Interim Results

AXA Property Trust Ld
31 March 2006



To:   RNS
Date: 31 March 2006
From: AXA Property Trust Limited



AXA Property Trust Limited


Further to our announcement on 23 March 2006 there follows the full text of the
Interim Results in respect of the period from 5th April 2005 to 31st December
2005.


Financial highlights

                 31 December 2005  23 May 2005 (launch)  Change since launch

Net asset
value (£
thousands)                98,763               100,000                 -1.2%

Net asset
value per
ordinary share
(pence)                    98.76                100.00                 -1.2%

Ordinary share
price (pence)             109.00                100.00                 +9.0%

Dividend per
share (pence)               1.55                   N/A                   N/A



The Chairman Charles Hunter stated;


I am delighted to welcome shareholders to this first interim statement of AXA
Property Trust Limited since the successful launch of the Company in May 2005.
The Company, through its Real Estate Advisers, AXA Real Estate Investment
Managers UK (AXA REIM), has made substantial progress in investing the proceeds
of the share issue in European property to meet the Company's objectives, as set
out in the Portfolio section below.


Investment Strategy and Process


The Company's investment programme, in accordance with the terms of the
prospectus, is on target to invest substantially the issue proceeds in real
estate assets within twelve months of Admission.


The Company's aim is to create a portfolio that delivers the target income yield
and which is diversified by property type, tenant and geographic region. A key
focus is to obtain holdings in properties that offer value. This is sought both
in the initial purchase terms and in potential for growth and added value during
ownership. The portfolio will consist of medium sized properties in good
locations with sustainable income flows.


A thorough bottom-up process of analysis and due diligence is being applied to
each acquisition. This is enhanced by local knowledge combined with AXA REIM's
Europe-wide presence and perspective.


Investment Activity


AXA REIM have seen in excess of £4 billion of opportunities in the seven months
since launch. A significant number have been seriously considered by AXA REIM's
local offices and over 50 of these properties have been physically inspected by
the UK team.


I am particularly pleased to report that in a competitive market, AXA REIM are
succeeding in acquiring quality property which is providing a net rental income
yield of between 6% and 8%. This is ahead of the target and supports the
intended dividend distribution rate.



Portfolio


In the period of approximately seven months since the Company launch to the
balance sheet date, £10.0 million of purchases were completed and contracts were
exchanged for £23.9 million of properties. The Company is committed to the
following holdings as at 31st December 2005:

Portfolio as at 31 December 2005

Property                                 Status       Type

Smakterweg, Venray, Netherlands          Completed    Logistics

Bahnhofstrasse, Karben, Germany          Contracted   Edge of town retail-food &
                                                      durables

Nurnberger Strasse, Treuchtlingen,       Contracted   Edge of town retail-food
Germany

Frankfurter Strasse, Wurzburg, Germany   Contracted   Edge of town retail-food &
                                                      durables

Burgermeister-Hess-Strasse, Muhldorf am  Contracted   Out of town retail-food &
Inn, Germany                                          durables

Landshuter Strasse, Moosburg, Germany    Contracted   Out of town retail-food &
                                                      durables

Die Weidenbach, Altenstadt-Lindheim,     Contracted   Out of town retail-food &
Germany                                               durables

Braunschweiger Strasse, Berlin, Germany  Contracted In town retail-food



The tenant covenant profile on these holdings is strong and the weighted average
lease length, term certain, is 10.3 years. This compares favourably with the IPD
UK Index average lease length of 9.3 years, particularly considering the
normally shorter lease pattern in Continental Europe.


The weighted average net initial yield on the above portfolio is 7.30% before
gearing.


Further transactions have been under negotiation since the beginning of 2006
which have resulted in the acquisition of a logistics property near Milan, Italy
which was completed for £20.7 million in February 2006 and a property in Bernau,
Germany which was been contracted for £5.8 million in March 2006.


At the time of writing the Company has contracted acquisitions (including those
properties where contracts have been exchanged) of €58.9 million. All figures
are stated before acquisition costs.


Including investment activity transacted since the balance sheet date, the
portfolio contracted and secured is invested 55.3% in German retail, 33.4% in
Italian logistics and 11.3% in Dutch logistics. The German retail exposure
contains significant de facto diversification across the country, both in and
out of town centres, and by trade (food retailing and durable goods retailing).


A further four properties are under offer totalling £42.4 million. Due diligence
is currently being performed and contracts are expected to exchange on these
properties in the coming weeks.


In AXA REIM's view, in selected parts of the German retail property sector at
current pricing there is value and long term potential.


Cash funds that have not yet been invested in real estate assets have been held
in accordance with the prospectus, mainly in certificates of deposit. Through
the yield obtained from this investment dividends have been declared to date at
an annualised rate of approximately 4.19%.


Financing Facility and Hedging


Negotiations are currently being finalised for a Group loan facility at a
gearing level aligned with the prospectus at 35%. It is anticipated that this
facility will be signed in the coming weeks and, where appropriate, drawings
will occur thereafter. The money market yield curve, particularly in Euro
denominated countries, is upward sloping, and consequently the Company is aware
of the risk of interest rates rising in the future. The Company is currently
implementing an interest rate hedging strategy in order to mitigate such a risk.


Market Background


Real estate investment markets remain strong across Europe with increased demand
driven, in particular, by foreign buyers, both institutional and private. The
increased competition has impacted pricing and over the past six months
investment yields have, in general, been falling. This trend is likely to
continue in the coming year. The Company expects to benefit from this yield
compression for the properties it has already contracted to acquire. I am
confident that, with AXA REIM's considerable access to attractive opportunities
across Europe through their extensive network of offices, the Company will
perform well even in these competitive market conditions.


Summary


AXA REIM have made excellent progress since launch and expect to complete the
construction of the portfolio this summer. Prospects in the European markets
generally and for the holdings both acquired and those being acquired are good,
and I am confident about the future of the Company.


Charles Hunter
Chairman
22nd March 2006





All enquiries to:

The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey GY1 3QL
Tel: [phone]
Fax: [phone]



                          KPMG Channel Islands Limited

                    20 New Street, St Peter Port, Guernsey,

                            Channel Islands, GY1 4AN


Independent auditors' report to the members of AXA Property Trust Limited on
interim financial statements for the period ended 31 December 2005

Introduction

We have been engaged by the Company to review the financial information set out
on pages 5 to 11 and we have read the other information contained in this
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

This report is made solely to the Company in accordance with the terms of our
engagement contained within our engagement letter dated 16 March 2006 to assist
the Company in meeting the requirements of the Listing Rules of the London Stock
Exchange as issued by the UK Financial Services Authority.

Our review has been undertaken so that we might state to the Company those
matters we are requested to state to it in this review report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this
review report, or for the conclusions we have reached.

Directors' responsibilities

This interim report, including the financial information contained therein, is
the responsibility of and has been approved by the Directors. The Directors are
responsible for preparing this consolidated interim report in accordance with
the Listing Rules.

The accounting policies that have been adopted in preparing the financial
information are consistent with those that the Directors currently intend to use
in the next annual financial statements. There is however, a possibility that
the Directors may determine that some changes to these policies are necessary
when preparing the full annual financial statements.

Review work performed

We have reviewed the accompanying consolidated balance sheet of AXA Property
Trust Limited at 31 December 2005, and the related statements of income and cash
flows for the period then ended.

We conducted our review in accordance with the International Standard on Review
Engagements 2400. This Standard requires that we plan and perform the review to
obtain moderate assurance as to whether the interim financial statements are
free of material misstatement. A review is limited primarily to enquiries of
group management and analytical procedures applied to financial data and this
provides less assurance than an audit. We have not performed an audit and,
accordingly, we do not express an audit opinion.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the period ended 31
December 2005.

KPMG Channel Islands Limited
Guernsey

Consolidated Income Statement (Unaudited)

For the period from 5 April 2005 to 31 December 2005
                                                                         Total
                                                                         £'000
Revenue
Gross rental income                                                        116
Investment income                                                        2,337
Interest income                                                            391
Other income                                                                10
Total income                                                             2,854

Valuation losses on investments
Unrealised losses on revaluation of investment properties                 (327)
Unrealised losses on revaluation of short term investments                  (3)
Total valuation losses                                                    (330)

Expenses
Formation expenses                                                      (1,061)
Directors' fees                                                            (48)
Administration fees                                                        (54)
Audit fees                                                                 (34)
General expenses                                                           (37)
Legal and professional fees                                                (73)
Total expenses                                                          (1,307)

Net profit before taxation                                               1,217
Taxation                                                                    (1)
Net profit after taxation                                                1,216
Basic and diluted profit per ordinary share (pence)                       0.12



Consolidated Statement of Changes in Equity (Unaudited)

For the period from 5 April 2005 to 31 December 2005

                Share    Share       Revenue   Distributable Foreign      Total
                capital  premium     reserve   reserve       exchange
                 £'000       £'000     £'000         £'000     £'000      £'000

Balance at 5         -           -         -             -         -          -
April 2005

Movements
during the
period
Share premium
on issue             -     100,000         -             -         -    100,000
Cancellation
of share
premium (Note
5)                   -    (100,000)        -       100,000         -          -
Placing fees         -           -         -          (981)        -       (981)
Unrealised
loss on
revaluation of
investment
properties           -           -      (327)            -         -       (327)
Unrealised
loss on
revaluation of
short term
investments          -           -        (3)            -         -         (3)
Net profit
after taxation
and before
unrealised
losses               -           -     1,546             -         -      1,546
Dividends paid
(Note 3)             -           -    (1,216)         (334)        -     (1,550)
Foreign
exchange gains       -           -         -             -        78         78

Balance at 31
December 2005        -           -         -        98,685        78     98,763



Consolidated Statement of Assets and Liabilities (Unaudited)

For the period from 5 April 2005 to 31 December 2005
                                                                         £'000
Non-current assets
Investment properties                                                   33,860
Other assets                                                                21
Total non-current assets                                                33,881

Current assets
Cash and cash equivalents                                                5,119
Short term investments (Note 4)                                         82,747
Receivables                                                              1,595
Total current assets                                                    89,461
Total assets                                                           123,342

Current liabilities
Payables                                                                24,579
Total liabilities                                                       24,579
Net Assets                                                              98,763

Equity
Share capital                                                                -
Reserves (Note 5)                                                       98,763
Total equity                                                            98,763

Number of ordinary shares                                          100,000,000
Net asset value per ordinary share (pence)                               98.76



Consolidated Statement of Cash Flows (Unaudited)

For the period from 5 April 2005 to 31 December 2005
                                                                         £'000
Operating activities
Net profit for the period                                                1,216
Unrealised losses on revaluation of investment properties                  327
Unrealised losses on revaluation of short term investments                   3
Investment income                                                       (1,468)
Bank interest                                                              (55)
Increase in trade and other receivables                                    (73)
Increase in trade and other payables                                     1,693
Net cash inflow from operating activities                                1,643

Investing activities
Purchase of investment property                                        (11,321)
Purchase of property, plant and equipment                                   (3)
Purchase of certificates of deposit                                   (152,000)
Proceeds from sale of certificates of deposit                           69,250
Net cash outflow from investing activities                             (94,074)

Financing activities
Proceeds from issue of shares                                          100,000
Issue costs                                                               (981)
Dividends paid (Note 3)                                                 (1,550)
Net cash inflow from financing activities                               97,469

Effect of exchange rate fluctuations on cash held                           81
Increase in cash and cash equivalents                                    5,119

Cash and cash equivalents at start of period                                 -
Cash and cash equivalents at 31 December 2005                            5,119



Notes to the Unaudited Consolidated Financial Statements


1. Operations


AXA Property Trust Limited is a limited liability, closed-ended investment
company incorporated in Guernsey. The Company invests in commercial property in
Europe which is held through its subsidiaries. The consolidated financial
statements of the Company for the period ended 31 December 2005 comprise the
financial statements of the Company and its subsidiaries (together referred to
as the 'Group').


2. Principal Accounting Policies


(a) Basis of preparation

The consolidated financial statements have been prepared on a going concern
basis, on the basis of International Financial Reporting Standards ('IFRS') and
the accounting policies set out below.


(b) Foreign currency translation

(i) Functional and presentation currency

The financial statements are presented in sterling, which is the Company's
functional and presentation currency as this is the currency in which the funds
were raised and in which investors are seeking a return.


(ii) Foreign currency transactions

Transactions in foreign currencies are translated to sterling at the spot
foreign exchange rate ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the balance sheet date are
translated to sterling at the foreign exchange rate ruling at that date. Foreign
exchange differences arising on translation are recognised in the consolidated
income statement. Non-monetary assets and liabilities that are measured in terms
of historical cost in a foreign currency are translated using the exchange rate
at the date of the transaction. Non-monetary assets and liabilities denominated
in foreign currencies that are stated at fair value are translated to sterling
at foreign exchange rates ruling at the dates the fair value was determined.


(iii) Financial statements of foreign operations

The assets and liabilities of foreign operations, arising on consolidation, are
translated to sterling at the foreign exchange rates ruling at the balance sheet
date. The income and expenses of foreign operations are translated to sterling
at an average rate. Foreign exchange differences arising on retranslation are
recognised as a separate component of equity.


(c) Basis of consolidation

(i) Subsidiaries

Subsidiaries are those entities, including special purpose entities, controlled
by the Company. Control exists when the Company has the power, directly or
indirectly, to govern the financial and operating policies of an entity so as to
obtain benefits from its activities. The Company owns 100% of the issued share
capital of Property Trust Luxembourg 1 Sarl and Property Trust Luxembourg 2
Sarl, companies incorporated in Luxembourg whose principal business is that of
an investment and property company. The financial statements of these
subsidiaries are included in the consolidated financial statements.


(ii) Transactions eliminated on consolidation

Intra-group balances and any unrealised gains and losses arising from
intra-group transactions are eliminated in preparing the consolidated financial
statements.


(d) Investments in debt and equity securities

Security investments held are held at fair value with any resultant gain or loss
recognised in the income statement. Where these investments are interest
bearing, interest calculated using the effective interest method is recognised
in the consolidated income statement.


(e) Income

Interest receivable is included in the financial statements on an accruals
basis.


Rental income from investment property leased out under operating leases is
recognised in the consolidated income statement on a straight-line basis over
the term of the lease.


(f) Expenses

Expenses are accounted for on an accruals basis. Any ongoing annual fees and
expenses payable by the Company, including but not limited to the Investment
Manager, the Sponsor, the Administrator and the Directors, will be borne by the
Company.


(g) Formation and placing expenses

Formation expenses include fees arising from the establishment of the Company,
the offer for subscription and admission. These include the Sponsor's fee, set
up costs, legal and accounting fees, and any other initial expenses. An amount
equal to two per cent of the subscription proceeds has been set aside to meet
the expenses. Any excess will be borne by the Investment Manager. The excess
will then be paid as a commission by the Company to the Investment Manager for
its services in connection with the issue. A total of £1,061,000 has been
expensed to the consolidated income statement in respect of formation expenses.


Placing expenses are the expenses incurred in the raising of share capital.
Placing expenses amounted to £981,000 and have been set off against the special
distributable reserve.


(h) Taxation

The Company has obtained exempt company status in Guernsey under the terms of
the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 and accordingly is
subject to an annual fee of £600. The Directors intend to conduct the Group's
affairs such that it continues to remain eligible for exemption.


Income tax on the profit relates to current tax of the subsidiaries which is
recognised in the

consolidated income statement. There is no material deferred tax. Current tax is
the expected tax payable on the taxable income for the period, using rates
enacted or substantially enacted at the balance sheet date.


(i) Cash and cash equivalents

Cash and cash equivalents comprises cash balances and call deposits carried at
cost.


(j) Dividends

Interim dividends are recognised as a liability in the period in which they are
paid. Final dividends are recognised once they are approved by shareholders.


(k) Investment properties

Investment properties are those which are held to earn rental income and capital
appreciation. They are initially recognised at cost, being the fair value of the
consideration, including transaction costs associated with the property. After
initial recognition, investment properties are measured at fair value using the
fair value model. Quarterly valuations are carried out by Knight Frank LLP,
external independent valuers, in accordance with the RICS Appraisal and
Valuation Standards. The properties have been valued on the basis of market
value, which is the estimated amount for which a property should exchange on the
date of valuation in an arms-length transaction.


(l) Short term investments

Certificates of deposit are measured at market value, all having a maturity of
less than one year.


3. Dividends

                                 No. of ordinary shares   Rate (pence)   £'000

Dividend paid 25 August 2005                100,000,000          0.45      450
Dividend paid 30 November 2005              100,000,000          1.10    1,100
                         Total                                   1.55    1,550


A further interim dividend of £1,000,000 (1.00 pence per share) was approved on
1 February 2006. The ex-dividend date was 8 February 2006 and the pay date was
28 February 2006.


4. Short term investments

                         Maturity         Interest Rate  Cost      Market Value

Certificates of deposit                              %     £'000         £'000
Societe Generale         5 January 2006           4.50    12,000        11,999
Northern Rock            5 January 2006           4.52    12,500        12,500
Uni Credito              31 January 2006          4.59    11,000        11,000
Lloyds                   31 January 2006          4.74    15,750        15,750
Norddeutsches Landesbank 31 March 2006            4.73    15,750        15,749
Nordea                   31 May 2006              4.70    15,750        15,749

                 Total                                    82,750        82,747


5 Reserves


On 24 June 2005 the Royal Court of Guernsey confirmed the reduction of capital
by way of cancellation of the Company's share premium account. The amount
cancelled (£100,000,000) has been credited as a distributable reserve and shall
be available as distributable profits to be used for all purposes permitted
under Guernsey law including the payment of dividends.



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