 2007 The Company's objective is to secure attractive total returns for shareholdersthrough a combination of dividends and capital appreciation from investment incommercial property in Europe. KEY STATISTICS 12 months ended 3 months ended 30 June 2007 30 September 2007 Movement Pence per share Pence per share Pence per share Net Asset Value per share 99.98 104.71 4.73 (4.7%) Share price (mid market) 99.75 92.13 -7.50 (-7.5%) Discount to NAV -0.2% -12.0% -11.8 percent. pts 12 months ended 3 months ended 30 June 2007 30 September 2007 Movement £M £M £M Net profit 7.95 2.90 n/a Property portfolio 134.11 145.55 11.44 (8.5%) Borrowings -47.76 -53.89 -6.13 (12.8%) Gearing 39.7% 40.7% 0.9 percent. pts PERFORMANCE SUMMARY During the three month period to 30 September, there was a valuation gain of£2.6 million (1.9%) which includes a £1.1 million gain on the recent acquisitionof the Pankower Allee asset in Berlin. The Company's running gross rental incomeyield on this valuation was 7.04%. Total net profit was £2.9 million (2.90 pence per share) which can be analysedas follows: £M Net property income 2.22Investment Manager's fees -0.37Other income and expenses -0.44Finance expenses -0.66Finance income 0.23Unrealised gains on revaluation of property and investments 2.58Unrealised gains on derivatives 0.14Deferred tax -0.76Current tax -0.04Total net profit 2.90 The Net Asset Value increased by £4.7 million (4.7%) on the NAV at 30 June 2007. The increase of £4.7 million can be analysed as follows: £M Net Asset Value at 30 June 2007 99.98Net profit 2.90Unrealised losses on derivatives -0.87Dividends paid -1.00Foreign exchange translation gains 3.70Net Asset Value at 30 September 2007 104.71 Dividends On 7 November 2007, the first interim dividend of 1.00 pence per share inrespect of the year ended 30 June 2008 was declared to be paid on 30 November2007. Share Price and Discount to Net Asset Value As at close of business on 28 September 2007 (the last business day of themonth), the mid market price of the Company's shares on the London StockExchange was 92.13 pence, representing a discount of 12.0% on the Company's NetAsset Value at 30 September 2007. As at close of business on 13 November 2007, the mid market price of theCompany's shares was 78.25 pence, representing a discount of 25.3% on theCompany's Net Asset Value at 30 September 2007. Gearing During the three month period the Company's gearing increased from 39.7% (32.3%excluding debt in the Porto Kali investment and Agnadello JV) to 40.7% (39.8%).This followed the acquisition of the German retail asset Pankower Allee for £4.2million which was financed by a further draw down on the Company's external debtfacility. STRATEGY AND MARKET The portfolio is being actively managed to create value and enhance theCompany's Net Asset Value. Now that full investment has been achieved, the focus is on protecting andenhancing the portfolio's income stream. This will be achieved both throughlease re-gearing and indexation, as well as maintaining cost control atportfolio and corporate level. While most global property markets are affected by the "credit crunch", Eurozone Continental European markets are stronger than UK markets. The Boardbelieves that the Company is well positioned, as the portfolio, concentrated inGermany, is largely "core", having well-secured income flows delivering some 7%income yield. The Board believes, therefore, that portfolio capital values arebetter protected from any potential weakening in market values that might impactmore secondary property assets. Material Events The Board of the Company is not aware of any significant event or transactionwhich occurred between 1 July 2007 and the date of the publication of thisStatement which would have a material impact on the financial position of theCompany. This Statement and the Company fact sheet are available on the InvestmentManager's website: http://www.axa-im.co.uk. Please follow the prompts to'Literature' and 'Factsheets'. All Enquiries: The Company Secretary Northern Trust International Fund Administration Services (Guernsey) Limited Trafalgar CourtLes BanquesSt Peter PortGY1 3QL Tel: 01481 745529Fax: 01481 745085 This information is provided by RNS The company news service from the London Stock Exchange