Axa Property Share Discussion Threads

[skyship] 12/3/2013 11:13

JIM - I believe, I hope, I'm right in saying that the only currency hedge is a small one on the income. So the NAV will have benefited quite substantially from the weak GBP in Q1'13. I assume we will see this in the upcoming circular, when IMO the NAV will once again be North of 60p.

Hedging Arrangements

As at 31 December 2012, the Group has hedged foreign currency exposure in respect of GBP0.90 million (EUR1.12 million) quarterly interest receipts in Euro through the use of cross currency swaps which are in place for the period 16 August 2012 to 16 May 2014.

[jimbox1] 12/3/2013 08:11

I am tempted to invest here, but reading the interim accounts I am perplexed at the size of the foreign currency swaps and interest rate hedges. One would have hoped that there might be some benefit from the fact that the net assets of the company are based in europe, given the recent depreciation of the pound against the euro, but the hedges may may have erased this gain. Has anyone any view on this?

[skyship] 27/2/2013 08:13

Interim Statement:



"A circular seeking Shareholder approval to this change of policy will be issued during March 2013......

......As the Investment Manager notes, the property environment remains challenging, and it is impossible to predict with any certainty the outcome of a disposal programme. There is, however, selective investment demand and the Board will support and monitor closely the Investment Manager's disposal policy. It is essential that the disposal process is approached in a way that will realise full value, when judged over the medium-term.
In disposals effected in the last year, the closely managed, negotiated and selective approach has borne fruit with proceeds quite close to previous valuation levels."

[skyship] 15/2/2013 08:49

10 more working days for the arrival of that circular...

[cousin jack] 13/2/2013 14:01

SKYSHIP

Many thanks for your response. I'll do a bit more research but some interesting ideas here.

[jlo10] 13/2/2013 09:28

I have bought these for my daughter's ISA, just opened, to try and get her a better return than the bank interest. Hopefully limited downside and some hope for a decent upside was the reason.

[skyship] 13/2/2013 08:21

JACK - incidentally, you'll find quite a lot of information posted on this sector over on the CP+ thread...

[skyship] 13/2/2013 08:19

JACK - You're right; and I'd forgotten to post an update here, though did elswhere...

Very shortly after selling I bought back 75% of my original holding, my covered bear actually cost me c0.25p/share to get them back! I was well overweight, so bought back just that 75% @ 36.4p .

APT had been a very profitable play; but my change of heart to buy back in was due to the fact that at the time the Gross Redemption Yield to a well-discounted 50p (versus NAV stated as 58.85p) upon liquidation to 31/03/15 was 15.2%; and a still more than satisfactory 13.5% as at 30/06/15. I never should have sold in the first place.....after 45yrs of investing I'm still learning the difficult lesson of running profits!

I'm much looking forward to the guidance of the circular for the EGM seeking shareholders' approval of the liquidation; and in the meantime am much encouraged by both the NAV statement on Monday and some solid buying @ 39p.

[cousin jack] 12/2/2013 17:38

Skyship

I am just getting to grips with this interesting area of investment. The civilized boards are a pleasure after some others on ADVFN !

Looking through your previous pots I see you were selling APT at c.36 not long ago but and are buying now at a higher price. I am curious as to what has changed your view, as I cannot see there has been a meaningful change in NAV or a firm timetable for run down since you sold.

[badtime] 12/2/2013 17:19

Nicely picked up sky

[skyship] 12/2/2013 16:32

Was lucky enough to get a 25k top-up @ 38p today. Back up to my MAX allocation.

I was playing a few different scenarios on my spreadsheet. If we get 52p, an 11.2% discount to the 58.56p NAV; and we get that by 31/03/15; then the GRY = 14.2%.

Happy with 50p later that year; but no harm in toying with upside...

[skyship] 11/2/2013 16:59

I've posted this on the CP+ thread:

A stable NAV update today: 58.6p v. 58.5p. The Market liked the RNS – shares slightly better @ 38p-39p. 208k Buys v. 62k sales; and 100k bought @ 39p just before the close.



I liked these extracts:

"Following the sale of four assets during 2012 a further five assets have been identified for sale during the first half of 2013. An offer has been accepted for the asset at Dresden for a consideration of €2.1m, compared to a Q4 2012 valuation of €1.97m. Offers have also been received on three other assets and negotiations are ongoing."

Then on the Euro-property market in general:

"The fourth quarter transaction volume was EUR38bn, a 53% rise on the previous quarter (partially due to the year seasonal effect - mainly institutions, funds and government purchasing/selling to complete their transaction in the final quarter of the year - and partially due to an uplift reflecting improved purchaser confidence) bringing the total for the year to EUR112bn, a figure virtually identical to that of 2011. The largest riser over the quarter was that of Germany; with 86% to EUR8.5bn, a reflection of the growth in demand from foreign investors over the last year."

Investec Insight:

¢ In December 2012 APT announced wind down plans and the continued portfolio sales process is positive, particularly as values achieved have been giving greater credibility to NAV.

¢ The shares currently trade at a 35% discount to December's NAV.

VIEW – Roll-on the wind-up circular; due before the end of February...

[jaws6] 11/2/2013 13:07

davebowler
Tks for note and info.Any chance you can get AGOL new note please.
Tks.
skyship
tks.Belgian-- 5% in each of Netherlands and Belgium.

[skyship] 11/2/2013 10:54

The approximate costs of the German properties listed for sale and being negotiated upon are as follows:

# Braunschweiger Str: £2.65m
# Kothen - £2.6m
# Dresden - £1.9m
# Montabaur - £9.7m

Not sure about the Belgian property.

[philjeans] 11/2/2013 10:50

Good news; further uplift in share price very likely; hold tight!

[davebowler] 11/2/2013 09:38

Investec;
Axa Property Trust (APT) 31 December 2012 NAV was 58.56p/share (flat from 30 September 2012 NAV)

¢ The Company's unaudited Consolidated Net Asset Value at 31 December 2012 was £58.56 million and 58.56 pence per share which remained stable (30 September 2012: £58.55 million and 58.55 pence per share), with a small increase of £10k. Valuation losses in the period were offset by foreign exchange gains.

¢ Following the sale of four assets during 2012 a further five assets have been identified for sale during the first half of 2013. An offer has been accepted for the asset at Dresden for a consideration of €2.1m, compared to a Q4 2012 valuation of €1.97m. Offers have also been received on three other assets and negotiations are ongoing.

¢ Net gearing is currently 41.8%.

¢ No dividend was declared in respect of the quarter ending 31 December 2012. The Company has suspended dividends from June 2012 for the short term in order to more prudently manage its cash and debt positions

Investec Insight:

¢ In December 2012 APT announced wind down plans and the continued portfolio sales process is positive, particularly as values achieved have been giving greater credibility to NAV.

¢ The shares currently trade at a 35% discount to December's NAV.

[skyship] 11/2/2013 07:43

NAV stable/static - nothing to frighten the horses here:

[skyship] 08/2/2013 15:57

The promised circular for the EGM and details of the wind-down process is due within the next 3weeks ("...by Mar'13"). In the meantime the statement for the NAV as at 31st Dec'12 will be issued imminently - possibly as soon as Monday.

[skyship] 08/2/2013 13:19

80k bought @ 38p today. That surely suggests someone at least is expecting good news on the disposal front...

[skyship] 30/1/2013 09:47

NAV @ 31/12/11 was announced on Weds 1st February last year; so we could be seeing the NAV announcement tomorrow or Friday...

[tiltonboy] 16/1/2013 14:51

I wouldnt mind them dropping back below 32p and might have another look.

[tiltonboy] 16/1/2013 14:51

Crazy why somebody would take the board out, paying that much.

[skyship] 16/1/2013 14:34

Tilts - Thnx for that - offered @ 37p again - so back to nothing doing for the timebeing...

[tiltonboy] 16/1/2013 13:25

Nothing on L2 really. 36.25p bid for 5626, 38p offered 9167.

[skyship] 16/1/2013 13:22

Mildly interesting trades today.

A seller dropped 27300 @ 36p.

c25mins later a series of AT trades takes 60k, from 36.75p for the first 30k to 38.5p for the next 30k.

Now back on offer @ 38p.

Can anyone advise as to the L2 position?