TIDMARTL
RNS Number : 5138P
Alpha Real Trust Limited
18 November 2016
18 November 2016
ALPHA REAL TRUST LIMITED ("ART" OR THE "COMPANY")
ALPHA REAL TRUST ANNOUNCES ITS HALF YEAR REPORT FOR THE SIX
MONTHSED 30 SEPTEMBER 2016
-- NAV per share 151.9p: 30 September 2016 (137.9p: 31 March 2016)
-- Adjusted earnings per share of 3.9p for the six months ended
30 September 2016 (3.0p: six months ended 30 September 2015)
-- Declaration of a quarterly dividend of 0.6p per share,
expected to be paid on 16 December 2016
-- Basic earnings per share of 10.1p for the six months ended 30
September 2016 (11.2p: six months ended 30 September 2015)
-- Balanced portfolio: continued capital allocation to a mix of
investments which balance a weighting towards income returns while
creating potential for capital value growth
-- Mezzanine loan investment: post period end, ART invested
GBP1.7 million in a new mezzanine loan secured on a hotel located
in central Newcastle. The loan has a 3 year term and earns an
annualised return in excess of 15%
-- German acquisition: post period end, ART entered into an
agreement to purchase, subject to planning, an industrial site
which has potential for the development of a data centre
-- Asset management successes: active leasing in both directly
and indirectly held investments with benchmark outperformance
recorded in Spain and the UK
-- H2O valuation has increased by 5.7% from 31 March 2016 (on an
underlying Euro basis) to EUR112.6 million, aided by strong leasing
activity and continuing asset management initiatives undertaken by
ART. The Madrid shopping centre continues to attract record visitor
numbers in the year to date, increasing 9.9% versus the same period
in 2015
-- 95.1% of the Company's portfolio is allocated to investments
in the UK and Europe that are or are expected to be income
producing
-- Income from investments, both equity and high yield debt,
continue to add to the Company's earnings position.
David Jeffreys, Chairman of Alpha Real Trust, commented:
"ART's portfolio provides a balance of stable high yielding
assets and investments that offer scope to deliver strong
cashflows, capital value growth and high risk adjusted total
returns.
During the period, ART has achieved notable asset management
successes within the portfolio's underlying assets. The H2O Madrid
shopping centre continues to attract record visitor numbers which
has enabled our tenants to deliver strong retail sales growth and
helped the centre secure new lease signings. Leasing success is
also being reported in the IMPT and AURE portfolios in the UK,
which bodes well for rental growth potential.
The Company's earning position continues to be supported by
underlying asset performance. In addition, capital recycling is
anticipated to continue as a number of selected strategic
divestments are planned to obtain prices that are accretive to
returns.
The delivery of the "build to own" strategy for the PRS
investments is being advanced with planning and project design
improvements underway. This strategy will be considered across
asset types when other investments are identified that represent
similar opportunities to generate long term income streams off a
lower entry cost.
ART is committed to its disciplined strategy and investment
principles which focus on opportunities that can deliver high
risk-adjusted total returns, while seeking to manage risk through a
combination of operational controls, diversification and preferred
capital positions. The new mezzanine loan investments in the UK and
the site acquisition in Germany demonstrate our approach to secure
a balanced risk weighted portfolio of assets that meet ART's
selective investment criteria and achieve a balance of diversified
income and potential for capital growth.
ART has the financial reserves and agility to capitalise on
investment opportunities that meet its investment criteria. We
remain well placed to find value for our investors across asset
backed investment and debt markets in the UK and Europe."
The Investment Manager of Alpha Real Trust is Alpha Real Capital
LLP.
For further information please contact:
Alpha Real Trust Limited
David Jeffreys, Chairman, Alpha Real Trust +44 (0) 1481 231
100
Gordon Smith, Joint Fund Manager, Alpha Real Trust +44 (0) 207
391 4700
Brad Bauman, Joint Fund Manager, Alpha Real Trust +44 (0) 207
391 4700
Panmure Gordon, Broker to the Company
Richard Gray / Andrew Potts +44 (0) 20 7886 2500 Notes to
editors:
About Alpha Real Trust
Alpha Real Trust Limited targets investment opportunities across
the asset-backed spectrum, including real estate operating
companies, securities, services and other related businesses that
offer high risk adjusted total returns.
Further information on the Company can be found on the Company's
website: www.alpharealtrustlimited.com.
About Alpha Real Capital LLP
Alpha Real Capital is a value-adding international property fund
management group. Alpha Real Capital is the Investment Manager to
ART. Brad Bauman and Gordon Smith of Alpha Real Capital are joint
Fund Managers to ART. Both have experience in the real estate and
finance industries throughout the UK, Europe and Asia.
For more information on Alpha Real Capital please visit
www.alpharealcapital.com.
Trust summary and objective
Strategy
Alpha Real Trust Limited ("the Company" or "ART") targets
investment, development, financing and other opportunities in real
estate, real estate operating companies and securities, real estate
services, infrastructure, infrastructure services, other
asset-backed businesses and related operations and services
businesses that offer attractive risk-adjusted total returns.
ART currently focuses on high-yielding property, infrastructure
and asset backed debt and equity investments in Western Europe that
are capable of delivering strong risk adjusted cash flows,
including build to own investments. The current portfolio mix,
excluding sundry assets/liabilities, is as follows:
High yielding debt: 16.5%
High yielding equity
in property investments: 44.5%
Ground rent investments: 19.4%
Other investments: 8.7%
Build-to-own investments: 6.6%
Cash: 4.3%
Dividends
The current intention of the Directors is to pay a dividend
quarterly.
Listing
The Company's shares are traded on the Specialist Fund Segment
("SFS"), the renamed Specialist Fund Market, of the London Stock
Exchange ("LSE"), ticker ARTL:LSE.
Management
The Company's Investment Manager is Alpha Real Capital LLP
("ARC"), whose team of investment and asset management
professionals focus on the potential to enhance earnings in
addition to adding value to the underlying assets and also on the
risk profile of each investment within the capital structure to
best deliver high risk adjusted returns.
Control of the Company rests with the non-executive Guernsey
based Board of Directors.
Financial highlights
6 months 12 months 6 months
ended ended ended
30 September 31 March 30 September
2016 2016 2015
--------------------------- -------------- ---------- --------------
Net asset value (GBP'000) 105,317 95,621 86,748
--------------------------- -------------- ---------- --------------
Net asset value per
share 151.9p 137.9p 123.5p
--------------------------- -------------- ---------- --------------
Earnings per share
(basic and diluted)
(adjusted)* 3.9p 7.0p 3.0p
--------------------------- -------------- ---------- --------------
Earnings per share
(basic and diluted) 10.1p 23.1p 11.2p
--------------------------- -------------- ---------- --------------
Dividend per share
(paid during the period) 1.2p 2.4p 1.2p
* The adjusted earnings per share includes adjustments for the
effect of the fair value revaluation of investment property and
indirect property investments, capital element on Investment
Manager's fees, the fair value movements on financial assets and
deferred tax provisions: full analysis is provided in note 9 to the
accounts.
Chairman's statement
I am pleased to present the Company's half year report for the
six months ended 30 September 2016.
It has been an active period for ART with asset management
successes, new investments and disposals of non-core assets
contributing to enhance the Company's investment portfolio. During
the period the net asset value has improved, reflecting the
strengthening of our asset and earnings base.
Our portfolio mix is continuously reviewed to achieve a balanced
mix of investments that have an overall weighting towards income
returns while creating potential for future income earning assets
and capital value growth. The Company continues to look at new
investment opportunities that offer attractive risk adjusted total
returns.
ART's current investment focus is on high-yielding property and
asset backed debt and equity assets in Western Europe. The Company
will consider standing investments and assets that offer scope to
generate long term income streams off a lower entry cost. With an
eye on balancing income and capital value growth, the Company will
also consider investments that, with active asset management, are
capable of being repositioned, developed or where enhanced planning
can be secured to generate high risk adjusted total returns.
Diverse asset types will be considered and the Company is prepared
to enter early in the "build to own" process on specific
investments in order to target significant risk adjusted rewards.
This approach provides ART with the flexibility to take advantage
of new investment opportunities where we see best value.
Renewal of AURE mezzanine investment
The Company's successful mezzanine loan investments to Active UK
Real Estate Fund ("AURE"), Industrial Multi Property Trust plc
("IMPT") and European Property Investment Portfolio plc ("Europip")
(now repaid) have provided double digit income returns.
The ART loan to AURE was partially repaid by GBP2.5 million in
August 2016 from the proceeds of the sale of a non-core asset. Post
period end, the Board has authorised a two year extension of the
facility which continues to earn a coupon of 9.0% per annum;
arrangement and exit fees will be payable on this extension.
New mezzanine investment
Post period end, ART has provided a GBP1.7 million mezzanine
loan secured on a hotel located in central Newcastle. The hotel
opened in 2009 and is currently operated under a franchise
agreement from Intercontinental Hotels Group ("IHG") as a
Staybridge Suites, IHG's extended stay brand. The hotel has a
strong corporate customer base with the hotel benefiting from
contracts with large international brands with operations in the
vicinity.
The GBP1.7 million facility has a 3 year term and earns an
annualised return in excess of 15%. The facility earns an
arrangement fee on drawdown and scaled exit fees depending on the
repayment date. Based on the underlying value of the asset as at
June 2016 and the balance of the senior bank debt facility, ART's
mezzanine loan sits between 63.1% and 75.4% loan to value.
The new Newcastle Staybridge loan increases the size and
diversity of ART's mezzanine loan portfolio. Looking ahead, the
Company remains alert to further investment of this type across
both real estate and asset backed sectors.
Private Rented Sector residential investment
The Company's investments in the residential Private Rented
Sector ("PRS") in central Leeds and central Birmingham are good
examples of its targeting opportunities early in the "build to own"
process in order to create resilient equity income returns at an
attractive yield on cost. The PRS investments assist in building a
portfolio of critical mass to afford participation in a maturing
market which is attracting greater institutional participation.
The sites have extant planning consents which are being reviewed
to enhance the suitability for PRS use of the developments.
Separate design and development teams have been appointed for each
asset based on their respective experience in the PRS sector and in
each local market. Detailed project design and cost plans are being
advanced in collaboration with identified preferred construction
partners and in consultation with the relevant local authorities.
In parallel, potential capital partners are being identified. The
sites are held at fair value in the Company's accounts and it is
pleasing to note that comparable site transactions have continued
to demonstrate a robust market and there is evidence of growth in
values of complete flats and projected rent levels.
Asset management successes
The performance of ART's direct and indirectly held equity
investments in real estate continued to benefit from successful
asset management initiatives. This is evident both in the UK and in
other markets across Europe.
In Spain, the H2O shopping centre investment in Madrid had a
revaluation increase of 5.7% during the period. Over the year to
date to 30 September 2016, record visitor levels have been
recorded, increasing by 9.9% over the same period in 2015. It is
worth noting that annual visitor numbers have increased by 35%
during the total period of ART's ownership to date. Like-for-like
tenant sales growth has also improved strongly. It is pleasing to
note that in addition to attracting new tenants to the centre, with
14 new contracts signed this year, some of the current tenants are
expanding and upgrading their stores. Of particular note, H&M
has agreed to a significant expansion of its store.
AURE is placed in the top 7% of performance against the IPD
benchmark over the year to June 2016, providing a return for the
first six months of the year of 5.9% compared to the IPD benchmark
of 2.6%. Underlying asset value increases have been reported within
the Company's IMPT investment, with new leasing and lease renewals
equating to 10.2% of estimated rental value undertaken in the first
half of the year.
Our investment in Freehold Investment Authorised Fund ("FIAF"),
that holds a diversified ground rent portfolio, continues to
generate high risk-adjusted returns and stable cashflows which
assist the Company's earnings whilst offering monthly liquidity. In
its latest trading update, FIAF announced a total return of 4.67%
for the six month period ended 30 September 2016, including an
income return of 2.47%.
Data centre investment
Post period end, ART entered into an agreement to purchase,
subject to planning, an industrial site in Frankfurt which it has
identified as being suitable for the development of a data centre,
where the high barriers of entry to this sector are potentially
capable of being met.
ART has entered into a binding agreement to purchase the asset
subject to securing planning consent for a data centre with a
minimum gross external area of 23,000 square metres and a specified
minimum electrical power supply with a dual feed for the proposed
development. If the power and planning conditions are not secured
by agreed target dates during 2017, ART may terminate the
agreement. ART has created a new special purpose vehicle ("SPV") to
enter into the acquisition contract and undertake the development.
The planning and pre-development costs will be funded by ART to the
new SPV and are estimated to cost up to EUR2.6 million net of
refundable costs. To date, EUR1.0 million (GBP0.9 million) has been
funded. This includes real estate transfer tax of EUR0.8 million
which would be refundable if the transaction does not complete.
If the requisite planning and electrical supply are confirmed,
then the agreed site purchase price will be payable. The investment
offers ART the opportunity to sell the site with enhanced planning
and a pre-let to a data centre operator or to enter the development
process and build and hold the leased development for income.
Development finance will be sought to part fund the development
cost and site value, minimising further equity investment to
complete the development.
Capital recycling and balanced reinvestment
ART actively manages its liquid reserves position which
continues to be replenished via capital recycling from the sale of
non-core assets, loan repayments or strategic full or partial
disinvestment from assets that allow for profit-taking and
portfolio mix risk management benefits. This allows for capital
allocation to new investments that benefit from or have scope to
deliver strong cashflows. The post period end Newcastle Staybridge
mezzanine investment, the renewal of the AURE mezzanine facility
and the acquisition of the Frankfurt site with value upside
potential subject to planning are indicative of the balanced
reinvestment being targeted.
ART retains active liquid resources to secure new investment
opportunities and undertake value-adding asset management capex
investment within the current portfolio.
Strengthening of earnings and positioning for continued
growth
Earnings are maintained at robust levels as a consequence of
ART's investment policy of targeting investments and allocation of
capital to income focused investments or investments which are
capable of generating strong and growing cashflows. ART has
maintained its policy of paying quarterly dividends during the
period and I am pleased to announce that the Company declares a
dividend, for the quarter ended 30 September 2016, of 0.6p per
share.
ART benefits from the depth of experience, strength and size of
the Investment Manager's business with various funds under
management and debt structuring, investment and asset management
professionals based throughout Europe. ART's active management
approach has helped deliver improvements in underlying asset
values, in both directly held investments across our investment
markets.
ART continues to actively source new investment opportunities
and has the agility and financial reserves to capitalise on those
that meet its investment criteria.
A detailed summary of the Company's investments is contained
within the investment review section.
Results and dividends
Dividends
Adjusted earnings for the period are GBP2.7 million and adjusted
earnings per share for the period are 3.9 pence (see note 9 of the
financial statements). This compares with adjusted earnings per
share of 3.0 pence for the same period in 2015.
In line with its aim to pay dividends quarterly, the Board
announces a dividend of 0.6 pence per share which is expected to be
paid on 16 December 2016 (Ex dividend date 1 December 2016 and
record date 2 December 2016).
The dividends paid and declared for the twelve month period to
30 September 2016 total 2.4 pence per share, representing an annual
dividend yield of 2.9% p.a. on average share price over the
period.
The net asset value per share at 30 September 2016 is 151.9
pence (31 March 2016: 137.9 pence per share) (see note 10 of the
half year report).
Financing
Some of ART's underlying investments are part funded through
non-recourse loan facilities with external debt providers.
For the H2O shopping centre, bank borrowings now stand at
EUR71.2 million (GBP61.5 million), which, following capital
repayments, represents a reduction of EUR3.8 million from the
initial EUR75.0 million advance. The company has successfully
reduced loan to value levels for this asset to 63%, which positions
the Company well to refinance the asset prior to the maturity of
the current debt facility. The bank facilities do not have a loan
to value covenant and there remains headroom in relation to the
interest cover ratio covenant; rental income continues to provide a
substantial surplus in excess of finance charges.
Further details of individual asset financing can be found under
the individual investment review sections later in this report.
Brexit
During the period, the "Brexit" Referendum was held, in which
the United Kingdom voted to leave the European Union. No material
adverse impacts have been noted within the Company's portfolio to
date. However, given the unprecedented decision, the Board
continues to monitor the situation for potential risks to the
Company's investments. Equally, the Board remains alert to possible
new investment opportunities that may arise.
Despite a pre and post-Brexit pause, transaction volumes across
the Company's investment markets remain high. In some markets and
sectors, investors are failing to deploy capital citing the limited
availability of good quality opportunities.
Foreign currency
The Board monitors foreign exchange exposures and considers
hedging where appropriate and has noted the increased market
volatility in exchange rates following the Brexit Referendum
result. All foreign currency balances have been translated at the
period-end rates of GBP1:EUR1.158, GBP1:NOK10.402 and
GBP1:INR86.821.
Share buyback
On 9 March 2016, the Company published a circular giving notice
of an Extraordinary General Meeting on 1 April 2016. Consistent
with the Company's commitment to shareholder value, the Company
asked its shareholders to approve a general authority allowing the
Company to acquire up to 24.99% of the Voting Share Capital during
the period expiring on the earlier of (i) the conclusion of the
Annual General Meeting of the Company in 2017 and (ii) 4 September
2017. The shareholders approved the proposal.
During the period, the Company made no share buybacks.
Summary
ART's portfolio provides a balance of stable high yielding
assets and investments that offer scope to deliver strong
cashflows, capital value growth and high risk adjusted total
returns.
During the period, ART has achieved notable asset management
successes within the portfolio's underlying assets. The H2O Madrid
shopping centre continues to attract record visitor numbers which
has enabled our tenants to deliver strong retail sales growth and
helped the centre secure new lease signings. Leasing success is
also being reported in the IMPT and AURE portfolios in the UK,
which bodes well for rental growth potential.
The Company's earning position continues to be supported by
underlying asset performance. In addition, capital recycling is
anticipated to continue as a number of selected strategic
divestments are planned to obtain prices that are accretive to
returns.
The delivery of the "build to own" strategy for the PRS
investments is being advanced with planning and project design
improvements underway. This strategy will be considered across
asset types when other investments are identified that represent
similar opportunities to generate long term income streams off a
lower entry cost.
ART is committed to its disciplined strategy and investment
principles which focus on opportunities that can deliver high
risk-adjusted total returns, while seeking to manage risk through a
combination of operational controls, diversification and preferred
capital positions. The new mezzanine loan investments in the UK and
the site acquisition in Germany demonstrate our approach to secure
a balanced risk weighted portfolio of assets that meet ART's
selective investment criteria and achieve a balance of diversified
income and potential for capital growth.
ART has the financial reserves and agility to capitalise on
investment opportunities that meet its investment criteria. We
remain well placed to find value for our investors across asset
backed investment and debt markets in the UK and Europe.
David Jeffreys
Chairman
17 November 2016
Investment review
Portfolio overview as at 30 September 2016
Investment name
Investment Investment Income Investment Property type Investment % of
type value return location / underlying notes portfolio(1)
p.a. security
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
High yielding debt (16.5%)
-------------------------------------------------------------------------------------------- -------------
Active UK Real Estate Fund plc ("AURE")
High-yield
Mezzanine GBP7.2m 9.0% diversified Preferred
loan (2) (3) UK portfolio capital structure 6.8%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Industrial Multi Property Trust plc ("IMPT")
High-yield Unsecured
Subordinated GBP10.3m 15.0% diversified subordinated
debt (2) (3) UK portfolio debt 9.7%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
High yielding equity in property investments
(44.5%)
-------------------------------------------------------------------------------------------- -------------
H2O shopping centre
Debt facility
High-yield, with no LTV
dominant covenant and
Direct GBP39.1m 10.7% Madrid shopping a 1.1x ICR
property (EUR45.3m) (4) Spain centre covenant 36.9%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Active UK Real Estate Fund plc
High-yield 20.5% of ordinary
commercial shares in
Equity GBP3.5m n/a UK portfolio fund 3.3%
---------------- ------------ -------- ---------- ------------------ ------------------ -------------
Cambourne Business Park
Bank facility
at 60.0% LTV
for 2 years
then 55% till
High-yield maturity (current
business interest cover
Indirect 11.0% park located of 2.0 times
property GBP1.5m (4) UK in Cambridge covenant level) 1.4%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Industrial Multi Property Trust plc
High-yield 19% of ordinary
diversified shares in
Equity GBP3.1m n/a UK portfolio fund 2.9%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Ground rent investments (19.4%)
-------------------------------------------------------------------------------------------- -------------
Freehold Income Authorised Fund
Highly defensive
Ground 4.0% income; freehold No gearing;
rent fund GBP20.4m (5) UK ground rents monthly liquidity 19.4%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Build-to-own investments (6.6%)
-------------------------------------------------------------------------------------------- -------------
Unity and Armouries
Planning consent
Central Birmingham for 90,000
residential square feet
build to / 162 units
PRS development GBP2.8m n/a UK own plus commercial 2.6%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Monk Bridge
Planning consent
for 140,000
Central Leeds square feet
residential / 269 units
build to plus commercial
PRS development GBP4.2m n/a UK own opportunities 4.0%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Other investments (8.7%)
-------------------------------------------------------------------------------------------- -------------
Galaxia
Legal process
underway
to recover
Development investment
GBP5.2m site located by enforcing
Indirect (INR in NOIDA, arbitration
property 450m) n/a India Delhi, NCR award 4.9%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Europip plc
47% of ordinary
shares in
A geared logistics fund with
Indirect GBP2.4m and office medium term
property (EUR2.8m) n/a Norway investment debt 2.3%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Healthcare & Leisure Property Limited
Indirect Leisure property No external
property GBP1.6m n/a UK fund gearing 1.5%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
Cash (4.3%)
-------------------------------------------------------------------------------------------- -------------
Cash Current or
(Company 'on call'
only) GBP4.6m 0.1-1% UK accounts 4.3%
---------------- ------------- ------- ---------- ------------------ ------------------ -------------
(1) Percentage share shown based on NAV excluding the rent
company's sundry assets/liabilities
(2) Including accrued coupon at the balance sheet date
(3) Annual coupon
(4) Yield on equity over 12 months to 30 September 2016 (note:
H2O yield on cost 20.5%, Cambourne yield on cost 13.5%)
(5) 12 months income return; post tax
High yielding equity in property investments
Property market overview
There is still an abundance of capital globally which is looking
for investment opportunities that have the potential to deliver
yield or high risk adjusted total returns. The effects of sustained
low interest rates and the greater availability of debt funding
along with a desire for yield above cash deposit interest rates of
close to zero, continue to create high investor demand for real
estate and asset backed sectors in general.
The next phase of the current property cycle is likely to see
income growth having a greater weighting within total returns,
although, to date, rental growth has lagged increased pricing
recorded in the investment market. There are signs that occupier
demand is improving across the Company's portfolio with an
improving volume of new leases signed in the AURE and IMPT
portfolios in the UK and at the H2O shopping centre in Spain where
replacement tenants that enhance the commercial mix and are willing
to pay higher rent are increasingly being identified. ART continues
to remain focused on investments that offer the potential to
deliver high risk-adjusted returns by way of value enhancement
through active asset management, improvement of net rental income,
selective deployment of capital expenditure and the ability to
undertake strategic sales when the achievable price is accretive to
returns.
Active UK Real Estate Fund plc
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
============= =========== =========== ======== =================== ===========
Active UK Equity GBP3.5m n/a High-yield 20.5% of
Real Estate commercial ordinary
Fund plc UK portfolio capital
============= =========== =========== ======== =================== ===========
AURE is a fund that invests in a portfolio of high yielding UK
commercial property and aims to deliver a high and stable income
yield, together with the potential for capital appreciation. AURE's
shares are listed on the Channel Islands Securities Exchange
(www.thecise.com).
ART holds 20.5% of the share capital and voting rights in AURE,
representing GBP3.5 million in equity value based on AURE's share
price, as at 30 September 2016.
The following highlights were included in AURE's quarterly
update for the period ended 30 June 2016 (published August
2016):
-- Portfolio valuation: GBP49.0 million for the 13 property portfolio.
-- Valuation uplift: following a number of successful value-add
initiatives, the portfolio valuation has increased by 1.6% between
March and June 2016. This equates to an increase in underlying
property values of GBP0.8 million.
-- Fund performance and benchmark ranking: successful delivery
of asset level business plans is reflected in AURE being placed in
the top 7% of performance against the IPD benchmark over the year
to date (June 2016). AURE provided a year to date return of 5.9%
compared to the IPD benchmark of 2.6%.
-- Increased NAV: over the 12 months to 30 June 2016 the net
asset value per share has increased by 8.0%.
ARC is the promoter, investment manager and distributor of
AURE.
ARC is pursuing value enhancement opportunities in the AURE
portfolio assets to increase net income and improve the profile of
this income through lease extensions, renewals and reducing
unrecoverable void costs.
Industrial Multi Property Trust plc
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
================ =========== =========== ======== =================== ===========
Industrial Equity GBP3.1m n/a High-yield 19.0% of
Multi Property diversified ordinary
Trust plc UK portfolio capital
================ =========== =========== ======== =================== ===========
ART holds 19.0% of IMPT's ordinary share capital, representing
GBP3.1 million in equity value based on IMPT's share price, as at
30 September 2016.
IMPT, listed on the SFS, is a UK property fund with a regionally
diversified UK portfolio of multi-let light industrial and office
properties.
The following highlights were included in IMPT's financial
report for the half year ended 30 June 2016 (published August
2016):
-- Portfolio valuation: GBP85.1 million (at 30 June 2016) for
the 50 plus property portfolio (GBP81.6 million as at 31 December
2015), an increase of GBP3.5 million (+4.3%) during the six month
period.
-- Adjusted net asset value per ordinary share increased: 296
pence as at 30 June 2016 (261 pence at 31 December 2015).
-- New lettings: 27 new lettings and 11 lease renewals achieved
during the six months to 30 June 2016 (represents 10.2% of the
estimated rental value of the total portfolio based on the final
achievable annual rent including stepped rent).
-- Additional contracted rent: GBP0.3 million per annum of
additional passing rent is contracted to start during the twelve
months to 30 June 2017, benefitting cash flow.
-- Occupancy improved: the occupancy level by estimated rental
value stood at 90.2% as at 31 July 2016 (compared with 89.9% as at
30 June 2016 and 89.3% as at 31 December 2015).
ARC is the investment manager of IMPT. ARC is pursuing value
enhancement opportunities in the IMPT portfolio assets to increase
net income and improve the profile of this income through lease
extensions, renewals and reducing unrecoverable void costs.
Cambourne Business Park, Phase 1000, Cambridge
Investment Investment Investment Income Property Investment
type value return type / notes
underlying
security
=========== =========== =========== ======== ============ ==============
Cambourne Indirect GBP1.5m 11.0% High-yield Bank facility
Business property p.a. business at 60.0%
Park (4) park LTV for 2
years then
55.0% till
maturity
(current
interest
cover of
2.0 times
covenant
level)
=========== =========== =========== ======== ============ ==============
(4) Yield on equity over 12 months to 30 September 2016 (Yield
on cost: 13.5%)
The Company has invested GBP1.5 million in a joint venture that
owns Phase 1000 of Cambourne Business Park. The property consists
of three Grade A specification modern office buildings constructed
in 1999 and located in the town of Cambourne, approximately 8 miles
west of Cambridge city centre. The property comprises 9,600 square
metres of lettable area, is self-contained and has 475 car parking
spaces. Phase 1000 is situated at the front of the business park
with good access and visibility.
Phase 1000 is a high quality asset, fully let to Netcracker
Technology EMEA Ltd, Citrix Systems and Cambridge Cambourne Centre
Ltd (previously called 'Regus (Cambridge Cambourne) Ltd'). The
property has open B1 Business user planning permission and has
potential value-add opportunities.
Phase 1000 was purchased in a joint venture partnership with a
major overseas investor for GBP23.0 million including acquisition
costs. ART's equity contribution of GBP1.1 million, which
represents 10.0% of the total equity commitment, is invested into a
joint venture entity, a subsidiary of which holds the property. The
property was acquired for an 8.5% net initial yield and is
currently delivering an annualised income return of 11.0% as at 30
September 2016.
In February 2016 the non-recourse bank debt facility secured on
the Cambourne asset was refinanced with a new four year GBP14.0
million facility on maturity of the previous GBP10.8 million
loan.
ARC is the investment manager to the joint venture owning the
Cambourne property and continues to pursue opportunities to add
value to the investment.
H2O Shopping Centre, Madrid
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
=========== =========== ============ ======== =================== ==============
H2O Direct GBP39.1m 10.7% High-yield, Debt facility
property (EUR45.3m) p.a. dominant with no LTV
(4) shopping covenant
centre and a 1.1x
ICR covenant
=========== =========== ============ ======== =================== ==============
(4) Yield on equity over 12 months to 30 September 2016 (Yield
on cost: 20.5%)
H2O was opened in June 2007 and built to a high standard
providing shopping, restaurants and leisure around a central theme
of landscaped gardens and an artificial lake. H2O has a gross
lettable area of approximately 52,000 square metres comprising 118
retail units. In addition to a multiplex cinema, supermarket (let
to leading Spanish supermarket operator Mercadona) and restaurants,
it has a large fashion retailer base, including some of the
strongest international fashion brands, such as Nike, Zara, Mango,
Cortefiel, H&M, C&A and Massimo Dutti.
The H2O shopping centre was acquired in April 2010 and to date
ART has invested EUR5.6 million in capital improvements.
The asset management highlights are as follows:
-- Valuation: 5.7% valuation increase during the half year to 30 September 2016.
-- Centre occupancy: 86.6% by area as at 30 September 2016
(94.9% by rental value with short term temporary rent discounts
also remaining in place to create further potential upside).
-- Footfall: the year to date visitor numbers at H2O reached
record levels in 2016, increasing 9.9% for the period to 30
September 2016 assisted by the upgraded physical space, presence of
new brands and an improving commercial mix.
-- Sales growth: tenant sales performance is improving with like
for like year to date sales increases of 6.2% recorded in 2016,
with some key brands recording double digit growth; this reflects
the greater visitor numbers at the centre and the improving
economic environment in Spain.
-- Lease length: weighted average lease length of 2.5 years and
9.7 years to expiry (as at 30 September 2016).
-- Leasing: in the year 2016 to date, 14 leases have been signed
with new retail and restaurant brands, with positive momentum
continuing.
-- Current occupiers continue to upgrade and expand their
stores: during the period H&M extended their lease and agreed
to expand their current store by 478 square metres.
-- Cost control and environmental efficiencies: an active cost
management exercise continues to be implemented to reduce the
centre's operating costs and improve the quality and efficiency of
services. Upgraded electricity and water management systems have
recently been installed.
-- Marketing: innovative events continue to be carried out to
attract new visitors and increase dwell time with the Lego Fun
Factory kids play area continuing to attract a high number of new
and repeat visitors.
High yielding debt
Market overview
Underlying asset values have benefited from an improvement in
the wider investment market, resulting in enhanced credit quality
as loan to value ratios have either improved or are more firmly
supported as a result of greater liquidity and debt
availability.
The increased availability of debt from both traditional and new
lenders in the market which reflected a perception that risks and
asset pricing had normalised or improved was expected to be tested
in the immediate period post the UK Brexit referendum however any
impact appears to have been muted with lending markets remaining
liquid and competitive.
ART's loan investments in AURE and IMPT continue to perform well
with the loan to value ratios continuing to reduce as a result of
value increases in the underlying assets and the proceeds from the
sale of selected non-core assets continuing to be used to amortise
the total debt position in each fund. As a result, the risk
adjusted return from each of ART's loan investments has been
enhanced. The exit positions upon refinancing for the Company's
debt investments are increasingly protected.
Although this remains a competitive environment, ART continues
to explore new high yielding subordinated debt mezzanine lending
and preferred equity opportunities and with the support of the
Investment Manager's experience, has a relative advantage in the
less crowded market for smaller transactions in non-prime sectors
where a demonstrably strong knowledge of the underlying assets is
required. The post period end loan investment (not included in the
half year financial position reported) secured on the central
Newcastle, Staybridge Suites hotel exemplifies this. The new GBP1.7
million mezzanine loan earns a 15% coupon plus entry and exit fees.
The hotel which has 128 suites, opened in 2009 and is currently
operated under a franchise agreement from Intercontinental Hotels
Group ("IHG") as a Staybridge Suites, IHG's extended stay brand.
The hotel has a strong corporate customer base with the hotel
benefiting from contracts with large international brands with
operations in the vicinity. Based on the underlying value of the
asset of (as at June 2016) and the balance of the senior bank debt
facility, ART's mezzanine loan sits between 63.1% and 75.4% loan to
value.
Active UK Real Estate Fund plc
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
============= =========== =========== ======== =================== ===================
Active UK Mezzanine GBP7.2m 9.0% High-yield Preferred
Real Estate loan (2) p.a. commercial capital structure
Fund plc (3) UK portfolio
============= =========== =========== ======== =================== ===================
(2) Including accrued coupon at the balance sheet date
(3) Annual coupon
In addition to the recent equity investment (described above)
ART provides a mezzanine loan to AURE with a balance of GBP7.2
million as at 30 September 2016, which had been amortised from
GBP9.1m during the period using proceeds of the sale of non-core
assets. Post period end, the Board has authorised a two year
extension of the facility which continues to earn a coupon of 9.0%
per annum; arrangement and exit fees will be payable on this
extension.
Based upon the value of the underlying AURE portfolio of GBP49.0
million (valuation as at 30 June 2016) and the balance of the bank
finance of GBP19.6 million as at 30 June 2016, this reflects a loan
to value ratio of 39.9%. ART's mezzanine finance position sits
between 39.9% and 54.4% loan to value.
Industrial Multi Property Trust plc
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
================ ============= =========== ======== =================== ==============
Industrial Subordinated GBP10.3m 15.0% High-yield Unsecured
Multi Property debt (2) p.a. diversified subordinated
Trust plc (3) UK portfolio debt
================ ============= =========== ======== =================== ==============
(2) Including rolled up and accrued coupon at the balance sheet
date
(3) Annual coupon
Further to its equity investment (described above) ART provides
a subordinated debt facility to IMPT of GBP10.0 million (GBP10.3
million including accrued coupon). The loan has a five-year term,
expiring in December 2018, and earns a coupon of 15.0% per
annum.
Based on the underlying value of the IMPT portfolio of GBP85.1
million (published valuation as at 30 June 2016), and the balance
of the external bank and mezzanine finance of GBP52.4 million as at
30 June 2016, this reflects a loan to value ratio of 61.6%. ART's
subordinated loan sits between 61.6% and 73.3% loan to value.
Build-to-own investments: Private Rented Sector
ART's investment in the PRS sector targets the increasing growth
opportunities identified in the private rented residential market
as a result of rising occupier demand and an undersupply of
accommodation. The opportunity exists to create a portfolio
delivering a high yielding return on equity. The securing of a
portfolio of critical mass will afford participation in a maturing
market which is attracting greater institutional investment.
The Company's PRS investments offer scope to create resilient
equity income returns at an attractive yield on cost, with
potential for operating leverage to further enhance returns. The
investments also offer scope for capital growth as the sites mature
or planning is enhanced.
The investments provide the Company with flexibility to add
value by either constructing the development, funded with either
partnership equity capital, debt or contractor finance, and
subsequently holding the completed assets as investments; or,
alternatively, forward selling all or some of the developed units.
ART may also potentially benefit from government support for
borrowings secured against PRS assets under the private rented
sector housing guarantee scheme.
Unity and Armouries, Birmingham
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
============ =========== =========== ======== =================== ===============
Unity and Direct GBP2.8m n/a Central Planning
Armouries, property Birmingham consent for
Birmingham residential 90,000 square
build to feet / 162
own units plus
commercial
============ =========== =========== ======== =================== ===============
ART owns Unity and Armouries, a development located in central
Birmingham with planning consent for 90,000 net developable square
feet comprising 162 residential apartments with ground floor
commercial areas.
There are no outstanding Section 106/Community Infrastructure
Levy requirements and the site has an affordable unit designation
for nine flats. The current proposal provides for 2,892 square feet
of commercial space and 98 car parking spaces.
ART has invested GBP2.8 million, including site acquisition and
pre-development costs, in Unity and Armouries. The project has a
potential gross development value in excess of GBP33 million.
The project design team is working with the preferred
construction partner to review the existing detailed planning
consent for possible enhancements to meet best in class PRS
requirements and a value engineering process is underway to
identify the most efficient and effective construction processes
and potential cost savings.
Monk Bridge, Leeds
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
============= =========== =========== ======== =================== ================
Monk Bridge, Direct GBP4.2m n/a Central Planning
Leeds property Leeds residential consent for
build to 140,000 square
own feet / 269
units plus
commercial
opportunities
============= =========== =========== ======== =================== ================
ART owns Monk Bridge, a central Leeds development site. The site
has a total area of 1.7 hectares (4.2 acres) with implemented
planning consent for 269 units totalling 140,000 square feet across
two buildings with potential for ground floor commercial
development within existing disused railway arches. The development
earlier had outline consent, now lapsed, for 720 units, totalling
392,000 net saleable square feet.
ART has invested GBP4.2 million, including site acquisition and
pre-development costs, in the Monk Bridge development. The project
has a potential gross development value in excess of GBP55
million.
The design team has been selected and the project design is
being reviewed to potentially enhance the detailed planning consent
to meet best in class PRS requirements. Incorporation of commercial
use with the arches of a disused viaduct located on the site is
being investigated.
Freehold ground rent investments
ART invests in a fund which holds a diversified portfolio of UK
residential property freehold ground rents with a view to achieving
steady and predictable returns, a consistent income stream and
prospects for growth.
A ground rent is the payment made by the lessee of a property to
the freeholder of that property. The investment represents the
underlying freehold interest in a property which is subject to a
lease for a period of time usually between 99 and 999 years.
Freehold Income Authorised Fund ("FIAF")
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
=================== =========== =========== ======== =================== ===================
Freehold Equity GBP20.4m 4.4% Highly defensive No gearing;
Income Authorised in ground p.a. income; monthly liquidity
Fund rent fund (5) freehold
ground rents
=================== =========== =========== ======== =================== ===================
(5) 12 months income return; post tax
The Company has invested GBP20.4 million as at 30 September 2016
in FIAF, an open-ended fund that invests in UK freehold ground
rents with a net asset value of GBP250.9 million as at 30 September
2016.
The following highlights were reported in the FIAF fact sheet as
at 30 September 2016 (published in October 2016):
-- FIAF continues its unbroken 23 year track record of positive inflation beating returns.
-- 85% of its freeholds have a form of inflation protection
through periodic uplifts linked to Retail Price Index (RPI),
property values or fixed uplifts.
-- As of 12 April 2016, a 2.5% dilution levy will be applied to
subscriptions into FIAF. This levy remains constantly under
review.
ART's total return on its investment in FIAF was 8.4%
(annualised post tax) for the six months ending 30 September
2016.
Cash balances
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
============= =========== =========== ======== =================== ====================
Cash balance Cash GBP4.6m 0.1 - Cash deposits Held between
1.0% / current banks with
p.a. accounts a range of
deposit maturities
============= =========== =========== ======== =================== ====================
As at 30 September 2016, the Company had cash balances of GBP4.6
million.
Other investments
European Property Investment Portfolio plc ("Europip")
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
=========== =========== =========== ======== =================== =============
Europip Indirect GBP2.4m n/a A geared 47.0% of
Norway property (EUR2.8m) office and ordinary
logistics shares in
investment fund with
vehicle medium term
debt
=========== =========== =========== ======== =================== =============
ART has a 47.0% stake in Europip (shares are non-voting), an
Isle of Man domiciled open ended investment company. Europip
invested in directly owned commercial property portfolio in
Norway.
The portfolio is undergoing an orderly realisation process.
During the period, ART received GBP0.3 million from Europip
following the sale of the penultimate portfolio asset.
As at 30 September 2016, the value of the single remaining asset
is NOK 45.0 million (GBP4.3 million). Europip has a bank loan, with
a balance of GBP1.35 million (NOK 14.0 million) as at 30 September
2016; reflecting a LTV of 31% against the single asset. The loan
matures in January 2020.
A subsidiary of ARC, Alpha Real Property Investment Advisers LLP
("ARPIA") is the investment manager for the Norway portfolio and
Malling & Co. is responsible for the day to day property
management.
Healthcare & Leisure Property Limited ("HLP")
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
=========== =========== =========== ======== =================== ============
Healthcare Indirect GBP1.6m n/a Leisure No external
& Leisure property property gearing
Property fund
Limited
=========== =========== =========== ======== =================== ============
HLP has invested in companies operating in the hotel, care home,
house building and leisure sectors throughout the UK. HLP's
investments are predominantly un-geared.
HLP is managed by Albion Ventures LLP, a specialist UK venture
capital manager. No new investments are being made by HLP.
As at 30 September 2016, ART had GBP1.6 million invested in HLP.
HLP subsequently holds minority stakes in the underlying
investments.
Post period end, ART received a GBP0.1 million redemption from
HLP; ART continues to receive income from its investment while
HLP's underlying assets are sold.
Galaxia, National Capital Region, NOIDA
Investment Investment Investment Income Property Investment
type value return type / underlying notes
security
=========== =========== =========== ======== =================== ===========
Galaxia Direct GBP5.2m n/a Development Asset held
property (INR site in for sale
450m) NOIDA, Delhi,
NCR
=========== =========== =========== ======== =================== ===========
ART invested INR 450 million (GBP4.7 million) in the Galaxia
project, a development site extending to 11.2 acres with the
potential to develop 1.2 million square feet. Galaxia is located in
NOIDA, an established, well planned suburb of Delhi that continues
to benefit from new infrastructure projects and is one of the
principal office micro-markets in India. The Company has a 50.0%
shareholding in the SPV which controls the Galaxia site. There are
no bank borrowings on the asset.
On 2 February 2011, ART recommenced arbitration proceedings
against its development partner Logix Group in order to protect its
Galaxia investment.
During January 2015, the Arbitral Tribunal, by a majority,
decreed that Logix and its principals had breached the terms of the
shareholders' agreement and has awarded the Company:
-- Return of its entire capital invested of INR 450 Million
(equivalent to GBP5.2 million using an exchange rate of INR86.821
as at 30 September 2016) along with interest at 18.0% per annum
from 31 January 2011 to 20 January 2015.
-- All costs incurred towards the arbitration.
-- A further 15.0% interest per annum on all sums was awarded to
the Company from 20 January 2015 until the actual date of payment
by Logix of the award.
Logix have appealed the Arbitral Tribunal decision in the Delhi
High Court and hearings are ongoing.
The Company is actively seeking recovery of the sums awarded and
a charge over the private residence of the principals of Logix,
Shakti Nath, Meena Nath and Vikram Nath, has been granted by the
courts of India.
Following the determination of the arbitration noted above, the
award to the Company represents a potential realisation of
approximately GBP9.9 million based on 30 September 2016 exchange
rates. ART continues to hold the indirect investment at INR 450
million (GBP5.2 million) in the accounts due to uncertainty over
timing and final value.
Summary
ART's portfolio provides a balance of stable high yielding
investments and investments that offer scope to deliver strong
cashflows and potential for capital value increases to deliver high
risk adjusted returns.
Asset management successes within the direct and indirectly held
assets are helping improve the value of ART's investments. The
Company's earnings position continues to be supported by underlying
asset performance. Capital recycling is anticipated to continue as
a small number of selected strategic divestments are planned to
benefit from transactions that are accretive to returns.
ART is committed to its disciplined strategy and investment
principles which focus on opportunities that can deliver high
risk-adjusted total returns, while seeking to manage risk through a
combination of operational controls, diversification and preferred
capital positions.
We remain opportunistic in terms of new investments and
continually evaluate possible investment targets. ART seeks to
continue to deliver balance of stable income and potential for
capital growth across its overall portfolio.
In situations that require a creative solution to unlock value,
we remain innovative and are able to access new opportunities not
only via direct assets that require asset management but also via
the restructuring or recapitalisation of property investment
vehicles or via share purchases.
ART continues to be well placed to maximise the value of its
current portfolio and to identify and secure new investment
opportunities as they are identified.
Brad Bauman and Gordon Smith
For and on behalf of the Investment Manager
17 November 2016
Principal risks and uncertainties
The principal risks and uncertainties facing the ART Group (the
"Group") can be outlined as follows:
-- Rental income, fair value of investment properties (directly
or indirectly held) and fair value of the Group's equity
investments are affected, together with other factors, by general
economic conditions and/or by the political and economic climate of
the jurisdictions in which the Group's investments and investment
properties are located.
-- The Group's loan investments are exposed to credit risk which
arise by the potential failure of the Group's counter parties to
discharge their obligations when falling due; this could reduce the
amount of future cash inflows from financial assets on hand at the
balance sheet date; the Group receives regular updates from the
relevant investment manager as to the performance of the underlying
investments and assesses their credit risk as a result.
-- In June 2016, the "Brexit" Referendum was held, in which the
United Kingdom voted to leave the European Union. No material
adverse impacts have affected the Group's portfolio to date
although an increased market volatility in exchange rates has been
noted. The Board will continue to monitor the situation for
potential risks to the Group's investments.
The Board believes that the above principal risks and
uncertainties, which are discussed more extensively in the annual
report for the year ended 31 March 2016, would be equally
applicable to the remaining six month period of the current
financial year.
Statement of Directors' Responsibilities
The Directors confirm that to the best of their knowledge:
-- the condensed consolidated financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting',
as adopted by the European Union; and
-- the half year report includes a fair review of the
information required by DTR 4.2.7R, being an indication of the
important events that have occurred during the first six months of
the financial year, and their impact on the half year report, and a
description of the principal risks and uncertainties for the
remaining six months of the financial year; and
-- the half year report includes a fair review of the
information required by DTR 4.2.8R, being the related parties
transactions that have taken place in the first six months of the
current financial year and that have materially affected the
financial position or the performance of the Group during that
period; and any changes in the related parties transactions
described in the last annual report that could have a material
effect on the financial position or performance of the enterprise
in the first six months of the current financial year.
The Directors of Alpha Real Trust Limited are listed below and
have been Directors throughout the period.
By order of the Board
David Jeffreys
Chairman
17 November 2016
Independent review report
To Alpha Real Trust Limited
Introduction
We have been engaged by the Company to review the condensed
consolidated set of financial statements in the half year report
for the six months ended 30 September 2016 which comprises the
condensed consolidated statement of comprehensive income, condensed
consolidated balance sheet, condensed consolidated cash flow
statement, condensed consolidated statement of changes in equity
and related notes. We have read the other information contained in
the half-yearly financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
Directors' responsibilities
The half year report is the responsibility of and has been
approved by the Directors. The Directors are responsible for
preparing the half year report in accordance with the Disclosure
and Transparency Rules of the United Kingdom's Financial Conduct
Authority.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the European Union. The
condensed consolidated set of financial statements included in this
half-year report have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed consolidated set of financial statements in the half
year report based on our review.
Our report has been prepared in accordance with the terms of our
engagement to assist the company in meeting its responsibilities in
respect of half year reporting in accordance with the Disclosure
and Transparency Rules of the United Kingdom's Financial Conduct
Authority and for no other purpose. No person is entitled to rely
on this report unless such a person is a person entitled to rely
upon this report by virtue of and for the purpose of our terms of
engagement or has been expressly authorised to do so by our prior
written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we
hereby expressly disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Information Performed by the Independent Auditor of the
Entity' issued by the Auditing Practices Board for use in the
United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed consolidated set of
financial statements in the half year report for the six months to
30 September 2016 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
BDO Limited
Chartered Accountants
Place du Pré
Rue du Pré
St Peter Port
Guernsey
17 November 2016
Condensed consolidated statement of comprehensive income
For the six months ended For the six months ended
30 September 2016 (unaudited) 30 September 2015 (unaudited)
-------------------------------------------- ----------------------------------- -----------------------------------
Revenue Capital Total Revenue Capital Total
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Income
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Revenue 3 4,775 - 4,775 3,773 - 3,773
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Change in the revaluation of
investment property 11 - 4,662 4,662 - 4,800 4,800
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Gains/(losses) on financial assets
and liabilities held at fair
value through profit or loss 6 916 (446) 470 734 1,039 1,773
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Total income 5,691 4,216 9,907 4,507 5,839 10,346
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Profit on investment property
disposal - 138 138 - - -
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Expenses
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Property operating expenses (2,000) - (2,000) (1,734) - (1,734)
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Investment Manager's fee (920) - (920) (817) - (817)
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Other administration costs (433) - (433) (445) - (445)
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Total operating expenses (3,353) - (3,353) (2,996) - (2,996)
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Operating profit 2,338 4,354 6,692 1,511 5,839 7,350
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Share of profit/(loss) of joint
venture 14 61 (13) 48 43 (22) 21
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Finance income 4 1,183 - 1,183 1,411 - 1,411
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Finance costs 5 (878) (23) (901) (851) - (851)
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Profit before taxation 2,704 4,318 7,022 2,114 5,817 7,931
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Taxation 7 (15) - (15) (9) - (9)
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Profit after taxation 2,689 4,318 7,007 2,105 5,817 7,922
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Other comprehensive
income/(expense) for the period
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Items that may be reclassified to
profit or loss in subsequent
periods:
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Exchange differences arising on
translation of foreign operations - 3,521 3,521 - (4) (4)
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Other comprehensive
income/(expense) for the period - 3,521 3,521 - (4) (4)
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Total comprehensive income for the
period 2,689 7,839 10,528 2,105 5,813 7,918
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Earnings per share (basic &
diluted) 9 10.1p 11.2p
----------------------------------- ------- ----------- ---------- ---------- ----------- ---------- ----------
Adjusted earnings per share (basic
& diluted) 9 3.9p 3.0p
The total column of this statement represents the Group's income
statement, prepared in accordance with IFRS. The revenue and
capital columns are supplied as supplementary information permitted
under IFRS. All items in the above statement derive from continuing
operations. The accompanying notes form an integral part of these
financial statements.
Condensed consolidated balance sheet
Notes 30 September 31 March 2016
2016
(unaudited) (audited)
GBP'000 GBP'000
--------------------------- ------ ------------- --------------
Non-current assets
--------------------------- ------ ------------- --------------
Investment property 11 104,217 91,971
--------------------------- ------ ------------- --------------
Indirect property
investment held
at fair value 12 5,183 4,738
--------------------------- ------ ------------- --------------
Investments held
at fair value 13 10,630 10,439
--------------------------- ------ ------------- --------------
Investment in joint
venture 14 1,474 1,596
--------------------------- ------ ------------- --------------
Trade and other
receivables 15 17,100 10,000
--------------------------- ------ ------------- --------------
138,604 118,744
--------------------------- ------ ------------- --------------
Current assets
--------------------------- ------ ------------- --------------
Investments held
at fair value 13 20,356 20,931
--------------------------- ------ ------------- --------------
Trade and other
receivables 15 3,069 12,883
--------------------------- ------ ------------- --------------
Cash and cash equivalents 7,617 3,863
--------------------------- ------ ------------- --------------
31,042 37,677
--------------------------- ------ ------------- --------------
Total assets 169,646 156,421
--------------------------- ------ ------------- --------------
Current liabilities
--------------------------- ------ ------------- --------------
Derivatives held
at fair value through
profit or loss 21 (287) (745)
--------------------------- ------ ------------- --------------
Trade and other
payables 16 (2,695) (4,000)
--------------------------- ------ ------------- --------------
Bank borrowings 17 (581) (543)
--------------------------- ------ ------------- --------------
(3,563) (5,288)
--------------------------- ------ ------------- --------------
Total assets less
current liabilities 166,083 151,133
--------------------------- ------ ------------- --------------
Non-current liabilities
--------------------------- ------ ------------- --------------
Bank borrowings 17 (60,766) (55,512)
--------------------------- ------ ------------- --------------
Total liabilities (64,329) (60,800)
--------------------------- ------ ------------- --------------
Net assets 105,317 95,621
--------------------------- ------ ------------- --------------
Equity
--------------------------- ------ ------------- --------------
Share capital 18 - -
--------------------------- ------ ------------- --------------
Special reserve 79,306 79,306
--------------------------- ------ ------------- --------------
Translation reserve 2,202 (1,319)
--------------------------- ------ ------------- --------------
Capital reserve 7,094 2,776
--------------------------- ------ ------------- --------------
Revenue reserve 16,715 14,858
--------------------------- ------ ------------- --------------
Total equity 105,317 95,621
--------------------------- ------ ------------- --------------
Net asset value
per ordinary share 10 151.9p 137.9p
The financial statements were approved by the Board of Directors
and authorised for issue on 17 November 2016. They were signed on
its behalf by David Jeffreys.
David Jeffreys
Director
The accompanying notes form an integral part of these financial
statements.
Condensed consolidated cash flow statement
For the six For the six
months ended months ended
30 September 30 September
2016 2015
(unaudited) (unaudited)
GBP'000 GBP'000
-------------------------------- -------------- --------------
Operating activities
-------------------------------- -------------- --------------
Profit for the period
after taxation 7,007 7,922
-------------------------------- -------------- --------------
Adjustments for:
-------------------------------- -------------- --------------
Change in revaluation
of investment property (4,662) (4,800)
-------------------------------- -------------- --------------
Net gains on financial
assets and liabilities
held at fair value through
profit or loss (470) (1,773)
-------------------------------- -------------- --------------
Profit on investment (138) -
property disposal
-------------------------------- -------------- --------------
Taxation 15 9
-------------------------------- -------------- --------------
Share of profit of joint
venture (48) (21)
-------------------------------- -------------- --------------
Finance income (1,183) (1,411)
-------------------------------- -------------- --------------
Finance cost 901 851
-------------------------------- -------------- --------------
Operating cash flows
before movements in working
capital 1,422 777
-------------------------------- -------------- --------------
Movements in working
capital:
-------------------------------- -------------- --------------
Increase in trade and
other receivables (561) (12)
-------------------------------- -------------- --------------
(Decrease)/increase in
trade and other payables (1,313) 20
-------------------------------- -------------- --------------
Cash flows (used in)/from
operations (452) 785
-------------------------------- -------------- --------------
Interest received 7 51
-------------------------------- -------------- --------------
Interest paid (772) (752)
-------------------------------- -------------- --------------
Tax paid (8) (13)
-------------------------------- -------------- --------------
Cash flows (used in)/from
operating activities (1,225) 71
-------------------------------- -------------- --------------
Investing activities
-------------------------------- -------------- --------------
Acquisition of investments (1,000) (3,196)
-------------------------------- -------------- --------------
Acquisition of investment
property - (2,132)
-------------------------------- -------------- --------------
Proceeds on disposal 1,890 -
of investment property
-------------------------------- -------------- --------------
Redemption on investments 2,530 405
-------------------------------- -------------- --------------
Redemption on preference
shares' investments 253 500
-------------------------------- -------------- --------------
Capital expenditure on
investment property (1,057) (63)
-------------------------------- -------------- --------------
Loan repayment from related
party 2,500 786
-------------------------------- -------------- --------------
Loan interest received 1,205 898
-------------------------------- -------------- --------------
Dividend income from
joint venture 40 41
-------------------------------- -------------- --------------
Dividend income from
other investments 15 334
-------------------------------- -------------- --------------
Cash flows from/(used
in) investing activities 6,376 (2,427)
-------------------------------- -------------- --------------
Financing activities
-------------------------------- -------------- --------------
Share buyback - (247)
-------------------------------- -------------- --------------
Share buyback costs - (1)
-------------------------------- -------------- --------------
Share issue costs - (12)
-------------------------------- -------------- --------------
Cash (paid)/received
on maturity of foreign
exchange forward (1,348) 347
-------------------------------- -------------- --------------
Foreign exchange forward
collateral received /(paid) 605 (80)
-------------------------------- -------------- --------------
Ordinary dividends paid (832) (845)
-------------------------------- -------------- --------------
Cash flows used in financing
activities (1,575) (838)
-------------------------------- -------------- --------------
Net increase/(decrease)
in cash and cash equivalents 3,576 (3,194)
-------------------------------- -------------- --------------
Cash and cash equivalents
at beginning of period 3,863 14,817
-------------------------------- -------------- --------------
Exchange translation
movement 178 33
-------------------------------- -------------- --------------
Cash and cash equivalents
at end of period 7,617 11,656
The accompanying notes form an integral part of these financial
statements.
Condensed consolidated statement of changes in equity
For the six months Special Translation Capital Revenue Total
ended 30 September reserve reserve reserve reserve equity
2016 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
(unaudited)
-------------------------- --------- ------------ --------- --------- ---------
At 1 April 2016 79,306 (1,319) 2,776 14,858 95,621
-------------------------- --------- ------------ --------- --------- ---------
Total comprehensive
income for the period
-------------------------- --------- ------------ --------- --------- ---------
Profit for the period - - 4,318 2,689 7,007
-------------------------- --------- ------------ --------- --------- ---------
Other comprehensive
income for the period - 3,521 - - 3,521
-------------------------- --------- ------------ --------- --------- ---------
Total comprehensive
income for the period - 3,521 4,318 2,689 10,528
-------------------------- --------- ------------ --------- --------- ---------
Transactions with owners
-------------------------- --------- ------------ --------- --------- ---------
Dividends - - - (832) (832)
-------------------------- --------- ------------ --------- --------- ---------
Share issue costs - - - - -
-------------------------- --------- ------------ --------- --------- ---------
Share buyback - - - - -
-------------------------- --------- ------------ --------- --------- ---------
Share buyback costs - - - - -
-------------------------- --------- ------------ --------- --------- ---------
Total transactions
with owners - - - (832) (832)
-------------------------- --------- ------------ --------- --------- ---------
At 30 September 2016 79,306 2,202 7,094 16,715 105,317
-------------------------- --------- ------------ --------- --------- ---------
For the six months Special Translation Capital Revenue Total
ended 30 September reserve reserve reserve reserve equity
2015 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
(unaudited)
-------------------------- --------- ------------ --------- --------- ---------
At 1 April 2015 80,277 (3,423) (8,560) 11,641 79,935
-------------------------- --------- ------------ --------- --------- ---------
Total comprehensive
income/(expense) for
the period
-------------------------- --------- ------------ --------- --------- ---------
Profit for the period - - 5,817 2,105 7,922
-------------------------- --------- ------------ --------- --------- ---------
Other comprehensive
expense for the period - (4) - - (4)
-------------------------- --------- ------------ --------- --------- ---------
Total comprehensive
income/(expense) for
the period - (4) 5,817 2,105 7,918
-------------------------- --------- ------------ --------- --------- ---------
Transactions with owners
-------------------------- --------- ------------ --------- --------- ---------
Dividends - - - (845) (845)
-------------------------- --------- ------------ --------- --------- ---------
Share issue costs (12) - - - (12)
-------------------------- --------- ------------ --------- --------- ---------
Share buyback (247) - - - (247)
-------------------------- --------- ------------ --------- --------- ---------
Share buyback costs (1) - - - (1)
-------------------------- --------- ------------ --------- --------- ---------
Total transactions
with owners (260) - - (845) (1,105)
-------------------------- --------- ------------ --------- --------- ---------
At 30 September 2015 80,017 (3,427) (2,743) 12,901 86,748
-------------------------- --------- ------------ --------- --------- ---------
The accompanying notes form an integral part of these financial
statements.
Notes to the condensed consolidated financial statements for the
period ended 30 September 2016
1. General information
The Company is a limited liability, closed-ended investment
company incorporated in Guernsey. The Group comprises the Company
and its subsidiaries. The condensed consolidated financial
statements are presented in pounds Sterling as this is the currency
in which the funds are raised and in which investors are seeking a
return. The Company's functional currency is Sterling and the
subsidiaries' currencies are either Euro or Indian Rupees. The
presentation currency of the Group is Sterling. The period end
exchange rate used is GBP1:INR86.821 (31 March 2016:
GBP1:INR94.969) and the average rate for the period used is
GBP1:INR91.916 (30 September 2015: GBP1: INR98.697). For Euro based
transactions the period end exchange rate used is GBP1:EUR1.158 (31
March 2016: GBP1:EUR1.265) and the average rate for the period used
is GBP1:EUR1.223 (30 September 2015: GBP1:EUR 1.389).
The address of the registered office is given below. The nature
of the Group's operations and its principal activities are set out
in the Chairman's Statement. The half year report was approved and
authorised for issue on 17 November 2016 and signed by David
Jeffreys on behalf of the Board.
2. Significant accounting policies
Basis of preparation
The unaudited condensed consolidated financial statements in the
half year report for the six months ended 30 September 2016 have
been prepared in accordance with International Accounting Standard
(IAS) 34, 'Interim Financial Reporting' as adopted by the European
Union. This half year report and condensed consolidated financial
statements should be read in conjunction with the Group's annual
report and consolidated financial statements for the year ended 31
March 2016, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union and are available at the Company's website
(www.alpharealtrustlimited.com).
The accounting policies adopted and methods of computation
followed in the condensed consolidated financial statements are
consistent with those applied in the preparation of the Group's
annual consolidated financial statements for the year ended 31
March 2016 and are expected to be applied to the Group's annual
consolidated financial statements for the year ending 31 March
2017.
The preparation of the half year report requires Directors to
make estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities at the date of the half year report. If in
the future such estimates and assumptions, which are based on the
Directors' best judgement at the date of the half year report,
deviate from actual circumstances, the original estimates and
assumptions will be modified as appropriate in the period in which
the circumstances change.
3. Revenue
For the six For the six
months ended months ended
30 September 30 September
2016 2015
GBP'000 GBP'000
----------------- -------------- --------------
Rental income 3,454 2,725
----------------- -------------- --------------
Service charges 1,320 1,037
----------------- -------------- --------------
Other income 1 11
----------------- -------------- --------------
Total 4,775 3,773
4. Finance income
For the six For the six
months ended months ended
30 September 30 September
2016 2015
GBP'000 GBP'000
--------------------------- -------------- --------------
Bank interest received 7 51
--------------------------- -------------- --------------
Interest receivable on
loans to related parties 1,176 1,360
--------------------------- -------------- --------------
Total 1,183 1,411
5. Finance costs
For the six For the six
months ended months ended
30 September 30 September
2016 2015
GBP'000 GBP'000
----------------------------- -------------- --------------
Interest on bank borrowings 878 851
----------------------------- -------------- --------------
Foreign exchange loss 23 -
----------------------------- -------------- --------------
Total 901 851
6. Net gains and losses on financial assets and liabilities held
at fair value through profit or loss
For the six For the six
months ended months ended
30 September 30 September
2016 2015
GBP'000 GBP'000
----------------------------- -------------- --------------
Unrealised gains and losses
on financial assets and
liabilities held at fair
value through profit or
loss
----------------------------- -------------- --------------
Movement in fair value
of interest rate cap - (10)
----------------------------- -------------- --------------
Movement in fair value
of the foreign exchange
forward (890) (114)
----------------------------- -------------- --------------
Movement in fair value
of investments 444 1,163
----------------------------- -------------- --------------
Undistributed investment
income 901 400
----------------------------- -------------- --------------
Realised gains and losses
on financial assets and
liabilities held at fair
value through profit or
loss
----------------------------- -------------- --------------
Distributed investment
income - 318
----------------------------- -------------- --------------
Dividends received from
investments 15 16
----------------------------- -------------- --------------
Net gains on financial
assets and liabilities
held at fair value through
profit or loss 470 1,773
7. Taxation
For the six For the six
months ended months ended
30 September 30 September
2016 2015
GBP'000 GBP'000
-------------- -------------- --------------
Current tax 15 9
-------------- -------------- --------------
Deferred tax - -
-------------- -------------- --------------
Tax expense 15 9
The Company is exempt from Guernsey taxation on income derived
outside of Guernsey and bank interest earned in Guernsey. A fixed
annual fee of GBP1,200 is payable to the States of Guernsey in
respect of this exemption. No charge to Guernsey taxation arises on
capital gains. The Group is liable to foreign tax arising on
activities in the overseas subsidiaries. The Company has
investments, subsidiaries and joint venture operations in
Luxembourg, United Kingdom, the Netherlands, Spain, Cyprus, Jersey
and India.
The current tax charge is due in Cyprus, Luxembourg and the
Netherlands.
Unused tax losses in Luxembourg, Spain and the United Kingdom
can be carried forward indefinitely. Unused tax losses in the
Netherlands can be carried forward for 9 years. Unused tax losses
in Cyprus can be carried forward for 5 years.
Due to the unpredictability of future taxable profits, the
Directors believe it is not prudent to recognise a deferred tax
asset for the Group's unused tax losses.
8. Dividends
Dividend reference Shares Dividend Paid Date of
period payment
'000 per share GBP
Quarter ended 31 22 July
March 2016 69,323 0.6p 415,939 2016
-------------------- ------- ---------- -------- -------------
Quarter ended 30 23 September
June 2016 69,323 0.6p 415,939 2016
-------------------- ------- ---------- -------- -------------
Total 831,878
-------------------- ------- ---------- -------- -------------
The Company will pay a dividend of 0.6p per share for the
quarter ended 30 September 2016 on 16 December 2016.
This dividend has not been included as a liability in the half
year report.
9. Earnings per share
The calculation of the basic and diluted earnings per ordinary
share is based on the following data:
For the Year For the
six months ended six months
ended 31 March ended
30 September 2016 30 September
2016 2015
------------------------------- -------------- ---------- --------------
Earnings per statement
of comprehensive income
(GBP'000) 7,007 16,237 7,922
------------------------------- -------------- ---------- --------------
Basic and diluted earnings
pence per share 10.1p 23.1p 11.2p
------------------------------- -------------- ---------- --------------
Earnings per statement
of comprehensive income
(GBP'000) 7,007 16,237 7,922
------------------------------- -------------- ---------- --------------
Net change in the revaluation
of investment properties (4,662) (11,967) (4,800)
------------------------------- -------------- ---------- --------------
Profit on investment (138) - -
property disposal
------------------------------- -------------- ---------- --------------
Movement in fair value
of investment in ordinary
shares (320) (2,271) (1,561)
------------------------------- -------------- ---------- --------------
Movement in fair value
of investments in redeemable
preference shares (124) 694 398
------------------------------- -------------- ---------- --------------
Movement in fair value
of interest rate cap
(mark to market) - 10 10
------------------------------- -------------- ---------- --------------
Movement in fair value
of the foreign exchange
forward (mark to market) 890 787 114
------------------------------- -------------- ---------- --------------
Movement in fair value
of the joint venture's
interest rate swap
(mark to market) - (7) (5)
------------------------------- -------------- ---------- --------------
Net change in the revaluation
of the joint venture's
investment property 13 27 27
------------------------------- -------------- ---------- --------------
Investment Manager's
fees (performance fee) - 1,440
------------------------------- -------------- ---------- --------------
Foreign exchange loss/(gain) 23 (49) -
------------------------------- -------------- ---------- --------------
Adjusted earnings 2,689 4,901 2,105
------------------------------- -------------- ---------- --------------
Adjusted earnings per
ordinary share 3.9p 7.0p 3.0p
------------------------------- -------------- ---------- --------------
Weighted average number
of ordinary shares
(000's) 69,323 70,143 70,584
The adjusted earnings are presented to provide what the Board
believes is a more appropriate assessment of the operational income
accruing to the Group's activities. Hence, the Group adjusts basic
earnings for income and costs which are not of a recurrent nature
or which may be more of a capital nature.
10. Net asset value per share
At 30 September At 31 March At 30 September
2016 2016 2015
GBP'000 GBP'000 GBP'000
--------------------------- ---------------- ------------ ----------------
Net asset value (GBP'000) 105,317 95,621 86,748
--------------------------- ---------------- ------------ ----------------
Net asset value per
ordinary share 151.9p 137.9p 123.5p
--------------------------- ---------------- ------------ ----------------
Number of ordinary
shares (000's) 69,323 69,323 70,263
11. Investment property
30 September 31 March
2016 2016
GBP'000 GBP'000
------------------------------------- ------------- ---------
Fair value of investment
property at 1 April 91,971 65,544
------------------------------------- ------------- ---------
Additions - 7,781
------------------------------------- ------------- ---------
Subsequent capital expenditure
after acquisition 1,057 227
------------------------------------- ------------- ---------
Disposals (1,752) -
------------------------------------- ------------- ---------
Movement in rent incentives/initial
costs 220 187
------------------------------------- ------------- ---------
Fair value adjustment in
the period/year 4,662 11,967
------------------------------------- ------------- ---------
Foreign exchange movements 8,059 6,265
------------------------------------- ------------- ---------
Fair value of investment
property at 30 September
/ 31 March 104,217 91,971
Investment property comprises the Group's investments in the H2O
shopping centre in Madrid, Spain and Unity and Armouries
(Birmingham) and Monk Bridge (Leeds), two investment properties in
the course of development located in the United Kingdom.
The fair value of the H2O property of EUR112.6 million (GBP97.2
million) (31 March 2016: EUR106.5 million, GBP84.2 million) has
been arrived at on the basis of an independent valuation carried
out at the balance sheet date by Aguirre Newman Valoraciones y
Tasaciones S.A. ("Aguirre"). Aguirre are independent valuers and
are not connected to the Group.
The valuation basis used is fair value as defined by the Royal
Institution of Chartered Surveyors Appraisal and Valuations
Standards ("RICS"). The approved RICS definition of fair value is
"the price that would be received to sell an asset, or paid to
transfer a liability, in an orderly transaction between market
participants at the measurement date".
The H2O property has been pledged as security for the borrowings
in the Spanish SPV in which the property is held (note 17).
The period end values of Unity and Armouries of GBP2.8 million
(31 March 2016: GBP2.5 million) and Monk Bridge of GBP4.2 million
(31 March 2016: GBP3.8 million) have been considered by the
Directors to represent fair value at the balance sheet date; the
relevant market activity since the investments were made is not
considered to be significant in terms of value. Upon commencement
of construction, the valuations for these investments will be
carried out by independent valuers in accordance with the Company's
accounting policy.
On 2 August 2016, the Group sold its investment at "Acharn",
Killin, Perthshire, Scotland to Biomass Energy Renewables LLP
('BERL') for GBP1.9 million. The site had been acquired in December
2015 and the Group had invested a total of GBP1.5 million by the
year ended 31 March 2016. A further GBP0.3 million was invested
after year end up to completion, thus generating a profit for the
Group of GBP0.1 million.
12. Indirect property investment held at fair value
30 September 31 March
2016 2016
GBP'000 GBP'000
---------------------------- ------------- ---------
As at 1 April 4,738 4,851
---------------------------- ------------- ---------
Effect of foreign exchange 445 (113)
---------------------------- ------------- ---------
As at 30 September / 31
March 5,183 4,738
The Galaxia investment is carried at a fair value of INR 450
million (GBP5.2 million). The Company has a 50% shareholding in the
SPV which controls the Galaxia site. Following breaches,
arbitration proceedings commenced in 2011 against ART's development
partner, in order to protect the investment. In January 2015, the
International Chamber of Commerce ('ICC') Arbitration concluded its
arbitration proceedings and declared in favour of the Group's
claims against Logix Group. The ICC awarded the Group a total award
amounting to GBP9.9million (the "Award") based on 30 September 2016
exchange rates. Additionally, a further 15% p.a. interest on all
sums was awarded to the Group from 20 January 2015 until the actual
date of payment by Logix of the Award. In April 2015, the Group was
notified that Logix filed a petition, under Section 34 of the
Indian Arbitration and Conciliation Act 1996, before the Delhi High
Court challenging the Award. The challenge to the Award was heard
on 15 July 2015, 7 December 2015, 24 May 2016 and 14 July 2016 with
a further hearing scheduled for 7 December 2016. The Delhi High
Court has ordered that the site be placed in a court monitored
auction process, with proceeds to be used to repay outstanding
ground lease rents with the balance to be held until the outcome of
the Arbitration claim. The Directors, taking into consideration
legal advice received following Logix's challenge of the Award,
consider it appropriate to continue to value the indirect
investment at INR 450 million, which is the amount invested but
excludes penalty interest payment and other payments awarded in
ART's favour due to uncertainty over timing and final value of the
Award.
13. Investments held at fair value
30 September 31 March
2016 2016
GBP'000 GBP'000
----------------------------- ------------- ---------
Non-current
----------------------------- ------------- ---------
As at 1 April 10,439 6,566
----------------------------- ------------- ---------
Additions during the period
/ year - 3,200
----------------------------- ------------- ---------
Redemptions (253) (905)
----------------------------- ------------- ---------
Movement in fair value of
investments 444 1,578
----------------------------- ------------- ---------
As at 30 September / 31
March 10,630 10,439
The investments, which are disclosed as non-current investments
held at fair value, are as follows:
-- Europip (participating redeemable preference shares); Europip
provides quarterly valuations of the net asset value of its shares;
the net asset value of the investment as at period end was GBP2.4
million (31 March 2016: GBP2.5 million);
-- IMPT (ordinary shares); the ordinary shares of IMPT are
traded on the LSE (SFS) and are valued quarterly by reference to
market price; the market value of the investment at period end was
GBP3.1 million (31 March 2016: GBP2.4 million);
-- HLP (participating redeemable preference shares); HLP
provides half yearly valuations of the net asset value of its
shares; the net asset value of the investment has been calculated
by using the unaudited value provided by the directors of HLP on 5
September 2016, this being the closest point to the Group's balance
sheet date; the resulting value of the investment was GBP1.6
million (31 March 2016: GBP1.6 million);
-- AURE (ordinary shares); the investment is fair-valued by
reference to the dealing price of the shares provided monthly by
AURE, which is published on the Channel Islands Securities
Exchange: the resulting fair value of the investment at period end
was GBP3.5 million (31 March 2016: GBP4.0 million);
-- ART also has an investment in Romulus. Any realised value
from this investment is passed exclusively to ART A shareholders.
As at 30 September 2016, the net asset value of ART's investment in
Romulus was nil (31 March 2016: nil).
The Board considers that the above investments will be held for
the long term and has therefore disclosed them as non-current
assets.
Investments held at fair 30 September 31 March
value 2016 2016
GBP'000 GBP'000
------------------------------- ------------- ---------
Current
------------------------------- ------------- ---------
As at 1 April 20,931 15,868
------------------------------- ------------- ---------
Additions during the period
/ year 1,000 4,000
------------------------------- ------------- ---------
Redemptions (2,400) -
------------------------------- ------------- ---------
Distributed investment income
in period / year - (318)
------------------------------- ------------- ---------
Undistributed investment
income in period / year 825 1,381
------------------------------- ------------- ---------
As at 30 September / 31
March 20,356 20,931
The Group has invested in income units of FIAF. FIAF allows
monthly redemptions and hence the investment is reported as a
current asset. During the period ended 30 September 2016, ART has
made net redemptions of GBP1.4 million of FIAF units. FIAF provides
monthly pricing of its units. The investment has been valued at the
published price of the relevant units in FIAF as at 30 September
2016.
14. Investment in joint venture
The movement in the Group's share of net assets of the joint
venture can be summarised as follows:
30 September 31 March
2016 2016
GBP'000 GBP'000
--------------------------------- ------------- ---------
As at 1 April 1,596 1,563
--------------------------------- ------------- ---------
Group's share of joint venture
profits before fair value
movements and dividends 61 94
--------------------------------- ------------- ---------
Fair value adjustment for
interest rate swap - 7
--------------------------------- ------------- ---------
Fair value adjustment for
investment property (13) (27)
--------------------------------- ------------- ---------
Equity refund (130) -
--------------------------------- ------------- ---------
Dividends paid by joint venture
to the Group (40) (41)
--------------------------------- ------------- ---------
As at 30 September / 31 March 1,474 1,596
15. Trade and other receivables
30 September 31 March
2016 2016
GBP'000 GBP'000
--------------------------------- ------------- ---------
Non-current
--------------------------------- ------------- ---------
Loan granted to related parties 17,100 10,000
--------------------------------- ------------- ---------
Total 17,100 10,000
--------------------------------- ------------- ---------
Current
--------------------------------- ------------- ---------
Trade debtors 1,178 1,246
--------------------------------- ------------- ---------
VAT 180 111
--------------------------------- ------------- ---------
Loan granted to related party - 9,600
--------------------------------- ------------- ---------
Other debtors 1,306 1,492
--------------------------------- ------------- ---------
Interest receivable from
loans granted to related
parties 405 434
--------------------------------- ------------- ---------
Total 3,069 12,883
Loans granted to related parties can be detailed as follows:
-- GBP10.0 million (31 March 2016: GBP10.0 million) unsecured
loan to IMPT, expiring in December 2018 and carrying a coupon of
15% per annum.
-- GBP7.1 million (31 March 2016: GBP9.6 million) loan to AURE,
expiring in November 2018 and carrying a coupon of 9% per annum.
The loan is unsecured but ART has the ability to request AURE to
provide a first legal charge security over its non-core assets,
once certain conditions on AURE's bank borrowings are met and a
second priority charge over AURE's other assets.
The loans to AURE and IMPT are relatively short term in nature
and have been issued solely with the intention of collecting
principal and interest. They do not form part of the portfolio of
assets which management assesses on a fair value basis and, in
consequence, they have not been designated at fair value through
profit or loss or presented as part of the group's investment
portfolio in the consolidated balance sheet.
The Directors consider that the carrying amount of trade and
other receivables approximates to their fair value.
16. Trade and other payables
30 September 31 March
2016 2016
GBP'000 GBP'000
-------------------------- ------------- ---------
Trade creditors 1,679 1,906
-------------------------- ------------- ---------
Investment Manager's fee
payable 463 1,847
-------------------------- ------------- ---------
Accruals 367 233
-------------------------- ------------- ---------
Other creditors 178 13
-------------------------- ------------- ---------
Corporation tax 8 1
-------------------------- ------------- ---------
Total 2,695 4,000
Trade and other payables primarily comprise amounts outstanding
for trade purchases and ongoing costs. The Group has financial risk
management policies in place to ensure that all payables are paid
within the credit time frame.
The Directors consider that the carrying amount of trade and
other payables approximates their fair value.
17. Bank borrowings
30 September 31 March
2016 2016
GBP'000 GBP'000
--------------------------------- ------------- ---------
Current liabilities: interest
payable 112 114
--------------------------------- ------------- ---------
Current liabilities: repayments 469 429
--------------------------------- ------------- ---------
Total current liabilities 581 543
--------------------------------- ------------- ---------
Non-current liabilities:
bank borrowings 60,766 55,512
--------------------------------- ------------- ---------
Total liabilities 61,347 56,055
--------------------------------- ------------- ---------
The borrowings are repayable
as follows:
--------------------------------- ------------- ---------
Interest payable 112 114
--------------------------------- ------------- ---------
On demand or within one year 469 429
--------------------------------- ------------- ---------
In the second to fifth years
inclusive 60,766 55,512
--------------------------------- ------------- ---------
After five years - -
--------------------------------- ------------- ---------
Total 61,347 56,055
Movements in the Group's non-current bank borrowings are
analysed as follows:
30 September 31 March
2016 2016
GBP'000 GBP'000
------------------------------------- ------------- ---------
As at 1 April 55,512 51,557
------------------------------------- ------------- ---------
Repayment of borrowings - (398)
------------------------------------- ------------- ---------
Reclassification to current
liabilities (39) (32)
------------------------------------- ------------- ---------
Amortisation of deferred
finance costs 117 211
------------------------------------- ------------- ---------
Exchange differences on translation
of foreign currencies 5,176 4,174
------------------------------------- ------------- ---------
As at 30 September / 31 March 60,766 55,512
The bank borrowings represent the syndicated loan finance
provided to the Spanish SPV, owner of the H2O property in Madrid,
Spain (see note 11).
The Spanish SPV loan was originally provided by a syndicate of
three banks (Eurohypo AG, Deutsche Hypothekenbank and Landesbank
Hessen-Thuringen Girozentrale). In August 2014, Deutsche
Hypothekenbank transferred its share of the loan to MHB Bank AG, a
subsidiary of the Lone Star group. The loan has two tranches of
debt of which one tranche has an agreed schedule of capital
repayments as reflected in the repayment table above; the balance
of the loans after capital repayments is repayable on 4 October
2017. The loans are secured by a first charge mortgage against the
Spanish property.
The Spanish property owning SPV has entered into an interest
rate cap under which the floating rate element of the interest
charge is capped at 2.85% for the full term of the loan on EUR50
million of the original principal borrowings of EUR75 million.
18. Share capital
Number
of shares
------------------ ---------- ----------- ----------- ---------- -----------
Authorised
------------------ ---------- ----------- ----------- ---------- -----------
Ordinary shares Unlimited
of no par value
------------------ ---------- ----------- ----------- ---------- -----------
Ordinary Ordinary Ordinary A shares Total
------------------ ---------- ----------- ----------- ---------- -----------
Issued and fully treasury external total external shares
paid
------------------ ---------- ----------- ----------- ---------- -----------
At 1 April 2016 6,794,398 61,834,950 68,629,348 7,488,267 76,117,615
------------------ ---------- ----------- ----------- ---------- -----------
Share conversion - 619,210 619,210 (619,210) -
------------------ ---------- ----------- ----------- ---------- -----------
At 30 September
2016 6,794,398 62,454,160 69,248,558 6,869,057 76,117,615
The Company has one class of ordinary shares which carries no
right to fixed income and class A shares, which carry the same
rights as ordinary shares save that class A shares carry the
additional right of participation in the Company's investment in
Romulus and the right to convert into ordinary shares at a rate of
1 to 1.
The Company has the right to reissue or cancel the remaining
treasury shares at a later date.
On 9 March 2016, the Company published a circular giving notice
of an Extraordinary General Meeting on 1 April 2016. Consistent
with the Company's commitment to shareholder value, the Company
asked its shareholders to approve a general authority allowing the
Company to acquire up to 24.99% of the Voting Share Capital during
the period expiring on the earlier of (i) the conclusion of the
Annual General Meeting of the Company in 2017 and (ii) 4 September
2017. The shareholders approved the proposal.
During the period, the Company made no share buybacks. As at 30
September 2016, the ordinary share capital of the Company was
69,248,558 (including 6,794,398 shares held in treasury). The
Company also had 6,869,057 A shares in issue. The total voting
rights in ART, following the purchase and cancellation and purchase
for treasury of ordinary shares, was 69,323,217.
Post period end, the Company has made no share buybacks and
50,733 A shares were converted into ordinary shares. At the date of
signing these financial statements the ordinary share capital of
the Company was 69,299,291 (including 6,794,398 shares held in
treasury). The Company also has 6,818,324 A shares in issue. The
total voting rights in ART are unchanged at 69,323,217.
19. Events after the balance sheet date
After the balance sheet date, a total of 50,733 A Shares were
converted into Ordinary Shares (Note 18).
On 25 October 2016, ART invested GBP1.7 million in a new
mezzanine loan secured on a hotel located in central Newcastle,
United Kingdom. The loan has a 3 year term and earns a 15% annual
coupon (reduced in the first year) plus entry and exit fees.
On 4 November 2016, ART entered into an agreement to purchase,
subject to planning, an industrial site in Frankfurt which it has
identified as being suitable for the development of a data centre.
The initial investment to date amounts to EUR1.0 million (GBP0.9
million).
Post period end, the Board has authorised a two year extension
of the GBP7.1 million loan facility granted to AURE, which
continues to earn a coupon of 9.0% per annum; arrangement and exit
fees will be payable on this extension.
The Company will pay a dividend of 0.6p per share for the
quarter ended 30 September 2016 on 16 December 2016 (note 8).
20. Related party transactions
Parties are considered to be related if one party has the
ability to control the other party or exercise significant
influence over the other party in making financial or operational
decisions. ARC is the Investment Manager to the Company under the
terms of the Management Agreement and is thus considered a related
party of the Company.
The Investment Manager is entitled to receive a fee from the
Company at an annual rate of 2 per cent of the net assets of the
Group, payable quarterly in arrears. The Investment Manager is also
entitled to receive an annual performance fee calculated with
reference to total shareholder return ("TSR"), whereby the fee is
20 per cent of any excess over an annualised TSR of 15 per cent
subject to a rolling 3 year high water mark.
The Investment Manager has a management agreement directly with
the H2O property company, Alpha Tiger Spain 1, SLU under which it
earns a fee of 0.9% per annum based upon the gross assets of Alpha
Tiger Spain 1, SLU. In order to avoid double counting of fees, the
Investment Manager will provide a rebate to the Company of a
proportion of its current fee equivalent to the value of the
Group's net asset value attributable to the H2O investment.
The Company has invested in IMPT where ARC is the Investment
Manager. Mark Rattigan, a partner of ARC, is a Director on the
Board of IMPT. ARC rebates fees earned in relation to the Company's
investment in IMPT.
The Company has invested in FIAF where ARPIA, a subsidiary of
ARC, is the Investment Manager. ARC is the Authorised Corporate
Director of FIAF. ARC rebates fees earned in relation to the
Company's investment in FIAF.
The Company has invested in AURE, where ARC is the Investment
Manager. Brad Bauman, a partner of ARC, is a Director on the Board
of AURE. ARC rebates fees earned in relation to the Company's
investment in AURE.
The Company has invested in Europip, where ARPIA, a subsidiary
of ARC, is the Investment Adviser. ARC rebates fees earned in
relation to the Company's investment in Europip.
The Company has invested in Romulus, where ARPIA, a subsidiary
of ARC, is Trust Manager and Property Manager. ARC rebates fees
earned in relation to the Company's investment in Romulus.
The Company has invested in Phase 1000, Cambourne Business Park,
Cambridge, and ARC was appointed as Asset and Property Manager of
the joint venture entity. ARC rebates to ART the relevant
proportion of fees earned by ARC, which apply to the Company's
investment.
During the period, the Group disposed of its investment at
"Acharn", Killin, Perthshire, Scotland (note 11). ARPIA, a
subsidiary of ARC, provides investment management services to the
owners of BERL.
Details of the Investment Manager's fees for the current period
are disclosed on the face of the condensed consolidated statement
of comprehensive income and the balance payable at 30 September
2016 is provided in note 16.
The Directors of the Company received total fees as follows:
For the six For the six
months ended months ended
30 September 30 September
2016 2015
----------------- -------------- --------------
David Jeffreys 17,625 15,750
----------------- -------------- --------------
Phillip Rose 11,500 11,000
----------------- -------------- --------------
Serena Tremlett 17,750 17,250
----------------- -------------- --------------
Jeff Chowdhry 11,500 11,000
----------------- -------------- --------------
Roddy Sage 11,500 11,000
----------------- -------------- --------------
Total 69,875 66,000
The Directors' interests in the shares of the Company are
detailed below:
30 September 31 March
2016 2016
Number of Number of
ordinary ordinary
shares held shares held
----------------- ------------- -------------
David Jeffreys 10,000 10,000
----------------- ------------- -------------
Phillip Rose 139,695 139,695
----------------- ------------- -------------
Serena Tremlett 15,000 15,000
----------------- ------------- -------------
Jeff Chowdhry 40,000 40,000
----------------- ------------- -------------
Roddy Sage - -
Alpha Global Property Securities Fund Pte. Ltd, a wholly owned
subsidiary of ARC registered in Singapore, held 22,550,000 shares
in the Company at 30 September 2016 (31 March 2016:
22,550,000).
ARC did not hold any shares in the Company at 30 September 2016
(31 March 2016: nil). The following, being partners of the
Investment Manager, hold direct interests in the following shares
of the Company:
30 September 31 March
2016 2016
Number of Number of
ordinary ordinary
shares held shares held
-------------- ------------- -------------
IPGL Limited 3,010,100 3,010,100
-------------- ------------- -------------
Brian Frith 1,125,000 1,125,000
-------------- ------------- -------------
Phillip Rose 139,695 139,695
-------------- ------------- -------------
Brad Bauman 55,006 55,006
Karl Devon-Lowe, a partner of ARC, received fees of GBP2,500 in
relation to directorial responsibilities on a number of the
Company's subsidiary companies.
Serena Tremlett is also the Managing Director and a major
shareholder of Morgan Sharpe Administration Limited, the Company's
administrator and secretary. During the period the Company paid
Morgan Sharpe Administration Limited fees of GBP45,200 (31 March
2015: GBP95,300).
21. Financial assets and liabilities held at fair value through
profit or loss
30 September 31 March
2016 2016
GBP'000 GBP'000
------------------------------ ------------- ---------
Non-current assets
------------------------------ ------------- ---------
Investments held at fair
value 10,630 10,439
------------------------------ ------------- ---------
Indirect property investment
held at fair value 5,183 4,738
------------------------------ ------------- ---------
Interest rate cap - -
------------------------------ ------------- ---------
Total non-current assets 15,813 15,177
------------------------------ ------------- ---------
Current assets
------------------------------ ------------- ---------
Investments held at fair
value 20,356 20,931
------------------------------ ------------- ---------
Total current assets 20,356 20,931
------------------------------ ------------- ---------
Current liabilities
------------------------------ ------------- ---------
Foreign exchange forward
contract (287) (745)
------------------------------ ------------- ---------
Total current liabilities (287) (745)
------------------------------ ------------- ---------
Total 35,882 35,363
Fair value measurement
The Group discloses fair value measurements by level of the
following fair value measurement hierarchy:
-- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
-- Inputs other than quoted prices included within level 1 that
are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (level
2)
-- Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (level
3).
The level in the fair value hierarchy within which the financial
asset or financial liability is categorised is determined on the
basis of the lowest input that is significant to the fair value
measurement. Financial instruments are classified in their entirety
into one of the three levels.
The following methods and assumptions are used to estimate fair
values:
Level 1
-- The fair value of the investment in IMPT's ordinary shares,
which are traded on the LSE, is based upon the mid price of the
ordinary shares at the balance sheet date.
Level 2
-- The fair value of the derivative interest rate cap contracts
is determined by reference to an applicable valuation model
employed by the contractual counter parties; valuations are
provided quarterly.
-- The fair value of the foreign exchange forward contract is
determined by reference to the quarter end applicable forward
market rate provided by the contractual counter party.
-- The fair value of the investment in AURE is based upon the
dealing price of the shares provided by AURE at the balance sheet
date, which is published on the Channel Islands Securities
Exchange.
-- The fair value of the FIAF, HLP and Europip's investments is
based upon the price provided by the issuers for the relevant share
class owned: this is calculated by reference to the net asset value
of the respective investment.
Level 3
-- The fair value of the Galaxia indirect property investment is
based on quarterly Directors' estimates of the recoverable amount
based upon legal advice.
Financial assets and liabilities held at fair value are valued
on a recurring basis as indicated above. There have been no changes
to the valuation methods applied from the Group's annual report and
accounts for the year ended 31 March 2016.
The Board determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation (based on
the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
The following table shows an analysis of the fair values of
financial instruments recognised in the balance sheet by level of
the fair value hierarchy described above:
As at 30 September Level Level Level Total
2016 1 2 3
--------------------------
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- -------- --------
Investments held at
fair value 3,072 27,914 - 30,986
-------------------------- -------- -------- -------- --------
Indirect property
investment at fair
value - - 5,183 5,183
-------------------------- -------- -------- -------- --------
Interest rate cap - - - -
-------------------------- -------- -------- -------- --------
Foreign exchange forward - (287) - (287)
-------------------------- -------- -------- -------- --------
Total 3,072 27,627 5,183 35,882
-------------------------- -------- -------- -------- --------
As at 31 March 2016 Level Level Level Total
1 2 3
--------------------------
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- -------- --------
Investments held at
fair value 2,352 29,018 - 31,370
-------------------------- -------- -------- -------- --------
Indirect property
investment at fair
value - - 4,738 4,738
-------------------------- -------- -------- -------- --------
Interest rate cap - - - -
-------------------------- -------- -------- -------- --------
Foreign exchange forward - (745) - (745)
-------------------------- -------- -------- -------- --------
Total 2,352 28,273 4,738 35,363
-------------------------- -------- -------- -------- --------
There were no transfers between level 1 and level 2 fair value
measurements and no transfers into or out of level 3 fair value
measurements during the six month period ended 30 September
2016.
Directors and Company information
Directors
David Jeffreys (Chairman)
Jeff Chowdhry
Roddy Sage
Phillip Rose
Serena Tremlett
Registered office
Old Bank Chambers
La Grande Rue
St Martin's
Guernsey GY4 6RT
Investment Manager
Alpha Real Capital LLP
Level 6, 338 Euston Road
London NW1 3BG
Administrator and secretary
Morgan Sharpe Administration Limited
Old Bank Chambers
La Grande Rue
St Martin's
Guernsey GY4 6RT
Broker
Panmure Gordon (UK) Limited
One New Change
London EC4M 9AF
Independent valuers in India
Colliers International (Hong Kong) Limited
Suite 5701 Central Plaza
18 Harbour Road
Wanchai, Hong Kong
Independent valuers in Spain
Aguirre Newman Valoraciones y Tasaciones S.A.
Calle de General Lacy, 23
Madrid, 28045
Spain
Independent auditor
BDO Limited
Place du Pré
Rue du Pré
St Peter Port
Guernsey GY1 3LL
Tax advisors in Europe
Ernst & Young LLP
1 More London Place
London SE1 2AF
Tax advisors in India
BMR Advisors
The Great Eastern Centre
First Floor
70, Nehru Place
New Delhi - 110 019
India
Legal advisors in Guernsey
Carey Olsen
PO Box 98, Carey House
Les Banques,
St Peter Port,
Guernsey, GY1 4BZ
Legal advisors in the UK
Norton Rose
3 More London Riverside
London SE1 2AQ
Legal advisors in India
AZB & Partners
Plot A-8 Sector 4
NOIDA 201 301
India
Legal advisors in Spain
Perez Lorca
Alcalá, 61
28014 Madrid
Spain
Registrar
Computershare Investor Services (Jersey) Limited
Queensway House
Hilgrove Street
St Helier
Jersey JE1 1ES
Shareholder information
Further information on the Company can be found at the Company's
website:
www.alpharealtrustlimited.com
Dividends
Ordinary dividends are declared and paid quarterly. Shareholders
who wish to have dividends paid directly into a bank account rather
than by cheque to their registered address can complete a mandate
form for this purpose. Mandates may be obtained from the Company's
Registrar. Where dividends are paid directly to shareholders' bank
accounts, dividend vouchers are sent directly to shareholders'
registered addresses.
Share price
The Company's Ordinary Shares are listed on the SFS of the
LSE.
Change of address
Communications with shareholders are mailed to the addresses
held on the share register. In the event of a change of address or
other amendment, please notify the Company's Registrar under the
signature of the registered holder.
Investment Manager
The Company is advised by Alpha Real Capital LLP, which is
authorised and regulated by the Financial Conduct Authority in the
United Kingdom
Financial calendar
Financial Reporting/Meeting Dividend period Ex-dividend date Record date Payment date
reporting dates
------------------- -------------------- ------------------- ----------------- ---------------- -----------------
Half year report 18 November 2016 Quarter ended 1 December 2016 2 December 2016 16 December 2016
and dividend 30 September 2016
announcement
------------------- -------------------- ------------------- ----------------- ---------------- -----------------
Trading update 3 March 2017 Quarter ending 16 March 2017 17 March 2017 24 March 2017
(Qtr 3) 31 December 2016
------------------- -------------------- ------------------- ----------------- ---------------- -----------------
Annual report and 16 June 2017 Quarter ending 29 June 2017 30 June 2017 21 July 2017
dividend 31 March 2017
announcement
------------------- -------------------- ------------------- ----------------- ---------------- -----------------
Annual report 30 June 2017
published
------------------- -------------------- ------------------- ----------------- ---------------- -----------------
Annual General 7 August 2017
Meeting
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFSDLLLDLIR
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November 18, 2016 02:00 ET (07:00 GMT)
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