Alpha Pyreness occupancy rate declines

14th Nov 2014 16:36

Property investment firm Alpha Pyrenees Trust reported a decline in occupancy in its properties since the end of the first half.The trust said the overall level of average occupancy in its portfolio fell from 85% at the end of June to 83%, while the vacancy rate rose to 17% from 15% mainly because of the termination of a lease to MSL Quadralog at Evreux.The group added that, following lease extensions, the weighted average lease length increased to 10.3 years to expiry at the end of September, and 6.6 years to next break, from 7.0 years to expiry and 4.0 years to next break at the end of June.A number of new leases were signed during the period, including with its largest tenant, Alcatel-Lucent, the trust said, adding that 86% of the portfolio income was from Grade A tenants."The board continues to pursue its options in order to support the settlement of the bank borrowings as they mature, including a combination of realising equity through asset sales and potential financing alternatives," the trust said in a statement.Alpha added its net asset value per share declined to 10.7p per share from 12.0p per share during the quarter ended 30 September, citing the combined effect of Euro weakening and the loss incurred in the period.On Friday, Alpha shares closed 9.58% down to 1.40p.