TIDMAIRE
RNS Number : 5353X
Alternative Income REIT PLC
05 May 2021
5 May 2021
Alternative Income REIT P lc
(the " Company " or " Group ")
RENT COLLECTION, DIVIDEND DECLARATION, NAV AND BUSINESS
UPDATE
The Board of Directors of Alternative Income REIT Plc (ticker:
AIRE), the owner of a diversified portfolio of UK commercial
property assets, predominantly let on long leases, provides a
trading and business update and declares an interim dividend for
the quarter ended 31 March 2021 .
Rent collection
The current quarter's rents are split 80% quarterly and 20%
monthly and, to date, the Group has collected 87.9% of this
quarter's rent with 10.3% contractually due during the remainder of
the quarter. The remaining 1.8% of this quarter's rent due is
subject to concessions, which are in the process of being
formalised.
Since the start of the pandemic, the Group has collected 97.2%
of rent due (with deferment agreed in respect of the 2.8%
outstanding). However, despite the progressive easing of lockdown
restrictions, the Board recognises that the remainder of 2021 is
likely to be particularly challenging for the hotel and leisure
sector as capacity restrictions continue.
Dividend declaration and update on Earnings per Share
The Board declares today an interim dividend of 1.25 pence per
share for the quarter ended 31 March 2021 (quarter ended 31
December 2020: 1.00 pence/share) . The dividend which will be a
Property Income Distribution will be paid on 28 May 2021 to
shareholders on the register on 14 May 2021. The ex-dividend date
will be 13 May 2021.
Unaudited EPRA earnings per share ("EPRA EPS") for the quarter
ended 31 March 2021 were 1.56 pence per share, representing
dividend cover for the quarter of 125% (quarter to 30 December
2020: 1.32 pence per share; 132% cover).
The EPRA EPS includes accruals to reflect both the minimum
contracted uplifts and the amortisation of loan arrangement fees
and movements in the provision for impairment of trade receivables.
Excluding these items from the Group's EPRA EPS, the unaudited
adjusted cash earnings were 1.43 pence per share, reflecting 114%
cash dividend cover for the quarter (quarter ended 31 December
2020: 1.26 pence per share; 126% cash dividend cover).
Property Valuation
At 31 March 2021, the independent fair valuation undertaken by
Knight Frank of the Company's property portfolio was GBP108.73
million (31 December 2020: GBP108.53 million). The net initial
yield on the Company's portfolio was 5.94% (31 December 2020:
5.53%), reflecting increases in the passing rents from the Group's
hotels.
Net Asset Value
At 31 March 2021, the Company's unaudited net asset value ("NAV
" ) was GBP68.53 million, 85.13 pence per share, (31 December 2020:
GBP68.16 million, 84.68 pence per share). See the table below for
the movement in NAV during the quarter.
Analysis of Movement in NAV
Movement during the quarter Pence per GBP million
share
NAV at 31 December 2020 84.68 68.16
---------- ------------
Valuation movement in property portfolio* (0.10) (0.08)
---------- ------------
Income earned for the period 2.40 1.93
---------- ------------
Expenses for the period (0.41) (0.32)
---------- ------------
Net finance costs for the period (0.44) (0.36)
---------- ------------
Interim dividend paid during the quarter
ended 31 March 2021 (1.00) (0.80)
---------- ------------
NAV at 31 March 2021 85.13 68.53
---------- ------------
* The quarter's increase in the independent fair valuation of
GBP0.20 million has been reduced by GBP0.12 million to reflect the
minimum contracted rental uplifts and GBP0.16 million of
acquisition costs capitalised during the quarter, resulting in a
net valuation decrease of GBP0.08 million.
The NAV attributable to the ordinary shares has been calculated
under International Financial Reporting Standards as adopted by
United Kingdom and incorporates both the Group's property portfolio
individually valued on a 'Red Book' valuation basis as at 31 March
2021 and net income for the quarter, but does not include a
provision for the interim dividend declared today (see above) for
the quarter ended 31 March 2021.
The income earned for the period includes an accrual for the
minimum contractual uplifts contained in the index linked leases.
In the event that inflation is greater than these minimum
contractual uplifts, the actual income will be greater than the
income currently accrued.
Portfolio update
The Group remains fully invested, with a diversified portfolio
of UK commercial property assets that are currently fully let, with
a w eighted average unexpired lease term of 18.04 years (31
December 2020: 18.28 years) to the earlier of break and expiry and
20.06 years (31 December 2020: 20.30 years) to expiry.
87 % of the portfolio's income stream is reviewed periodically,
on an upward only basis, in line with inflation; with 65% and 22 %
of the portfolio indexed (subject to floors and caps) to RPI and
CPI , respectively.
Alan Sippetts, Non-Executive Chairman of Alternative Income REIT
plc, comments:
" The Board remains confident that the Group can provide
attractive total returns to our shareholders principally in the
form of fully covered dividends. These will be delivered from our
100% let, fully invested portfolio from which we continue to
collect strong levels of rent, supported by our robust balance
sheet and modest overhead, which should together drive further
value for our shareholders. "
ENQUIRIES
Alternative Income REIT PLC
Alan Sippetts - Chairman via Maitland/AMO below
M7 Real Estate Ltd
Richard Croft +44 (0)20 3657 5500
Panmure Gordon (UK) Limited +44 (0)20 7886 2500
Alex Collins
Tom Scrivens
Chloe Ponsonby
Maitland/AMO (Communications Adviser) +44(0) 7747 113 930
James Benjamin james.benjamin@maitland.co.uk
The Company's LEI is 213800MPBIJS12Q88F71.
Further information on Alternative Income REIT plc is available
at www.alternativeincomereit.com (1) .
NOTES
Alternative Income REIT PLC aims to generate a sustainable,
secure and attractive income return for shareholders from a
diversified portfolio of UK property investments, predominately in
alternative and specialist sectors. The majority of the assets in
the Group's portfolio are let on long leases which contain
inflation linked rent review provisions.
The Company's investment adviser is M7 Real Estate Limited
("M7"). M7 is a leading specialist in the pan-European, regional,
multi-tenanted real estate market. Majority owned by its senior
managers, it has over 220 employees in 15 countries across Europe.
The team manages over 600 properties with a value of circa EUR4.0
billion.
1 Neither the content of the Company's website, nor the content
on any website accessible from hyperlinks on its website or any
other website, is incorporated into, or forms part of, this
announcement nor, unless previously published on a Regulatory
Information Service, should any such content be relied upon in
reaching a decision as to whether or not to acquire, continue to
hold, or dispose of, securities in the Company.
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END
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