REG - Alternative Inc REIT - Half-year Financial Report
03/03/2026 07:00
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RNS Number : 0056V Alternative Income REIT PLC 03 March 2026
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3 March 2026
Alternative Income REIT plc
(the "Company" or the "Group")
INTERIM REPORT AND FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER
2025 (the "Period")
NAV increased 1.0% over the Period
For the Period: Share price total return of +2.7% and unaudited NAV total
return of +3.8%
On track to deliver target annual dividend of no less than 5.6 pence per
share A (#_ftn1) ("pps") for the financial year ending 30 June 2026
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 2025 (the "Period").
Simon Bennett, Non-Executive Chair of Alternative Income REIT plc, comments:
"The Company is on track to deliver an annual dividend target of no less than
5.6 pence per share(A) ("pps") for the year ending 30 June 2026 (year ended 30
June 2025: 6.2 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 resetting of the dividend target this year, which is lower than the
previous year, is entirely due to increase in financing costs of the new
long-term debt facilities.
On a like-for-like basis, contracted annualised rent grew by 0.7% in the
Period, predominantly because of the index-linked rent reviews in Salford,
Brough and Solihull. 92.1% of the leases within the portfolio are
index-linked, with 38.0% of contracted rental income being reviewed annually.
Following the sale of the Group's petrol filling station in Crawley
("Crawley") in October 2025, at 31 December 2025, the Group owned 19
properties valued at £103.5 million (30 June 2025: 20 properties: £107.4
million).
At 31 December 2025, the Group's unaudited Net Asset Value was £68.0 million,
or 84.48 pps (30 June 2025: £67.3 million, or 83.64 pps), representing a 1.0%
increase over the Period. When combined with the two interim dividends paid in
the Period of 2.95 pps, this produced an unaudited NAV total return for the
Period of 3.84%.
On 20 October 2025 the Group completed new long-term debt facilities with HSBC
UK Bank plc (the 'New HSBC Bank Facilities') of £41 million, when the
previous senior loan matured. The New HSBC Bank Facilities consist of a term
loan of £31 million and a £10 million revolving credit facility, both on
floating rates for a fixed term of five years with an option to extend by two
years if mutually acceptable.
The Board remain confident that the Company is well-positioned for the future,
with a portfolio that continues to deliver secure, index-linked income and
which has the potential for capital growth as the property market recovers."
Financial Highlights
At 31 December 2025 (the "Period End")
31 December 2025 30 June 2025
(unaudited) (audited) Change
Net Asset Value ('NAV') £68.0 million £67.3 million 1.0%
NAV per share 84.48p 83.64p 1.0%
Share price per share 73.60p 74.00p -0.5%
Share price discount to NAV B (#_ftn2) 12.9% 11.5% 1.4%
Investment property fair value (based on external valuation) C (#_ftn3) £103.5 million(C) £107.4 million(C) -3.6%
Loan to gross asset value ('GAV') B D (#_ftn4) 34.3% 36.9%
Loan facility (D) £36.6 million £41.0 million
For the half year ended 31 December 2025
2025 2024 Change
(unaudited) (unaudited)
EPRA earnings per share ('EPS')(B) 3.23p 3.28p -1.5%
Adjusted EPS(B) 3.32p 3.26p 1.8%
Dividends per share 2.80p 3.10p -9.7%
Dividend cover(B) 118.6% 105.2% 13.4%
Dividend yield (annualised)(B) 7.6% 8.8%
Operating profit (including gain on sale of investment property but excluding £3.8 million £3.3 million 15.0%
fair value changes)
Profit before tax £3.1 million £3.4 million -8.8%
EPS per share 3.79p 4.22p -10.2%
Share price total return(B) 2.66% 11.78%
NAV total return(B) 3.84% 5.21%
Annualised gross passing rent £7.9 million £7.8 million 1.3%
Ongoing charges (annualised)(B) 1.59% 1.48% +11bps
Financial Highlights Overview
· The NAV increase of 1.0% to 84.48pps was primarily due to the £0.4 million
increase in the fair value of the investment properties, which in turn
reflected an increase in the wider UK real estate sector fuelled by interest
rate cuts and lower inflation.
· Dividends declared of 1.4pps, reflect the Board's target annual dividend of at
least 5.6pps (A) (2024: 6.2pps) which is expected to be fully covered.
Dividends for the Period were covered 118.6% (2024: 105.2%) by earnings.
· The dividend yield (B) of 7.6% has decreased when compared to the prior
Period, reflecting the dividend reduction as set out above.
· The Company's share price of 73.6p at the Period end reflects the widening of
the Company's share price discount to NAV to 12.9%, although the share price
has increased and the discount narrowed substantially since then.
· EPS of 3.8pps for the Period represents a decrease from the previous financial
year which is entirely due to increase in financing costs of the Group's new
long-term debt facilities.
· The Group secured new long-term facilities with HSBC UK Bank plc of £41
million, consisting of a term loan of £31 million and a £10 million
revolving credit facility ('RCF'). Both the term loan and RCF are on floating
rates for a fixed term of five years with an option to extend by two years if
mutually acceptable. Further details of the new facilities are contained in
both the Chairman's Statement and Note 13 to the Condensed Consolidated
Financial Statements.
· Loan to GAV of 34.3% and interest cover ratio ('ICR') of 317.75% gives
significant headroom on the lender's loan to value covenant of 60% and
interest cover covenant of 160%, based on the loan's current interest rate of
5.63%. The outstanding loan amount at 31 December 2025 was £36.6m, following
the receipt of the sale proceeds from Crawley in October 2025 which reduced
the RCF by £4.4 million.
Operational Highlights
At the Group's Period End of 31 December 2025:
· The Group's property portfolio had a fair value of £103.5 million across 19
properties (30 June 2025: £107.4 million across 20 properties).
· The disposal of the Group's petrol filling station for £4.5 million.
· EPRA Net Initial Yield(B) ('NIY') stood at 7.2% (30 June 2025: 7.1%).
· 92.1% of the Group's contracted income is index-linked to the Retail Price
Index or the Consumer Price Index; 38.0% is reviewed annually.
· The weighted average unexpired lease term ('WAULT') at the Period End was 15.4
years to the earlier of break and expiry (30 June 2025: 15.6 years) and 17.1
years to expiry (30 June 2025: 17.2 years).
Income and expense during the Period
· Rent recognised during the Period was £4.1 million (half year to 31 December
2024: £3.9 million). The number of tenants at the half year was 22 (31
December 2024: 23).
· 100% of the rent due during the Period ending 31 December 2025 has been
collected.
· The portfolio had annualised gross passing rent of £7.9 million across 19
properties (31 December 2024: £7.8 million across 20 properties).
Post balance sheet highlights
· On 4 February 2026, the Board declared an interim dividend of 1.40 pps in
respect of the quarter ended 31 December 2025. This was paid on 27 February
2026 to shareholders on the register at 13 February 2026 with an ex-dividend
date of 12 February 2026.
· In the next six-month period to 30 June 2026, 22% of the Group's income will
be reviewed (four annual index-linked rent reviews; one periodic index-linked
rent reviews (3 years since the previous review); and one lease expiries).
ENQUIRIES
Alternative Income REIT PLC
Simon Bennett - Chair Via AIRE's Company Secretary, Hanway Advisory: 0207 409 0181 or
by email: Aire.Cosec@jtcgroup.com (mailto:Aire.Cosec@jtcgroup.com)
Martley Capital REIM Ltd +44 (0)20 4551 1240
Richard Croft
Jane Blore
Panmure Liberum Limited +44 (0)20 3100 2000
Alex Collins
Tom Scrivens
The Company's LEI is 213800MPBIJS12Q88F71.
Further information on Alternative Income REIT plc is available at
www.alternativeincomereit.com (http://www.alternativeincomereit.com/) E
(#_ftn5)
NOTES
Alternative Income REIT PLC aims to generate a sustainable, secure and
attractive income return for shareholders from a diversified portfolio of UK
property investments, with a particular focus on alternative and specialist
real estate sectors. The majority of the assets in the Group's portfolio are
let on long leases which contain index linked rent review provisions.
The Company's asset manager is Martley Capital Real Estate Investment
Management Limited ("Martley Capital"). Martley Capital is a full-service real
estate investment management platform whose activities cover real estate
investing, lending, asset management and fund management. It has circa 40
employees across five offices in the UK and Europe. The team manages assets
with a value of circa £1 billion across 30 mandates (at 31 December 2025).
Chairman's Statement
Overview
I am pleased to present the unaudited half-yearly report of Alternative Income
REIT plc (the "Company" or the "Group") together with its subsidiaries for the
half year ended 31 December 2025.
During the period under review, the Company's portfolio increased in value
with the Group's net asset value rising by £0.7 million to £68.0 million (30
June 2025: £67.3 million), an increase on a par with both the benchmark
property indices and the Company's peer group.
92.1% of the Group's portfolio benefits from index-linked rent reviews, 38.0%
on an annual basis based on contracted rent. The Group has a strong balance
sheet, modest overheads and competitive borrowing costs and is thus well
placed to continue to deliver attractive and secure income to our
shareholders. The biggest risk factor for the Group remains tenant default,
although in recent years the Group has an excellent record of rent collection.
Portfolio Performance
The fair value of the Group's property portfolio amounted to £103.5 million
across 19 properties (30 June 2025: £107.4 million across 20 properties), the
decrease reflecting the sale of the Group's petrol filling station in Crawley.
At the Period end, the portfolio had a net initial yield of 7.1% (30 June
2025: 7.1%), and a WAULT to the first break of 15.4 years (30 June 2025: 15.6
years) and a WAULT to expiry of 17.1 years (30 June 2025: 17.2 years).
Property Transactions
In October 2025, the sale of the Group's petrol filling station for £4.5
million (gross of disposal costs), was completed.
Dividends and Earnings
The Company declared interim dividends totalling 2.80 pps in respect of the
half year ended 31 December 2025 (half year ended 31 December 2024: 3.10 pps).
Dividends declared for the Period are in line with the Board's target annual
dividend of no less than 5.6 pps(A), which is expected to be fully covered.
As set out in Note 8 to the Condensed Consolidated Financial Statements, these
dividends were covered by both the Group's EPRA Earnings(B) of 3.23 pps (31
December 2024: 3.28 pps), and by the Group's Adjusted EPS(B) (representing
cash) of 3.32 pps (31 December 2024: 3.26 pps). All dividends were paid as
Property Income Distributions.
Financing
The Group refinanced its long-term loan facility on 20 October 2025 with HSBC
UK Bank Plc. The new HSBC Bank Facilities consist of a term loan of £31
million and a £10 million revolving credit facility ('RCF'), both on floating
rates for a fixed term of five years with an option to extend by two years if
mutually acceptable.
At 31 December 2025, the Group had partially utilised its £41 million
facility with HSBC, with the term loan of £31 million fully drawn and a drawn
down RCF of £5.6 million, following the use of the proceeds from the disposal
of Crawley to reduce the RCF by £4.4 million. Total borrowings at 31 December
2025 were £36.6 million (31 December 2024: £41.0 million).
Both the HSBC loan and RCF have a margin of 1.7% per annum plus SONIA
(sterling overnight index average rate). This represents an improvement in
terms on the previous debt facilities, but total finance costs will increase
as a result of the higher prevailing base interest rates. The loan and the RCF
are aggregated for the purposes of the aggregate debt's financial covenants
and, being based on a Loan to Value covenant which is not to exceed 60% and an
Interest Cover Ratio to be greater than 160%, an improvement in terms.
Discount
The discount of the Company's share price to NAV at 31 December 2025 increased
to 12.9%. Since that date the share price has increased and the discount has
narrowed substantially. The Board monitored the discount level throughout the
Period and has the requisite authority from shareholders to both issue and buy
back shares.
Future Growth and Outlook
The Board remains confident that the Company is well-positioned for the
future, with a resilient portfolio well-placed to continue to provide secure,
index-linked income with the potential for capital growth.
The Board has set an annual dividend target of no less than 5.6 pps(A) for the
year ending 30 June 2026 (year ended 30 June 2025: 6.2 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. During the six months until the
end of the current financial year, approximately 22.3% of the Group's income
will be subject to rent reviews or lease expiries, 16.4% as annual
index-linked rent reviews, 5.1% as a periodic index-linked rent review (3
years since the previous review) and 0.8% lease expiry of storage land in St
Helens.
I would like to thank our shareholders, my fellow Directors, the Investment
Adviser and our other advisers and service providers for the professional
support and guidance they have provided to the Group during the Period.
Simon Bennett
Chairman
2 March 2026
Key Performance Indicators ('KPIs')
KPI AND DEFINITION RELEVANCE TO STRATEGY PERFORMANCE
Adjusted EPS 3.32 pps
Adjusted EPS from core operational activities, as adjusted for non-cash items. This reflects the Group's ability to generate earnings from the portfolio For the half year ended 31 December 2025
A key measure of a company's underlying operating results from its property which underpins dividends.
rental business and an indication of the extent to which current dividend (30 June 2025: 6.72pps and 31 December 2024: 3.26 pps)
payments are supported by earnings. See Note 8 to the financial statements.
Dividend per share 2.80 pps
Dividends declared in relation to the period are in line with the stated The Group seeks to deliver a sustainable income stream from its portfolio, For the year ended 30 June 2025
dividend target as set out in the Prospectus at IPO. which it distributes as dividends.
(30 June 2025: 6.20pps and 31 December 2024: 3.10 pps)
Net Asset Value ('NAV') per share £68.01 million/ 84.48 pps
NAV is the value of an entity's assets minus the value of its liabilities. Provides stakeholders with the most relevant information on the fair value of At 31 December 2025
the assets and liabilities of the Group.
(30 June 2025: £67.33 million/ 83.64pps and 31 December 2024: £65.96
million/ 81.94 pps)
Leverage (Loan-to-GAV) 34.28%
The proportion of the Group's assets that is funded by borrowings. The Group utilises borrowings to enhance returns over the medium term. At 31 December 2025
Borrowings will not exceed 40% of GAV (measured at drawdown).
(30 June 2025: 36.88% and 31 December 2024: 37.36%)
Net Initial Yield ('NIY') 7.14%
Annualised rental income based on the cash rents passing at the balance sheet The NIY is an indicator of the ability of the Group to meet its target At 31 December 2025
date, less non-recoverable property operating expenses, divided by the market dividend after adjusting for the impacts of leverage and deducting operating
value of the property, increased with purchasers' costs estimated by the costs. (30 June 2025: 7.07% and 31 December 2024: 6.85%)
Group's External Valuers.
Weighted Average Unexpired Lease Term ('WAULT') to break and expiry 15.4 years to break and 17.1 years to expiry
The average lease term remaining to expiry across the portfolio, weighted by The WAULT is a key measure of the quality of the portfolio. Long leases At 31 December 2025
contracted rent. underpin the security of our future income.
(30 June 2025: 15.6 years to break and 17.2 years to expiry and 31 December
2024: 16.1 years to break and 17.7 years to expiry)
EPRA Performance Measures
( )
Detailed below is a summary table showing EPRA performance measures (which are
all alternative performance measures) of the Group.
MEASURE AND DEFINITION PURPOSE PERFORMANCE
EPRA Net Tangible Assets1 £68.01 million/ 84.48 pps
The EPRA NTA deducts the break cost of bank borrowings from the EPRA NAV. A measure that assumes entities buy and sell assets, thereby crystallising EPRA NTA for the half year ended 31 December 2025
certain levels of deferred tax liability. The Group has UK REIT status and as
such no deferred tax is required to be recognised in the accounts. (30 June 2025: £67.33 million/ 83.64pps and 31 December 2024: £65.96
million/ 81.94 pps)
EPRA Net Reinstatement Value1 £74.73 million/ 92.84 pps
The EPRA NRV adds back the purchasers' costs deducted from the EPRA NAV and A measure that highlights the value of net assets on a long-term basis. EPRA NRV for the half year ended 31 December 2025
deducts the break cost of bank borrowings.
(30 June 2025: £74.31 million/ 92.30pps and 31 December 2024: £72.87
million/ 90.52 pps)
EPRA Net Disposal Value1 £68.01 million/ 84.48 pps
The EPRA NDV deducts the break cost of bank borrowings from the EPRA NAV. A measure that shows the shareholder value if assets and liabilities are not EPRA NDV for the half year ended 31 December 2025
held until maturity.
(30 June 2025: £67.33 million/ 83.64pps and 31 December 2024: £65.96
million/ 81.94 pps)
EPRA LTV2 32.62%
Debt (net of cash balances) divided by the market value of properties A key (shareholder-gearing) metric to determine the percentage of debt EPRA LTV for the half year ended 31 December 2025
(including net receivables). comparing to the appraised value of the properties.
(30 June 2025: 34.82% and 31 December 2024: 35.41%)
EPRA Earnings/EPS1 £2.60 million/ 3.23 pps
Earnings from operational activities. A key measure of a company's underlying operating results and an indication of EPRA earnings for the half year ended 31 December 2025
the extent to which current dividend payments are supported by earnings.
(30 June 2025: £5.29 million/ 6.57pps and 31 December 2024: £2.64 million/
3.28 pps)
EPRA NIY2 - unaudited 7.15%
Annualised rental income based on the cash rents passing at the balance sheet A comparable measure for portfolio valuations. This measure should make it At 31 December 2025
date, less non-recoverable property operating expenses, divided by the market easier for investors to judge themselves, how the valuation of two portfolios
value of the property, increased with (estimated) purchasers' costs. compare. (30 June 2025: 7.07% and 31 December 2024: 6.85%)
EPRA 'Topped-up' NIY2 - unaudited 7.15%
This measure incorporates an adjustment to the EPRA NIY in respect of the A comparable measure for portfolio valuations. This measure should make it At 31 December 2025
expiration of rent-free periods (or other unexpired lease incentives such as easier for investors to judge themselves, how the valuation of two portfolios
discounted rent periods and step rents). compare. (30 June 2025: 7.25% and 31 December 2024: 7.23%)
EPRA Vacancy2 - unaudited 0.00%
Estimated Rental Value ('ERV') of vacant space divided by ERV of the whole A 'pure' percentage measure of investment property space that is vacant, based EPRA vacancy as at 31 December 2025
portfolio. on ERV.
(30 June 2025: 0.00% and 31 December 2024: 0.00%)
EPRA Cost Ratio2 - unaudited 14.59%
Administrative and operating costs (including and excluding costs of direct A key measure to enable meaningful measurement of the changes in a company's EPRA Cost Ratio as at 31 December 2025.
vacancy) divided by gross rental income. operating costs.
(30 June 2025: 15.14% and 31 December 2024: 15.04%)
1 The reconciliation of this APM is set out in Note 8 of the Notes
to the Consolidated Financial Statements.
2 The reconciliation of this APM is set out in the EPRA Performance
Measures Calculations section following the Notes to the Consolidated
Financial Statements.
Investment Adviser's Report
Market Outlook
UK Economic Outlook
The UK economy posted weak growth in H2 2025, with real GDP growing 0.1% in Q3
and Q4, indicating a soft expansion rather than stagnation(A). UK performance
continued to lag peers, with Q4 2025 UK GDP being 5.2% above Q4 2019 as
compared to 6.8% for the Eurozone and 14.5% for the US, and
quarter‑on‑quarter growth of 0.1% as compared to 0.3% in the Eurozone and
1.1% in the US(B). The Bank of England's November 2025 Monetary Policy Report
projected medium‑term growth of circa 1.5%, it flagged near‑term softness
(roughly flat Q4), and thus implied 2025 would be below its February 2025
guidance which had suggested a stronger year than 2024(C).
UK unemployment rose further in H2 2025, reaching 5.1% in the three months to
November 2025, its highest level since 2021, reflecting a weakening labour
market after earlier resilience(D). As a result, annual wage growth eased
through the second half of the year, signalling reduced inflationary pressure
heading into 2026(E). Businesses continued to express concern that increasing
employment costs - particularly higher National Insurance contributions - will
constrain hiring and place upward pressure on prices. The British Chambers of
Commerce subsequently revised its 2026 unemployment forecast upwards, citing
weaker demand, elevated costs, and rising youth unemployment(F).
Inflationary pressures remained during the second half of 2025, with the
Consumer Prices Index (CPI) rising to 3.4% year‑on‑year in December 2025,
above the 2% target(G). Service‑sector inflation continued to be a key
driver of overall price growth, with CPI services inflation at 4.5% in
December 2025, reflecting persistent cost pressures in labour‑intensive
industries. Looking ahead, the Office for Budget Responsibility are projecting
that CPI inflation will ease to around 2.1% in 2026(H).
The Bank of England continued its easing policy in 2025, with the base rate -
held at 4% in early November 2025 - reducing in December to 3.75%, marking the
fourth reduction in 2025 as inflation cooled and economic momentum weakened.
Financial markets expect the Bank to continue its gradual easing cycle in
2026, with analysts anticipating further rate cuts as the labour‑market
softens further and inflation trends downward(I). Major institutions,
including BlackRock, forecast that the Bank Rate could fall toward 3.5% by
mid‑2026, aligning with money‑market pricing that signals an expected
decline to between 3.25% and 3.5% by late 2026(J).
Economic sentiment remained fragile in late 2025. In the two weeks to 14
December 2025, the ONS Business Insights and Conditions Survey reported that
16.2% of firms expected their performance to decline over the next 12 months
(versus 18.3% expecting an improvement), underscoring a deterioration from
early‑year readings(K). Consumer confidence showed only marginal improvement
into year‑end, with Growth from Knowledge's overall Index rising to ‑17 in
December 2025 from ‑19 in November but remaining deeply negative and below
long‑run norms(L).
The UK economy enters 2026 with weak underlying momentum, having posted only
minimal growth and continuing to lag key international peers, though reduced
inflation and improving financial conditions offer some tentative support. A
softening labour market, marked by rising unemployment and slowing wage
growth, points to further slack ahead, yet moderating cost pressures may help
stabilise real incomes. Inflation remains elevated, but forecasts indicate a
steady easing toward target over the coming year. The Bank of England is
expected to continue loosening policy, with markets and major institutions
anticipating further rate cuts through 2026 to help underpin demand. Overall,
economic sentiment remains subdued, but conditions for a gradual recovery are
beginning to improve.
Sources:(A) ONS (2026), GDP estimates;(B) House of Commons Library (2026), GDP
international comparisons: Key Economic Indicators;(C) Bank of England (2025),
Monetary Policy Report - November 2025;(D) ONS (2025), UK Labour Market
Statistics;(E) ONS (2025), Average weekly earnings in Great Britain: November
2025;(F) British Chambers of Commerce, Economic Forecast (December 2025);(G)
ONS (2025), Consumer Price Inflation, UK: November 2025;(H)House of Commons
Library (2025), Inflation: Key Economic Indicators;(I) Morningstar (2026),
Will the Bank of England Cut Interest Rates in 2026?;(J) HomeOwners Alliance
(2026), Will the Bank of England Cut Interest Rates Again on 5 February
2026?;(K) UK Parliament (2025), Business and consumer confidence: Economic
indicators;(L) Trading Economics (2026), United Kingdom - Consumer Confidence.
UK Real Estate Outlook
Following a muted summer period, H2 2025 closed with a powerful resurgence in
activity as Q4 2025 delivered a decisive shift in momentum. Earlier volumes
were constrained by a lack of major deals, but Q4 investment surged to a
record £21.6 billion, up 145% on Q3 2025 and underpinned by an exceptional
rebound in large scale transactions(A). Alongside the completion of major
pipeline deals in Q3 2025 such as Tritax's £1.0 billion Project Centurion
acquisition, the £340 million Can of Ham sale, and the £628.9 million PRS
REIT disposal, Q4 was dominated by landmark activity in the living sector,
including Welltower's £5.2 billion purchase of the Barchester Healthcare
portfolio and its separate £1.2 billion acquisition of HC‑One(B). With 20
transactions exceeding £200 million in the final three months of 2025, all
major sectors recording volumes above their five-year averages, improved
financial conditions and renewed investor confidence helped deliver a markedly
stronger finish to the second half of 2025 and set a positive foundation
heading into 2026.
Across the half year, monetary and market conditions shifted from cautious to
favourable. The Bank of England's base rate cuts, combined with the easing of
CPI inflation, have supported an improvement in relative pricing for real
estate. Credit availability strengthened throughout, with lenders reporting
seven consecutive quarters of improvement, underpinning refinancing and
selective new origination(C). On pricing, despite no movement to the MSCI
All-Property equivalent yield in the first six months of the year, a 68%
increase in transaction volume in the final six months pushed yields in by 10
bps(D). Capital values continued their positive trajectory, delivering total
growth of 1.4% in 2025. Even so, forecasters tempered 2025 expectations over
the course of the year: Colliers revised total returns from 9.8% (Q2) to 7.4%
(Q3) and then 6.7% at year end - citing higher-for-longer debt costs and a
17-year-low spread between property gilts(E). Looking ahead, the rate cut and
softer inflation set the stage for wider spreads and renewed capital value
growth in 2026, with total returns trending back toward 8% - 8.5%(F).
Sector wise, the UK real estate investment landscape over the half year was
driven by living, which strengthened from a Q3 rebound (£3.8bn; +38% q/q; 10%
above trend) to a record £10.6bn in Q4, supported by unprecedented healthcare
and single family rental transactions that lifted the sector well above its
long-term average. Industrial sector activity remained resilient, with Q3 2025
volumes outside London being more than double Q2 2025 levels and 22% above
trend, before accelerating further in Q4 to £3.7bn. This is circa 45% above
the five-year average which was underpinned by major portfolio trades
including Tritax's £1.0bn Project Centurion acquisition. MSCI data show the
sector continuing to lead performance into late 2025, with capital values
rising 2.97% for the year and ERV growth of 0.37% in December alone, the
strongest among all major segments. Looking ahead, retail is expected to
outperform in 2026, with shopping centres and retail warehouses forecast to
deliver c.10.1% and 8.9% total returns respectively, supported by tightening
prime vacancy, limited new development and sustained rental growth
potential.year was driven family rental transactions that lifted the sector
well above its long-term average. year average
After a strong first six months the FTSE EPRA Nareit UK delivered 11.1% total
return in 2025(G). Returns softened into Q3 as higher bond yields pressured
equity pricing, leaving year-to-date gains around mid-‑date gains around
mid-single digits by September and underscoring rate sensitivity rather than
asset-single digits by September and underscoring rate sensitivity rather than
asset‑-level‑ weakness. Even so, valuations remained deeply discounted,
with UK REITs trading at 27-30% below NAV - a level that, historically, has
preceded stronger forward returns as financing conditions stabilise(H).
Long‑ term guidance is also supportive: J.P. Morgan's Guide to the Markets
(UK) indicates core real assets can deliver high-single-‑single digit
annualised returns over the coming decade, providing a constructive backdrop
for patient digit annualised returns over the coming decade, providing a
constructive backdrop for patient ‑capital(I). At the stock level, AIRE
finished 31 December 2025 at 73.6pps (roughly flat over H2), reflecting income
resilience but lingering rate sensitivity, with prices rebuilding into
January. Early signs of improved credit availability towards the year‑end
added support to the case for listed real estate.
UK real estate closed the half year on a markedly stronger footing as Q4 2025
activity surged to record levels, supported by easing inflation, a December
rate cut, and improved credit conditions. Living and industrial sectors led
the rebound, delivering above trend volumes and the strongest capital value
performance, while retail's 2026 outlook improved with shopping centres and
retail warehouses expected to outperform. Although 2025 return forecasts were
revised lower amid higher borrowing costs, stabilising MSCI pricing
indicators, historically wide REIT discounts, and widening yield spreads
underpin a more constructive outlook. Overall, the market enters 2026 with
firmer momentum and total returns expected to normalise toward high single
digits, supported by resilient sector fundamentals and long-term structural
demand drivers.
*Sources: (A)LSH Research (2026), UKIT Q4 25, (B)LSH Research (2026), UKIT Q3
25, (C)Bank of England (2025), Credit Conditions Survey, Q4 2025, (D)MSCI
(2025), MSCI UK Monthly Data - December 2025, (E)Colliers (2025), REIF Q4
2025,(F)CBRE (2026), UK Real Estate Market Outlook 2026, (G)FTSE (2025), FTSE
EPRA Nareit UK Index, (H)Gravis Capital (2025), UK REITs: does the resurgence
still have legs?, (I)JP Morgan 2025, Guide to the Markets UK Q1 2026.
Portfolio Activity
The following transactions were undertaken during the Period:
In October 2025, the Company completed the sale of Crawley for £4.5 million
(gross of disposal costs). This property represented 4.0% of the Group's
portfolio capital valuation at 30 September 2025. The disposal represented a
net initial yield of 5.7%
The following asset management initiatives were undertaken during the Period:
· Rent Reviews: A total of three rent reviews took place (excluding Crawley)
during the Period with a combined uplift of £56,272 with an average increase
in contracted rent of 3.5%. The portfolio showed an increase of 0.7% on a
like-for-like basis.
· A further rent review for the care home in Bristol was completed at £509,453
per annum reflecting an increase of 3.8% during the period between the half
year and the date of this report.
· Negotiations are in progress in respect of lease regears and renewals with
many tenants including Meridian Steel, B&M, Pets at Home and BGEN. The
Company remains supportive of its occupiers to work together to improve the
environmental sustainability of the portfolio.
NAV Movements
Half year ended Half year ended Year ended
31 December 2025 31 December 2024 30 June 2025
Pence per share £ million Pence per £ million Pence per £ million
share share
NAV at beginning of period/ year 83.64 67.33 80.90 65.12 80.90 65.12
Change in fair value of investment property 0.17 0.14 0.94 0.76 2.45 1.97
Income earned for the period/year 5.61 4.52 5.23 4.21 10.64 8.57
Gain on sale of property 0.38 0.31 - - - -
Finance costs for the period/year (1.16) (0.93) (0.88) (0.71) (1.78) (1.44)
Other expenses for the period/year (1.21) (0.98) (1.07) (0.86) (2.29) (1.84)
Dividends paid during the period/year (2.95) (2.38) (3.18) (2.56) (6.28) (5.05)
NAV at the end of the period/year 84.48 68.01 81.94 65.96 83.64 67.33
Valuation
At 31 December 2025, the Group owned 19 assets valued at £103.5 million (30
June 2025: 20 assets, £107.4 million) following the sale of Crawley for £4.5
million in October 2025.
Summary by Sector at 31 December 2025
Annualised
gross
Market Occupancy WAULT to passing
Number of Valuation Value by ERV break rent ERV ERV
Sector Properties (£m) (%) (%) (years) (£m) (£m) (%)
Industrial 4 26.7 25.8 100.0 22.2 1.9 2.0 27.4
Healthcare 3 17.2 16.6 100.0 23.0 1.3 1.2 15.8
Automotive & Petroleum 2 11.8 11.4 100.0 11.4 0.9 0.8 10.5
Hotel 2 12.1 11.6 100.0 11.5 0.9 0.8 11.4
Residential 1 10.9 10.5 100.0 15.6 0.8 0.8 11.3
Leisure 3 10.5 10.2 100.0 8.0 1.0 0.8 10.4
Retail Warehouse 1 5.6 5.4 100.0 3.3 0.5 0.4 5.3
Power Station 1 4.5 4.4 100.0 6.2 0.3 0.3 4.5
Education 2 4.2 4.1 100.0 15.5 0.3 0.2 3.4
Total/Average 19 103.5 100.0 100.0 15.4 7.9 7.3 100.0
Summary by Geographical Area at 31 December 2025
Annualised
gross
Market Occupancy WAULT to passing
Geographical Number of Valuation Value by ERV break rent ERV ERV
Area Properties (£m) (%) (%) (years) (£m) (£m) (%)
West Midlands 4 27.4 26.5 100.0 9.2 2.2 2.0 27.2
The North West & Merseyside 2 22.7 21.9 100.0 32.9 1.6 1.5 21.3
Rest of South East 4 17.5 16.9 100.0 7.9 1.2 1.2 16.4
South West 2 12.1 11.7 100.0 20.5 0.9 0.9 12.0
London 3 10.5 10.1 100.0 8.0 1.0 0.8 10.4
Eastern 2 7.0 6.8 100.0 8.6 0.5 0.4 6.2
Yorkshire and the Humber 2 6.3 6.1 100.0 16.2 0.5 0.5 6.5
Total/Average 19 103.5 100.0 100.0 15.4 7.9 7.3 100.0
Top Ten Occupiers at 31 December 2025
Tenant Property Annualised gross passing rent (£'000) % of Portfolio Total Annualised gross passing rental
Mears Group Plc Bramall Court, Salford 838 10.6%
Prime Life Ltd Prime Life Care Home, Brough & Solihull 808 10.3%
Meridian Steel Ltd Grazebrook Industrial Estate, Dudley & Sheffield 799 10.2%
Motorpoint Ltd Motorpoint, Birmingham 568 7.2%
Virgin Active Health Clubs Ltd Virgin Active, London 521 6.6%
Premier Inn Hotels Ltd Premier Inn, Camberley 504 6.4%
Handsale Ltd Silver Trees, Bristol 491 6.2%
Travelodge Hotels Ltd Duke House, Swindon 403 5.1%
B&M Bargains Droitwich Spa Retail Park, Droitwich 364 4.6%
Biffa Waste Services Ltd Pocket Nook Industrial Estate, St Helens 353 4.5%
Top Ten Total 5,649 71.7%
Lease Expiry Portfolio at 31 December 2025 - to the earlier of break or lease
expiry
Year Expiring passing rent pa (£'000) Cumulative (£'000)
2026 64 64
2027 944 1,008
2028 420 1,428
2029 364 1,792
2030 - 1,792
2031 - 1,792
2032 1,150 2,942
2033 358 3,300
2034 521 3,821
2035 - 3,821
2036 - 3,821
2037 849 4,670
2038 - 4,670
2039 175 4,845
2040 - 4,845
2041+ 3,038 7,883
Interim Management Report and Directors' Responsibility Statement
Interim Management Report
The important events that have occurred during the period under review, the
key factors influencing the financial statements and the principal risks and
uncertainties for the remaining half year of the financial year are set out in
the Chairman's Statement and the Investment Adviser's Report above.
The principal risks and uncertainties of the Company are set out in the Annual
Report and Financial Statements for the year ended 30 June 2025 (the '2025
Annual Report') on pages 24 to 28 and in Note 17. In the period being
reported, the Group successfully refinanced its debt, thus removing this risk,
however, the Group now has exposure to interest rate risk given the new debt
is all floating rate debt as opposed to the previous debt which was all fixed
rate debt. The principal risks of the Group have been updated to reflect this
change.
Risks faced by the Company include, but are not limited to, tenant default,
portfolio concentration, property defects, the rate of inflation, the property
market, property valuation, illiquid investments, environment, breach of
borrowing covenants, inability to refinance the current loan facility which
has been mitigated through the refinancing with the new HSBC Bank Facilities,
failure of service providers, dependence on the Investment Adviser, ability to
meet objectives, Group REIT status, political and macroeconomic events,
disclosure risk, and regulatory change (including in relation to climate
change). The Board takes account of emerging risks, including climate change,
as part of its risk management assessment.
The Board is of the opinion that these updated principal risks are equally
applicable to the remaining six months of the Group's financial year, as they
were to the six months being reported on.
Related Party Transactions
There have been no changes to the related parties shown in Note 19 of the 2025
Annual Report that could have a material effect on the financial position or
performance of the Company or Group. Amounts payable to the Investment Adviser
in the six months being reported are shown in the unaudited Condensed
Consolidated Statement of Comprehensive Income.
Going Concern
This report has been prepared on a going concern basis. Note 2 sets out the
Board's considerations in coming to this conclusion.
Directors' Responsibility Statement
The Directors confirm that to the best of our knowledge:
· the condensed consolidated set of financial statements has been prepared in
accordance with the UK-adopted IAS 34 'Interim Financial Reporting';
· the interim management report includes a fair review of the information
required by:
DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
a) of the financial year and their impact on the condensed consolidated of
financial statements; and a description of the principal risks and
uncertainties for the remaining half of the year; and
DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related
party transactions that have taken place in the first six months of the
b) financial year and that have materially affected the financial position or
performance of the Company during that period; and any changes in the related
party transactions described in the 2025 Annual Report that could do so.
As at the date of this report the Directors of the Company are Simon Bennett,
Stephanie Eastment and Adam Smith all of whom are non-executive Directors.
For and on behalf of the Board
Simon Bennett
Chairman
2 March 2026
Condensed Consolidated Statement of Comprehensive Income
For the half year ended 31 December 2025
Half year Half year Year
ended ended ended
31 December 31 December 30 June
2025 2024 2025
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Income
Rental and other income 3 4,516 4,210 8,570
Property operating expense 4 (446) (354) (781)
Net rental and other income 4,070 3,856 7,789
Other operating expenses 4 (546) (512) (1,066)
Operating profit before fair value change and gain on sale 3,524 3,344 6,723
Change in fair value of investment properties 10 141 759 1,970
Gain on disposal of investment property 10 313 - -
Operating profit 3,978 4,103 8,693
Finance expenses 6 (925) (705) (1,435)
Profit before tax 3,053 3,398 7,258
Taxation 7 - - -
Profit and total comprehensive income attributable to shareholders 3,053 3,398 7,258
Earnings per share (basic and diluted) 8 3.79p 4.22p 9.02p
EPRA EPS (basic and diluted) 8 3.23p 3.28p 6.57p
Adjusted EPS (basic and diluted) 8 3.32p 3.26p 6.72p
All items in the above statement are derived from continuing operations.
The accompanying Notes 1 to 18 form an integral part of these Condensed
Consolidated Financial Statements.
Condensed Consolidated Statement of Financial Position
For the half year ended 31 December 2025
As at As at As at
31 December 2025 31 December 30 June
(unaudited) 2024 2025
(audited)
(unaudited)
Notes £'000 £'000 £'000
Assets
Non-current Assets
Investment properties 10 99,918 102,566 103,777
Current Assets
Trade and other receivables 11 4,454 4,277 4,236
Cash and cash equivalents 2,352 2,913 3,148
Total current assets 6,806 7,190 7,384
Total Assets 106,724 109,756 111,161
Liabilities
Current Liabilities
Trade and other payables 12 (3,025) (2,913) (2,878)
Interest bearing loans and borrowings 13 - (40,880) (40,956)
Total current liabilities (3,025) (43,793) (43,834)
Non-current Liabilities
Interest bearing loans and borrowings 13 (35,694) - -
Total Liabilities (38,719) (43,793) (43,834)
Net Assets 68,005 65,963 67,327
Equity
Share capital 17 805 805 805
Capital reserve 63,004 67,875 65,379
Retained earnings 4,196 (2,717) 1,143
Total capital and reserves attributable to equity holders of the Company 68,005 65,963 67,327
Net Asset Value per share (basic and diluted) 8 84.48p 81.94p 83.64p
EPRA Net Tangible Asset per share (basic and diluted) 8 84.48p 81.94p 83.64p
The accompanying Notes 1 to 18 form part of these Condensed Consolidated
Financial
Statements.
The Condensed Consolidated Financial Statements were approved by the Board of
Directors on 2 March 2026 and were signed on its behalf
by:
Simon
Bennett
Chairman
Company number: 10727886
Condensed Consolidated Statement of Changes in Equity
For the half year ended 31 December 2025
Share Capital Retained earnings Total
capital reserve equity
Notes £'000 £'000 £'000 £'000
For the half year ended
31 December 2025 (unaudited)
Balance at 30 June 2025 805 65,379 1,143 67,327
Total comprehensive income attributable to shareholders - - 3,053 3,053
Dividends paid 9 - (2,375) - (2,375)
Balance at 31 December 2025 805 63,004 4,196 68,005
For the half year ended
31 December 2024 (unaudited)
Balance at 30 June 2024 805 70,431 (6,115) 65,121
Total comprehensive income attributable to shareholders - - 3,398 3,398
Dividends paid 9 - (2,556) - (2,556)
Balance at 31 December 2024 805 67,875 (2,717) 65,963
For the year ended
30 June 2025 (audited)
Balance at 30 June 2024 805 70,431 (6,115) 65,121
Total comprehensive income attributable to shareholders - - 7,258 7,258
Dividends paid 9 - (5,052) - (5,052)
Balance at 30 June 2025 805 65,379 1,143 67,327
The accompanying Notes 1 to 18 form an integral part of these Condensed
Consolidated Financial Statements.
Condensed Consolidated Statement of Cash Flows
For the half year ended 31 December 2025
Half year ended Half year Year
31 December ended ended
2025 31 December 30 June
(unaudited) 2024 2025
(unaudited) (audited)
Notes £'000 £'000 £'000
Cash flows from operating activities
Profit before tax 3,053 3,398 7,258
Adjustment for:
Finance expenses 6 925 705 1,435
Gain on disposal of investment property 10 (313) - -
Change in fair value of investment properties 10 (141) (759) (1,970)
Operating results before working capital changes 3,524 3,344 6,723
Change in working capital
(Increase)/decrease in trade and other receivables (218) 2,187 2,228
Increase/(decrease) in trade and other payables 147 23 (12)
Net cash generated from operating activities 3,453 5,554 8,939
Cash flows from investing activities
Purchase of investment property 10 - (2,724) (2,724)
Net proceeds from disposal of investment property 10 4,464 - -
Net cash generated from/(used in) investing activities 4,464 (2,724) (2,724)
Cash flows from financing activities
Debt repaid (41,000) - -
Initial debt drawdown 41,000 - -
Repayment of RCF (4,416) - -
Finance costs paid (994) (653) (1,307)
Refinance costs paid (928) - -
Dividends paid 9 (2,375) (2,556) (5,052)
Net cash used in financing activities (8,713) (3,209) (6,359)
Net decrease in cash and cash equivalents (796) (379) (144)
Cash and cash equivalents at beginning of period/year 3,148 3,292 3,292
Cash and cash equivalents at end of period/ year 2,352 2,913 3,148
The accompanying Notes 1 to 18 form an integral part of these Condensed
Consolidated Financial Statements.
Notes to the Condensed Consolidated Financial Statements
For the half year ended 31 December 2025
1. Corporate Information
Alternative Income REIT plc (the "Company") is a public limited company and a
closed ended Real Estate Investment Trust ('REIT') incorporated on 18 April
2017 and domiciled in the UK and registered in England and Wales. The
registered office of the Company is located at The Scalpel, 18th Floor, 52
Lime Street, London EC3M 7AF.
The Company's Ordinary Shares were listed on the Official List of the FCA and
were admitted to trading on the Main Market of the London Stock Exchange on 6
June 2017.
2. Accounting policies
2.1 Basis of preparation
These condensed consolidated financial statements for the half year ended 31
December 2025 have been prepared in accordance with International Accounting
Standard ("IAS") 34 'Interim Financial Reporting'. These do not include all
the information required for annual financial statements, and should be read
in conjunction with the Group's last annual consolidated financial statements
for the year ended 30 June 2025 (the "2025 Annual Financial Report").
These condensed consolidated financial statements have been prepared under the
historical cost convention, except for investment properties that have been
measured at fair value. The condensed consolidated financial statements are
presented in Sterling, which is the Group's presentational and functional
currency, and all values are rounded to the nearest thousand pounds, except
where otherwise shown.
The financial information in this report does not constitute statutory
accounts within the meaning of section 434-436 of the Companies Act 2006fand
has not been audited nor reviewed by the Company's auditor. The financial
information for the year ended 30 June 2025 has been extracted from the
published accounts that have been delivered to the Registrar of Companies, and
the report of the auditor was unqualified and did not contain a statement
under section 498(2) or (3) of the Companies Act 2006.
Basis of consolidation
The condensed consolidated financial statements incorporate the financial
statements of the Company and its subsidiaries (the 'Group'). Subsidiaries are
the entities controlled by the Company, being Alternative Income Limited and
Alternative Income REIT Holdco Limited.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation. Accounting policies of the subsidiaries are consistent with the
policies adopted by the Company.
New standards, amendments and interpretations
Standards effective from 1 July 2025
Certain new accounting standards and interpretations have been published that
are not mandatory for annual periods beginning after 1 July 2025 and early
application is permitted; however, the Group has not early adopted the new or
amended standards in preparing these condensed consolidated financial
statements:
· Classification and Measurement of Financial Instruments - Amendments to IFRS 9
Financial Instruments and IFRS 7 Financial Instruments: Disclosures (effective
1 January 2026)
·
Annual Improvements to IFRS Accounting Standards - Amendments to (effective 1
January 2026):
o
IFRS 1 First-time Adoption of International Financial Reporting Standards;
o
IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on
implementing IFRS 7;
o
IFRS 9 Financial Instruments;
o
IFRS 10 Consolidated Financial Statements; and
o
IAS 7 Statement of Cash flows
·
Presentation and Disclosure in Financial Statements - IFRS 18 (effective 1
January 2027)
·
Subsidiaries without Public Accountability: Disclosures - IFRS 19 (effective 1
January 2027)
·
Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture (Amendments to IFRS 10 and IAS 28) (effective date to be determined)
With the exception of IFRS 18, the rest of the new standards and amendments
listed above are not expected to significantly affect the current or future
periods.
2.2 Significant accounting judgements and estimates
The condensed consolidated financial statements have been prepared on the
basis of the accounting policies, significant judgements, estimates and key
assumptions as set out in the notes to the 2025 Annual Financial Report, and
are expected to be applied consistently for the year ending 30 June 2026.
No changes have been made to the Group's accounting policies as a result of
the amendments and interpretations which became effective in the period as
they do not have a material impact on the Group.
Segmental information
Each property held by the Group is reported to the chief operating decision
maker. In the case of the Group, the chief operating decision maker is
considered to be the Board of Directors. The review process for segmental
information includes the monitoring of key performance indicators applicable
across all properties. These key performance indicators include Net Asset
Value, Earnings per Share and valuation of properties. All asset cost and
rental allocations are also reported by property. The internal financial
reports received by the Directors cover the Group and all its properties and
do not differ from amounts reported in the financial statements. The Directors
have considered that each property has similar economic characteristics and
have therefore aggregated the portfolio into one reportable segment under the
provisions of IFRS 8.
2.3 Going concern
The condensed consolidated financial statements have been prepared on a going
concern basis.
The robust financial position of the Group, its net asset and current asset
positions, its cash flows, liquidity position and borrowing facilities are
described in the financial statements and the accompanying notes.
The Investment Adviser on behalf of the Board has projected the Group's cash
flows for the period up to 31 March 2027, challenging and sensitising inputs
and assumptions to ensure that the cash forecast reflects a realistic outcome
given the uncertainties associated with the current economic environment. A
longer-term projection covering the period to 30 June 2029 had also been
carried out to ascertain the impact of the refinancing and future leasing
assumptions on the Group's cash flow. The scenarios applied were designed to
be severe but plausible, and to take account of the availability of mitigating
actions that could be taken to avoid or reduce the impact or probability of
the underlying risks.
On 20 October 2025 the Group refinanced its long-term debt facilities with
HSBC UK Bank plc, when the Canada Life £41 million loan matured. The new debt
facilities consist of a term loan of £31 million and a £10 million revolving
credit facility ('RCF'), both on floating rates for a fixed term of five years
with an option to extend by two years if mutually acceptable.
The Group has reported full compliance with its loan covenants to date. Based
on cash flow projections, the Directors expect the Group to continue to remain
compliant. The headroom of the loan to value covenant is significant and any
reduction in property values that would cause a breach would be significantly
more than any reduction currently envisaged.
Based on the above, the Board believes that the Group has the ability and
adequate resources to continue in operational existence for the foreseeable
future, being at least twelve months from the date of approval of the
financial statements.
3. Rental and other income
Half year ended Half year Year
31 December ended ended
2025 31 December 30 June
(unaudited) 2024 2025
(unaudited) (audited)
£'000 £'000 £'000
Gross rental income 4,076 3,869 7,916
Spreading of minimum contracted future rent-indexation 101 114 220
Spreading of tenant incentives - rent free periods (51) (47) (214)
Gross rental income (adjusted) 4,126 3,936 7,922
Service charges and direct recharges (see Note 4) 390 274 648
Total rental and other income 4,516 4,210 8,570
All rental, service charges and direct recharges and other income are derived
from the United Kingdom.
4. Operating expenses
Half year Half year Year
ended ended ended
31 December 31 December 30 June
2025
2025 2024
(audited)
(unaudited) (unaudited)
£'000 £'000 £'000
Property operating expenses 58 80 133
Service charges and direct recharges (Note 3) 390 274 648
Provision for impairment of trade receivables (2) - -
Property operating expenses 446 354 781
Investment adviser's fee 180 180 360
Auditor's remuneration 51 47 104
Operating costs 252 226 484
Directors' remuneration (Note 5) 63 59 118
Other operating expenses 546 512 1,066
Total operating expenses 992 866 1,847
Total operating expenses (excluding service charges and direct recharges) 602 592 1,199
Half year ended Half year ended Year
31 December 2025 31 December 2024 ended
(unaudited) (unaudited) 30 June
2025
(audited)
£'000 £'000 £'000
Audit
Statutory audit of Annual Report and Accounts 45 41 84
Statutory audit of Subsidiary Accounts 6 6 13
Statutory audit of Annual Report and Accounts (additional - - 7
fee on data migration)
Total fees due to auditor 51 47 104
Moore Kingston Smith LLP has not provided any non-audit services to the Group.
5. Directors' remuneration
Half year ended Half year ended Year
31 December 2025 31 December 2024 ended
(unaudited) (unaudited) 30 June
2025
(audited)
£'000 £'000 £'000
Directors' fees 55 53 105
Tax and social security 8 6 13
Total directors' remuneration 63 59 118
The Group had no employees during the period/year.
6. Finance Expenses
Half year ended Half year ended Year
31 December 2025 31 December 2024 ended
(unaudited) (unaudited) 30 June
2025
(audited)
£'000 £'000 £'000
Interest payable on fixed rate debt 397 653 1,307
Interest payable on term loan 354 - -
Interest payable on RCF 92 - -
Amortisation of finance costs (Note 13) 82 52 128
Total 925 705 1,435
7. Taxation
Half year ended Half year ended Year
31 December 2025 31 December 2024 ended
(unaudited) (unaudited) 30 June
2025
(audited)
£'000 £'000 £'000
Tax charge comprises:
Analysis of tax charge in the period/ year
Profit before tax 3,053 3,398 7,258
Theoretical tax charge/(refund) at UK corporation average tax rate of 25% (31 763 849 1,815
December 2025 and 30 June 2025: 25%)
Effects of tax-exempt items under REIT regime (763) (849) (1,815)
Total - - -
The Group maintained its REIT status and as such, no deferred tax asset or
liability has been recognised in the current period/year.
Factors that may affect future tax charges
Due to the Group's status as a REIT and the intention to continue meeting the
conditions required to retain approval as a REIT in the foreseeable future,
the Group has not provided deferred tax on any capital gains or losses arising
on the revaluation or disposal of investments.
8. Earnings per share (EPS) and Net Asset Value (NAV) per share
Half year ended Half year ended Year
31 December 2025 (unaudited) 31 December 2024 (unaudited) ended
30 June
2025
(audited)
Earnings per share*
Total comprehensive income (£'000) 3,053 3,398 7,258
Weighted average number of shares (number) 80,500,000 80,500,000 80,500,000
Earnings per share (basic and diluted) 3.79p 4.22p 9.02p
EPRA EPS (£'000):
Total comprehensive income 3,053 3,398 7,258
Adjustment to total comprehensive income:
Change in fair value of investment properties (141) (759) (1,970)
Gain on disposal of investment property (313) - -
EPRA earnings (basic and diluted) 2,599 2,639 5,288
EPRA EPS (basic and diluted) 3.23p 3.28p 6.57p
Adjusted EPS:
EPRA earnings (basic and diluted) (£'000) - as above 2,599 2,639 5,288
Adjustments:
Rental income recognised in respect of guaranteed fixed rental uplifts (220)
(£'000)
(61) (113)
Rental income recognised in respect of rent free periods (£'000) (Note 3) 214
51 47
Amortisation of finance costs (£'000) (Note 6) 82 52 128
Provision/(reversal of provision) for impairment of trade (2) - -
receivables (Note 4)
Adjusted earnings (basic and diluted) (£'000) 2,669 2,625 5,410
Adjusted EPS (basic and diluted)** 3.32p 3.26p 6.72p
*Adjusted EPS is a measure used by the Board to assess the level of the
Group's dividend payments. This metric adjusts EPRA earnings for non-cash
items in arriving at an adjusted EPS as supported by cash flows.
**Earnings per share are calculated by dividing profit for the period/year
attributable to ordinary equity holders of the Company by the weighted average
number of Ordinary Shares in issue during the period/year.
Half year ended Half year ended Year
31 December 2025 (unaudited) 31 December 2024 (unaudited) ended
30 June
2025
(audited)
NAV per share:
Net assets (£'000) 68,005 65,963 67,327
Ordinary Shares (Number) 80,500,000 80,500,000 80,500,000
NAV per share 84.48p 81.94p 83.64p
EPRA Net Reinvestment Value (NRV), EPRA Net Tangible Assets (NTA) and EPRA Net
Disposal Value (NDV)
EPRA NRV EPRA NTA and EPRA NDV
At 31 December 2025
Net assets value (£'000) 68,005 68,005
Purchasers' cost (£'000) 6,728 -
74,733 68,005
80,500,000 80,500,000
Ordinary Shares (Number)
Per share measure 92.84p 84.48p
EPRA NRV EPRA NTA and EPRA NDV
At 31 December 2024
Net assets value (£'000) 65,963 65,963
Purchasers' cost (£'000) 6,903 -
72,866 65,963
Ordinary Shares (Number) 80,500,000 80,500,000
Per share measure 90.52p 81.94p
EPRA NRV EPRA NTA and EPRA NDV
At 30 June 2025
Net assets value (£'000) 67,327 67,327
Purchasers' cost (£'000) 6,978 -
74,305 67,327
80,500,000 80,500,000
Ordinary Shares (Number)
Per share measure 92.30p 83.64p
9. Dividends
All dividends were paid as Property Income Distributions.
Half year Half year Year
ended ended ended
31 December 31 December 30 June
2025 2024 2025
(unaudited) (unaudited) (audited)
Quarter Ended Dividend £'000 £'000 £'000
Rate
Dividends in respect of year ended 30 June 2024
4(th) dividend 30-Jun-24 1.625p - 1,308 1,308
Dividends in respect of year ended 30 June 2025
1(st) dividend 30-Sep-24 1.550p - 1,248 1,248
2(nd) dividend 31-Dec-24 1.550p - - 1,248
3(rd) dividend 31 Mar-25 1.550p - - 1,248
4(th) dividend 30-Jun-25 1.550p 1,248 - -
Dividends in respect of year ending 30 June 2026
1(st) dividend 30-Sep-25 - -
1.400p
1,127
Total dividends paid 2,375 2,556 5,052
4(th) dividend for quarter ended 30-Jun-24 1.625p - (1,308) (1,308)
2(nd) dividend for quarter ended 31-Dec-24 1.550p - 1,248 -
4(th) dividend for quarter ended 30-Jun-25 1.550p (1,248) - 1,248
2(nd) dividend for quarter ended 31-Dec-25 1.400p 1,127 - -
Total dividends payable in respect of the period/year 2,254 2,496 4,992
Total dividends payable in respect of the period/year 2.80p 3.10p 6.20p
Dividends declared after the period/year end are not included in the Condensed
Consolidated Financial Statements as a liability.
On 4 February 2026, the Board declared an interim dividend of 1.40pps in
respect of the quarter ended 31 December 2025. This was paid on 27 February
2026 to shareholders on the register at 13 February 2026 with an ex-dividend
date of 12 February 2026.
10. Investment properties
Freehold Leasehold Half year Half year Year
Investment Investment
Properties
Properties
ended 31 ended 31 ended
December December 30 June
2025 2024 2025
(unaudited) (unaudited) (audited)
Total Total Total
£'000 £'000 £'000 £'000 £'000
UK Investment properties
At the beginning of the period/year 75,250 32,100 107,350 102,650 102,650
(Disposals)/acquisitions during the period/year - (4,000) 2,724 2,724
(4,000)
Change in fair value of investment properties 200 (50) 150 1,976
826
Valuation provided by Knight Frank LLP 107,350
71,450 32,050 103,500 106,200
Adjustment to fair value for minimum rent indexation of lease income (Note 11) (3,582) (3,634) (3,573)
Total investment properties 99,918 102,556 103,777
Change in fair value of investment properties
Change in fair value before adjustments for lease incentives and lease 150 826 1,976
obligations
Movement in lease obligations - - -
Adjustment to spreading of contracted future rent indexation and tenant (9) (67) (6)
incentives
141 759 1,970
Investment property transactions
The property known as Crawley was sold in October 2025 for £4.5 million as
shown in the reconciliation below of the gain recognised on disposal through
the Condensed Consolidated Statement of Comprehensive Income; the gain on
disposal includes changes in fair value of the investment property and minimum
rent indexation spreading recognised in previous periods.
Half year Half year Year
ended ended ended
31 December 31 December 30 June
2025 2024 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Gross proceeds on disposal 4,500 - -
Selling costs (36) - -
Net proceeds on disposal 4,464 - -
Book value (4,000) - -
Minimum rent indexation spreading recognised in previous periods (151) - -
Gain on disposal of investment property 313 - -
On 2 December 2024, the Group completed the acquisition of Tring for a total
cost of £2.7 million, including acquisition costs.
Valuation of investment properties
Valuation of investment property is performed by Knight Frank LLP, an
accredited external valuer with recognised and relevant professional
qualifications and recent experience of the location and category of the
investment property being valued. The valuation of the Group's investment
property at fair value is determined by the external valuer on the basis of
market value in accordance with the internationally accepted RICS Valuation -
Professional Standards (incorporating the International Valuation Standards).
The determination of the fair value of investment property requires the use of
estimates such as future cash flows from assets (such as lettings, tenants'
profiles, future revenue streams, capital values of fixtures and fittings,
plant and machinery, any environmental matters and the overall repair and
condition of the property) and yield applicable to those cash flows.
Fair value measurement hierarchy
IFRS13 'Fair Value Measurement' specifies the fair value hierarchy and as
explained in Note 2.6 of the Company's 2025 Audited Financial Statements, the
Directors have classified the Company's property portfolio as Level 3. This
reflects the fact that inputs to the valuation are not based on observable
market data.
11. Trade and other receivables
31 December 31 December 30 June
2025 2024 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Receivables
Trade debtors 507 316 290
Less: Provision for impairment of trade debtors - (2) (2)
Other debtors 219 192 192
726 506 480
Spreading of minimum contracted future rent indexation 3,426 3,319 3,426
Spreading of tenant incentives - rent free periods 156 315 147
3,582 3,634 3,573
Tenant deposit asset (Note 12) 118 118 118
Other prepayments 28 19 65
146 137 183
Total trade and other receivables 4,454 4,277 4,236
The aged debtor analysis of receivables which are past due but not impaired is
as follows:
31 December 31 December 30 June
2025 2024 2025
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Less than three months due 725 487 476
Between three and six months due 1 19 4
Total 726 506 480
12. Trade and other payables
31 December 2025 (unaudited) 31 December 2024 (unaudited) 30 June
2025
(audited)
£'000 £'000 £'000
Deferred income 1,707 1,673 1,654
Trade creditors 349 420 55
Accruals 380 390 439
Tenant deposit liability (Note 11) 118 118 118
Debt interest payable (Note 13) 441 256 256
Other creditors 30 56 356
Total trade and other payables 3,025 2,913 2,878
13. Interest bearing loans and borrowings
31 December 2025 (unaudited) 31 December 2024 (unaudited) 30 June 2025 (audited)
£'000 £'000 £'000
Facility drawn at the beginning of the period/ year 41,000 41,000 41,000
Repayment of Canada Life loan facility (41,000) - -
HSBC term loan 31,000 - -
HSBC RCF drawdown 10,000 - -
Total loan drawn 41,000 - -
Repayment of HSBC RCF (4,416) - -
Total loan outstanding 36,584 41,000 41,000
Unamortised loan costs brought forward (44) (172) (172)
Refinancing costs (928) - -
Amortisation of refinancing costs 82 52 128
At end of period/ year 35,694 40,880 40,956
Repayable within 1 year - 41,000 41,000
Repayable between 1 and 2 years - - -
Repayable between 2 and 5 years 36,584 - -
Total at end of the period/year 36,584 41,000 41,000
As at 31 December 2025, the Group had utilised £36.58 million of its loan
facilities with HSBC UK Bank Plc (30 June 2025: £41.0 million, 31 December
2024: £41.0 million). The loans outstanding comprise a term loan of £31.0
million plus £5.6 million of RCF. The total RCF which is available is £10.0
million of which £4.4 million was repaid following the sale of Crawley. The
debt is repayable on 20 October 2030. The loan facilities with HSBC UK Bank
Plc were geared at a loan to Gross Asset Value ('GAV') of 34.3% (31 December
2024: 37.4%, 30 June 2025: 36.9%). The interest payable on the Canada Life
loan to 20 October 2025 was at a fixed rate of 3.19% and the interest rate on
the HSBC facilities was an average of 5.63% (margin of 1.7% plus SONIA in the
period 20 October to 31 December 2025). Interest expense incurred during the
period amounted to £0.84m (30 June 2025: £1.31m, 31 December 2024: £0.65m),
£0.44m of which is outstanding (30 June 2025: £0.26m, 31 December 2024:
£0.26m).
` 31 December 2025 (unaudited) 31 December 2024 30 June 2025 (audited)
(unaudited)
£'000 £'000 £'000
Reconciliation to cash flows from financing activities
At beginning of the period/ year 40,956 40,828 40,828
Cash changes
Repayment of Canada Life loan facility (41,000) - -
HSBC term loan 31,000 - -
HSBC RCF drawdown 10,000 - -
Repayment of HSBC RCF (4,416) - -
Refinancing costs (928) - -
Total cash changes (5,344) - -
Non-cash changes
Amortisation of debt costs in the period/year 82 52 128
Total at end of the period/ year 35,694 40,880 40,956
14. Lease obligations
There were no legal obligations at 31 December 2025 (31 December 2024: nil and
30 June 2025: nil).
15. Commitments
15.1. Operating lease commitments - as lessor
The Group has 19 commercial properties with 34 units in its investment
property portfolio as set out above. These non-cancellable leases have a
remaining term of between 3 months and 110 years, excluding ground leases.
Future minimum rentals receivable under non-cancellable operating leases as at
31 December 2025 are as follows:
31 December 31 December 30 June
2025 2024 (unaudited) 2025
(unaudited) (audited)
£'000 £'000 £'000
Within one year 6,951 7,432 8,878
After one year, but not more than two years 6,163 6,355 6,182
After two years, but not more than three years 5,974 5,989 5,938
After three years, but not more than four years 6,030 5,795 6,017
After four years, but not more than five years 6,185 5,848 6,060
After five years, but not more than ten years 24,355 26,597 26,703
After ten years, but not more than fifteen years 19,596 20,010 20,668
More than fifteen years 45,173 46,008 44,326
Total 120,427 124,034 124,772
There were no material contingent rents recognised as income for all period
presented.
15.2. Capital commitments
There were no capital commitments at 31 December 2025 (31 December 2024: none
and 30 June 2025: none).
15.3. Financial commitments
There were no commitments at 31 December 2025 (31 December 2024: nil and 30
June 2025: nil).
16. Investments in subsidiaries
The Company has two wholly owned subsidiaries as disclosed below:
Name and company number Country of registration and incorporation Date of incorporation Principal activity Ordinary Shares
of £1 held
Alternative Income REIT Holdco Limited (Company number 11052186) England and 7 November 2017 Real Estate Company 73,158,502
Wales
Alternative Income Limited England and 4 May 2017 Real Estate Company 73,158,501
Wales
(Company number 10754641)
Alternative Income REIT plc at 31 December 2025 owns 100% controlling stake of
Alternative Income REIT Holdco Limited.
Alternative Income REIT Holdco Limited holds 100% of Alternative Income
Limited.
Both Alternative Income REIT Holdco Limited and Alternative Income Limited are
registered at The Scalpel, 18(th) Floor, 52 Lime Street, London, United
Kingdom, EC3M 7AF.
17. Issued share capital
Ordinary Shares issued and fully paid of 80,500,000 shares at a nominal value
of £0.01 per share. This remains unchanged for all period presented.
18. Transactions with related parties and the Investment Adviser
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.
Directors
Directors of the Group are considered to be related parties. Directors'
remuneration is disclosed in Note 5.
Investment Adviser
Martley Capital Real Estate Investment Management Ltd
As reported in the Company's 2025 Annual Report, the Group's investment
adviser was changed on 15 March 2024 from M7 Real Estate Limited ('M7') to
Martley Capital Real Estate Investment Management Ltd ('Martley Capital'). The
appointment of Martley Capital was by way of a deed of novation of the Group's
Interim Investment Advisory agreement dated 14 March 2020 (as amended with
Deed of Variation dated 21 February 2021) with minor changes thereto but
leaving the parties on substantially the same terms and at an unchanged fee.
The annual management fee is calculated at a rate equivalent of 0.50% per
annum of NAV (subject to a minimum fee of £90,000 per quarter), payable
quarterly in advance. During the six months ended 31 December 2025, the Group
incurred £180,000 (year ended 30 June 2025: £360,000; and 6 months to 31
December 2024: £180,000) in respect of investment adviser's fees. No amounts
were outstanding at 31 December 2025, 30 June 2025 and 31 December 2024.
With effect from 1 January 2026 the terms of the management fee have been
altered so that the Investment Adviser shall be entitled to receive an amount
equal to £400,000 per annum. This fee is subject an annual increase from 1
January each year in line with the percentage change in the Retail Prices
Index (RPI) published by the UK Office for National Statistics subject to a
minimum annual increase of 3% and a maximum annual increase of 5%.
EPRA Performance Measures (unaudited)
EPRA Yield calculations At 31 December At 31 December At 30 June
2025 2024 2025
£'000 £'000 £'000
Investment properties wholly owned:
- by Company 1,725 1,875 1,825
- by Alternative Income Limited 101,775 104,325 105,525
Total - Note 10 103,500 106,200 107,350
Allowance for estimated purchasers' costs 6,728 6,903 6,978
Gross completed property portfolio valuation B 110,228 113,103 114,328
Annualised gross passing rent 7,884 7,749 8,084
Annualised property outgoings (5) (5) (5)
Annualised net rents A 7,879 7,744 8,079
Add: notional rent expiration of rent-free periods or other lease incentives 212
- 431
Topped-up net annualised rent C 7,879 8,175 8,291
EPRA NIY A/B 7.15% 6.85% 7.07%
EPRA "topped-up" NIY C/B 7.15% 7.23% 7.25%
EPRA Cost Ratios Half year ended Half year ended Year ended
31 December 31 December 30 June
2025 2024 2025
£'000 £'000 £'000
Include:
EPRA Costs (including direct vacancy costs) A 602 592 1,199
- Note 4
Direct vacancy costs - - -
EPRA Costs (excluding direct vacancy costs) B 602 592 1,199
Gross rental income - Note 3 C 4,126 3,936 7,922
EPRA Cost Ratio A/C 14.59% 15.04% 15.14%
(including direct vacancy costs)
EPRA Cost Ratio B/C 14.59% 15.04% 15.14%
(excluding direct vacancy costs)
EPRA Vacancy rate Half year ended 31 December 2025 Half year ended Year ended
£'000 31 December 30 June
2024 2025
£'000 £'000
Annualised potential rental value of vacant premises A - - -
Annualised potential rental value for the completed property portfolio B 7,330 7,295 7,337
EPRA Vacancy rate A/B 0% 0% 0%
The Group has not incurred any direct vacancy costs in both the current or
prior periods.
EPRA LTV Half year ended 31 December 2025 Half year ended Year ended
£'000 31 December 30 June
2024 2025
£'000 £'000
Gross debt drawn 36,584 41,000 41,000
Less: Cash and cash equivalents (2,352) (2,913) (3,148)
Net debt A 34,232 38,087 37,852
Investment property at fair value (Note 10) 103,500 106,200 107,350
Trade and other receivables (Note 11) 4,454 4,277 4,236
Less: Trade and other payables (Note 12) (3,025) (2,913) (2,878)
Total Property Value B 104,929 107,564 108,708
EPRA LTV A/B 32.62% 35.41% 34.82%
Alternative Performance Measures (APMs)
APMs are numerical measures of the Group's current, historical or future
performance, financial position or cash flows, other than financial measures
defined or specified in the applicable financial framework. The Group's
applicable financial framework is IFRS. The Directors assess the Group's
performance against a range of criteria which are reviewed as particularly
relevant for a closed-end REIT.
Discount
The discount is the amount by which the share price is lower than the net
asset value per share, expressed as a percentage of the net asset value per
share.
31 December 2025 31 December 2024 30 June 2025
NAV per Ordinary share (Note 8) A 84.48 81.94 83.64p
Share price B 73.60 70.60 74.00p
Discount (A-B)/A 12.88% 13.84% 11.52%
Dividend Cover
The ratio of Group's Adjusted EPS divided by the Group's dividends payable for
the relevant period/ year.
31 December 2025 31 December 2024 30 June 2025
Adjusted EPS (Note 8) A 3.32p 3.26p 6.72p
Dividend per share (Note 9) B 2.80p 3.10p 6.20p
Dividend cover A/B 118.57% 105.16% 108.37%
Dividend Yield
The ratio of the Company's annual target dividends per share divided by the
Company's share price at the period/ year end.
31 December 2025 31 December 2024 30 June 2025
Annual dividend target*/payable A 5.60p 6.20p 6.20p
Share price B 73.60p 70.60p 74.00p
Dividend yield A/B 7.61% 8.78% 8.38%
*The Board had set a target dividend for the year ended 30 June 2026 of no
less than 5.60 pps. As explained in the 2025 Annual Report's Chairman's
Statement on page 7, the resetting of this target was due to the increase in
financing costs on the new facilities paid for the period.
Loan to GAV
Loan to GAV measures the value of loans and borrowings utilised (excluding
amounts held as restricted cash and before adjustments for issue costs)
expressed as a percentage of the Group's property portfolio (as provided by
the valuer) and the fair value of other assets.
31 December 2025 31 December 2024 30 June 2025
Borrowings (£'000) A 36,584 41,000 41,000
Total assets (£'000) B 106,724 109,756 111,161
Loan to GAV A/B 34.28% 37.36% 36.88%
Ongoing Charges
The ongoing charges ratio is the total for all operating costs expected to be
regularly incurred expressed as a percentage of the average quarterly NAVs of
the Group for the financial period/year. Note that the ratio for 31 December
is based on actual ongoing charges to 31 December and forecast ongoing charges
to the following June (shown as annualised in the below calculation).
31 December 2025 31 December 2024 30 June 2025
Other operating expenses for the half year / year (£'000) A 533 512 1,066
Ongoing charges- annualised where required (£'000) B 1,066(†) 970(†) 1,038(†)
Average net assets (£'000) C 67,144 65,542 66,139
Ongoing charges ratio B/C 1.59% 1.48% 1.57%
(†) Non-recurring legal and professional costs have been excluded in the
annualised amount for the period/year presented.
Alternative Performance Measures (APMs)
APMs are numerical measures of the Group's current, historical or future
performance, financial position or cash flows, other than financial measures
defined or specified in the applicable financial framework. The Group's
applicable financial framework is IFRS. The Directors assess the Group's
performance against a range of criteria which are reviewed as particularly
relevant for a closed-end REIT.
Discount
The discount is the amount by which the share price is lower than the net
asset value per share, expressed as a percentage of the net asset value per
share.
31 December 2025
31 December 2024
30 June 2025
NAV per Ordinary share (Note 8)
A
84.48
81.94
83.64p
Share price
B
73.60
70.60
74.00p
Discount
(A-B)/A
12.88%
13.84%
11.52%
Dividend Cover
The ratio of Group's Adjusted EPS divided by the Group's dividends payable for
the relevant period/ year.
31 December 2025
31 December 2024
30 June 2025
Adjusted EPS (Note 8)
A
3.32p
3.26p
6.72p
Dividend per share (Note 9)
B
2.80p
3.10p
6.20p
Dividend cover
A/B
118.57%
105.16%
108.37%
Dividend Yield
The ratio of the Company's annual target dividends per share divided by the
Company's share price at the period/ year end.
31 December 2025 31 December 2024 30 June 2025
Annual dividend target*/payable A 5.60p 6.20p 6.20p
Share price B 73.60p 70.60p 74.00p
Dividend yield A/B 7.61% 8.78% 8.38%
*The Board had set a target dividend for the year ended 30 June 2026 of no
less than 5.60 pps. As explained in the 2025 Annual Report's Chairman's
Statement on page 7, the resetting of this target was due to the increase in
financing costs on the new facilities paid for the period.
Loan to GAV
Loan to GAV measures the value of loans and borrowings utilised (excluding
amounts held as restricted cash and before adjustments for issue costs)
expressed as a percentage of the Group's property portfolio (as provided by
the valuer) and the fair value of other assets.
31 December 2025
31 December 2024
30 June 2025
Borrowings (£'000)
A
36,584
41,000
41,000
Total assets (£'000)
B
106,724
109,756
111,161
Loan to GAV
A/B
34.28%
37.36%
36.88%
Ongoing Charges
The ongoing charges ratio is the total for all operating costs expected to be
regularly incurred expressed as a percentage of the average quarterly NAVs of
the Group for the financial period/year. Note that the ratio for 31 December
is based on actual ongoing charges to 31 December and forecast ongoing charges
to the following June (shown as annualised in the below calculation).
31 December 2025
31 December 2024
30 June 2025
Other operating expenses for the half year / year (£'000)
A
533
512
1,066
Ongoing charges- annualised where required (£'000)
B
1,066(†)
970(†)
1,038(†)
Average net assets (£'000)
C
67,144
65,542
66,139
Ongoing charges ratio
B/C
1.59%
1.48%
1.57%
(†) Non-recurring legal and professional costs have been excluded in the
annualised amount for the period/year presented.
Share Price and Net Asset Value (NAV) Total Return
Share price and NAV total returns show how the NAV and share price has
performed over a period of time in percentage terms, taking into account both
capital returns and dividends paid to shareholders. Share price and NAV total
returns are monitored against FTSE EPRA Nareit UK and FTSE Small Cap,
respectively.
Share price NAV
Opening at 30 June 2025 A 74.00p 83.64p
Closing at 31 December 2025 B 73.60p 84.48p
Return C=(B/A)-1 -0.54% 1.01%
Dividend reinvestment * D 3.20% 2.83%
Total shareholder return C+D 2.66% 3.84%
Opening at 30 June 2024 A 66.00p 80.90p
Closing at 31 December 2024 B 70.60p 81.94p
Return C=(B/A)-1 6.97% 1.29%
Dividend reinvestment * D 4.81% 3.92%
Total shareholder return C+D 11.78% 5.21%
Opening at 30 June 2024 A 66.00p 80.90p
Closing at 30 June 2025 B 74.00p 83.64p
Return C=(B/A)-1 12.12% 3.38%
Dividend reinvestment* D 9.51% 7.76%
Total shareholder return C+D 21.63% 11.14%
* Share price total return involves reinvesting the net dividend in the share
price of the Company on the date on which that dividend goes ex-dividend. NAV
total return involves investing the net dividend in the NAV of the Company
with debt at fair value on the date on which that dividend goes ex-dividend.
Company Information
Share Register Enquiries
The register for the Ordinary Shares is maintained by Computershare Investor
Services PLC. In the event of queries regarding your holding, please contact
the Registrar on 0370 707 1874 or email: web.queries@computershare.co.uk
(mailto:web.queries@computershare.co.uk) .
Changes of name and/or address must be notified in writing to the Registrar,
at the address shown below. You can check your shareholding and find practical
help on transferring shares or updating your details at
www.investorcentre.co.uk. Shareholders eligible to receive dividend payments
gross of tax may also download declaration forms from that website.
Share Information
Ordinary £0.01 shares 80,500,000
SEDOL Number BDVK708
ISIN Number GB00BDVK7088
Ticker/TIDM AIRE
Share Prices
The Company's Ordinary Shares are traded on the Main Market of the London
Stock Exchange.
Frequency of NAV publication
The Group's NAV is released to the London Stock Exchange on a quarterly basis
and is published on the Company's website www.alternativeincomereit.com
(http://www.alternativeincomereit.com) .
Annual and Interim Reports
Copies of the Annual and Half-Yearly Reports are available from the Group's
website.
Financial Calendar
30 June Year end
September Announcement of annual results
November Annual General Meeting
31 December Half-yearly period end
Quarterly dividends are paid in November, February, May and August for each
financial year.
Glossary
Alternative Investment Fund Manager or AIFM or Investment Manager Langham Hall Fund Management LLP.
Company Alternative Income REIT PLC.
Contracted rent The annualised rent adjusting for the inclusion of rent subject to rent-free
periods.
Earnings Per Share ('EPS') Profit for the period attributable to equity shareholders divided by the
weighted average number of Ordinary Shares in issue during the period.
EPRA European Public Real Estate Association, the industry body representing listed
companies in the real estate sector.
Estimated Rental Value ('ERV') The external valuer's opinion as to the open market rent which, on the date of
the valuation, could reasonably be expected to be obtained on a new letting or
rent review of a property.
External Valuer An independent external valuer of a property. The Group's External Valuer is
Knight Frank LLP.
Fair value The estimated amount for which a property should exchange on the valuation
date between a willing buyer and a willing seller in an arm's length
transaction after proper marketing and where parties had each acted
knowledgeably, prudently and without compulsion.
Fair value movement An accounting adjustment to change the book value of an asset or liability to
its fair value.
FCA The Financial Conduct Authority.
Gross Asset Value ('GAV') The aggregate value of the total assets of the Group as determined in
accordance with IFRS.
Gross Passing Rental Income The gross passing rent is the rent roll at the reporting date, taking account
of any in-place rent free incentives or step rents on a straight-line basis
over the following 12-month period.
IASB International Accounting Standards Board.
ICR Interest cover ratio is the passing rental income for the period less
non‑recoverable costs, divided by the interest costs for the relevant
period.
IFRS International financial reporting standards. On 31 December 2020 EU-adopted
IFRS was brought into UK law and became UK-adopted international accounting
standards, with future changes to IFRS being subject to endorsement by the UK
Endorsement Board.
Investment Adviser or Martley Capital Martley Capital Real Estate Investment Management Limited.
IPO The admission to trading on the London Stock Exchange's Main Market of the
share capital of the Company and admission of Ordinary Shares to the premium
listing segment (now the Closed-ended investment funds category) of the
Official List on 6 June 2017.
Lease incentives Incentives offered to occupiers to enter into a lease. Typically, this will be
an initial rent-free period, or a cash contribution to fit-out. Under
accounting rules, the value of the lease incentive is amortised through the
Consolidated Statement of Comprehensive Income on a straight-line basis until
the lease expiry.
Loan to Value ('LTV') The value of loans and borrowings utilised (excluding amounts held as
restricted cash and before adjustments for issue costs) expressed as a
percentage of the combined valuation of the property portfolio (as provided by
the valuer) and the fair value of other investments.
Net Asset Value ('NAV') Net Asset Value is the equity attributable to shareholders calculated under
IFRS.
Net Asset Value per share Equity shareholders' funds divided by the number of Ordinary Shares in issue.
Net equivalent yield Calculated by the Group's External Valuers, net equivalent yield is the
internal rate of return from an investment property, based on the gross
outlays for the purchase of a property (including purchase costs), reflecting
reversions to current market rent and items as voids and non-recoverable
expenditure but ignoring future changes in capital value. The calculation
assumes rent is received annually in arrears.
Net Initial Yield ('NIY') The initial net rental income from a property at the date of purchase,
expressed as a percentage of the gross purchase price including the costs of
purchase.
Initial yield does not include cost of purchase.
Net rental income Rental income receivable in the period after payment of ground rents and net
property outgoings.
Ordinary Shares The main type of equity capital issued by conventional Investment Companies.
Shareholders are entitled to their share of both income, in the form of
dividends paid by the Company, and any capital growth.
REIT A Real Estate Investment Trust. A company which complies with Part 12 of the
Corporation Tax Act 2010. Subject to the continuing relevant UK REIT criteria
being met, the profits from the property business of a REIT, arising from both
income and capital gains, are exempt from corporation tax.
Reversion Increase in rent estimated by the Company's External Valuers, where the
passing rent is below the ERV.
Share price The value of a share at a point in time as quoted on a stock exchange. The
Company's Ordinary Shares are quoted on the Main Market of the London Stock
Exchange.
Weighted Average Unexpired Lease Term ('WAULT') The average lease term remaining for first break, or expiry, across the
portfolio weighted by contracted rental income (including rent-frees).
Shareholder Information
Directors Property Manager
Simon Bennett (independent non-executive chairman) Mason Owen and Partners Limited
Stephanie Eastment (independent non-executive director) 7(th) Floor
Adam Smith (non-executive director) 20 Chapel Street
Liverpool
L3 9AG
Registered Office Valuer
The Scalpel 18(th) Floor Knight Frank LLP
52 Lime Street 55 Baker Street
London London
EC3M 7AF W1U 8AN
https://www.alternativeincomereit.com/ (http://www.aewukllreit.com)
Registered in England and Wales No. 10727886
Company Secretary Registrar
Hanway Advisory Limited Computershare Investor Services PLC
The Scalpel 18(th) Floor The Pavilions
52 Lime Street Bridgwater Road
London Bristol
EC3M 7AF BS13 8AE
AIFM Auditor
Langham Hall Fund Management LLP Moore Kingston Smith LLP
Broadwalk House, 3(rd) Floor 9 Appold Street
5 Appold Street London
Broadgate EC2A 2AP
London
EC2A 2DA
Depositary Corporate Broker
Langham Hall UK Depositary LLP Panmure Liberum Ltd
Broadwalk House, 3(rd) Floor Ropemaker Place, Level 12
5 Appold Street 25 Ropemaker Street
Broadgate London
London
EC2Y 9LY
EC2A 2DA
Investment Adviser and Administrator
Martley Capital Real Estate Investment Management Ltd
The Rookery, 4(th) Floor
Dyott Street
London
WC1A 1DE
A (#_ftnref1) This is a target only and not a profit forecast. There can be
no assurance that the target will be met and it should not be taken as an
indicator of the Company's expected or actual results.
B (#_ftnref2) Considered to be an Alternative Performance Measure. Further
details can be found at the end of this section and full calculations are set
out following the financial statements.
C (#_ftnref3) On a like-for-like basis, the fair value of the properties
increased by £150,000 or 0.1% during the Period.
D (#_ftnref4) The loan facility at 31 December 2025 is a term loan of £31.0
million and a Revolving Credit Facility of £10.0 million of which £5.6
million was drawn at 31 December 2025 (31 December 2025: £41 million with
Canada Life Investments matured on 20 October 2025). At 31 December 2025, the
total loan drawn was £36.6 million (31 December 2024: £41.0 million).
E (#_ftnref5) Neither the content of the Company's website, nor the content
on any website accessible from hyperlinks on its website or any other website,
is incorporated into, or forms part of, this announcement nor, unless
previously published on a Regulatory Information Service, should any such
content be relied upon in reaching a decision as to whether or not to acquire,
continue to hold, or dispose of, securities in the Company.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
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. END IR BRGDXUBGDGLD
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