TIDMAIRE
RNS Number : 3698K
Alternative Income REIT PLC
05 May 2022
5 May 2022
Alternative Income REIT PLC
(the " Company " or " Group " or " AIRE ")
NET ASSET VALUE, DIVID DECLARATION AND PORTFOLIO VALUATION
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 with
inflation-linked rent reviews, provides a trading and business
update and declares an interim dividend for the quarter ended 31
March 2022.
Alan Sippetts, Non-Executive Chairman of Alternative Income REIT
plc, comments:
"Our quarterly update today underlines, once again, that
Alternative Income REIT has an attractive, well managed and
resilient portfolio that is continuing to increase in value with
growing contracted rents, 93% of which are linked to inflation.
Together with our track record of continuing to collect 100% of
rents due, this helps ensure that AIRE continues to provide our
shareholders with attractive, secure, long dated income, including
a potentially progressive dividend and capital growth.
At 31 March 2022, the Company's unaudited net asset value per
was 93.30 pence per share, representing a 3.23% increase over the
period, due to increases in portfolio valuation and income earned
during the period. When combined with the 1.3 pps dividend paid for
the quarter, this produces an unaudited NAV total return for the
quarter of 4.83%.
Our portfolio is very well positioned to deliver further income
and capital enhancement to our shareholders from our predominantly
inflation-linked leases as well as asset management initiatives,
opportunistic transactions and as the market continues to
improve."
Highlights (unaudited)
At 31 March At 31 December Change
2022 2021
Net Asset Value ("NAV") GBP75.11 million GBP72.75 million +3.2%
------------------ ------------------ --------------
NAV per share 93.30 p 90.38 p +3.2%
------------------ ------------------ --------------
Share price 77.6p 72.2 p +7.5%
------------------ ------------------ --------------
Loan to gross asset value("GAV")
(A) (B) 34.55% 35.22%
------------------ ------------------ --------------
Quarter ended Quarter ended Change
31 March 2022 31 December
2021
------------------ ------------------ --------------
EPRA earnings per share
(A) 1.51 p 1.68 p -10.1%
------------------ ------------------ --------------
Adjusted earnings per
share (A) 1.40 p 1.37 p +2.1%
------------------ ------------------ --------------
Dividend cover (A) 107.69% 105.38% +2.2%
------------------ ------------------ --------------
Total dividends 1.30 p 1.30 p 0.00%
------------------ ------------------ --------------
Earnings per share 4.22 p 3.88 p +8.8%
------------------ ------------------ --------------
Share price total return
(A) 9.27% 9.65%
------------------ ------------------ --------------
NAV total return (A) 4.83% 5.84%
------------------ ------------------ --------------
Investment property fair
value GBP115.38 million GBP107.73 million +7.1%
------------------ ------------------ --------------
Annualised contracted GBP7.22 million GBP6.62 million +9.0%
rent
(like for
like +4.8%)
------------------ ------------------ --------------
Ongoing charges (A) (annualised) 1.44% 1.48% -4 bps
------------------ ------------------ --------------
(A) Considered to be an Alternative Performance Measure.
(B) The loan facility at 31 March 2022 of GBP41.0 million (31
December 2021: same) is with Canada Life Investments, matures on 20
October 2025 and has a weighted average interest cost of 3.19%.
Dividend declaration and update on Earnings per share
The Board is pleased to declare an interim quarterly dividend of
1.30 pence per share for the quarter ended 31 March 2022 (quarter
ended 31 December 2021: 1.30 pence per share; quarter ended 31
March 2021: 1.25 pence per share) . This quarter's interim dividend
will be paid as a Property Income Distribution ("PID") on 27 May
2022 to shareholders on the register on 13 May 2022. The
ex-dividend date will be 12 May 2022.
The Board confirms that the Company remains on track to deliver
on its target annual dividend of 5.5 pence per share with full
dividend cover expected, all else being equal, by September 2022(1)
.
T he Adjusted EPS was 1.40 pence per share, reflecting 107 .69 %
cash dividend cover for the quarter (q uarter ended 31 December
2021: 1.37 pence per share, 105.38% cash dividend cover; year ended
30 June 2021: 5.07 pence per share, 99% cash dividend cover).
Property valuation
On 28 January 2022, the Group completed the acquisition of the
Volvo showroom in Slough for GBP5.34 million. At 31 March 2022, the
Group's property portfolio had a fair value of GBP115.38 million
across 19 properties.
At 31 December 2021, the Group held 18 properties valued at
GBP107.73 million. On a like-for-like basis, the fair value of
those 18 properties as at 31 March 2022 was GBP110.13 million,
representing a 2.2% increase quarter on quarter.
At 31 March 2022, the net initial yield on the Group's portfolio
was 5.72%, compared with 5.71% at 31 December 2021.
Valuations have increased across the Group's retail warehousing,
industrial and car showroom assets during the quarter driven by
asset management initiatives, annual index-linked rent reviews and
market demand for retail warehouses extending into the car showroom
sector.
Net asset value
At 31 March 2022, the Company's unaudited net asset value ("NAV
" ) was GBP75.11 million, 93.30 pence per share, (31 December 2021:
GBP72.75 million, 90.38 pence per share), representing a 3.2%
increase over the period, due to increases during the quarter in
portfolio valuation and income earned.
When combined with the 1.3 pps dividend paid for the quarter,
this produces an unaudited NAV total return for the quarter of
4.83% (31 December 2021: 5.84%).
The table below sets out the movement in NAV during the
quarter.
Pence per GBP million
share
NAV at 1 January 2022 90.38 72.75
---------- ------------
Valuation movement in property portfolio* 2.71 2.19
---------- ------------
Income earned for the period 2.45 1.98
---------- ------------
Expenses for the period (0.50) (0.41)
---------- ------------
Net finance costs for the period (0.44) (0.35)
---------- ------------
Interim dividend paid during the quarter
ended 31 December 2021 (1.30) (1.05)
---------- ------------
NAV at 31 March 2022 93.30 75.11
---------- ------------
* The quarter's increase in the independent fair valuation of
GBP2.30 million has been reduced by GBP0.11 million to reflect the
minimum contracted rental uplifts, resulting in a net valuation
increase of GBP2.19 million.
The NAV attributable to the ordinary shares has been calculated
under International Financial Reporting Standards as adopted by the
United Kingdom and incorporates both the Group's property portfolio
individually valued on a 'Red Book' basis at 31 March 2022 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 2022.
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
At 31 March 2022, t he Group's assets were 100% let (31 December
2021: 99.7%). This increase in occupancy is due to the letting with
Bgen Ltd for an area of land at St Helens which was vacated during
Q4 2021. The rent for this land was 59.4% higher than the
previously contracted amount.
The weighted average unexpired lease term at 31 March 2022 was
17.6 years to the earlier of break and expiry (31 December 2021:
18.2 years) and 19.6 years to expiry (31 December 2021: 20.2
years).
9 3 % (3 1 December 2021: 93 %) of the portfolio's income stream
is reviewed periodically on an upward only basis, in line with
inflation (44% annually); with 7 0 % and 2 3 % of the portfolio
index-linked (subject to floors and caps) to RPI and CPI,
respectively. The remaining 7% of the portfolio's income stream is
subject to Open Market Value Reviews.
Contracted annualised rent increased by 9.0% this quarter to
GBP7.22 million, reflecting the acquisition of Slough in January
2022, or 4.8% on a like-for-like basis, due to 5 rent reviews and
the letting in St Helens. In the next 12 months, 58% of the Group's
incomes will be reviewed (8 annual index-linked rent reviews and 5
periodic index-linked rent reviews (3 or 5 years since the previous
reviews)).
Rent collection
The rents for the June 2022 quarter are split 8 4 % payable
quarterly in advance and 1 6 % payable monthly in advance. Rent
collection remains resilient with 100% expected for the June 2022
quarter (March 2022 quarter: collected 100% of rent due; each
quarter of 2021: collected 100% of rent due).
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 aire-maitland@maitland.co.uk
The Company's LEI is 213800MPBIJS12Q88F71.
Further information on Alternative Income REIT plc is available
at www.alternativeincomereit.com (2) .
1 This is a target only and not a profit forecast. There can be
no assurance that the target will be met and it should not be taken
as an indicator of the Company's expected or actual results.
2 Neither the content of the Company's website, nor the content
on any website accessible from hyperlinks on its website or any
other website, is incorporated into, or forms part of, this
announcement nor, unless previously published on a Regulatory
Information Service, should any such content be relied upon in
reaching a decision as to whether or not to acquire, continue to
hold, or dispose of, securities in the Company.
NOTES
Alternative Income REIT PLC aims to generate a sustainable,
secure and attractive income return for shareholders from a
diversified portfolio of UK property investments, predominately in
alternative and specialist sectors. The majority of the assets in
the Group's portfolio are let on long leases which contain index
linked rent review provisions.
The Company's investment adviser is M7 Real Estate Limited
("M7"). M7 is a leading specialist in the pan-European, regional,
multi-tenanted real estate market. It has over 220 employees in 15
countries across Europe. The team manages over 570 properties with
a value of circa EUR4.9 billion.
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END
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May 05, 2022 02:02 ET (06:02 GMT)
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