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Interim Report and Financial Statements for the Half Year Ended 31 December 2023

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On track to deliver target annual dividend of at least 5.9 pence per share for the financial year ending 30 June 2024

Resilient portfolio well placed to continue to provide secure, index-linked income with the potential forcapital growth

 

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 index-linked rent reviews, is pleased to announce
its interim report and financial statements for the half year ended 31 December 2023 (the Period).

Simon Bennett, Non-Executive Chairman of Alternative Income REIT Plc, comments:

“The Group completed the disposal of its hotel in Glasgow, generating proceeds of £7.5 million in August 2023, representing a 7.9% premium to its fair value as at 30 June 2023, and in December 2023 we completed the acquisition of the Virgin Active in Ockley Road, Streatham for £5.5 million (gross of acquisition costs). The Group is looking into reinvesting the remaining proceeds in another property in Q1 2024.

The Board has set an annual dividend target of at least 5.9 pence per share A (“pps”) for the year ending 30 June 2024 (year ended 30 June 2023: 5.7pps), which is expected to be fully covered, subject to the reinvestment of the Glasgow sale proceeds as anticipated and the continued collection of rent from the Group’s property portfolio as it falls due.

The Group’s contracted annualised rent grew by 2.9% in the Period predominantly because of the index-linked rent reviews in Birmingham, Salford, Sittingbourne, Brough and Solihull, and after taking account of the rent-free incentive period for Pets at Home in Droitwich. Nearly all the leases within the portfolio are index-linked (95.8%), with 35.9% of this rental income reviewed annually.

At 31 December 2023, the Group owned 19 properties valued at £103.3 million (30 June 2023: £107.0 million). On a like-for-like basis, the Company’s property values decreased by £1.9 million or 1.9%. The largest falls in value were in the residential, leisure and retail warehouse sectors.

At 31 December 2023, the Group’s unaudited Net Asset Value was £65.7 million, or 81.62pps (30 June 2023: £67.8 million, or 84.16pps), representing a 3.0% decrease over the Period. When combined with the two interim dividends paid in the Period of 3.35pps, this produced an unaudited NAV total return for the Period of 1.0%. Conversely, following a substantial narrowing of the discount, the share price increased substantially by 10.5% to 71.50pps and the share price total return for the Period was 15.7%.

The Group’s portfolio is relatively insulated from market fluctuations, benefiting from being 100% let and with 100% collection of rent due. In addition, the Group benefits from low fixed borrowing costs. Combining these factors provides a secure and growing rental income stream.

The Board remains confident that the Company is well-positioned for the future, with a portfolio that continues to deliver secure, index-linked income and has the potential for capital growth as the property market recovers.”

For results document see Download.

Enquiries

Alternative Income REIT PLC
Simon Bennett – Chairman
via H/Advisors Maitland below

M7 Real Estate LTD
Richard Croft
Jane Blore
+44 (0)20 3657 5500

Panmure Gordon (UK) Limited
Alex Collins
Tom Scrivens
+44 (0)20 7886 2500

H/Advisors Maitland (Communications Advisor)
James Benjamin
+44 (0)7747 113 930
+44 (0)20 7379 5151
aire-maitland@h-advisors.global