15th Aug 2014 09:32
LONDON (Alliance News) - Alpha Pyrenees Trust Ltd Friday reported a significant drop in its adjusted net asset value per share over the first-half, hurt by interest payments on a financing facility taken out last year.
In a statement, the trust, which primarily invests in higher-yielding properties in France, particularly in the Ile-de-France region around Paris, said its adjusted NAV per share fell to 12.0 pence from 22.8 pence in the six months ended June 30.
Last year, the trust secured a EUR25.0 million loan from Barclays in order to finance currency hedges signed in 2006 and 2007 that later turned against it.
The net asset value and net asset value per ordinary share have been adjusted for the fair value movement on revaluation of the interest component of the currency swap (up to maturity in October 2013 at which point this element unwound), the interest rate swap derivatives and 50% of the deferred tax provisions.
"The trust's existing borrowing facilities terminate on February 10 2015 and the board continues to pursue alternative financing options in the run up to the maturing of the bank borrowings," Chairman Dick Kingston said in a statement.
"The trust's earnings are impacted by the interest payable on the loan facility agreed in November 2013 to finance the settlement of the net currency hedge," he added.
Alpha Pyrenees currently has vacant space with an estimated annual rental value of approximately GBP3.0 million, and said it is difficult to predict the timing and level of re-leasing that will be achieved.
The trust has previously said it doesn't propose making dividend payments.
The trust's shares were Friday quoted down 25% at 3.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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