INTERIM MANAGEMENT STATEMENT AND DIVIDEND ANNOUNCEMENT

13 February 2013 INTERIM MANAGEMENT STATEMENT AND DIVIDEND ANNOUNCEMENT Alpha Real Trust Limited (“ART” or the “Company”) today publishes its interim management statement for the quarter ending 31 December 2012 and the period up until the date of this announcement. The information contained herein has not been audited. Reflecting the progress made by the Company in making income producing investments, the Board has decided to declare a dividend of 1.05p per share to all shareholders out of earnings. The current intention of the Company is to pay a dividend semi-annually. Highlights NAV per share 105.8p (103.8p: 30 September 2012) Adjusted earnings per share of 4.3p for the nine months to 31 December 2012 Completion of the Property Investment Portfolio PLC investment portfolio acquisition Europip: Refinancing of the £59.4 million (NOK 536 million) portfolio of Norwegian commercial real estate with a senior debt facility of £37.7 million (NOK 340 million) Europip: £1.6 million (€2.0 million) of net proceeds from the sale of the Paris office asset at above book value H2O: Nike is in the process of fitting out its new destination outlet store at the H2O shopping centre; store opening anticipated at the end of February 2013; market beating visitor footfall increases recorded in 2012 AURE: extension of the term for £32.5 million of senior debt finance on its portfolio of UK commercial real estate until 31 December 2013 93% of the Company’s investment portfolio is in income producing investments in the UK and Europe Investment market commentary There are some grounds for optimism that improving foundations are being laid for sustainable economic growth but it is too early to rule out some more bumps on the road to recovery during the year ahead. Financial market strains in the eurozone appeared to soften in the latter part of 2012 and this has continued into the first part of 2013. 1 There are some bright spots in the economic data (e.g. UK office-based jobs numbers at record levels), which are yet to manifest themselves in any substantial rental growth in the real estate sector, however they may reinforce the embryonic consumer recovery which could boost underlying economic growth. There are still risks of increasing inflation but levels are generally subdued across Europe. This suggests that central banks are placing greater focus on economic growth versus inflation control. In Spain, the newly created state sponsored “bad bank”, Sareb, is considered a positive step. A successful Spanish bond auction at reduced yields in January reflects improved investor sentiment. Norway´s economy outperformed the majority of European economies in 2012 with GDP growth of approximately 3%. Its comparatively strong economy and the relative scarcity of quality property assist continued levels of positive occupier take-up across property sectors and supports rental levels. In the UK, real estate investment transaction volumes remain relatively muted, with overseas investors continuing to support demand in prime sectors and markets. Reflecting the perceived safe haven status of the UK market, over 60% of UK investment transactions are generated from foreign investors. There is increasing investor interest in opportunistic investments, including recapitalisation of property investment vehicles, that offer scope for defensive capital positions with high risk adjusted returns. 2 Investment summary Investment United Kingdom Alpha UK Real Estate Fund plc (“AURE”) Alpha UK Multi Property Trust PLC (“AUMP”) Investment type Convertible loan Convertible loan Investment amount £7.5m £6.1m Income return 10.7% p.a. 1 10.8% p.a. 1 Property type High-yield diversified UK portfolio High-yield diversified UK portfolio Investment notes Defensive capital structure Defensive capital structure Equity £0.3m Cambourne Business Indirect property £1.2m 2 12.9% p.a. 3 High-yield business park 19% of ordinary capital Bank facility at 50% LTV Park, Phase 1000, (current interest cover of 2.4 Cambridge times covenant level) Business Properties (“BCP”) Centre Indirect property £3.0m 2 Limited Business centre fund Predominantly ungeared fund Freehold Income Trust Ground rent fund £14.9m (“FIT”) 5.2% p.a. 4 Highly defensive income freehold ground rents Very low gearing (4% net LTV); monthly liquidity Healthcare & Leisure Indirect property £2.9m 2 Leisure property fund No external gearing Property Limited (“HLP”) Norway and other European Property Investment Portfolio Plc (“Europip”) investments Europip Norway Indirect property £5.8m 2 A geared property Recently refinanced senior (€7.0m) investment vehicle and mezzanine loan position invested in offices and logistics properties Norway Europip loan Mezzanine loan £8.9m* 9.0% p.a. in Secured mezzanine loan, Europip Mosaic Europip France Spain Indirect property Indirect property £0.4m n/a (€0.5m) £0.8m n/a (€0.9m) Minority investment in a central / eastern European commercial property fund Paris office 9% coupon p.a. Property held via investment vehicles, varying debt levels H2O, Madrid, Spain Direct property £13.6m 11.3% p.a. 3 High-yield, dominant Debt facility with no LTV India Galaxia, NOIDA, Delhi Direct property NCR (€16.6m) £5.1m n/a (INR 450m) shopping centre Special Economic Zone development site covenant and a 1.1x ICR covenant Asset held for sale * Position as at 31 December 2012, following the re-investment of Europip income (see below), as of today’s date the loan has been repaid down to £8.7 million 3 1 Based on coupon plus redemption premium annualised 2 Asset returns to be included after the first full reporting period 3 Over 12 months to 31 December 2012 4 Annualised quarterly return ART has also acquired, at an ascribed zero value, Property Investment Portfolio Plc’s (“PIP”) investments in Active Commercial Estates PLC (“ACE”), a fund invested in secondary commercial UK property and The Romulus High Income Trust (“Romulus”), a fund holding four UK business centres. Any realised value from these investments will be passed exclusively to ART A shareholders. As at 31 December 2012, the net asset value of both ACE and Romulus was zero. Key investment updates Further to the half year report dated 22 November 2012, the following are key investment updates: PIP acquisition ART´s acquisition of the investment portfolio from PIP completed on 3 December 2012. The PIP investment, which had a combined NAV of £26.4 million as at 30 June 2012, has a diversified exposure to the UK and European commercial property markets through a range of specialist fund investment vehicles, which include some of ART’s existing investment vehicles. The acquisition was structured on a NAV-for-NAV basis with consideration by way of a new unlisted class of ART A shares (“A Shares”), with the holders having the option to convert A Shares one-for-one into listed ART ordinary shares. Accordingly, 23,914,323 new Class A Shares have been issued to PIP for issuance to its shareholders. Continued active management The Company’s investments have benefited from an active management approach with successes evident in both the Company’s direct and indirectly held investments. At the H2O shopping centre asset in Madrid, following the recent letting to Nike for a large destination factory store, the tenant is in the process of fitting out its unit for an opening at the end of February 2013. Aided by the asset management initiatives implemented by ART, the H2O shopping centre recorded market beating footfall increases of 2.3% in 2012 compared to 2011 (Spain´s national index decreased by 4% for the same period). In AURE, the terms of the £32.5 million senior loan on its portfolio of UK commercial real estate has been extended until 31 December 2013. Fund restructuring is underway in the Company´s FIT investment which is anticipated to complete during the first quarter of 2013. The Financial Services Authority (“FSA”) has approved FIT´s application to convert into an authorised fund, subject to investor consent, and the HM Revenue and Customs provided approval for FIT to enter the Property Authorised Investment Fund (“PAIF”) tax 4 ... - tailieumienphi.vn