21st Jun 2024 11:17
(Alliance News) - Alpha Real Trust Ltd on Friday said it is focused on investments which will offer inflation protection after reporting weaker financial results.
The Guernsey-based investor currently selectively focusses on asset-backed lending, debt investments and high return property investments in Western Europe that are capable of delivering strong risk adjusted returns.
In the year that ended March 31, Alpha Real said net asset value per share fell 4.4% to 207.3 pence each from 216.8p the previous year.
According to Alpha Real, the decrease in value largely reflects the reduction in fair value of investment properties and the sale of the H2O shopping centre in Madrid. The company, which owned a 30% stake, sold the centre alongside a partner for GBP41.4 million on April 3.
The trust swung to a pretax loss of GBP855,000 from a GBP835,000 pretax profit, while total operating expenses rose 22% to GBP5.5 million from GBP4.5 million.
Alpha Real declared a 1.0p final dividend and brought the year's total dividend to 4.0p, unchanged from last year.
The board is also offering shareholders the alternative choice of a scrip dividend, to receive shares in the company instead of a cash payment.
Chair William Simpson said: "In recent years the company focused on reducing exposure to direct development risk and recycling capital into cashflow driven investments.
"The company is currently focussed on its loan portfolio and also on its wider investment strategy which targets investments offering inflation protection via index-linked income adjustments and investments that have potential for capital gains."
Alpha Real shares decreased 4.4% to 120.00 pence each in London on Friday morning.
By Elijah Dale, Alliance News reporter
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