|
Alternative Income REIT PLC on Monday said it expects the pathway for interest rates to benefit the property market, as it posted net asset value gains, and noted its revised dividend target. The investor in commercial property assets said its NAV per share rose 3.4% to 83.64 pence at June 30, from 80.90p a year earlier. Alternative Income attributed this gain to an increase in property values during the 12 months, owing to an uplift in rents following rent reviews. EPRA earnings per share rose 12% to 6.57p from 5.89p, and gross passing rental income improved 5.2% to £8.1 million from £7.7 million. NAV total return over the financial year was 11.1%, and the trust narrowed its share price discount to 11.5% from 18.4% as its shares rose to 74.0p from 66.0p. The trust was trading 0.5% higher at 72.39 pence on Monday morning in London. Alternative Income declared an annual dividend of 6.20p, up 5.1% from 5.90p. Non-Executive Chair Simon Bennett said the trading period was characterised by declines in consumer confidence and inflation, low rental growth and falling interest rates. ‘These factors were reflected in the real estate sector, where transactions have been scarce, with both investors and occupiers cautiously playing a waiting game. This has proved to be beneficial for the group. From an income standpoint, the economic environment has seen our portfolio continuing to perform well, benefiting from its long dated and high yielding leases with index-linked rental increases,’ said Bennett. Post period end in September, Alternative Income reported a resetting of its dividend target, with it targeting no less than 5.6p per share for the financial year to June 30, 2026. This revised target was attributed in whole to the increasing of finance costs relating to its new facilities, which will rise to £2.2 million, up from £1.4 million in previous financial years. In September, the trust said it has secured new long-term facilities with HSBC UK Bank PLC, consisting of a fixed term loan of £31 million and a £10 million revolving credit facility. ‘The group’s index-linked portfolio, with its properties let on predominantly long dated and high yielding leases, has continued to perform relatively well, when compared with its peer group. On a macro level, it appears that the pathway for interest rates continues to be downwards. This should benefit the property market in general,’ said Chair Bennett. ‘This, in conjunction with the active asset management initiatives being undertaken by the group and the successful refinancing of AIRE’s banking facilities, give the board confidence that the portfolio will continue to deliver an attractive yield as a result of its secure and growing rental income,’ continued Bennett. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
