ALPHA PYRENEES TRUST LIMITED 
By Alpha Pyrenees Trust Limited today publishes its interim management statement for the quarter ending 30 September 2013 and the period up until the date of this announcement. The information contained herein has not been audited.
KEY POINTS CURRENCY HEDGES TERMINATED AS AT 11 OCTOBER 2013 WITH A SETTLEMENT VALUE OF €24.7 MILLION NET OF COLLATERAL TRUST IS IN DISCUSSIONS WITH BARCLAYS TO SECURE A LONGER TERM ARRANGEMENT TO FINANCE THE SETTLEMENT VALUE BEYOND 18 NOVEMBER 2013 ADJUSTED NAV* 30.0 PENCE PER SHARE AS AT 30 SEPTEMBER 2013 (30 JUNE 2013: 28.5 PENCE PER SHARE) 83% OF PORTFOLIO INCOME COMES FROM GRADE A TENANTS; 92% OF THE TRUST'S PORTFOLIO BY VALUE IS IN FRANCE AND 83% IS IN THE PARIS REGION WEIGHTED AVERAGE LEASE LENGTH IS 8.1 YEARS TO EXPIRY AND 4.3 YEARS TO NEXT BREAK PROGRESS ACHIEVED ON LETTINGS AND LEASE EXTENSIONS IN FRANCE AND SPAIN 99% OF BORROWINGS FIXED AT A WEIGHTED AVERAGE INTEREST RATE OF 5.26% PER ANNUM TO MATURITY IN FEBRUARY 2015 VALUATION AND NET ASSET VALUE ("NAV")
The Trust's investment portfolio was last valued on 30 June 2013 at €303.8m (£254.7m at 30
September 2013 exchange rate) giving an average valuation yield across the portfolio of 8.2% (French portfolio 8.1% and Spanish portfolio 8.6%). The next independent revaluation will take place as at 31
December 2013.
As at 30 September 2013 the adjusted NAV* is 30.0 pence per share. The increase in adjusted NAV from 30 June 2013 (28.5 pence per share) is mainly due to the depreciation of the Euro during the quarter and the consequent favourable movement on net currency hedges.
*Adjusted NAV - unaudited, after adjustments for the fair value mark-to-market revaluation of the interest component of the currency swap, the interest rate swap derivatives and 50% of the deferred tax provisions.
1
Alpha Pyrenees Trust Limited is advised by Alpha Real Capital LLP, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom Registered office Old Bank Chambers La Grande Rue St Martin's Guernsey GY4 6RT FINANCING
The Trust's total borrowings of £203.2m (€242.5m) and portfolio value of £254.7m (€303.8m) gives a net leverage after cash of 77.3% as at 30 September 2013.
All borrowings mature in February 2015 and 99% of borrowings have interest rates that are fixed to maturity at a weighted average rate of 5.26% per annum. The next Loan to Value ("LTV") covenant tests are in February 2014, at which point the Trust's LTV should not exceed 87.5% on a country portfolio basis.
The Trust announced that on 11 October it had terminated the currency hedges that had been scheduled to expire on 16 October 2013. The resulting settlement value after applying collateral held by the counterparty, Barclays Bank PLC ("Barclays"), is €24.7 million. The Trust also reported that it had agreed with Barclays to settle this liability on 25 October 2013 and it was in advanced discussions in relation to financing this settlement.
On 25 October the Trust made a further announcement that following positive progress in the on-going discussions with Barclays, the Trust has agreed to move the scheduled repayment date from 25
October 2013 to 18 November 2013. By this date, the Trust plans to have secured a longer term arrangement with Barclays. Barclays currently provide finance secured against the majority of the Trust's property portfolio. The Trust will report further once these discussions are concluded.
Going forward The Trust does not propose to hedge its equity. The Trust has a substantial natural hedge through the fact that its borrowings are denominated in the same currency as the majority of its assets.
As previously noted in the half year report, the Trust does not currently propose to pay dividends.
PROPERTY UPDATE
Since 1 July 2013, lease extensions and new leases covering a total of approximately 19,740 square metres have been achieved. This represents approximately 7.5% of the Trust's portfolio by area with
17,190 square metres in France and 2,550 square metres in Spain.
The Trust's portfolio has an overall level of average occupancy of 84% (84% at 30 June 2013), measured by rental income as a percentage of potential total income, with 83% of the portfolio income coming from Grade A tenants and a weighted average lease length of 8.1 years to expiry and 4.3 years to next break.
Of the Trust's portfolio, 92% by capital value is in France and 83% is in the Paris region.
The INSEE Construction Cost Index ("ICC"), applicable to the Trust's leases in France, showed an annualised decline of 1.74% for the latest published quarter, Q2 2013, following an annualised growth rate of 1.79% as at Q1 2013.
The Spanish Consumer Price Index, applicable to the Trust's leases in Spain, was running at an annualised rate of increase of 0.3% as at the end of September 2013 (2.1% as at the end of June
2013).
2
Alpha Pyrenees Trust Limited is advised by Alpha Real Capital LLP, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom Registered office Old Bank Chambers La Grande Rue St Martin's Guernsey GY4 6RT
For further information:
Dick Kingston, Chairman, Alpha Pyrenees Trust Limited 01481 231100
Paul Cable, Fund Manager, Alpha Real Capital LLP 020 7268 0300
For more information on the Company, please visit www.alphapyreneestrust.com.
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.
3
Alpha Pyrenees Trust Limited is advised by Alpha Real Capital LLP, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom Registered office Old Bank Chambers La Grande Rue St Martin's Guernsey GY4 6RT|
distributed by
|
