Alpha Pyrenees invests in the French and Spanish real estate markets, and net rental income rose in the first half from £5.91m a year earlier to £9.57m, helped by all the trust's leases being subject to index-linked annual rent reviews. What's more, over 83 per cent of rental income comes from grade 'A' tenants, the average lease length rose is 5.1 years and all debt is fixed at an average interest rate of 5.26 per cent with over 90 per cent maturing in 2015.
However, there was a £14.4m hit following a lower valuation on Alpha's property portfolio, and management has taken a step back from making any further acquisitions, the last being completed in December 2007. Alpha has adopted a cautious stance in view of the tough economic climate and has kept the loan-to-value ratio below 60 per cent, comfortably inside the 85 per cent limit set by its banking covenants.
The board also reiterated its pledge to pay dividends of 7p a share this year, and as it is listed on the main market but Guernsey based, dividends can be protected from the taxman through a self-invested pension plan (Sipp) or an individual savings account (Isa). Brokers are reviewing forecasts following the results.
for a guide to the terms used in IC results tables
For more analysis of company results as they're released, go to www.investorschronicle.co.uk/results
| ALPHA PYRENEES (ALPH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 57p | MARKET VALUE: | £67m | |
| TOUCH: | 56-57p | 12M HIGH: | 97p | LOW: 52p |
| DIVIDEND YIELD: | 11.4% | TRADING STOCK: | nil | |
| DISCOUNT TO NAV: | 35% | |||
| INVEST PROPERTIES: | £277m | NET DEBT: | 159% | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 97.1 | 12.1 | 7.4 | 3.0 |
| 2008 | 88.0 | -16.2 | -13.4 | 3.5 |
| % change | -9 | - | - | +17 |
Ex-div: 17 Sep Payment: 13 Oct | ||||
