Alpha Pyrenees NAV hits zero

Alpha Pyrenees has published its interim results for the six month ended 30 June 2015. Its net asset value is now zero (though adjusting for the impact of derivative contracts and deferred tax gives an NAV of 2.4p). The Chairman said:

Given the current economic environment and the maturation of the Group’s bank borrowings on 15 October 2015, the Board has agreed with its lender to pursue a consensual and orderly realisation of its investment property. Results for the period show an adjusted loss of GBP2.2 million representing 1.9 pence loss per share. The Group’s results have been impacted by the loss of revenue from properties disposed of during the prior year, the proceeds from which have been used to fund capital expenditure, primarily on the Alcatel property, rather than repaying borrowings.

The financial statements are not prepared on a going concern basis.

As at 30 June 2015, the Alpha Pyrenees owned a portfolio of thirteen properties in France and four properties in Spain totalling approximately 249,930 square metres (approximately 2.7 million square feet) of commercial real estate. The properties are generally well let, well located and offer good value accommodation to occupiers. Of the total property portfolio, 92% was invested in France and 8% in Spain in terms of capital value. The valuation of the portfolio as at 30 June 2015 was approximately £190.1m (€269.4m) based on an average valuation yield of 8.3% with the French portfolio having an average valuation yield of 8.2% and the Spanish portfolio 9.1% respectively. Taking into account the sale of one of the units at Ecija the portfolio as a whole showed a valuation decrease of 0.6% on a Euro like-for-like basis compared to 31 December 2014. This consisted of a decrease of 0.6% in the French portfolio and a decrease of 0.9% in the Spanish portfolio.  Of the overall portfolio, 84% by value is located within the Ile-de-France region around Paris. The portfolio has 70% exposure to the French office and business park sector of which 64% of the total portfolio is in the Ile-de-France region. As at 30 June 2015, the Trust’s portfolio is diversified across business sectors with 70% in offices and business park property, 22% in warehouses and 8% in retail. The portfolio has an overall level of average occupancy of 80% measured by rental income as a percentage of potential total income with vacancy representing 20%. The weighted average lease length within the portfolio is 10.1 years to expiry and 6.5 years to the next break.

ALPH : Alpha Pyrenees NAV hits zero

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