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Results for the Half Year Ended 31 December 2024

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NAV increased 1.3% over the Period

For the Period: Share price total return of +11.8% and unaudited NAV total return of +5.2%

On track to deliver target annual dividend of 6.2 pence per share B (“pps”) for the financial year ending 30 June 2025

Resilient portfolio, well placed to continue to provide secure, index-linked income with the potential for capital 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 2024 (the Period).

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

“The Company is on track to deliver on an annual dividend target of 6.2 pence per share B (“pps”) for the year ending 30 June 2025 (year ended 30 June 2024: 5.9 pps), which is expected to be fully covered subject to the continued collection of rent from the Group’s property portfolio as it falls due.

The Group completed the acquisition of the Champney’s Beauty College, Tring (“Tring”) for £2.72 million (gross of acquisition costs) in December 2024, representing 2.4% of the portfolio valuation at 31 December 2024. Contracted annualised rent grew by 1.5% in the Period, predominantly because of the index-linked rent reviews in Salford, Brough and Solihull. This growth excludes Tring and the rent-free period in respect of Pets at Home in Droitwich. 91.5% of the leases within the portfolio are index-linked, with 35.2% of the contracted rental income reviewed annually.

At 31 December 2024, the Group owned 20 properties valued at £106.2 million (30 June 2024: 19 properties: £102.7 million). During the half year the valuation increased by £3.5 million, which included the acquisition of Tring and on a like-for-like basis the Company’s property values increased by £1.1 million or 1.0%. Most of this increase being from the Group’s properties in the industrial and retail warehouse sectors.

At 31 December 2024, the Group’s unaudited Net Asset Value was £66.0 million, or 81.94 pps (30 June 2024: £65.1 million, or 80.90 pps), representing a 1.3% increase over the Period. When combined with the two interim dividends paid in the Period of 3.175 pps, this produced an unaudited NAV total return for the Period of 5.21%.

The Group’s track record demonstrates a secure and increasing income stream. The Group continues to benefit from low borrowing costs until October 2025, when the current Canada Life senior loan matures. The Board has appointed a debt adviser to assist with the refinancing and is confident that the requisite financing will be achieved prior to October 2025, albeit at an increased interest rate as compared to the current rate.

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 (see below)

Martley Capital REIM Ltd
Richard Croft
Jane Blore
+44 (0)20 4551 1240

Panmure Liberum Limited
Alex Collins
Tom Scrivens
+44 (0)20 3100 2000

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