29th Nov 2019 12:10
(Alliance News) - Alpha Real Trust Ltd on Friday said its net asset value per share was higher in the first half of its financial year, having raised its shareholding in a portfolio of UK industrial assets.
As at September 30, the company's NAV per share was 213.5 pence, 4.5% higher than the 204.3p March 31 figure.
The trust targets investment, development, and financing in real estate, as well as in real estate operating firms and securities. It also invests in infrastructure services and other asset-backed businesses.
On September 19, Alpha Real Trust announced it had acquired the remaining 66% stake it did not already hold in Alpha UK Property Fund Asset Company (No 2) Ltd, whose portfolio consists of two unleveraged industrial assets in England. The portfolio's September 30 NAV was GBP16.2 million at the end of September.
In addition, the firm increased its portfolio weighting toward secured loan investment, with its secured loan portfolio representing 39% of its investment portfolio, some GBP47.5 million, at the end of its first half. Since then, it has funded a further GBP3.4 million of loans.
Chair David Jeffreys said Alpha Real Trust "continues to actively augment and diversify its portfolio of secured real estate loan and secured mezzanine loan investments which are expected to enhance the company's current earnings. Over the past twelve months the loan portfolio has more than doubled, with GBP18.4 million of investment into the secured loan portfolio completing in the six month period ended 30 September 2019, with an additional GBP3.4 million of loans granted post period end.
"As the company continues to actively reposition its investments to deliver attractive income returns, for the medium term, the company's returns are likely to see greater contributions from the growing senior debt and mezzanine loan portfolio and less from capital gains. The company maintains an active pipeline of potential new secured senior and mezzanine loans and equity investment opportunities under review."
Dividends per share paid during the period totalled 1.6p, down 11% from 1.8p the year prior. Alpha Real Trust has announced a 1.0p per share dividend expected to be paid January 10.
Shares in Alpha Real Trust were down 1.0% at 183.70p in London on Friday just before midday.
By Anna Farley; [email protected]
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