TIDMAIRE
RNS Number : 5417H
Alternative Income REIT PLC
04 August 2021
4 August 2021
Alternative Income REIT P lc
(the " Company " or " Group ")
RENT COLLECTION, DIVIDEND DECLARATION, NAV AND BUSINESS
UPDATE
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, provides a
trading and business update and declares an interim dividend for
the quarter ended 30 June 2021 .
Rent collection
The current quarter's rents are split 80% quarterly and 20%
monthly and, to date, the Group has collected 85.9% of the total
due for the current quarter. From those tenants paying monthly,
collections represent 98.2% of the amount due to date. Collection
of the remaining 1.8% has been delayed pending asset management
activity at two of the Group's properties.
Dividend declaration and Earnings per Share
The Board declares today an interim dividend of 1.64 pence per
share for the quarter ended 30 June 2021 (quarter ended 31 March
2021: 1.25 pence per share). The dividend will be a Property Income
Distribution and paid on 31 August 2021 to shareholders on the
register on 13 August 2021. The ex-dividend date will be 12 August
2021.
In aggregate, dividends of 5.14 pence per share have been
declared in respect of the year ended 30 June 2021, (year ended 30
June 2020: 5.00 pence per share). For the year ended 30 June 2021,
unaudited earnings per share were 6.92 pence per share. Unaudited
EPRA earnings per share ("EPRA EPS") were 5.55 pence per share with
dividend cover of 108% (year ended 30 June 2020: losses of 6.27 and
5.42 pence per share respectively). T he EPRA EPS includes accruals
to reflect the minimum contracted uplifts, the amortisation of loan
arrangement fees and movements in the provision for impairment of
trade receivables , excluding these items from the Group's EPRA
EPS, for the year ended 30 June 2021, unaudited adjusted cash
earnings were 5.07 pence per share with dividend cover of 99% (year
ended 30 June 2020: 4.25 pence per share; dividend cover of
85%).
Unaudited earnings per share and EPRA EPS for the quarter ended
30 June 2021 were 1.70 pence and 1.09 pence per share respectively
(quarter to 31 March 2021: 1. 46 pence and 1.56 pence per share
respectively). The unaudited adjusted cash earnings for the quarter
ended 30 June 2021 were 0.98 pence per share (quarter ended 31
March 2021 : 1.43 pence per share).
Property Valuation
At 30 June 2021, the independent fair valuation undertaken by
Knight Frank of the Company's property portfolio was GBP109.23
million (31 March 2021: GBP108.73 million). The net initial yield
on the Company's portfolio was 5.93% (31 March 2021: 5.94%).
Net Asset Value
At 30 June 2021, the Company's unaudited net asset value ("NAV "
) was GBP 68.89 million, 85.58 pence per share, (at 31 March 2021:
GBP68.53 million, 85.13 pence per share). See the table below for
the movement in NAV during the quarter.
Analysis of Movement in NAV
Movement during the quarter Pence per share GBP million
NAV at 31 March 2021 85.13 68.53
---------------- ------------
Valuation movement in property
portfolio* 0.61 0.49
---------------- ------------
Income earned for the period 2.36 1.90
---------------- ------------
Expenses for the period (0.83) (0.67)
---------------- ------------
Net finance costs for the period (0.44) (0.36)
---------------- ------------
Interim dividend paid during the
quarter ended 30 June 2021 (1.25) (1.00)
---------------- ------------
NAV at 30 June 2021 85.58 68.89
---------------- ------------
* The net valuation increase of GBP0.49 million includes the
movement in the independent property valuation, allowance for the
minimum contracted rental uplifts and direct property costs .
The NAV attributable to the ordinary shares has been calculated
under International Financial Reporting Standards as adopted by the
United Kingdom and incorporates the Group's properties valued
individually on a 'Red Book' valuation basis as at 30 June 2021 and
the net income for the quarter, but does not include a provision
for the interim dividend declared today (see above) for the quarter
ended 30 June 2021.
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.
Portfolio update
The Group remains fully invested, with a diversified portfolio
of UK commercial property assets that are currently fully let, with
a w eighted average unexpired lease term of 17.79 years (31 March
2021: 18.04 years) to the earlier of break and expiry and 19.81
years (31 March 2021: 20.06 years) to expiry.
87% of the portfolio's income stream is reviewed periodically,
on an upward only basis, in line with inflation; with 65% and 22%
of the portfolio indexed (subject to floors and caps) to RPI and
CPI respectively.
Alan Sippetts, Non-Executive Chairman of Alternative Income REIT
plc, comments:
" The Board is pleased to declare today an increased dividend to
shareholders, underlining the continuing strength of the Group's
collection of rent from our 100% let portfolio. Taken together with
our robust balance sheet, modest overhead and with 87% of our
portfolio's leases with inflation linked upwards only rent reviews,
the Board remains confident that the Group will provide attractive
total returns to our shareholders principally in the form of fully
covered dividends. "
ENQUIRIES
Alternative Income REIT PLC
Alan Sippetts - Chairman via Maitland/AMO below
M7 Real Estate Ltd
Richard Croft +44 (0)20 3657 5500
Panmure Gordon (UK) Limited +44 (0)20 7886 2500
Alex Collins
Tom Scrivens
Chloe Ponsonby
Maitland/AMO (Communications Adviser) +44(0) 7747 113 930
James Benjamin james.benjamin@maitland.co.uk
The Company's LEI is 213800MPBIJS12Q88F71.
Further information on Alternative Income REIT plc is available
at www.alternativeincomereit.com (1) .
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, predominately in
alternative and specialist sectors. As noted above, the majority of
the assets in the Group's portfolio are let on long leases which
contain inflation linked rent review provisions.
The Company's investment adviser is M7 Real Estate Limited
("M7"). M7 is a leading specialist in the pan-European, regional,
multi-tenanted real estate market. Majority owned by its senior
managers, it has over 220 employees in 15 countries across Europe.
The team manages over 570 properties with a value of circa EUR3.9
billion.
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.
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END
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