REG - Alternative Inc REIT - NAV, Dividend Declaration & Portfolio Valuation

Alternative Income REITAnnouncement

04/02/2026 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260204:nRSD5958Ra&default-theme=true

RNS Number : 5958R  Alternative Income REIT PLC  04 February 2026

4 February 2026

Alternative Income REIT PLC

(the "Company" or "Group" or "AIRE")

NET ASSET VALUE, DIVIDEND DECLARATION AND PORTFOLIO VALUATION UPDATE

TO 31 December 2025

Declares an interim dividend of 1.40 pence per share ("pps") for the quarter
ended 31 December 2025

The target annual dividend of no less than 5.6pps for the year ending 30 June
2026(†)

Dividend cover of 106.4% for the quarter

Unaudited NAV total return of 2.3% for the quarter

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, provides a
trading and business update and declares an interim dividend for the quarter
ended 31 December 2025.

 

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

 

The Board is pleased to declare its second interim dividend for the year
ending 30 June 2026 of 1.4pps for the quarter ended 31 December 2025, which is
in line with the Company's dividend target of 5.6pps. As explained previously,
the resetting of the dividend target for this financial year is entirely due
to the increase in interest costs associated with the Group's new HSBC banking
facilities. The dividend cover for the quarter stood at 106.4% and the
dividend target, remains subject to the continued timely collection of rent
across the portfolio.

 

In this quarter, the Group completed the sale of the Applegreen petrol filling
station, Crawley ("Crawley") for £4.5 million (gross of disposal costs in
October 2025), which represented a significant premium of £500,000 to its
book value. The Group's portfolio at 31 December 2025 was valued at £103.5
million, reflecting this sale and on a like-for-like basis, the property
values increased by £175,000 or 0.2% during the quarter. The Group's
portfolio benefits from being both fully let and with 92.1% of leases subject
to index-linked rent reviews.

As at 31 December 2025, the Group's unaudited Net Asset Value (NAV) was £68.0
million, or 84.5pps, marking a 0.6% increase from the previous quarter.
Including the 1.40pps dividend paid during the quarter, this equates to an
unaudited NAV total return of 2.3% for the quarter.

 

Overview of Key Financials

                                            At 31 December 2025  At 30 September 2025  Change

                                            (unaudited)          (audited)
 Net Asset Value ("NAV")                    £68.0 million        £67.6 million         +0.6%
 NAV per share                              84.5p                84.0p                 +0.6%
 Share price per share                      73.6p                71.0p                 +3.7%
 Share price discount to NAV                12.9%                15.4%                 -2.5%
 Investment property fair value             £103.5 million       £107.6 million        -3.8%

 (based on external valuation)
 Loan to gross asset value ("GAV") (A) (B)  34.3%                36.8%

 

 

 

                                   Quarter ended        Quarter ended                   Change

                                   31 December 2025     30 September 2025 (unaudited)

                                   (unaudited)
 EPRA earnings per share (A)       1.5p                 1.8p                            -13.0%
 Adjusted earnings per share (A)   1.5p                 1.9p                            -22.0%
 Dividend cover (A,D)              106.4%               136.4%                          -30.0%
 Total dividends per share         1.40p                1.40p                           -
 Dividend yield (annualised)(A,C)  7.6%                 8.7%                            -1.1%
 Earnings per share                1.9p                 1.9p                            -
 Share price total return (A)      5.6%                 -2.0%                           +7.6%
 NAV total return (A)              2.3%                 2.2%                            0.1%
 Annualised passing rent           £7.9 million         £8.1 million                    -2.5%
 Ongoing charges (A) (annualised)  1.6%                 1.5%                            +0.1%

(A) Considered to be an Alternative Performance Measure.

(B) The loan facility at 31 December 2025 of £41.0 million with HSBC UK Bank
Plc had a weighted average interest cost of 5.13%.(30 September 2025: £41.0
million with Canada Life Investments matured on 20 October 2025). At 31
December 2025, the loan drawn was £36.6million (30 September 2025: £41.0
million).

(C) Dividend yield is based on the target dividend of 5.6 pence per share,
divided by the share price at the end of the quarter.

(D) Dividend cover is the ratio to measure the Groups ability to pay its
dividend and is calculated as Earnings per share by dividend per share.

 

Dividend Declaration, Earnings Per Share and Dividend Cover

 

The Board is pleased to declare its second interim dividend of 1.4pps for the
quarter ended 31 December 2025, in line with the Company's dividend target of
5.6pps for the year ending 30 June 2026. The resetting of the dividend target
for this financial year, which is lower than the previous year's, is entirely
due to the increase in interest costs associated with the Group's new HSBC
banking facilities. This interim dividend will be distributed as Property
Income Distribution ("PID") and will be paid on 27 February 2026 to
shareholders on the register on 13 February 2026. The ex-dividend date will be
12 February 2026.

 

The Adjusted EPS was 1.5pps for the quarter (30 September 2025: 1.9pps) and
the dividend cover decreased to 106.4% this quarter (30 September 2025:
136.4%), as a result of the increase in financing costs.

 

Property Portfolio

 

The Group's portfolio is riding the storm of recent market fluctuations well
and at 31 December 2025, the Group held 19 properties (30 September 2025: 20
properties) valued at £103.5 million (30 September 2025: £107.5 million).
The reduction in the valuation for the quarter ended 31 December 2025 reflects
the previously announced sale of the Applegreen petrol filling station at
Crawley.

 

At 31 December 2025, the Net Initial Yield on the Group's portfolio was 7.1%
(30 September 2025: 7.1%). The weighted average unexpired lease term at 31
December 2025 was 15.4 years to the earlier of break and expiry (30 September
2025: 15.3 years) and 17.1 years to expiry (30 September 2025: 17.0 years).

 

The Group's contracted annualised rent increased by 0.3% during the quarter
(30 September 2025: +0.7%). This was due to annual index-linked rent reviews
of the Group's properties in Brough and Solihull.  Active management of the
portfolio continues with conversations progressing with a number of tenants
considering re-gearing leases, removing tenant breaks and extending lease
lengths. For the upcoming quarter to 31 March 2026, one annual index-linked
rent review in Bristol will take place, which represents 6.2% of the Group's
annual rental income.

 

94.8% of the portfolio's contracted rent is payable quarterly in advance, with
the remainder being payable monthly in advance.

 

Net Asset Value, Share Price and Share Price Discount to NAV

 

At 31 December 2025, the Group's unaudited NAV was £68.0 million, 84.5pps (30
September 2025: £67.6 million, 84.0pps, respectively), representing a 0.6%
increase over the previous quarter.

 

When combined with the 1.40pps dividend paid in the quarter, this produces an
unaudited NAV total return for the quarter of 2.3% (30 September 2025: 2.2%).
Over the quarter, the Company's share price increased by 3.7% to 73.6pps,
reflecting a decrease in the discount from 15.4% to 12.9%.

 

The table below sets out the movement in NAV during the quarter.

 

 

                                           Pence per share  £ million
 NAV at 30 September 2025                  84.0             67.6
 Valuation movement in property portfolio  +0.4             +0.3
 Income earned for the period              +2.7             +2.2
 Expenses for the period                   -0.6             -0.5
 Net finance costs for the period          -0.7             -0.6
 Gain on property sale                     +0.1             0.1
 Interim dividend paid during the quarter  -1.4             -1.1
 NAV at 31 December 2025                   84.5             68.0

 

The NAV attributable to the ordinary shares has been calculated under
International Financial Reporting Standards as adopted by the United Kingdom
and incorporates both the Group's property portfolio individually valued on a
'Red Book' basis at 31 December 2025 and net income for the quarter but does
not include a provision for the interim dividend declared today (see above).

 

The income earned for the period includes an accrual for the minimum
contractual uplifts contained in the index-linked leases. In the event that
inflation is greater than these minimum contractual uplifts, the actual income
will be greater than the income currently accrued.

 

Refinancing

 

The Group refinanced its long-term loan facility on 20 October 2025 with HSBC
UK Bank Plc, using the proceeds to repay the Group's previous Canada Life
facility in full. The new HSBC Bank Facilities consist of both a fixed 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 agreed by both parties.

 

The new HSBC bank facilities attract a margin of 1.7% per annum plus SONIA
(sterling overnight index average rate).  This represents a significant
improvement in terms on the previous debt facilities, but total finance costs
have increased as a result of the higher interest rate costs. The financial
covenants for the new facilities also represent improved terms to the Group,
being based on a Loan to Value covenant which is not to exceed 60% and an
Interest Cover Ratio to be greater than 160%.

 

† This is a target and not a formal dividend forecast or a profit forecast

 

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

 Martley Capital Real Estate Investment Management Ltd  020 4551 1240

 Richard Croft

 Jane Blore

 Panmure Liberum Limited                                020 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 (https://www.alternativeincomereit.com/) (1).

 

(1) Neither the content of the Company's website, nor the content on any
website accessible from hyperlinks on its website or any other website, is
incorporated into, or forms part of, this announcement nor, unless previously
published on a Regulatory Information Service, should any such content be
relied upon in reaching a decision as to whether or not to acquire, continue
to hold, or dispose of, securities in the Company.

 

 

NOTES

Alternative Income REIT PLC aims to generate a sustainable, secure and
attractive income return for shareholders from a diversified portfolio of UK
property investments, 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 over 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).

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
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DIVUPUWUPUPQGRW



            Copyright 2019 Regulatory News Service, all rights reserved