ALPHA PYRENEES TRUST LIMITED 
By Alpha Pyrenees Trust Limited today publishes its interim management statement for the quarter ending 31 March 2013 and the period up until the date of this announcement. The information contained herein has not been audited.
KEY POINTS• ADJUSTED NAV* 30.7 PENCE PER SHARE AS AT 31 MARCH 2013 (31 DECEMBER 2012:
34.0 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 8.5 YEARS TO EXPIRY AND 4.6 YEARS TO NEXT BREAK
• FURTHER PROGRESS ON LETTINGS AND LEASE EXTENSIONS IN FRANCE AND SPAIN
• LEASES RENTALS ARE SUBJECT TO ANNUAL INDEXATION
• 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 31 December 2012 at €304.3m (£256.8m at 31
March 2013 exchange rate) giving an average valuation yield across the portfolio of 8.2% (French portfolio 8.2% and Spanish portfolio 8.5%). The next independent revaluation will take place as at 30
June 2013.
As at 31 March 2013 the adjusted NAV* is 30.7 pence per share. The decrease in adjusted NAV from
31 December 2012 (34.0 pence per share) is due mainly to the appreciation of the Euro during the quarter and the consequent net movements on 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.
FINANCING
The Trust's total borrowings of £204.8m (€242.7m) and portfolio value of £256.8.0m (€304.3m) gives a net leverage after cash of 77.3% as at 31 March 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. There are no Loan to Value ("LTV")
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Alpha Pyrenees Trust Limited is advised by Alpha Real Capital LLP, which is authorised and regulated by the Financial Services Authority in the United Kingdom Registered office Old Bank Chambers La Grande Rue St Martin's Guernsey GY4 6RT
covenant tests until February 2014, at which point the Trust's LTV should not exceed 87.5% on a country portfolio basis. The French (€221.1m) and Spanish (€21.6m) borrowings are independent and are not cross-collateralised.
The Trust has used currency derivatives to hedge its planned net invested equity. A total of €163.1 million was hedged under derivatives entered into in 2006 and 2007 and priced at market rates at that time. The fair value of the currency hedges as at 31 March 2013 represented a liability of £29.1 million (€34.5million). The exchange rate used as at 31 March 2013 was £1:€1.185 and each cent appreciation/depreciation in the Euro exchange rate versus Sterling results in approximately £1 million increase/decrease in the cash settlement figure respectively. As at 31 March 2013, the bank held £9.4 million (€11.1 million) as collateral against the hedges' liability under existing arrangements and the
net liability was therefore £19.7m (€23.4m).
The Trust is refining a number of preferred strategies for settling the currency hedges in October 2013. As part of this process, the Trust is considering selective asset sales (including the potential sale of its un-mortgaged Nimes property last valued at €8.2m (£6.9m at 31 March 2013 exchange rate), utilising existing cash resources (£6.4m at 31 March 2013, which will increase as a result of net earnings and the Trust's intention to not pay future dividends prior to the hedges' settlement date in October this year) and the potential for alternative financing strategies for the hedges' balance.
As previously noted in the recent annual report, it remains the Trust's intention that no further dividends will be paid prior to the currency hedges' settlement date in October this year.
PROPERTY UPDATE
The Trust's Investment Manager has continued to concentrate on active asset management and property management initiatives within the portfolio to secure the Trust's income and we are pleased to report further progress in the letting of vacant areas and the extension of leases.
Since 1 January 2013, new leases and lease extensions covering approximately 14,410 square metres (5.5% of the Tust's portfolio by area) have been achieved.
As detailed in the annual report, lease extensions were achieved with Klöckner Distribution Industrielle at Aubervilliers (5,500 square metres) and Juguetilandia at Cordoba (1,030 square metres) and new leases were signed with PLTC at Goussainville (1,450 square metres) and Aviva Vie at Mulhouse (210 square metres) and these totalled 8,190 square metres. Since the annual report was published, lease extensions were achieved on four leases in Spain totalling 1,590 square metres and new leases and lease extensions covering approximately 4,630 square metres have been completed in France as detailed below.
FRANCE
• Goussainville - A new 3/6/9 year lease starting in April 2013 was signed with VIP, a mail order company, on 3,060 square metres of vacant warehouse space and a new 3/6/9 year lease starting in March 2013 was signed with ASTS, a security company, on 440 square metres of vacant office space.
• Ivry - A new 6/9 year lease starting in July 2013 was signed with SCO, a builder's merchant, on 890 square metres of vacant warehouse space.
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Alpha Pyrenees Trust Limited is advised by Alpha Real Capital LLP, which is authorised and regulated by the Financial Services Authority in the United Kingdom Registered office Old Bank Chambers La Grande Rue St Martin's Guernsey GY4 6RT• Fresnes - existing tenant, Exaflor extended their lease on a 240 square metre warehouse unit until January 2015.
GENERAL
The Investment Manager remains vigilant to ensure service charges are spent effectively; the annual level of property costs is closely monitored and additional sources of income are identified.
The Trust's portfolio has an overall level of average occupancy of 85% (84% at 31 December 2012), 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 8.5 years to expiry and 4.6 years to next break.
The INSEE Construction Cost Index ("ICC"), applicable to the Trust's leases in France, showed an annualised growth of 0.06% for the latest published quarter, Q4 2012, following an annualised growth rate of 1.48% as at Q3 2012.
The Spanish Consumer Price Index, applicable to the Trust's leases in Spain, was running at an annualised rate of increase of 2.4% as at the end of March 2013 (2.9% as at the end of December
2012).
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.
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Alpha Pyrenees Trust Limited is advised by Alpha Real Capital LLP, which is authorised and regulated by the Financial Services Authority in the United Kingdom Registered office Old Bank Chambers La Grande Rue St Martin's Guernsey GY4 6RT|
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