TIDMAIRE
RNS Number : 1356R
Alternative Income REIT PLC
03 November 2021
3 November 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 September 2021 .
Alan Sippetts, Non-Executive Chairman of Alternative Income REIT
plc, comments:
"We are pleased today to declare a fully covered interim
quarterly dividend of 1.30 pence per share, a 4% increase on the
1.25 pence per share interim dividend paid for the same period last
year, which is ahead of the annual rate of inflation. The Board
continues to target an annual dividend of 5.5 pence per share with
full dividend cover expected, all else being equal, by September
2022(1) .
We continue to see very strong rent collection delivered from
our resilient, 100% let portfolio, where 87% of the portfolio's
leases have inflation linked upward only rent reviews. When
combined with our robust balance sheet and modest overhead, this
allows us to continue to deliver secure and attractive fully
covered income returns and growth for our shareholders in a period
of significant wider market uncertainty."
Rent collection
The current quarter's rents are split 80% quarterly and 20%
monthly, and to date, the Group has collected 89.3% of the total
due in the current quarter and this increases to 96.9% when account
is taken for the tenants who are contracted to pay monthly. Of the
remaining 3.1%, 2.8% will be recovered during Q4 2021 through
monthly payments. Overall, for the current quarter, the Group
expects to collect at least 99.7% of rent due.
Dividend declaration and update on Earnings per Share
The Board is pleased to declare an interim quarterly dividend of
1.30 pence per share for the quarter ended 30 September 2021, a 4%
increase on the 1.25 pence per share interim dividend for the same
period last year . This quarter's interim dividend will be paid as
a Property Income Distribution ("PID") and will be paid on 26
November 2021 to shareholders on the register on 12 November 2021.
The ex-dividend date will be 11 November 2021.
As disclosed in the Company's 2021 annual report, the Board has
reaffirmed its target annual dividend of 5.5 pence per share with
full dividend cover expected, all else being equal, by September
2022(1) .
Unaudited EPRA EPS for the quarter ended 30 September 2021 were
1.59 pence per share, representing dividend cover for the quarter
of 122% (year ended 30 June 2021: 5.55 pence per share; 108%
cover).
The EPRA EPS includes accruals to reflect both the minimum
contracted uplifts and 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, the unaudited
adjusted cash earnings were 1.43 pence per share, reflecting 110%
cash dividend cover for the quarter (year ended 30 June 2021:
5.07p; 99% cash dividend cover).
Property Valuation
At 30 September 2021, the independent fair valuation undertaken
by Knight Frank of the Company's property portfolio was GBP111.23
million (30 June 2021: GBP109.23 million) a 1.83% quarter on
quarter increase. The Group has seen an increase in its income
quarter on quarter and the net initial yield on the Company's
portfolio was 5.84%, compared with 5.93% on 30 June 2021.
The Company's retail warehousing, industrial and student housing
assets saw value increases of between 4% and 6% quarter on quarter,
driven by competitive transactions within these sectors. The
Group's most recent acquisition, Droitwich Spa Retail Park,
Droitwich, has increased 14.74% since its acquisition in December
2020. The Company's assets which saw values negatively impacted
included our car showroom in Birmingham and our petrol filling
station in Crawley, reflecting wider market weakness.
Net Asset Value
At 30 September 2021, the Company's unaudited net asset value
("NAV " ) was GBP70.68 million, 87.80 pence per share, reflecting
growth of approximately 2.60% over the period due to increases
during the quarter in portfolio valuation and income earned. The
table below sets out for the movement in NAV during the
quarter.
Pence per GBP million
share
NAV at 30 June 2021 85.58 68.89
---------- ------------
Valuation movement in property portfolio* 2.26 1.82
---------- ------------
Income earned for the period 2.40 1.93
---------- ------------
Expenses for the period (0.36) (0.29)
---------- ------------
Net finance costs for the period (0.44) (0.35)
---------- ------------
Interim dividend paid during the quarter
ended 30 September 2021 (1.64) (1.32)
---------- ------------
NAV at 30 September 2021 87.80 70.68
---------- ------------
* The quarter's increase in the independent fair valuation of
GBP2.0 million has been reduced by GBP0.18 million to reflect the
minimum contracted rental uplifts, resulting in a net valuation
increase of GBP1.82 million.
The NAV attributable to the ordinary shares has been calculated
under International Financial Reporting Standards as adopted by
United Kingdom and incorporates both the Group's property portfolio
individually valued on a 'Red Book' valuation basis as at 30
September 2021 and net income for the quarter, but does not include
a provision for the interim dividend declared today (see above) for
the quarter ended 30 September 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 17.4 years (30 June
2021: 17.8 years) to the earlier of break and expiry and 19.6 years
(30 June 2021: 19.8 years) to expiry.
87% (20 June 2021: 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.
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 (2) .
1 This is a target only and not a profit forecast. There can be
no assurance that the target will be met and it should not be taken
as an indicator of the Company's expected or actual results.
2 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, predominately in
alternative and specialist sectors. 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. It has over 220 employees in 15
countries across Europe. The team manages over 570 properties with
a value of circa EUR4.1 billion.
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END
DIVFLLLBFFLZFBD
(END) Dow Jones Newswires
November 03, 2021 03:00 ET (07:00 GMT)
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