(ALPH) Alpha Pyrenees Tst

17 November 2011

Alpha Pyrenees Trust Limited (the "Trust"or the "Company")

Interim Management Statement

Alpha Pyrenees Trust Limited today publishes its interim management statement for the quarter ending 30 September 2011 and the period up until the date of this announcement. The information contained herein has not been audited.

KEY POINTS

·      LEASE EXTENSIONS AND RENEWALS COVERING APPROXIMATELY 89,500 SQUARE METRES (34% OF THE TRUST'S PORTFOLIO BY AREA) ACHIEVED SINCE THE HALF YEAR REPORT

·      WEIGHTED AVERAGE LEASE LENGTH INCREASED TO 8.4 YEARS TO EXPIRY AND 5.0 YEARS TO NEXT BREAK

·      LEASES ARE SUBJECT TO ANNUAL INDEXATION; INDEXATION TREND IMPROVING

·      85% OF PORTFOLIO INCOME COMES FROM GRADE A TENANTS

·      PORTFOLIO VALUE INCREASED BY 0.4% IN THE QUARTER

·      PORTFOLIO VALUATION YIELD OF 8.4% AT 30 SEPTEMBER 2011

·      ADJUSTED NAV* 32.0 PENCE PER SHARE AS AT 30 SEPTEMBER 2011 (30 JUNE 2011: 28.7 PENCE PER SHARE)

·      DIVIDEND OF 0.9 PENCE PER SHARE DECLARED FOR THE THIRD QUARTER 2011

·      99% OF BORROWINGS FIXED AT A WEIGHTED AVERAGE INTEREST RATE OF 5.26% PER ANNUM TO MATURITY IN FEBRUARY 2015

·      NO LOAN TO VALUE COVENANT TESTS UNTIL FEBRUARY 2014

DIVIDEND

The Board is declaring an unchanged dividend of 0.9 pence per share for the third quarter of 2011. The dividend will be paid on 9 January 2012, with an associated ex-dividend date of 7 December 2011 and record date of 9 December 2011. No scrip alternative will be offered for this dividend.

REVALUATION AND NET ASSET VALUE ("NAV")

The Trust's investment portfolio was valued at £258.3m (€296.8m) on 30 September 2011 giving an average valuation yield across the portfolio of 8.4% (French portfolio 8.3% and Spanish portfolio 8.5%). On a Euro like-for-like basis the French portfolio increased in value by 0.4% and the Spanish portfolio increased in value by 0.2% from 30 June 2011 giving an overall increase in valuation of 0.4% for the quarter.

As at 30 September 2011 the adjusted NAV* is 32.0p per share. The increase in adjusted NAV from 30 June 2011 (28.7p per share) is due mainly to net movements on currency hedges and revaluation.

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 *Adjusted NAV - unaudited, after adjustments for the unrealised mark-to-market of the interest component of the currency swap, interest rate swap derivatives and deferred taxation provisions.

FINANCING

The Trust's total borrowings of £211.6m (€243.1m) and portfolio value of £258.3m (€296.8m) gives a net leverage after cash of 76.7% as at 30 September 2011.

All borrowings are long term, with maturity in February 2015 and 99% of borrowings have interest rates that are fixed to maturity at a weighted average rate of 5.26% per annum. There are no Loan to Value ("LTV") covenant tests until February 2014, at which point the Trust's LTV should not exceed 87.5% on a country portfolio basis (within the French portfolio, the Alcatel-Lucent property should not exceed 85%). The French (€221.0m) and Spanish (€22.1m) borrowings are independent and are not cross-collateralised.

PROPERTY UPDATE

The Trust's Investment Manager has continued to concentrate on active asset management and property management initiatives, including investment within the portfolio, to secure the Trust's income and we are pleased to report a number of important achievements in lease extensions, re-gearings and renewals covering approximately 89,500 square metres (34% of the Trust's portfolio by area) since the half year report:

FRANCE

Villarceaux-Nozay - as previously reported a binding agreement has been signed with Alcatel-Lucent to sign a new 10 year lease expiring December 2021 having a fixed term of seven years without break option. The new lease will extend the period to the first break, and to expiry, by a further three years. Nozay comprises approximately 36 hectares of business park space located close to one of Paris' largest business space centres, Courtaboeuf business park. Nozay contains campus style offices together with business space and ancillary accommodation totaling approximately 78,800 square metres with over 2,000 car parking spaces.

Roissy - OCP Repartition have signed a new fixed 9 year lease from March 2012 on their 4,735 square metre logistics unit. This has effectively extended their existing fixed lease commitment by seven years and in return the Trust is investing in works to incorporate air conditioning within the warehouse.

Champs-sur-Marne - a new 2/6/9 year lease from January 2012 has been signed with Ecole Nationale des Ponts et Chaussées ("ENPC") on 2,470 square metres of office space. This lease replaces several leases to ENPC and Université de Marne la Vallée covering the same floor area which had expiries between October and December 2011.

Fresnes - Alphaguard  extended their lease on 230 square metres of office space until April 2015.

Vitry - Maugein extended their lease until February 2015 on a 330 square metre light industrial unit.

Mulhouse - Alten have extended their lease on 275 square metres of office space until January 2015.

Goussainville - ITS have extended their lease on their 1,500 square metre warehouse unit to October 2014 and Ovalis have extended their lease on 440 square metres of office space until April 2015.

SPAIN

Córdoba - McDonalds have extended their lease on a 500 square metre free-standing restaurant unit until December 2012.

Ecija - Burger King have extended their lease on a 250 square metre restaurant unit until August 2012.

At the Trust's Evreux property the former tenant GlaxoSmithKline exercised an option to break the lease at the end of October following a decision by the wider group to outsource their logistics operations which have been relocated by the logistics partner. The Trust's Investment Manager is actively involved in a re-letting campaign for the vacated 14,130 square metre property and there are a number of active enquiries being pursued at present.

The portfolio has an overall level of average occupancy of 86%, measured by rental income as a percentage of potential total income, with vacancy representing 14%.

The effective weighted average lease length of the Trust's portfolio has increased as follows:

·      the weighted average lease length to expiry has increased from 6.8 years as reported at 30 June 2011 to 8.4 years, and

·      the weighted average lease length to the next break has increased from 3.5 years as reported at 30 June 2011 to 5.0 years.

RENTAL INDEXATION

The trend in rental indexation continues to improve. In the second quarter of 2011, the INSEE Construction Cost Index ("ICC"), applicable to leases in France, stood at 1,593 versus 1,554 the previous quarter. The annual growth at the second quarter of 2011 was 5.01%, versus a 3.05% annual growth at the first quarter of 2011 (1.73% as at Q4 2010 and 1.20% as at Q3 2010).

The Spanish Consumer Price Index, applicable to leases in Spain, was running at an annualised rate of increase of 3.1% as at the end of September 2011.

For further information:

Dick Kingston, Chairman, Alpha Pyrenees Trust Limited                           01481 735 541

Paul Cable, Fund Manager, Alpha Real Capital LLP                                  020 7268 0300

For more information on the Company, please visit www.alphapyreneestrust.com.

FORWARD-LOOKING STATEMENTS

This interim management statement contains forward-looking statements which are inherently subject

to risks and uncertainties because they relate to events and depend upon circumstances that will

occur in the future. There are a number of factors that could cause actual results to differ materially

from those expressed or implied by such forward-looking statements. Forward-looking statements are

based on the Board's current view and information known to them at the date of this statement. The

Board does not make any undertaking to update or revise any forward-looking statements, whether as

a result of new information, future events or otherwise. Nothing in this interim management statement

should be construed as a profit forecast.