REG - Alpha Real Tst Ltd - Half-year Report
22/11/2024 07:00
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RNS Number : 2326N Alpha Real Trust Limited 22 November 2024
LEI: 213800BMY95CP6CYXK69
22 November 2024
ALPHA REAL TRUST LIMITED ("ART" OR THE "COMPANY" OR "THE GROUP")
ART ANNOUNCES ITS HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
· NAV per ordinary share 208.8p as at 30 September 2024 (31 March
2024: 207.3p).
· Basic earnings for the six months ended 30 September 2024 of 5.1p
per ordinary share (six months ended 30 September 2023: basic earnings of 1.5p
per ordinary share).
· Adjusted earnings for the six months ended 30 September 2024 of
5.0p per ordinary share (six months ended 30 September 2023: adjusted earnings
of 4.6p per ordinary share)*.
· Declaration of a quarterly dividend of 1.0p per ordinary share
expected to be paid on 24 January 2025.
· Robust financial position: ART remains on a robust financial
footing and is well positioned to take advantage of new investment
opportunities.
· Investment targets: the Company is currently focussed on
selectively increasing its loan portfolio and opportunistically extending its
wider investment strategy to target investments offering inflation protection
via index linked income adjustments and investments that have potential for
capital gains.
· Diversified portfolio of secured senior and secured mezzanine
loan investments: as at 30 September 2024, the size of ART's drawn secured
loan portfolio was £45.3 million, representing 36.8% of the investment
portfolio.
· The senior portfolio has an average Loan to Value ('LTV')** of
62.0% based on loan commitments (with mezzanine loans having an LTV range of
between 49.5% and 72.0% whilst the highest approved senior loan LTV is 63.6%).
· Loan commitments: including existing loans at the balance sheet
date and loans committed post period end, ART's current total committed but
undrawn loan commitments amount to £0.1 million.
· Cash management: at the balance sheet date, the Company has
invested £23.7 million in short term UK Treasury Bonds (Gilts), £9.6 million
in short term UK Treasury bills, £10.0 million in the Morgan Stanley Sterling
Liquidity Fund and £6.9 million in the BlackRock ICS Sterling Government
Liquidity Fund to enhance returns on its liquid holdings.
* The basis of the adjusted earnings per share is provided in note 8
** See below for more details
William Simpson, Chairman of Alpha Real Trust, commented:
"ART's investment portfolio benefits from diversification across geographies,
sectors, and asset types. As inflationary outlook and interest rate policy
continue to shape the economic backdrop in which the Company operates, ART
remains on a robust financial footing and is well placed to capitalise on new
investment opportunities.
ART remains committed to growing its diversified investment portfolio. In
recent years the Company focused on reducing exposure to direct development
risk and recycling capital into cashflow driven investments. The Company is
currently focussed on its loan portfolio and also on its wider investment
strategy which targets investments offering inflation protection via index
linked income adjustments and investments that have potential for capital
gains."
The Investment Manager of Alpha Real Trust is Alpha Real Capital LLP.
For further information please contact:
Alpha Real Trust Limited
William Simpson, Chairman, Alpha Real Trust +44 (0) 1481 742 742
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
Atholl Tweedie +44 (0) 20 7886 2500
Notes to editors:
About Alpha Real Trust
Alpha Real Trust Limited 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.
Further information on the Company can be found on the Company's website:
www.alpharealtrustlimited.com (http://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 (http://www.alpharealcapital.com) .
Company's summary and objective
Strategy
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 selectively focuses on asset-backed lending, debt investments
and high return property investments in Western Europe that are capable of
delivering strong risk-adjusted returns.
The portfolio mix at 30 September 2024, excluding sundry assets/liabilities,
was as follows:
30 September 2024 31 March 2024
High return debt: 36.8% 39.2%
High return equity in property investments: 14.7% 26.1%
Other investments: 30.8% 20.6%
Cash: 17.7% 14.1%
The Company is currently focussed on selectively increasing its loan portfolio
and opportunistically extending its wider investment strategy to target high
return property investments offering inflation protection via index linked
income adjustments and investments that have potential for capital gains.
Dividends
The current intention of the Directors is to pay a dividend, and offer a scrip
dividend alternative quarterly to all shareholders.
Listing
The Company's shares are traded on the Specialist Fund Segment ("SFS") 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 focus on the risk profile of each investment within the capital structure
to best deliver attractive risk-adjusted returns.
Control of the Company rests with the non-executive Guernsey based Board of
Directors.
Financial highlights
6 months ended 12 months ended 6 months ended
30 September 31 March 30 September 2023
2024 2024
Net asset value (£'000) 125,834 123,106 125,354
Net asset value per ordinary share 208.8p 207.3p 214.3p
Earnings/(losses) per ordinary share (basic and diluted) 5.1p (1.6)p 1.5p
Earnings per ordinary share (basic and diluted) (adjusted)* 5.0p 10.3p 4.6p
Dividend per ordinary share (paid during the period) 2.0p 4.0p 2.0p
* The adjusted earnings per ordinary 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 8 to the accounts.
Chairman's statement
I am pleased to present the Company's half year report and accounts for the
six months ended 30 September 2024.
ART's investment portfolio benefits from diversification across geographies,
sectors and asset types and the Company remains on a robust financial footing
and is well placed to capitalise on new investment opportunities.
The scale and pace of interest rate reductions continues to dominate the
economic backdrop in which the Company operates and shape the outlook for the
real estate market. The uncertain market offers potential opportunities in the
medium term for ART to grow its diversified investment portfolio. The Company
is currently focussed on risk managing and selectively growing its loan
portfolio and opportunistically extending its wider investment strategy to
target mezzanine opportunities as companies seek to refinance and
recapitalise. The Company is also seeking to invest further in assets offering
inflation protection via index linked income adjustments and investments that
have potential for capital appreciation.
ART continues to adhere to its disciplined strategy and investment
underwriting principles which seek to manage risk through a combination of
operational controls, diversification and an analysis of the underlying asset
security.
Diversified secured lending investment
The Company invests in a diversified portfolio of secured senior and mezzanine
loan investments. The loans are typically secured on predominately residential
real estate investment and development assets with attractive risk adjusted
income returns. As at 30 September 2024, ART had committed £52.7 million
across twelve loans, of which £45.3 million (excluding a £6.0 million
provision for Expected Credit Loss and £0.4 million impairment discussed
below) was drawn.
The Company's debt portfolio comprises predominately floating rate loans.
Borrowing rates are typically set at a margin over Bank of England ('BoE')
Base Rate and have benefited from rising interest rates. However outstanding
loans will deliver lower returns as loan rates track falls in the BoE Base
Rate.
During the quarter ended 30 September 2024, additional drawdowns of £1.5
million were made on existing loans and £1.1 million (including accrued
interest) was received as part repayments.
Post period end, one new loan was granted for £3.1 million, £0.3 million of
drawdowns were made on existing loans, two loans for £20.5 million (including
accrued interest and applicable fees) were fully repaid and part payments were
received amounting to £0.6 million (including accrued interest).
As at 30 September 2024, 53.0% of the Company's loan investments were senior
loans and 47.0% were mezzanine loans. The portfolio has an average LTV of
58.0% based on loan commitments (with mezzanine loans having a LTV range of
between 49.5% and 72.0% whilst the highest approved senior loan LTV is 63.6%).
Portfolio loans are underwritten against value for investment loans or gross
development value for development loans as relevant and collectively referred
to as LTV in this report.
The largest individual loan in the portfolio as at 30 September 2024 is a
senior loan of £12.4 million which represents 23.5% of committed loan capital
and 9.9% of the Company's NAV. Post period end, in October 2024, this loan was
repaid.
Four loans in the portfolio have entered receivership and ART is working
closely with stakeholders to maximise capital recovery. The Company has
considered the security on these loans (which are a combination of a first
charge and a second charge over the respective assets and personal guarantees)
and has impaired one loan, which is accounted for at fair value, by £0.4
million; the Group also calculated an Expected Credit Loss ('ECL') on the
other three loans of approximately £4.3 million; the Group have also provided
for an ECL on the remainder of the loans' portfolio for an additional £1.7
million. In total, the Group have provided for an ECL of £6.0 million (31
March 2024: £5.7 million) in its consolidated accounts.
Aside from the cases of receivership, illustrated above, the Company's loan
portfolio has proved to be resilient despite the recent extended period of
heightened uncertainty and risk. In terms of debt servicing, allowing for some
temporary agreed extensions, interest and debt repayments have been received
in accordance with the loan agreements. Where it is considered appropriate, on
a case-by-case basis, underlying loan terms may be extended or varied with a
view to maximising ART's risk adjusted returns and collateral security
position. The Company's loan portfolio and new loan targets continue to be
closely reviewed to consider the potential impact on construction timelines,
building cost inflation and sales periods.
The underlying assets in the loan portfolio as at 30 September 2024 had
diversification throughout the UK and Channel Islands with assets held located
in London accounting for 31.2% of the total loan investment portfolio.
Long leased assets
The Company's portfolio of long leased properties, comprising three hotels
leased to Travelodge in the UK and an industrial facility in Hamburg, Germany,
leased to a leading industrial group are well positioned in the current
inflationary environment. The leased assets have inflation linked rent
adjustments which offer the potential to benefit from a long term,
predictable, inflation linked income stream and the potential for associated
capital growth.
Other investments
Investment in listed and authorised funds
The Company has invested across three investments that offer potential to
generate attractive risk adjusted returns. During the period, ART received
£0.5 million as a partial redemption from GCP Asset Backed Income Fund
Limited. The remaining value of these investments as at 30 September 2024 was
£3.9 million.
The prevailing higher interest rate environment continues to have an impact on
the capital value of these investments. The investment yield offers a
potentially accretive return to holding cash while the Company deploys capital
in opportunities in line with its investment strategy. These funds invest in
ungeared long-dated leased real estate, debt and infrastructure.
Cash management
The Company adopts an active approach to enhance returns on its cash balances.
As at 30 September 2024, the Company had invested a total of £23.7 million in
UK Treasury Bonds (Gilts) and £9.6 million in UK Treasury Bills with
annualised yields to maturity ranging from 4.3% to 5.2% with maturities
ranging between October 2024 and June 2026. These government backed short term
investments offer the Company enhanced returns over cash balances.
Post period end, on 15 October 2024, ART made two further investments in Gilts
of £10 million each and, on 21 October 2024, ART received £6.7 million at
maturity of a UK Treasury Bill investment.
As at 30 September 2024, the Company also had invested £10.0 million in the
Morgan Stanley Sterling Liquidity Fund, which invests in high quality
short-term money market instruments denominated in sterling, offers same day
liquidity and earns an annualised return, net of Morgan Stanley's fees, of
4.9% and £6.9 million in the BlackRock ICS Sterling Government Liquidity
Fund, which invests in government debt, offers same day liquidity and earns an
annualised return, net of BlackRock's fees, of 4.8%.
Post period end, the Company increased its investment in the BlackRock ICS
Sterling Government Liquidity Fund to £10.0 million.
Results and dividends
Results
Basic earnings for the six months ended 30 September 2024 are £3.1 million
(5.1 pence per ordinary share, see note 8 of the financial statements).
Adjusted earnings, which the Board believe is a more appropriate assessment of
the operational income accruing to the Group's activities, for the six months
ended 30 September 2024 are £3.0 million: this represents 5.0 pence per
ordinary share, which compares with adjusted earnings of 4.6 pence per
ordinary share in the same period of last year (see note 8 of the financial
statements). Adjusted earnings have improved due to enhanced revenues from
investments supported by treasury management initiatives.
The net asset value per ordinary share at 30 September 2024 is 208.8 pence per
share (31 March 2024: 207.3 pence per ordinary share) (see note 9 of the
financial statements). The increase in net asset value reflects a positive
fair value movement on investments and improved earnings after dividends.
Dividends
The Board announces a dividend of 1.0 pence per ordinary share which is
expected to be paid on 24 January 2025 (ex-dividend date 5 December 2024 and
record date 6 December 2024).
The dividends paid and declared in respect of the twelve month period ended 30
September 2024 totalled 4.0 pence per ordinary share representing an annual
dividend yield of 3.3% p.a. by reference to the average closing share price
over the twelve months to 30 September 2024.
During the period, £98,802 dividends were paid in cash and £1,093,277
settled by scrip issue of shares.
Scrip dividend alternative
Shareholders of the Company have the option to receive shares in the Company
in lieu of a cash dividend, at the absolute discretion of the Directors, from
time to time.
The number of ordinary shares that an Ordinary Shareholder will receive under
the Scrip Dividend Alternative will be calculated using the average of the
closing middle market quotations of an ordinary share for five consecutive
dealing days after the day on which the ordinary shares are first quoted "ex"
the relevant dividend.
The Board has elected to offer the scrip dividend alternative to Shareholders
for the dividend for the quarter ended 30 September 2024. Shareholders who
returned the Scrip Mandate Form and elected to receive the scrip dividend
alternative will receive shares in lieu of the next dividend. Shareholders who
have not previously elected to receive scrip may complete a Scrip Mandate Form
(this can be obtained from the registrar: contact Computershare (details
below)), which must be returned by 9 January 2025 to benefit from the scrip
dividend alternative for the next dividend.
Financing
As at 30 September 2024 the Group has one direct bank loan of €9.5 million
(£7.9 million), with no financial covenant tests, to a subsidiary used to
finance the acquisition of the Hamburg property. The loan is secured over the
Hamburg property and has no recourse to the other assets of the Group.
Further details of individual asset financing can be found under the
individual investment review sections later in this report.
Share buybacks
Following the Annual General Meeting held on 5 September 2024 the Company has
the authority to buy back a total of 8,966,800 shares. No shares have yet been
bought back under this authority.
During the period and post period end, the Company did not purchase any shares
in the market.
As at the date of this announcement, the ordinary share capital of the Company
is 68,470,638 (including 7,717,581 ordinary shares held in treasury) and the
total voting rights in the Company is 60,753,057.
Foreign currency
The Company monitors foreign exchange exposures and considers hedging where
appropriate. Foreign currency balances have been translated at the period end
rates of £1:€1.199 as appropriate.
Going concern
The Company has adopted a prudent short-term strategy to move to cash
conservation and a cautious approach to commitments to new investments over
this uncertain time. Alert to the impact of potentially reducing income
returns, this approach has supported a robust balance sheet position. The
Company continues to adopt this cautious approach to new investment and is
conserving cash because of the uncertainty that has characterised the past few
months; this ensures the Company retains a robust financial footing, making it
well positioned to take advantage of new investment opportunities.
As noted above, the Company held approximately (as at 30 September 2024) 17.7%
of its assets (excluding sundry net assets) in cash (including the investments
in the Morgan Stanley Sterling Liquidity Fund and BlackRock ICS Sterling
Government Liquidity Fund) and 27.0% in highly liquid UK Treasury Bonds and UK
Treasury Bills with limited current contractual capital commitments. While
there is external financing in the Group's investment interests, this is
limited and non-recourse to the Company; the borrowings in these special
purpose vehicles are compliant with their banking covenants. See the
investment review section for more details on relevant investments.
Bearing in mind the nature of the Group's business and assets, after making
enquiries, with the support of revenue forecasts for the next twelve months
and considering the above, the Directors consider that the Group has adequate
resources to continue in operational existence for the foreseeable future. For
this reason, they continue to adopt the going concern basis in preparing the
financial statements.
ART has no arrangements with any person currently on (or potentially on) any
sanctions list. The Board continues to monitor the global political and
economic situation regularly assessing impacts arising from inflation and
interest rate changes for a potential material impact on ART's portfolio.
Strategy and outlook
ART's investment portfolio benefits from diversification across geographies,
sectors, and asset types. As inflationary outlook and interest rate policy
continue to shape the economic backdrop in which the Company operates, ART
remains on a robust financial footing and is well placed to capitalise on new
investment opportunities.
ART remains committed to growing its diversified investment portfolio. In
recent years the Company focused on reducing exposure to direct development
risk and recycling capital into cashflow driven investments. The Company is
currently focussed on its loan portfolio and also on its wider investment
strategy which targets investments offering inflation protection via index
linked income adjustments and investments that have potential for capital
gains.
William Simpson
Chairman
21 November 2024
Investment review
Portfolio overview & risk analysis as at 30 September 2024
Investment name
Investment type Carrying value Income return p.a. * Investment location Property type / underlying security Investment notes % of portfolio(1) Notes **
High return debt (36.8%)
Secured senior finance
Senior secured loans (excluding committed but undrawn facilities of £1.0 £24.0m (2) 9.6% (3) UK Diversified loan portfolio focussed on real estate investments and Senior secured debt 19.5% 13
million) developments
Secured mezzanine finance
Second charge mezzanine loans £21.3m (2) 18.0% (3) UK Diversified loan portfolio focussed on real estate investments and Secured mezzanine debt and subordinated debt 17.3% 13
developments
High return equity in property investments (14.7%)
Long leased industrial facility, Hamburg
Direct property £7.1m (5) 8.7% (4) Germany Long leased industrial complex in major European industrial and logistics hub Medium term moderately geared bank finance facility 5.8% 10
with RPI linked rent
(€8.5m)
Long leased hotel, Wadebridge
Direct property £3.3m 6.6% (4) UK Long leased hotel to Travelodge, a large UK hotel group with CPI linked rent No external gearing 2.7% 10
Long leased hotel, Lowestoft
Direct property £2.9m 6.5% (4) UK Long leased hotel to Travelodge, a large UK hotel group with RPI linked rent No external gearing 2.3% 10
Long leased hotel, Yardley
Direct property £4.8m 8.1% (4) UK Long leased hotel to Travelodge, a large UK hotel group with RPI linked rent No external gearing 3.9% 10
Other investments (30.8%)
Listed and authorised fund investments
£3.9m UK & Channel Islands Commercial real estate, infrastructure and debt funds Short to medium term investment in listed and authorised funds
8.2% (4) 3.2% 11
Affordable housing
Residential Investment £0.7m n/a UK High-yield residential UK portfolio 100% shareholding; no external gearing 0.6% 10
UK Treasury Bonds £23.7m 4.3%-4.9% (6) UK UK government bonds - 19.3% 11
0.1%-5.0% (7)
UK Treasury Bills £9.6m 4.8%-5.2% (6) UK UK government bonds - 7.7% 11
Cash and short-term investments (17.7%)
Cash (8) £4.9m 3.5% (9) UK 'On call' and current accounts - 4.0% -
Sterling Money Market Funds £16.9m 4.8%-5.3% (10) UK Morgan Stanley and BlackRock funds Money market funds, daily liquidity 13.7% 16
( )
* Return from underlying investments excluding Fund fees
** See notes to the financial statements
(1) Percentage share shown based on NAV excluding the Company's sundry
assets/liabilities
(2) Including accrued interest/coupon at the balance sheet date
(3) The income returns for high return debt are the annualised actual finance
income return over the period shown as a percentage of the average committed
capital over the period
(4) Yield on equity over 12 months to 30 September 2024
(5) Property value including sundry assets/liabilities, net of associated debt
(6) Range of annualised yields to maturity
(7) Range of fixed annual coupons
(8) Group cash of £5.2m excluding cash held with the Hamburg holding company
of £0.3m
(9) Weighted average interest earned on call accounts
(10) Range of annualised daily return (net of fees)
High return debt
Overview
ART has a portfolio of secured loan investments which contribute a diversified
return to the Company's earnings position. The portfolio comprises high return
senior (first charge) loans and mezzanine (second charge) loans secured on
real estate investment assets and developments. ART loan underwriting is
supported by the Investment Manager's asset-backed lending experience,
developer and investor relationships and knowledge of the underlying assets
and sectors, in addition to the Group's partnerships with specialist debt
providers.
Secured Finance
Investment Investment type Carrying value Income return p.a. Property type / underlying security Investment notes
Secured senior finance First charge secured loans £24.0m * 9.6%** Diversified loan portfolio focussed on real estate investments and Secured debt
developments
Secured mezzanine finance Second charge secured loans £21.3m * 18.0%** Diversified loan portfolio focussed on real estate investments and Second charge secured debt and secured subordinated debt
developments
* Including accrued interest/coupon at the balance sheet date
** The income returns for high return debt are the annualised actual
finance income return over the period shown as a percentage of the average
committed capital over the period
These loans are typically secured on real estate investment and development
assets with attractive risk-adjusted income returns from either current or
capitalised interest or coupons.
As at 30 September 2024, ART had invested a total amount of £45.3 million
across twelve loans. Over the past twelve months the loan portfolio has
decreased by 21.8%.
During the six months to 30 September 2024, additional drawdowns of £1.9
million were made on existing loans, one loan for £4.1 million (including
accrued interest and exit fees) was fully repaid and a further £5.9 million
(including accrued interest) was received as part repayments.
Post period end, one new loan was granted for £3.1 million, £0.3 million of
drawdowns were made on existing loans, two loans for £20.5 million (including
accrued interest and applicable fees) were fully repaid and part payments were
received amounting to £0.6 million (including accrued interest).
Each loan will typically have a term of up to two years, a maximum 75% loan to
gross development value ratio and be targeted to generate attractive
risk-adjusted income returns. As at 30 September 2024, the senior portfolio
has an average LTV of 62.0% based on loan commitments (with mezzanine loans
having an LTV range of between 49.5% and 72.0% whilst the highest approved
senior loan LTV is 63.6%).
Four loans in the portfolio have entered receivership and ART is working
closely with stakeholders to maximise capital recovery. The Company has
considered the security on these loans (which are a combination of a first
charge and a second charge over the respective assets and personal guarantees)
and has impaired one loan, which is accounted for at fair value, by £0.4
million; the Group also calculated an ECL on the other three loans of
approximately £4.3 million; the Group have also provided for an ECL on the
remainder of the loans' portfolio for an additional £1.7 million. In total,
the Group have provided for an ECL of £6.0 million (31 March 2024: £5.7
million) in its consolidated accounts.
Current loan investment examples:
Location Total commitment Loan type Loan term Current LTV Underlying security
Reading, Berkshire £3,563,000 Mezzanine Development Loan 13 57.45% Redevelopment to provide ninety-three apartments
St. Lawrence, Jersey £11,731,000 Senior Development Loan 24 63.00% Development of eleven new build apartments
Throughout the UK £12,000,000 Senior Investment Loan 36 59.72% Refinance of a portfolio of six care homes
London £8,737,000 Mezzanine Investment Loan 60 49.77% Refinance of Central London hotel
High return equity in property investments
Overview
ART continues to remain focused on investments that offer the potential to
deliver attractive risk-adjusted returns by way of value enhancement through
active asset management, improvement of income, selective deployment of
capital expenditure and the ability to undertake strategic sales when the
achievable price is accretive to returns.
Long leased industrial facility, Hamburg
Investment Investment type Carrying value Income return p.a. Property type / Investment notes
underlying security
Industrial facility, Werner-Siemens-Straße Hamburg, Germany Direct property £7.1m* 8.7%** High return industrial facility in Hamburg Germany Long leased investment with moderately geared, medium term bank finance
facility
(€8.5m)
* Property value including sundry assets/liabilities and cash, net of
associated debt
** Yield on equity over twelve months to 30 September 2024, excluding
Fund fees
ART has an investment of €8.5 million (£7.1 million) in an industrial
facility leased to a leading international group.
The property is held freehold and occupies a site of 11.8 acres in Billbrook,
a well-established and well-connected industrial area located approximately 8
kilometres south-east of Hamburg centre. Hamburg is one of the main industrial
and logistics markets in Germany.
The property is leased to Veolia Umweltservice Nord GmbH, part of the Veolia
group, an international industrial specialist in water, waste and energy
management, with a 17-year unexpired lease term. Under the operating lease,
the tenant is responsible for building maintenance and the rent has periodic
inflation linked adjustments.
The Hamburg asset is funded by way of a €9.5 million (£7.9 million)
non-recourse, fixed rate, bank debt facility which matures in 31 July 2028.
The facility carries no financial covenant tests.
This investment offers the potential to benefit from a long term secure and
predictable inflation-linked income stream which is forecast to generate
stable high single digit income returns. In addition, the investment offers
the potential for associated capital growth from an industrial location in a
major German logistics and infrastructure hub.
Long leased hotel, Wadebridge, Cornwall
Investment Investment type Carrying value Income return p.a. Property type / Investment notes
underlying security
Hotel, Wadebridge Cornwall, UK Direct property £3.3m 6.6%* Long leased hotel to Travelodge, a large UK hotel group with RPI linked rent No external gearing
* Yield on equity over twelve months to 30 September 2024, excluding
Fund fees
ART has an investment of £3.3 million (property valuation as at 30 September
2024) in a 55-bedroom property, which is held freehold and is situated on the
outskirts of Wadebridge in the county of Cornwall. The hotel is in a
well-connected location in close proximity to the A39.
The property is leased to Travelodge Hotels Limited until September 2035 with
a Landlord's extension of an additional 7 years resulting in an expiry of
2042. Under the lease, the tenant is responsible for building maintenance.
The passing rent of £0.3 million p.a. has inflation linked adjustments.
Long leased hotel, Lowestoft
Investment Investment type Carrying value Income return p.a. Property type / Investment notes
underlying security
Hotel, Lowestoft, UK Direct property £2.9m 6.5%* Long leased hotel to Travelodge, a large UK hotel group with RPI linked rent No external gearing
* Yield on equity over twelve months to 30 September 2024, excluding
Fund fees
ART has an investment of £2.9 million (property valuation as at 30 September
2024) in a 47-bedroom property, which is held freehold and occupies a site of
1.08 acres in Lowestoft, a well established and well connected area located in
close proximity to the A47 which runs to Norwich.
The property is leased to Travelodge Hotels Limited until May 2034 with a
Landlord's extension of an additional 6 years resulting in an expiry of 2040.
Under the lease, the tenant is responsible for building maintenance.
The passing rent of £0.3 million p.a. has inflation linked adjustments.
Long leased hotel, Yardley, Birmingham
Investment Investment type Carrying value Income return p.a. Property type / Investment notes
underlying security
Hotel, Yardley, UK Direct property £4.8m 8.1%* Long leased hotel to Travelodge, a large UK hotel group with RPI linked rent No external gearing
* Yield on equity over twelve months to 30 September 2024, excluding
Fund fees
ART has an investment of £4.8 million (property valuation as at 30 September
2024) in a 64-bedroom property, which is held freehold and occupies a site of
1.42 acres and has 116 car parking spaces in Yardley. The hotel is situated to
the east of Birmingham City Centre off the A45. The hotel is in a
well-connected location equidistant between Birmingham City Centre to the west
and Birmingham Airport to the east.
The property is leased to Travelodge Hotels Limited until November 2060 with a
tenant only break option in 2035 (11 years unexpired). Under the lease, the
tenant is responsible for building maintenance.
The passing rent of £0.4 million p.a. has inflation linked adjustments.
Other Investments
Listed and authorised fund investments
Investment Investment type Carrying value Income return p.a. * Property type / underlying security Investment notes
Sequoia Economic Infrastructure Income Fund Limited Listed equity £2.2m 8.6% Listed investment fund FTSE 250 infrastructure debt fund
GCP Infrastructure Investments Limited Listed equity £1.0m 8.9% Listed investment fund FTSE 250 infrastructure fund
GCP Asset Backed Income Fund Limited Listed equity £0.7m 6.3% Listed investment fund Diversified asset back debt fund
Total £3.9m 8.2%
* Yield on equity over twelve months to 30 September 2024
The Company has invested across three investments that offer potential to
generate attractive risk adjusted returns. The investment yield offers a
potentially accretive return to holding cash while the Company deploys capital
in opportunities in line with its investment strategy. These funds invest in
ungeared long-dated leased real estate, debt and infrastructure.
During the period, ART received £0.5 million as a partial redemption from GCP
Asset Backed Income Fund Limited. The remaining value of these investments as
at 30 September 2024 was £3.9 million.
Affordable Housing
The Company's wholly owned investment, RealHousingCo Limited ("RHC") has
obtained successful registration with the Regulator of Social Housing as a For
Profit Registered Provider of affordable homes. This status provides RHC with
a platform to undertake future investment in the affordable housing sector
which offers scope to generate long term, inflation-linked returns while
addressing the chronic undersupply of affordable homes in the UK.
RHC owns a residential property located in Liverpool (UK), which is comprised
of seven units, all of which are occupied by private individuals, each with a
six month term contract. The fair value of the Liverpool property as at 30
September 2024 was £0.7 million.
UK Treasury Bonds (Gilts) and Bills
Investment Investment type Carrying value Income return p.a. * Property type / underlying security Investment notes
Gilts UK Treasury Bonds £23.7m 4.3%-4.9% Liquid Government security Short dated (maturity range: March 2025 - June 2026)
Treasuries UK Treasury Bills £9.6m 4.8%-5.2% Liquid Government security Short dated (maturity range: October 2024 - March 2025)
Total £33.3m 4.7% **
* Range of annualised yield to maturity
** Weighted average
These government backed short term investments offer the Company enhanced
returns over cash balances.
During the period, ART invested £9.5 million in UK Treasury Bills, earning a
yield to maturity ranging from 4.8% to 5.2%, and £10.0 million in Gilts,
earning a yield to maturity of 4.3%, and ART received £6.1 million at
maturity of a Gilt investment, which earned a yield to maturity of 4.8%.
Post period end, on 15 October 2024, ART made two further investments in Gilts
of £10 million each and, on 21 October 2024, ART received £6.7 million at
maturity of a UK Treasury Bill investment.
Cash balances
Investment Investment type Carrying value Income return p.a. Property type / underlying security Investment notes
Cash balance * Cash £4.9m 3.5% ** 'On call' and current accounts n/a
Morgan Stanley Sterling Liquidity Fund Short-term investment £10.0m 4.9% *** Money market fund, daily liquidity n/a
BlackRock Sterling Liquidity Fund Short-term investment £6.9m 4.8% *** Money market fund, daily liquidity n/a
* Group cash of £5.2m excluding cash held with the Hamburg holding
company of £0.3m
** weighted average interest earned on call accounts
*** annualised daily return (net of fees)
As at 30 September 2024, the Group had cash balances of £4.9 million,
excluding cash held with the Hamburg holding company of £0.3 million.
During the period, ART invested £6.9 million in the BlackRock ICS Sterling
Government Liquidity Fund, which invests in government debt, offers same day
liquidity and earns an annualised return, net of BlackRock's fees, of 4.8%.
Post period end, the Company increased its investment in the BlackRock ICS
Sterling Government Liquidity Fund to £10.0 million.
The Group's cash is held with established banks with strong credit ratings.
Summary
ART's investment portfolio benefits from diversification across geographies,
sectors, and asset types. As inflationary outlook and interest rate policy
continue to shape the economic backdrop in which the Company operates, ART
remains on a robust financial footing and is well placed to capitalise on new
investment opportunities.
ART remains committed to growing its diversified investment portfolio. In
recent years the Company focused on reducing exposure to direct development
risk and recycling capital into cashflow driven investments. The Company is
currently focussed on its loan portfolio and also on its wider investment
strategy which targets investments offering inflation protection via index
linked income adjustments and investments that have potential for capital
gains
Brad Bauman and Gordon Smith
For and on behalf of the Investment Manager
21 November 2024
Principal risks and uncertainties
The principal risks and uncertainties facing 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.
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
2024, 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 ART are listed below.
By order of the Board
William Simpson
Chairman
21 November 2024
Independent review report
To the Members of Alpha Real Trust Limited
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-yearly financial report for the six months ended 30 September 2024 is not
prepared, in all material respects, in accordance with International
Accounting Standard 34, as adopted by the European Union, and the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial Conduct
Authority.
We have been engaged by the company to review the condensed consolidated set
of financial statements in the half-yearly financial report for the six months
ended 30 September 2024 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.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" ("ISRE (UK) 2410"). 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
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.
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 set of financial
statements included in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, "Interim Financial
Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the group to
cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
company a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting the requirements of the Disclosure Guidance 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.
BDO Limited
Chartered Accountants
2(nd) Floor, Plaza House
Admiral Park
St Peter Port
Guernsey GY1 3LL
21 November 2024
Condensed consolidated statement of comprehensive income
For the six months ended For the six months ended
30 September 2024 30 September 2023
(unaudited) (unaudited)
Notes Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Income
Revenue 3 955 - 955 820 - 820
Interest revenue 2,609 - 2,609 3,398 - 3,398
Change in the revaluation of investment properties 10 - 215 215 - (867) (867)
Gains/(losses) on financial assets and liabilities held at fair value through 5 178 327 505 (62) (48) (110)
profit or loss
Total income/(expense) 3,742 542 4,284 4,156 (915) 3,241
Expenses
Expected credit losses 29 (357) (328) (277) (779) (1,056)
Property operating expenses (50) - (50) (41) - (41)
Investment Manager's fee 21 (1,233) - (1,233) (1,158) - (1,158)
Other administration costs (548) - (548) (546) - (546)
Total operating expenses (1,802) (357) (2,159) (2,022) (779) (2,801)
Operating profit/(loss) 1,940 185 2,125 2,134 (1,694) 440
Share of (loss)/profit of joint venture 12 (16) - (16) 167 (120) 47
Finance income 4 1,230 - 1,230 481 4 485
Finance costs (99) (84) (183) (102) - (102)
Profit/(loss) before taxation 3,055 101 3,156 2,680 (1,810) 870
Taxation 6 (70) (23) (93) (18) 23 5
Profit/(loss) after taxation 2,985 78 3,063 2,662 (1,787) 875
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 - (195) (195) - (443) (443)
Other comprehensive expense for the period - (195) (195) - (443) (443)
Total comprehensive income/(expense) for the period 2,985 (117) 2,868 2,662 (2,230) 432
Earnings per ordinary share (basic & diluted) 8 5.1p 1.5p
Adjusted earnings per ordinary share (basic & diluted) 8 5.0p 4.6p
The total column of this statement represents the Group's statement of
comprehensive income, 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 2024 31 March 2024
(unaudited) (audited)
£'000 £'000
Non-current assets
Investment property 10 26,583 26,740
Loans advanced 13 7,699 16,039
34,282 42,779
Current assets
Investment in joint venture 12 17 12,630
Investments held at fair value 11 37,262 23,675
Derivatives held at fair value through profit or loss 104 327
Loans advanced 13 37,553 30,407
Collateral deposit 14 338 1,156
Trade and other receivables 15 3,655 4,500
Cash and cash equivalents 16 22,142 17,221
101,071 89,916
Total assets 135,353 132,695
Current liabilities
Trade and other payables 17 (1,216) (1,145)
Corporation tax (88) (56)
Bank borrowings 18 (30) (31)
Total current liabilities (1,334) (1,232)
Total assets less current liabilities 134,019 131,463
Non-current liabilities
Bank borrowings 18 (7,866) (8,053)
Deferred tax 6 (319) (304)
(8,185) (8,357)
Total liabilities (9,519) (9,589)
Net assets 125,834 123,106
Equity
Share capital 19 - -
Special reserve 63,654 62,602
Translation reserve (495) (300)
Capital reserve 33,255 33,177
Revenue reserve 29,420 27,627
Total equity 125,834 123,106
Net asset value per ordinary share 9 208.8p 207.3p
The financial statements were approved by the Board of Directors and
authorised for issue on 21 November 2024. They were signed on its behalf by
William Simpson.
William
Simpson
Director
The accompanying notes form an integral part of these financial statements.
Condensed consolidated cash flow statement
For the six months ended For the six months ended
30 September 2024 30 September 2023
(unaudited) £'000 (unaudited) £'000
Operating activities
Profit for the period after taxation 3,063 875
Adjustments for:
Change in revaluation of investment property (215) 867
Gains/(losses) on financial assets and liabilities held at fair value through (505) 110
profit or loss
Taxation 93 (5)
Share of loss/(profit) of joint venture 16 (47)
Interest receivable on loans to third parties (2,609) (3,398)
Expected credit losses 328 1,056
Finance income (1,230) (485)
Finance cost 183 102
Operating cash flows before movements in working capital (876) (925)
Movements in working capital:
Movement in trade and other receivables 864 (42)
Movement in trade and other payables 30 93
Cash flows generated from/(used in) operations 18 (874)
Loan interest received 1,813 678
Loans granted to third parties (2,529) (9,739)
Loans repaid by third parties 4,133 8,710
Interest received 148 131
Interest paid (91) (93)
Tax paid (15) (30)
Cash flows generated from/(used in) operating activities 3,477 (1,217)
Investing activities
Acquisition of investment property - (5,118)
Investment in UK Treasury Bonds and Bills (19,486) (13,140)
Redemption of UK Treasury Bonds and Bills 6,100 14,130
Redemption on investments 501 -
Capital return from joint venture 12,511 -
Dividend income from investments 178 187
Income from UK Treasury Bonds and Bills 380 163
Dividend income from Sterling Liquidity Funds 273 33
Collateral deposit increase 817 12
Cash flows generated from/(used in) investing activities 1,274 (3,733)
Financing activities
Share buyback costs (41) (39)
Cash received/(paid) on maturity of foreign exchange forward 336 (202)
Ordinary dividends paid (99) (106)
Cash flows generated from/(used in) financing activities 196 (347)
Net increase/(decrease) in cash and cash equivalents 4,947 (5,297)
Cash and cash equivalents at beginning of period 17,221 18,455
Exchange translation movement (26) (66)
Cash and cash equivalents at end of period 22,142 13,092
The accompanying notes form an integral part of these financial statements.
Condensed consolidated statement of changes in equity
For the six months ended 30 September 2024 Notes Special reserve Translation reserve Capital Revenue Total equity
(unaudited) £'000 £'000 reserve reserve £'000
£'000 £'000
At 1 April 2024 62,602 (300) 33,177 27,627 123,106
Total comprehensive income/(expense) for the period
Profit for the period - - 78 2,985 3,063
Other comprehensive expense for the period - (195) - - (195)
Total comprehensive (expense)/income for the period - (195) 78 2,985 2,868
Transactions with owners
Cash dividends 7 - - - (99) (99)
Scrip dividends 7 1,093 - - (1,093) -
Share issue costs (41) - - - (41)
Total transactions with owners 1,052 - - (1,192) (140)
At 30 September 2024 63,654 (495) 33,255 29,420 125,834
For the six months ended 30 September 2023 Notes Special reserve Translation reserve Capital Revenue Total equity
(unaudited) £'000 £'000 reserve reserve £'000
£'000 £'000
At 1 April 2023 60,550 452 40,147 23,918 125,067
Total comprehensive income/(expense) for the period
Loss/(profit) for the period - - (1,787) 2,662 875
Other comprehensive expense for the period - (443) - - (443)
Total comprehensive (expense)/income for the period - (443) (1,787) 2,662 432
Transactions with owners
Cash dividends 7 - - - (106) (106)
Scrip dividends 7 1,053 - - (1,053) -
Share issue costs (39) - - - (39)
Total transactions with owners 1,014 - - (1,159) (145)
At 30 September 2023 61,564 9 38,360 25,421 125,354
The accompanying notes form an integral part of these financial statements.
Notes to the condensed consolidated financial statements for the period ended
30 September 2024
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 Euro and Sterling. The
presentation currency of the Group is Sterling. For Euro based transactions
the period end exchange rate used is £1:€1.199 (31 March 2024:
£1:€1.170) and the average rate for the period used is £1:€1.178 (30
September 2023: £1:€1.157).
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 21
November 2024 and signed by William Simpson on behalf of the Board.
2. Material accounting policies
Basis of preparation
The unaudited condensed consolidated financial statements in the half year
report for the six months ended 30 September 2024 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 2024, 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
(http://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 2024 and are expected to be applied to the Group's
annual consolidated financial statements for the year ending 31 March 2025.
The Group continues to only have one operating segment.
3. Revenue
For the six months ended For the six months ended
30 September 2024 30 September 2023
£'000 £'000
Rental income 929 768
Service charges 26 26
Rental revenue 955 794
Other income - 26
Other revenue - 26
Total 955 820
4. Finance income
For the six months ended For the six months ended
30 September 2024 30 September 2023
£'000 £'000
Bank interest receivable 148 131
Income from UK Treasury Bonds and Bills 809 317
Income from Liquidity Funds 273 33
Foreign exchange gain - 4
Total 1,230 485
5. Net gains and losses on financial assets and liabilities held at fair value
through profit or loss
For the six months ended For the six months ended
30 September 2024 30 September 2023
£'000 £'000
Unrealised gains and losses on financial assets and financial liabilities held
at fair value through profit or loss
Movement in fair value of loans - (314)
Movement in fair value of investments 271 (260)
Movement in fair value of foreign exchange forward contract (223) 414
Realised gains and losses on financial assets and financial liabilities held
at fair value through profit or loss
Movement in fair value of loans (57) 65
Dividends received from investments held at fair value 178 187
Realised gain/(loss) on foreign exchange forward contract 336 (202)
Net gains/(losses) on financial assets and financial liabilities held at fair 505 (110)
value through profit or loss
6. Taxation
For the six months ended For the six months ended
30 September 2024 30 September 2023
£'000 £'000
Current tax (70) 18
Deferred tax (23) (23)
Tax expense (93) 5
The Company is exempt from Guernsey taxation on income derived outside of
Guernsey and bank interest earned in Guernsey. A fixed annual fee of £1,600
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 and subsidiaries operations in Luxembourg, United Kingdom, the
Netherlands and Germany.
The current tax charge is due in Luxembourg, Germany and the Netherlands.
Unused tax losses in Luxembourg, Germany and the United Kingdom can be carried
forward indefinitely. Unused tax losses in the Netherlands can be carried
forward for nine years.
A deferred tax liability has been provided for in relation to the Hamburg
investment property in Germany and its movement can be analysed as follows:
30 September 2024 31 March 2024
£'000 £'000
Opening balance 304 349
Movement for the period 23 (36)
Foreign exchange movements (8) (9)
Closing balance 319 304
7. Dividends
Dividend reference period Shares Dividend Paid Date of payment
'000 per share £
Quarter ended 31 December 2023 4,923 1.0p 49,236 12 April 2024
Quarter ended 31 March 2024 4,956 1.0p 49,566 26 July 2024
Total paid in the period 98,802
Quarter ended 30 June 2024 4,906 1.0p 49,064 25 October 2024
Total 147,866
The Company will pay a dividend of 1.0p per share for the quarter ended 30
September 2024 on 24 January 2025.
In accordance with IAS 10, the dividends for quarters ended 30 June 2024 and
30 September 2024 have not been included in these financial statements as the
dividends were declared or paid after the period end. The current intention of
the Directors is to pay a dividend quarterly.
Dividends paid and payable after the balance sheet date have not been included
as a liability in the half year report.
Scrip dividend alternative
In the circular published on 18 December 2018, the Company sought
shareholders' approval to enable a scrip dividend alternative to be offered to
ordinary shareholders whereby they could elect to receive additional ordinary
shares in lieu of a cash dividend, at the absolute discretion of the
Directors, from time to time. This was approved by shareholders at the
extraordinary general meeting on 8 January 2019.
The number of ordinary shares that an ordinary shareholder will receive under
the scrip dividend alternative will be the average of the closing middle
market quotations of an ordinary share for five consecutive dealing days after
the day on which the ordinary shares are first quoted "ex" the relevant
dividend.
The Board elected to offer the scrip dividend alternative to shareholders for
all quarterly dividends from the quarter ended 31 December 2018 onwards. These
issued shares are ranked pari-passu in all respects with the Company's
existing issued ordinary shares.
During the six month period ended 30 September 2024, the Company issued
894,600 ordinary shares: on 12 April 2024, 437,407 were issued at the price of
£1.25 and, on 26 July 2024, 457,193 were issued at the price of £1.20.
8. 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 30 September 2024 ended six months ended 30 September 2023
31 March
2024
Ordinary share Ordinary share Ordinary share
Earnings/(losses) per statement of comprehensive income (£'000) 3,063 (929) 875
Basic and diluted earnings/(losses) (pence per share) 5.1 (1.6) 1.5
Earnings/(losses) per statement of comprehensive income (£'000) 3,063 (929) 875
Net change in the revaluation of investment properties (215) 1,419 867
Movement in fair value of investments (271) 161 260
Movement in fair value of foreign exchange forward contract (113) (450) (212)
Net change in the revaluation of the joint ventures' investment property - 4,141 120
Movement in fair value of loans 57 - -
Expected credit losses 357 1,711 779
Deferred tax 23 (36) (23)
Foreign exchange (gain)/loss 84 24 (4)
Adjusted earnings 2,985 6,041 2,662
Adjusted earnings (pence per share) 5.0 10.3 4.6
Weighted average number of shares ('000s) 59,958 58,626 57,879
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.
9. Net asset value per share
At 30 September 2024 At 31 March 2024 At 30 September 2023
£'000 £'000 £'000
Net asset value (£'000) 125,834 123,106 125,354
Net asset value per ordinary share 208.8p 207.3p 214.3p
Number of ordinary shares ('000s) 60,276 59,381 58,493
10. Investment property
30 September 2024 31 March 2024
£'000 £'000
Fair value of investment property at 1 April 26,740 23,496
Additions - 5,118
Fair value adjustment in the period/year 215 (1,419)
Foreign exchange movements (372) (455)
Fair value of investment property at 30 September / 31 March 26,583 26,740
Investment property is represented by a property located in Hamburg
(Werner-Siemens-Straße), Germany, a residential property located in
Liverpool, UK and three hotels located in the UK.
The fair value of the Hamburg property of €18.0 million (£15.0 million) (31
March 2024: €18.0 million (£15.4 million)) has been arrived at on the basis
of an independent valuation carried out at the balance sheet date by Cushman
& Wakefield ('C&W').
The fair values of the three UK hotels have been arrived at on the basis of an
independent valuation carried out at the balance sheet date by C&W and
were as follows, by location:
· Wadebridge £3.3 million (31 March 2024: £3.3 million)
· Lowestoft £2.9 million (31 March 2024: £2.7 million)
· Yardley £4.8 million (31 March 2024: £4.8 million).
The fair value of the Liverpool residential property of £0.7 million (31
March 2024: £0.6 million) has been arrived at on the basis of an independent
valuation carried out at the balance sheet date by ASL Chartered Surveyors
& Valuers ('ASL').
C&W and ASL 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".
Foreign exchange movement is recognised in other comprehensive income.
11. Investments held at fair value
30 September 2024 31 March 2024
£'000 £'000
Current
As at 1 April 23,675 18,310
Additions 19,486 26,414
Redemptions (6,601) (21,454)
Accrued income on UK Treasury Bonds and Bills 431 566
Movement in fair value of investments 271 (161)
As at 30 September / 31 March 37,262 23,675
The investments, which are disclosed as current investments held at fair
value, are as follows:
· Sequoia Economic Infrastructure Income Fund Limited ('SEQI'), a
listed fund: the market value of SEQI as at 30 September 2024 was £2.2
million (31 March 2024: £2.3 million).
· GCP Infrastructure Investments Limited ('GCP') a listed fund: the
market value of GCP as at 30 September 2024 was £1.0 million (31 March 2024:
£0.9 million).
· GCP Asset Backed Income Fund Limited ('GABI'): the market value
of GABI as at 30 September 2024 was £0.7 million (31 March 2024: £1.0
million). During the period, ART received £0.5 million as a partial
redemption from GABI.
· During the period, ART invested a further £10.0 million in Gilts
and received £6.1 as proceeds for Gilts that matured: the market value of the
Gilts' portfolio as at 30 September 2024 was £23.7 million (31 March 2024:
£19.5 million).
· During the period, ART invested £9.5 million in UK Treasury
Bills: the market value of the UK Treasury Bills' portfolio as at 30 September
2024 was £9.6 million (31 March 2024: £nil).
· HLP (ordinary shares (after cancellation of participating
redeemable preference shares following HLP's restructuring in February 2024)):
HLP provides quarterly valuations of the net asset value of its shares; the
net asset value of the investment as at 30 September 2024 was £nil (31 March
2024: £nil).
Post period end, in October 2024, ART purchased a further £20 million
investment in Gilts and received proceeds of £6.7 million at maturity of a UK
Treasury Bill.
12. Investment in joint venture
The movement in the Group's share of net assets of the joint venture can be
summarised as follows:
H2O H2O
30 September 2024 31 March 2024
£'000 £'000
As at 1 April 12,630 17,654
Group's share of joint venture's profits before fair value movements and (16) 443
dividends
Fair value adjustment for investment property and interest rate cap - (4,141)
Dividends paid by joint venture to the Group - (871)
Capital return (12,511) -
Foreign exchange movements (86) (455)
As at 30 September / 31 March 17 12,630
ART had an investment in the H2O shopping centre in Madrid, Spain: the Group
held a 30% equity investment in CBRE H2O Rivas Holding NV ('CBRE H2O'), a
company based in the Netherlands, which in turn owned 100% of the Spanish
entities that owned the shopping centre.
In April 2024, CBRE H2O disposed of its Spanish subsidiaries for net proceeds
of €48.4 million (£41.4 million): the price was based on the 31 December
2023 accounts of the Spanish subsidiaries and was adjusted, immaterially, for
the 3 April 2024 accounts; ART received €14.7 million (£12.5 million) as
capital return from CBRE H2O.
Post period end, CBRE H2O commenced a voluntary liquidation and is expected to
be dissolved by January 2025.
Foreign exchange movement is recognised in other comprehensive income.
13. Loans advanced
30 September 2024 31 March 2024
£'000 £'000
Non-current
Loans granted to third parties 7,593 15,834
Interest receivable from loans granted to third parties 106 205
Total loans at amortised cost 7,699 16,039
Loans at fair value through profit or loss - -
Total non-current loans 7,699 16,039
Current
Loans granted to third parties 40,093 32,304
Interest receivable from loans granted to third parties 3,163 3,350
Total loans at amortised cost 43,256 35,654
Loans at fair value through profit or loss 298 426
Expected credit losses (6,001) (5,673)
Total current loans 37,553 30,407
As at 30 September 2024, the Group had granted a total of £45.3 million (31
March 2024: £46.4 million) of secured senior and secured mezzanine loans to
third parties. These comprised twelve loans to UK entities, which assisted
with the purchase of property developments, predominantly residential, in the
UK. These facilities typically range from a 6 to 36 month term and entitle the
Group to a weighted average overall return on the investment of 18.0% for
mezzanine loans and 9.6% for senior loans.
All senior and mezzanine loans granted by the Group are secured asset backed
real estate loans. Senior loans have a first charge security and mezzanine
loans have a second charge security on the property developments.
Loans at fair value through profit or loss represents loans that failed the
'solely payment of principal and interest' criteria of IFRS 9 to be measured
at amortised cost: this is due to a loan facility agreement's clause that
links those loans to a return other than interest.
Movement in expected credit losses can be summarised as follows:
30 September 2024 31 March 2024
£'000 £'000
Opening balance of ECL (5,673) (3,685)
Movement for the period (revenue) 29 (277)
Movement for the period (capital) (357) (1,711)
Closing balance of ECL (6,001) (5,673)
As at 30 September 2024, four loans totalling £8.8 million (31 March 2024:
£8.1 million) in the portfolio have entered receivership: ART is closely
working with stakeholders to maximise capital recovery. The Company has
considered the security on these loans (which are a combination of a first
charge and a second charge over the respective assets and personal guarantees)
and have impaired one loan, which is accounted for at fair value, by £0.4
million (31 March 2024: £0.3 million); the Group also calculated an ECL on
the other three loans of approximately £4.3 million (31 March 2024: £4.1
million); the Group have also provided for an ECL on the remainder of the
loans' portfolio for an additional £1.7 million (31 March 2024: £1.6
million): in total, the Group have provided for an ECL of £6.0 million (31
March 2024: £5.7 million) in its consolidated accounts.
Loans maturity of the total £45.3 million loans granted by the Group at year
end, can be analysed as follows:
Less than 6 months Between 6 to 12 months Between 12 to 24 months £'m Over 24 months Total
£'m £'m £'m £'m
Non-current - - - 7,699 7,699
Current 29,241 8,312 - - 37,553
Post period end, one new loan was granted for £3.1 million, £0.3 million of
drawdowns were made on existing loans, two loans for £20.5 million (including
accrued interest and applicable fees) were fully repaid and part payments were
received amounting to £0.6 million (including accrued interest).
Despite all of the loans having a set repayment term, all but two of the loans
have a repayable on demand feature so the Group may call for an early
repayment of their principal, interest and applicable fees at any time.
Considering the 'on demand' clause, the Group concluded that the loans are in
stage 3 of the IFRS 9 model as should the loans be called on demand the
borrowers would technically be in default as repayment would only be possible
on demand if the property had already been sold. The two loans without a
repayable on demand clause amount to £8.3 million and £7.7 million and
mature in April 2025 and February 2029, respectively; both loans remain in
stage 1 of the IFRS 9 model. These two loans have an immaterial lifetime ECL
and hence no detailed analysis of whether those loans has suffered a
significant increase in credit risk has been performed.
14. Collateral deposit
30 September 2024 31 March 2024
£'000 £'000
Collateral deposit 338 1,156
The collateral deposit of £0.3 million (31 March 2024: £1.1 million) is a
cash deposit with Barclays Bank PLC ('Barclays') in Guernsey in relation to
the foreign exchange forward contract entered into by the Group at period end:
this cash has been placed on deposit.
15. Trade and other receivables
30 September 2024 31 March 2024
£'000 £'000
Current
Trade debtors 301 8
Other debtors 3,354 4,492
Total 3,655 4,500
The other debtors balance at period end includes £3.1 million held on escrow
for a secured senior mezzanine loan granted in October 2024.
The Directors consider that the carrying amount of trade and other receivables
approximates to their fair value.
16. Cash and cash equivalents
30 September 2024 31 March 2024
£'000 £'000
BlackRock ICS Sterling Government Liquidity Fund 6,850 -
Morgan Stanley Sterling Liquidity Fund 10,000 10,000
Cash at bank 5,292 7,221
Total 22,142 17,221
During the period, the Company invested £6.9 million in the BlackRock ICS
Sterling Government Liquidity Fund, which invests in government debt, offers
same day liquidity and earns an annualised return, net of BlackRock's fees, of
4.8%.
The Morgan Stanley Sterling Liquidity Fund invests in high quality short-term
money market instruments denominated in sterling, offers same day liquidity
and earns an annualised return, net of Morgan Stanley's fees, of 4.9%.
17. Trade and other payables
30 September 2024 31 March 2024
£'000 £'000
Trade creditors 73 35
Deferred revenue 233 220
Investment Manager's fee payable 630 589
Accruals 212 231
VAT 48 30
Other creditors 20 40
Total 1,216 1,145
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.
18. Bank borrowings
30 September 2024 31 March 2024
£'000 £'000
Current liabilities: interest payable 30 31
Total current liabilities 30 31
Non-current liabilities: bank borrowings 7,866 8,053
Total liabilities 7,896 8,084
The borrowings are repayable as follows:
Interest payable 30 31
On demand or within one year - -
In the second to fifth years inclusive 7,866 8,053
After five years - -
Total 7,896 8,084
Movements in the Group's non-current bank borrowings are analysed as follows:
30 September 2024 31 March 2024
£'000 £'000
As at 1 April 8,053 8,271
Amortisation of deferred finance costs 8 15
Exchange differences on translation of foreign currencies (195) (233)
As at 30 September / 31 March 7,866 8,053
As at 30 September 2024, bank borrowings represent the Nord LB (a German bank)
loan principal for €9.5 million (£7.9 million), excluding deferred finance
costs, which was used to partly fund the acquisition of the investment
property in Hamburg (Werner-Siemens-Straße), Germany. This loan is composed
of two tranches of €4.9 million (£4.1 million) and €4.6 million (£3.8
million), which bear a 1.85% and 2.7% fixed rate respectively and that are due
to mature in August 2028.
The borrowings are secured over the Hamburg property and have no recourse to
the other assets of the Group and the facility carries no financial covenant
tests. The fair value of bank borrowings at the balance sheet date is €9.5
million (£7.9 million).
The tables below set out an analysis and the movements of net liabilities from
financing activities for the period ended 30 September 2024 and same period of
prior year.
Foreign exchange forward Borrowings Total
£'000 £'000 £'000
Net liabilities from financing activities 327 (8,053) (7,726)
as at 1 April 2024
Cash movements (336) - (336)
Non cash movements
Foreign exchange adjustments - 195 195
Unrealised gain on foreign exchange forward contract 113 - 113
Loan fee amortisation and other costs - (8) (8)
Net liabilities from financing activities 104 (7,866) (7,762)
as at 30 September 2024
Foreign exchange forward Borrowings Total
£'000 £'000 £'000
Net liabilities from financing activities (171) (8,271) (8,442)
as at 1 April 2023
Cash movements 202 - 202
Non cash movements
Foreign exchange adjustments - 122 122
Unrealised gain on foreign exchange forward contract 212 - 212
Loan fee amortisation and other costs - (8) (8)
Net liabilities from financing activities 243 (8,157) (7,914)
as at 30 September 2023
19. Share capital
Number of shares
Authorised
Ordinary shares of no par value Unlimited
Ordinary Ordinary Ordinary
Issued and fully paid treasury external total
At 1 April 2024 7,717,581 59,381,140 67,098,721
Share issue for scrip dividend - 894,600 894,600
Shares bought back - - -
Shares cancelled following buyback - - -
At 30 September 2024 7,717,581 60,275,740 67,993,321
The Company has one class of ordinary shares. The Company has the right to
reissue or cancel the remaining treasury shares at a later date.
Following the Annual General Meeting held on 5 September 2024 the Company has
the authority to buy back a total of 8,966,800 shares. No shares have yet been
bought back under this authority.
During the period and post period end, the Company did not purchase any shares
in the market.
As at 30 September 2024, the ordinary share capital of the Company was
67,993,321 (including 7,717,581 ordinary shares held in treasury) and the
total voting rights in the Company was 60,275,740.
Scrip dividend alternative
In the circular published on 18 December 2018, the Company sought
shareholders' approval to enable a scrip dividend alternative to be offered to
ordinary shareholders whereby they could elect to receive additional ordinary
shares in lieu of a cash dividend, at the absolute discretion of the
Directors, from time to time. This was approved by shareholders at the
extraordinary general meeting on 8 January 2019.
The number of ordinary shares that an ordinary shareholder will receive under
the scrip dividend alternative will be the average of the closing middle
market quotations of an ordinary share for five consecutive dealing days after
the day on which the ordinary shares are first quoted "ex" the relevant
dividend.
The Board elected to offer the scrip dividend alternative to shareholders for
all quarterly dividends from the quarter ended 31 December 2018 onwards. These
issued shares are ranked pari-passu in all respects with the Company's
existing issued ordinary shares.
During the six month period ended 30 September 2024, the Company issued
894,600 ordinary shares: on 12 April 2024, 437,407 were issued at the price of
£1.25 and, on 26 July 2024, 457,193 were issued at the price of £1.20.
All transaction amounts in relation to the issue and buyback of shares in the
period are recognised within the Special Reserve and shown in the Statement of
Changes in Equity.
Post period end, the Company made no share buybacks.
On 25 October 2024, as a result of the scrip dividend elections related to the
dividend of the quarter ended 30 June 2024, the Company issued 477,317
ordinary shares at the price of £1.16.
As at the date of this announcement, the ordinary share capital of the Company
is 68,470,638 (including 7,717,581 ordinary shares held in treasury) and the
total voting rights in the Company is 60,753,057.
20. Events after the balance sheet date
Post period end, one new loan was granted for £3.1 million, £0.3 million of
drawdowns were made on existing loans, two loans for £20.5 million (including
accrued interest and applicable fees) were fully repaid and part payments were
received amounting to £0.6 million (including accrued interest).
Post period end, in October 2024, ART purchased a further £20 million
investment in Gilts, received proceeds of £6.7 million at maturity of a UK
Treasury Bill and increased its investment in the BlackRock ICS Sterling
Government Liquidity Fund to £10.0 million.
On 25 October 2024, as a result of the scrip dividend elections related to the
dividend of the quarter ended 30 June 2024, the Company issued 477,317
ordinary shares at the price of £1.16 (note 19).
As at the date of this announcement, the Company declares a quarterly dividend
of 1.0p per ordinary share, which is expected to be paid on 24 January 2025.
21. 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% 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% of any excess over an annualised TSR of 15% subject to
a rolling three year high water mark.
During the period, a total of £1.2 million (31 March 2024: £2.3 million) was
billed by ARC to ART. As at the period end, a total of £0.6 million was
outstanding (31 March 2024: £0.6 million).
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 2024 is provided in note 17.
The Directors of the Company received total fees as follows:
For the six months ended For the six months ended
30 September 2024 30 September 2023
Phillip Rose 13,750 13,750
Jeff Chowdhry 13,750 13,750
Melanie Torode 20,289 24,000
William Simpson 19,750 19,750
Peter Griffin 13,750 13,750
Total 81,289 85,000
The Directors' interests in the shares of the Company are detailed below:
30 September 2024 31 March 2024
Number of ordinary shares held Number of ordinary shares held
Phillip Rose 1,046,756 1,031,935
Jeff Chowdhry 5,000 5,000
Melanie Torode - -
William Simpson 51,094 40,347
Peter Griffin - -
Post period end, following the October 2024 scrip issue by the Company,
Phillip Rose and William Simpson increased their shareholdings in ART by 7,903
and 440 ordinary shares, respectively.
Alpha Global Property Securities Fund Pte. Ltd, a company registered in
Singapore, owned directly by the partners of ARC, held 26,433,204 shares in
the Company at 30 September 2024 (31 March 2024: 26,000,909).
ARC did not hold any shares in the Company at 30 September 2024 (31 March
2024: nil). The following, being partners of the Investment Manager, hold
direct interests in the following shares of the Company:
30 September 2024 31 March 2024
Number of ordinary shares held Number of ordinary shares held
Brian Frith - -
Phillip Rose 1,046,756 1,031,935
Brad Bauman 62,488 61,478
Post period end, following the October 2024 scrip issue by the Company, Brad
Bauman increased his shareholdings in ART to 63,026 ordinary shares.
During the period, Karl Devon-Lowe, a partner of ARC, received fees of £525
(31 March 2024: £5,000) in relation to directorial responsibilities on a
number of the Company's subsidiary companies.
During the period, a total of £46,950 (31 March 2024: £96,300) was billed by
Ocorian Administration (Guernsey) Limited to ART and an amount of £33,850 was
outstanding at period end (31 March 2024: £20,800).
22. Financial assets and financial liabilities held at fair value through
profit or loss
Financial assets carrying value
30 September 2024 31 March 2024
£'000 £'000
Financial assets at fair value through profit or loss
Investments held at fair value 37,262 23,675
Foreign exchange forward contract 104 327
Loans advanced 298 426
Total financial assets at fair value through profit or loss 37,664 24,428
At the balance sheet date, the Group held no financial liabilities at fair
value through profit and loss.
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 values of the ART's investments in the SEQI, GCP and
GABI shares, which are traded daily on the LSE, are based upon the market
value of the shares at the balance sheet date.
· The fair value of the investments in UK Treasury Bonds which are
traded on the LSE, is based upon the market price of those instruments at the
balance sheet date.
· The fair value of the investments in UK Treasury Bills, is based
upon the market valuation of those instruments provided by Barclays Bank PLC
at the balance sheet date.
Level 2
· 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.
Level 3
· The fair value of the HLP investment is based upon the price
provided by the issuer for the relevant share class owned: this is calculated
by reference to the net asset value of the investment and principally driven
by the fair value of HLP's underlying property investments. This net asset
value is therefore mainly based on unobservable inputs and is deemed to be a
level 3 financial asset. HLP's accounts are audited annually. HLP's underlying
investment properties are fair valued as per RICS definition and the ART Board
considers that any reasonable possible movement in the valuation of HLP's
individual properties would not be material to the value of ART's investment.
Financial assets and financial 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 2024.
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:
Assets and liabilities measured at fair value
30 September 2024
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Assets measured at fair value
Non-current
Investment property (note 10) - - 26,583 26,583
Loans advanced - - 298 298
Current
Investments held at fair value (note 11) 37,262 - - 37,262
Foreign exchange forward contract - 104 - 104
Assets and liabilities measured at fair value
31 March 2024
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Assets measured at fair value
Non-current
Investment property (note 10) - - 26,740 26,740
Loans advanced - - 426 426
Current
Investments held at fair value (note 11) 23,675 - - 23,675
Liabilities measured at fair value
Current
Foreign exchange forward contract - 327 - 327
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 2024.
Directors and Company information
Directors Independent valuers in the UK Legal advisors in Guernsey
William Simpson (Chairman) Cushman & Wakefield Carey Olsen
Jeff Chowdhry
Peter Griffin No 1 Colmore Square PO Box 98, Carey House
Phillip Rose
Melanie Torode Birmingham B4 6AJ Les Banques
St Peter Port
Guernsey GY1 4BZ
Registered office Independent valuers in Germany Legal advisors in the UK
Floor 2, Trafalgar Court Cushman & Wakefield Norton Rose
Les Banques Rathenauplatz, 1 3 More London Riverside
St Peter Port Frankfurt, 60313 London SE1 2AQ
Guernsey GY1 4LY Germany
Investment Manager Independent Auditor Broker
Alpha Real Capital LLP BDO Limited Panmure Liberum Limited
Level 6, 338 Euston Road
2(nd) Floor, Plaza House, Admiral Park
St Peter Port One New Change
London NW1 3BG
Guernsey GY1 3LL
London EC4M 9AF
Administrator and secretary Tax advisors in Europe Registrar
Ocorian Administration (Guernsey) Limited KPMG LLP Computershare Investor Services (Jersey) Limited
15 Canada Square
Floor 2, Trafalgar Court
13 Castle Street
London E14 5GL
St Helier
Les Banques, St Peter Port
Jersey JE1 1ES
Guernsey GY1 4LY
Ernst & Young LLP
1 More London Riverside
London SE1 2AF
Shareholder information
Further information on the Company can be found at the Company's website:
www.alpharealtrustlimited.com (http://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 Reporting/ Dividend period Ex-dividend date Record date Last date for election to scrip dividend Share certificates posted Payment date
Meeting dates (if applicable) (if applicable)
Half year report and dividend announcement 22 Quarter ending 5 6 9 23 24
November 30 September 2024 December 2024 December 2024 January January January
2024 2025 2025 2025
Trading update 28 Quarter ending 31 December 2024 13 14 27 10 11
(Qtr 3) February March March March April April
2025 2025 2025 2025 2025 2025
Annual report and dividend announcement 20 Quarter ending 31 March 3 4 10 24 25
June 2025 July July July July July
2025 2025 2025 2025 2025 2025
Annual report published 4
July
2025
Annual General Meeting 11
September 2025
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