31 October 2024
The following amendment has been
made to the 'NAV, Dividend Declaration and
Portfolio Valuation' announcement released
on 31 October 2024 at 7.00am under RNS No 3174K.
The record date and ex-dividend date
for the dividend have been corrected to state that
"This dividend will be distributed as Property Income Distribution ("PID") and will
be paid on 22 November 2024 to shareholders on the register on 8
November 2024. The ex-dividend date will be 7 November
2024."
All other details remain
unchanged.
The full amended text is shown
below.
Alternative Income REIT
PLC
(the
"Company" or
"Group" or
"AIRE")
NET ASSET VALUE, DIVIDEND
DECLARATION AND PORTFOLIO VALUATION UPDATE
TO 30 SEPTEMBER
2024
New target annual dividend of
6.2 pence per share ("pps") for the year ending 30 June
2025†,
an increase of 5.1% on the
prior year target of 5.9pps
Unaudited NAV total return
for the quarter of 2.5%
Resilient portfolio
well-placed to continue to provide secure, index-linked income with
the potential for capital growth
The Board of Directors of
Alternative Income REIT PLC (ticker: AIRE), the owner of a diversified portfolio of UK
commercial property assets, predominantly let on long leases with
index-linked rent reviews, provides a
trading and business update and declares an interim dividend for
the quarter ended 30 September 2024.
Simon Bennett, Non-Executive Chair of Alternative Income REIT
plc, comments:
"Having achieved the Company's
target dividend of 5.9pps last year, subject to the continued
collection of rent from the Group's portfolio as it falls due,
the Board has set a new dividend target of
6.2pps for the year ending 30 June
2025†, which represents an increase of 5.1% over the
previous year.
At 30
September 2024, the Group's unaudited NAV
was £65.4 million,
81.3pps, representing a 0.5% increase over the previous
quarter. When combined with the 1.625pps dividend paid in the quarter,
this produces an unaudited NAV total return for the quarter
of 2.5%.
The Group's portfolio remains
relatively insulated from market fluctuations, benefiting from
being 100% let, achieving 100% collection of rent due, and a 95.9%
index-linked rent review profile. The Board
continues to actively seek properties to invest the remaining
proceeds from the sale of the hotel in Glasgow which amounts to
£2.2 million, which has taken longer than originally
anticipated.
The Group produces a secure and
increasing income stream and this is the second quarter where the
valuation of the portfolio has risen, albeit modestly, and
the Group will continue to benefit from low borrowing costs until
October 2025. I look forward to reporting on AIRE's continued
progress in the coming months."
Overview of Key Financials
|
At 30
September
2024
(unaudited)
|
At 30 June
2024
(audited)
|
Change
|
Net Asset Value ("NAV")
|
£65.4 million
|
£65.1 million
|
+0.5%
|
NAV per share
|
81.3p
|
80.9p
|
+0.5%
|
Share price per share
|
72.5p
|
66.0p
|
+9.8%
|
Share price discount to
NAV
|
10.8%
|
18.4%
|
-7.6%
|
Investment property fair
value
(based on external
valuation)
|
£103.1 million
|
£102.7 million
|
+0.4%
|
Loan to gross asset value ("GAV")
A B
|
37.6%
|
37.7%
|
|
|
Quarter
ended
30 September
2024
(unaudited)
|
Quarter
ended
30 June
2024
(unaudited)
|
Change
|
EPRA earnings per share
A
|
1.6p
|
1.6p
|
-
|
Adjusted earnings per share
A
|
1.6p
|
1.6p
|
-
|
Dividend cover
A
|
100.7%
|
98.0%
|
+2.7%
|
Total dividends per share
|
1.55p
|
1.625p
|
-4.6%
|
Dividend yield
(annualised)A
|
8.6%
|
8.9%
|
-0.3%
|
Earnings per share
|
2.0p
|
1.7p
|
+17.4%
|
Share price total return
A
|
12.3%
|
-0.8%
|
|
NAV total return
A
|
2.5%
|
2.1%
|
|
Annualised passing rent
|
£7.8 million
|
£7.7 million
|
+1.1%
|
Ongoing charges
A (annualised)
|
1.5%
|
1.5%
|
-
|
A Considered to be an Alternative Performance
Measure.
B The loan facility at 30 September 2024 of £41.0 million (30
June 2024: £41.0 million) with Canada Life Investments, matures on
20 October 2025 and has a weighted average interest cost of
3.19%.
Dividend Declaration, Earnings Per Share and Dividend
Cover
The Board has set a new dividend
target of 6.2pps for the year ending 30 June 2025†,
which represents an increase of 5.1% over the previous
year.
The Board is
pleased to declare an interim quarterly dividend of
1.55pps for the quarter
ended 30 September 2024. This dividend will be distributed as Property Income Distribution ("PID") and will
be paid on 22 November 2024 to shareholders on the register on 8
November 2024. The ex-dividend date will be 7 November
2024.
The Adjusted EPS was 1.6pps for the
quarter (30 June 2024: 1.6pps). The dividend cover for the quarter
was 100.7% (30 June 2024: 98.0%).
Property Portfolio
The Group's portfolio is relatively
insulated from market fluctuations, benefiting from being 100% let,
with 100% collection of rent due and 95.9% index-linked rent review
profile which continues to provide a secure and growing rental
income stream.
The anticipated increase in the UK
commercial property investment market activity, fueled by interest
rate cuts, lower inflation and enhanced debt financing
opportunities has been slow to materialise.
At 30 September 2024, the
Group held 19 properties valued at £103.1million
(30 June 2024: £102.7 million).
The Company's property values increased by
£0.4 million
or 0.4% for the
quarter ended 30 September 2024.
At 30 September 2024, the Net
Initial Yield on the Group's portfolio was
7.1% (30 June 2024: 7.1%) and the
Group's assets remained 100% let (30 June
2024: 100%). The weighted average unexpired
lease term at 30 September 2024 was 16.2 years to the earlier of break and expiry (30 June 2024: 16.5
years) and 18.1 years to expiry (30 June 2024: 18.4
years).
The Group's contracted annualised
rent increased by 1.3% during the quarter to 30 September 2024 (30
June 2024: 0.8%). This was due to annual indexation of one lease
and a five yearly index-linked rent review on another. 95.9%
of leases within our portfolio are index-linked, with 37.3% of this
rental income reviewed annually. The
portfolio continues to be actively managed: one
tenant has agreed to remove their lease break; and discussions
continue with four other tenants considering re-gearing leases,
removing tenant breaks and extending lease lengths. The Estimated
Rental Value of the Group's property assets has risen by 3.1% as
compared to the previous quarter driven by growth in rents in the
industrial and social housing sectors.
For the
upcoming quarter to 31 December 2024, 9.6% of the Group's income
will be reviewed with two annual index-linked rent
reviews.
Net
Asset Value, Share Price and Share Price Discount to
NAV
At 30
September 2024, the Group's unaudited NAV
was £65.4 million,
81.3pps (30 June
2024: £65.1million, 80.9pps), representing
a 0.5% increase over
the previous quarter.
When combined with the
1.625pps dividend paid in
the quarter, this produces an unaudited NAV total return for the
quarter of 2.5% (30 June 2024:
2.1%). The Company's share price increased by 9.8% to 72.5pps, reflecting the increase
in the NAV and the decrease in the discount from 18.4% to
10.8%.
The table below sets out the
movement in NAV during the quarter.
|
Pence per
share
|
£ million
|
NAV
at 30 June 2024
|
80.9
|
65.1
|
Valuation movement in property
portfolio
|
+0.5
|
+0.4
|
Income earned for the
period
|
+2.4
|
+1.9
|
Expenses for the period
|
-0.5
|
-0.3
|
Net finance costs for the
period
|
-0.4
|
-0.4
|
Interim dividend paid during the
quarter ended 30 June 2024
|
-1.6
|
-1.3
|
NAV
at 30 September 2024
|
81.3
|
65.4
|
The NAV attributable to the ordinary
shares has been calculated under International Financial Reporting
Standards as adopted by the United Kingdom and incorporates both
the Group's property portfolio individually valued on a 'Red Book'
basis at 30 September 2024 and net income for the quarter but does
not include a provision for the interim dividend declared today
(see above).
The income earned for the period
includes an accrual for the minimum contractual uplifts contained
in the index-linked leases. In the event that inflation is greater
than these minimum contractual uplifts, the actual income will be
greater than the income currently accrued.
Rent Collection
Rent collection remains resilient
with 100%
collection of rent
due for the quarter ended 30
September 2024.
83.6% of the portfolio's
rent is payable quarterly in advance
and 16.40% payable
monthly in advance.
† This is a target and not a formal
dividend forecast or a profit forecast
ENQUIRIES
Alternative Income REIT PLC
|
|
Simon Bennett
- Chair
|
via H/Advisors Maitland
below
|
|
|
Martley Capital Real Estate Investment Management
Ltd
Richard Croft
Jane Blore
|
020 4551 1240
|
|
|
Panmure Liberum Limited
|
020 3100 2000
|
Alex Collins
|
|
Tom Scrivens
|
|
|
|
H/Advisors Maitland (Communications Advisor)
|
07747 113 930 / 020 7379
5151
|
James Benjamin
Rachel Cohen
Billy Moran
|
aire-maitland@h-advisors.global
|
The Company's LEI is
213800MPBIJS12Q88F71.
Further information on Alternative
Income REIT PLC is available at www.alternativeincomereit.com1.
1 Neither the content of
the Company's website, nor the content on any website accessible
from hyperlinks on its website or any other website, is
incorporated into, or forms part of, this announcement nor, unless
previously published on a Regulatory Information Service, should
any such content be relied upon in reaching a decision as to
whether or not to acquire, continue to hold, or dispose of,
securities in the Company.
NOTES
Alternative Income REIT PLC
aims to generate a sustainable, secure and
attractive income return for shareholders from a diversified
portfolio of UK property investments, with a particular focus on
alternative and specialist real estate sectors. The majority of the
assets in the Group's portfolio are let on long leases which
contain index linked rent review provisions.
The Company's asset manager is
Martley Capital Real Estate Investment Management Limited ("Martley
Capital"). Martley Capital is a full-service real estate investment
management platform whose activities cover real estate investing,
lending, asset management and fund management. It has over 40
employees across five offices in the UK and Europe. The team
manages assets with a value of circa £900 million across 19
mandates (at 30 September 2024).