Axa Property Trust reports that its Net Asset Value at 30 June 2016 was GBP38.7 million (30 June 2015: GBP49.4 million). Adding back to the NAV the GBP16.2 million capital returned during the quarter, the NAV increased by GBP5.5 million (11.2%). In pence per share, the NAV rose from 57.6p to 67.2p, an increase of 16.6%
The Company’s net property yield on current market valuation (after acquisition and operating costs) as at 30 June 2016 was 9.00% (30 June 2015: 9.00%). No dividends were declared for the period.
The mid-market price of the Company’s shares on the London Stock Exchange on 30 June 2016 was 55.13 pence (30 June 2015: 44.75 pence), representing a discount of 18.0% to the Company’s NAV at 30 June 2016 (30 June 2015: 22.3%).
During the year two disposals have been completed in Germany and the Netherlands, and GBP16.2 million returned to shareholders. After the year end a third sale, at Dasing Germany, was completed, with proceeds of EUR7.45m applied to reduce borrowing in accordance with the revised agreement with the lender. Also, after the year end, a new under lease agreement was concluded at the shopping centre at Rothenburg Bavaria, which has significantly increased the asset’s value and saleability. The Company’s two
assets in Italy continued to be marketed during 2016.
The Group continues to comply with the 60% loan-to-value (“LTV”) covenant of the main loan facility with Crédit Agricole and Credit Foncier. In view of the targeted disposal timetable for the Company’s remaining real estate assets AXA Property Trust concluded an extension of the Company’s loan facility until 31st December 2016. Under the terms of the extension disposal proceeds and net rents will be allocated to debt reimbursement in priority to shareholder distribution.
Terms have been agreed for the sales of two of the Company’s three remaining assets, Rothenburg and the 50% stake in the distribution warehouse in Agnadello Italy. While the global and European economic and political backdrop remains uncertain and most real estate transactions take many weeks to conclude, we are quite confident of success with these deals. On the receipt of proceeds of either deal the Company’s remaining debt will be discharged. The sale of the multiplex cinema at Curno, east of Milan, is proving challenging, but the Board believes that the prospect of a sale here is reasonable in the next 12 months and therefore the completion sale of the whole of the remaining portfolio.
APT : Axa Property Trust making progress with disposals