AXA Property Trust Posts Weak 2018 As It Mulls Change Of Direction

LONDON (Alliance News) - AXA Property Trust Ltd on Friday said its net asset value fell in 2018 ...

Alliance News 29 March, 2019 | 11:49AM
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LONDON (Alliance News) - AXA Property Trust Ltd on Friday said its net asset value fell in 2018 due to a reduction in the value of its last remaining property, while it has announced changes in both its outlook and board composition.

The trust's net asset value per share on June 30, the end of its financial year, was 45.43 pence. This was 32% below its 66.94p per share net asset value the year before.

This was due to a fall in the value of the trust's final remaining property, located in Curno, Italy.

AXA's focus in the final half of its financial year was disposing of this property but the sales process was held up by trading difficulties with the tenant.

These difficulties necessitated a re-gearing of the Curno lease and caused a mark-down in the value of the property. In December, AXA successfully renegotiated its lease on its Curno property, reducing the amount of rent but extending the length of the lease.

The company's dividend payments were halted as it pursued a wind-down.

In line with this wind-down goal, AXA held a general meeting in September to vote on its voluntary liquidation. However, the resolution did not receive the necessary 75% majority because new shareholder Blake Nixon acquired a 30% interest and then voted against the proposal.

As the liquidation did not occur as planned, AXA's annual results were delayed and its shares were suspended in November.

Nixon will be tabling a proposal to alter the company's strategy toward acquiring investments and halting the winding down of its affairs, as well as taking the Curno property off the market.

AXA's investment manager, AXA Investment Managers UK Ltd, has said it will resign as investment manager if the company's investment policy is altered.

The company's administrator and secretary, Northern Trust International Fund Administration Services Guernsey Ltd, has already tendered its resignation.

Nixon proposed a resolution to appoint himself to the trust's board, against the board's wishes, which was passed in January.

Interim Chair Gavin Farrell resigned from the board on Thursday, as did fellow director Stuart Lawson. Two new directors, William Scott and Robert Burke, have been appointed to the trust's board.

"The new board, consisting of William Scott, who will be acting chair, Robert Burke, and Blake Nixon, will as a priority be reviewing the future direction of the company, and in particular the proposed change of investment policy and plans for the Curno property," AXA said.

The company's shares are currently suspended but it has submitted a request to the Financial Conduct Authority to have the suspension removed.

By Anna Farley;

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
AXA Property Ord 31.03 GBX 0.65 -

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