There remains a good deal of uncertainty over economic trends in the coming year, but for now Alpha Pyrenees Trust continues to achieve its primary objective of providing investors with an attractive income, with the shares boasting an annualised yield of 12.9 per cent based on a quarterly dividend of 0.9p a share.
The property group's financial credentials are impressive. Around 85 per cent of rental income comes from Grade 'A' tenants, and the current 8.6 per cent yield on the £237m portfolio compares favourably with average finance costs of 5.26 per cent. What's more, there are no loan-to-value covenant tests on any of the properties until February 2014 and 99 per cent of group borrowings do not mature until February 2015. Adjusting for currency and interest rate swaps which depressed the reported figures, net asset value (NAV) per share rose from 31.9p at the end of December to 34.9p, although this reflected currency gains rather than a valuation uplift on Alpha's properties.
KBC Peel Hunt is forecasting full-year adjusted pre-tax profits of £5.5m, EPS of 4.7p and NAV of 36.2p.
| ALPHA PYRENEES (ALPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 28p | MARKET VALUE: | £33m | |
| TOUCH: | 27-28p | 12M HIGH: | 40p | LOW: 24p |
| DIVIDEND YIELD: | 12.9% | TRADING STOCK: | nil | |
| PREMIUM TO NAV: | 120% | |||
| INVEST PROPERTIES: | £237m | NET DEBT: | £181m | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 26.3 | -20.5 | -17.5 | 3.5 |
| 2010 | 12.7 | 0.1 | 0.1 | 1.8 |
| % change | -52 | - | - | -49 |
Ex-div:15 Sep Payment:11 Oct | ||||
