14th Nov 2014 09:35
LONDON (Alliance News) - Alpha Pyrenees Trust Ltd Friday said its portfolio has seen a fall in occupancy since the end of the first half, as well as reporting a fall in its adjusted net asset value per share, but it remains under pressure over its financing arrangements as its bank borrowings mature.
In a statement, the trust said its portfolio has an overall level of average occupancy of 83%, a fall of two percentage points from the 85% at the end of June, measured by rental income as a percentage of potential total income.
The vacancy rate rose to 17% from 15%, primarily due to the termination of a lease to MSL Quadralog at Evreux, where the trust's investment manager, Alpha Real Capital LLP, is "actively involved in the campaign to re-let the property at the earliest opportunity".
Following lease extensions, the weighted average lease length increased to 10.3 years to expiry at the end of September, and 6.6 years to next break, from 7.0 years to expiry and 4.0 years to next break at the end of June, with 86% of the portfolio income coming from Grade A tenants. A number of new leases were signed during the period, including with its largest tenant, Alcatel-Lucent.
The trust has been, and remains focused on, selling assets to support the settlement of its bank borrowings with Barclays Bank PLC, which terminate on February 10, 2015.
"The board continues to pursue its options in order to support the settlement of the bank borrowings as they mature, including a combination of realising equity through asset sales and potential financing alternatives," the trust said.
The trust said its net asset value per share, adjusted for interest rate swap derivatives and deferred tax provisions, fell to 10.7 pence per share from 12.0 pence per share during the quarter ended September 30, citing the combined effect of Euro weakening and the loss incurred in the period.
Alpha Pyrenees shares were down 3.2% at 1.50 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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