Alpha Pyrenees, the investment company focused on commercial property in France, hit a 52-week high Wednesday, after it said valuations and prospects are improving in France.

The group said the portfolio valuation improved by 0.1% in the first quarter of 2011 to €296.3m (£260.6m), but the adjusted net asset value (NAV) per share fell to 31.9p from 34.0p at the end of 2010, primarily because of currency losses on the trust's hedging positions.

The average valuation yield across the portfolio was 8.2%.

"With potential for rental growth from indexation we remain optimistic on the valuation for the full year," said broker Peel Hunt, which rates the shares a "buy".

In France, two new leases were signed in the first quarter and six leases were extended. In Spain, meanwhile, for new leases were signed and two leases were extended.

Overall the portfolio enjoys high levels of occupancy with rental income comprising 90% of potential total income and vacancy representing 10%, the group said.

The Trust's total borrowings of £214m (€243.3m) and portfolio value of £260.6m (€296.3m) gives a net leverage after cash of 76.5% as at 31 March 2011.

The first quarter dividend has been left unchanged at 0.9%.

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