Worsley Inv Ltd Regulatory News (WINV)

To: Company Announcements

Date: 01 February 2012

Company: AXA Property Trust Limited

Subject: Net Asset Value 31 December 2011(Unaudited)

CORPORATE SUMMARY

- The Company's unaudited Consolidated Net Asset Value at 31 December 2011 was £63.65 million (63.65 pence per share) (£67.91 million (67.91 pence per share) as at 30 September 2011), a decrease of £4.26 million mainly due to foreign exchange translation losses;

- The Company and its subsidiaries made a net loss after tax of -£0.48 million in the six month period to 31 December 2011;

- The dividend declared in respect of the quarter ending 31 December 2011 is 0.50 pence per share and will be paid on 24 February 2012. As previously advised, it is the Company's intention to restore the 0.75 pence per share quarterly dividend by March 2012;

- Following the receipt of offers on all three assets identified for sale, two have been accepted and notarised in December 2011. This asset disposal programme is intended to position the Company for the forthcoming LTV test on the main loan facility at 30 June 2012.

PORTFOLIO UPDATE

Country Allocation at 31 December 2011 (by rental income)

Country % of portfolio

Germany 60%

Netherlands 19%

Italy 17%

Belgium 4%

Sector Allocation at 31 December 2011(by rental income)

Sector % of portfolio

Retail 59%

Industrial 20%

Office 13%

Leisure 8%

The letting agreed at Fuerth with international furniture retailer Seats & Sofas is now signed. A planning application for change of use has been submitted to the local authority, and the refurbishment works to reinstate the unit to retail use will follow.

Although international German coffee and non-food products retailer Tchibo has made an offer to take the unit to be vacated by C&A, the local authority did not grant the required permission. As such the Advisor is progressing discussions with alternative potential tenants.

Following the receipt of offers on all three assets identified for sale, two have been accepted and notarised in December 2011. The asset in Moosburg was notarised at €4.2m and Muhldorf at €4.6m. Both sales will be completed by end of February 2012 which is a significant step in supporting the Company's position in the forthcoming LTV test on the main loan facility at 30 June 2012.

The offer on the asset in Treuchtlingen has not been accepted and marketing is ongoing. A further asset, Pankower Allee, an out of town retail centre in the outskirts of Berlin, has been placed on the market and should attract significant interest from Investors due to its strong covenant and long leases.

MARKET UPDATE

Resolution of the euro crisis appears no closer and bond market pressures continue to build. While a withdrawal of one or more countries from the euro would provide a solution, all parties would acknowledge that this would only be contemplated if all other solutions failed. EU27 GDP growth in Q3 2011 is now estimated at 0.3%, a marginal improvement on the 0.2% of Q2, and better than many forecasts. Q3 proved positive in at least one dimension - after a fall of 0.2% points of the GDP growth in Q2, household expenditure contributed 0.1% in Q3. Nevertheless, it would be inappropriate to take an optimistic perspective from these figures - the general expectation is that GDP growth will deteriorate in most countries (preliminary Q4 forecasts from Germany and the UK have both been negative), leading to a (relatively) mild recession in 2012.

Germany's GDP growth was 0.5% in the third quarter, with a particularly strong contribution of 0.4% points from household consumption, although the preliminary estimate of GDP for Q4 suggests a fall of 0.25%, indicating that it will not be immune from the latest downturn. 2012 is expected to show limited growth for the year as a whole (0.3% GDP growth), improving modestly in 2013 and returning towards trend growth by 2014.

Looking across the property sectors, retail sales volume growth generally continues to deteriorate, with the first fall since the recession being recorded in the eurozone (-0.2% over the year to October). While the EU27 grew at 0.2% in the same period, the downward trajectory (as with the eurozone) of the growth rate suggests that it may also have become negative in November or December. In contrast to the average European prime offices' rental value growth (0.8%) in Q4, prime retail was only 0.3%. Even at the top end of the market, with the exception of specific locations, retailers were often just taking advantage of the availability of space and not bidding up rents.

Similarly in the office sector, the RICS Global Commercial Property Survey of Q3 2011 suggests that conditions in Europe have weakened on the occupier side. Germany, for example, retains its position as the highest in western Europe in terms of expectations of occupier demand, but its score of +38 in the Q2 survey had reduced to 20 in Q3. However, in terms of rental growth, of the three main country office markets (along with UK and France), Germany proved to be the exception in Q4, with rental value growth of only 0.2% - and that was only attributable to Dusseldorf producing 1.1%. Over the year, the prime office rental values grew by only 1.2%, with the often-neglected Dusseldorf providing 3.3%.

Although European economic prospects for 2012 are weak, we expect prime rents to increase slightly in the office and retail sectors, as a result of limited new supply. However, occupier demand is largely restricted to prime - secondary locations have suffered from weakening demand, and we expect a continued divergence in terms of performance.

Investors remain cautious in the light of the uncertainties of the economic situation: in particular, the unknown extent of the expected down-turn and the outcome of the euro crisis. For some, this has meant switching interest to the more defensive investments, whereas, for the even more risk-averse, it means withdrawing from the market. However, we are seeing the entry of investors, typically insurance companies, pension funds, and state organisations, where the property risks are not being seen in terms relative to other properties, but relative to the other asset classes. Some of them, coming from outside Europe, are taking a side bet (maybe, actually, the big bet) on the currency - believing that when the crises are resolved, the (weaker) European currencies will strengthen again. Indeed, of the larger transactions reported recently, it is interesting to note how few have had domestic buyers.

CONSOLIDATED PERFORMANCE SUMMARY

Source: Datastream; AXA Real Estate

Total net loss was -£0.48 million (-0.48 pence per share) for the six months to 31 December 2011, including £2.54 million of "revenue" profit (excluding capital items such as revaluation of property) and -£3.02 million "capital" loss analysed as follows:

NET ASSET VALUE

The Company's unaudited Consolidated Net Asset Value per share as at 31 December 2011 was 63.65 pence (67.91 pence as at 30 September 2011), a decrease of 4.26 pence.

The Net Asset Value attributable to the Ordinary Shares is calculated under International Financial Reporting Standards. It includes all current year income after the deduction of dividends paid prior to 31 December 2011, but does not include provision for the quarterly interim dividend of 0.50 pence per share announced on 01 February 2012 and to be paid on 24 February 2012.

The £4.26 million decrease in Net Asset Value over the quarter ended 31 December 2011 can be analysed as follows:

The sterling valuation of the property portfolio decreased to £133.1 million (including the effects of valuation movements, capital expenditure and foreign exchange movements) (30/09/2011: £139.0 million). The £/€ foreign exchange rate applied to the Company's Euro investments in its subsidiary companies at 31 December 2011 was 1.19 (30 September 2011: 1.16).

The Company's net property yield on current market valuation (after acquisition and operating costs) as at 31 December 2011 was 7.33% (7.23% as at 30 September 2011).

SHARE PRICE AND DISCOUNT TO NET ASSET VALUE

As at close of business on 31 December 2011, the mid market price of the Company's shares on the London Stock Exchange was 41.75 pence, representing a discount of 34.4% on the Company's Net Asset Value at 31 December 2011 and a forecast 5.9% annual dividend yield for the year to 30 June 2012.

As at close of business on 30 January 2012, the mid market price of the Company's shares was 37.00 pence, representing a discount of 41.8% on the Company's Net Asset Value at 31 December 2011 and a forecast 6.8% annual dividend yield.

DIVIDENDS

The Company has maintained the 0.50 pence per share in respect of the dividend for the quarter ending 31 December 2011. However, it is the Company's intention to restore the 0.75 pence per share quarterly dividend by March 2012 as advised in the last dividend announcement.

The interim dividend of 0.50 pence per share in respect of the quarter ending 31 December 2011 was declared on 01 February 2012, with an ex-dividend date of 8 February 2012, record date of 10 February 2012 and payment date of 24 February 2012. Dividends will be paid from the Company's cash resources of £2.60 million at the quarter end.

The cumulative dividends of £1.25 million declared and paid during the 6 month period ended 31 December 2011 were 203.0% covered by "revenue" profits.

FUND GEARING

*Net of capitalised issue costs.

Fund gearing increased by +0.6 percentage points over the quarter to 50.6% as at 31 December 2011.

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 gearing is calculated as debt over property portfolio at fair value. Net gearing is calculated as debt less cash over property portfolio at fair value.

LOAN FACILITIES

* Portfolio value based on the Company's independent valuation.

As at 31 December 2011, the loan-to-value ratio was 52.2% based on the Company's independent valuation. The next covenant testing on the main portfolio will be at 30 June 2012, where the loan should not be in excess of 50% loan-to-value. The current sales programme above aims to achieve this objective.

Interest Cover Ratio (ICR) is calculated as net financing expense payable as a percentage of net rental income less movement in arrears. Net rental income headroom is based on projected interest cover.

CASH POSITION AND CAPITAL EXPENDITURE

The Company and its subsidiaries held total cash of £2.60 million (€3.11 million) at 31 December 2011. The anticipated capital expenditure over the next twelve months is £1.1 million.

MATERIAL EVENTS

Except for those noted above, the Board of the Company is not aware of any significant event or transaction which occurred between 31 December 2011 and the date of the publication of this Statement which would have a material impact on the financial position of the Company.

Company website:

http://www.axapropertytrust.com

All Enquiries:

Investment Manager 

AXA Investment Managers UK Limited

7 Newgate Street

London EC1A 7NX

Tel: 0845 766 0184Email: broker.services@axa-im.com

Sponsor and Broker

Oriel Securities Limited

Joe Winkley

Tel: +44 (0)20 7710 7600

Email: joe.winkley@orielsecurities.com

Neil Winward

Tel: +44 (0)20 7710 7460

Email: neil.winward@orielsecurities.com

Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

GY1 3QL

Tel: +44 (0)1481 745604

Fax: +44 (0)1481 745085