TIDMARTL
RNS Number : 5224U
Alpha Real Trust Limited
24 November 2023
LEI: 213800BMY95CP6CYXK69
24 November 2023
ALPHA REAL TRUST LIMITED ("ART" OR THE "COMPANY" OR "THE
GROUP")
ART ANNOUNCES ITS HALF YEAR RESULTS FOR THE SIX MONTHSED 30
SEPTEMBER 2023
-- NAV per ordinary share 214.3p as at 30 September 2023 (31 March 2023: 216.8p).
-- Basic earnings for the six months ended 30 September 2023 of
1.5p per ordinary share (six months ended 30 September 2022: basic
earnings of 0.4p per ordinary share).
-- Adjusted earnings for the six months ended 30 September 2023
of 4.6p per ordinary share (six months ended 30 September 2022:
adjusted earnings of 3.3p per ordinary share)*.
-- Declaration of a quarterly dividend of 1.0p per ordinary
share expected to be paid on 24 January 2024.
-- Robust financial position: ART remains on a robust financial
footing and is well positioned to take advantage of new investment
opportunities.
-- Investment targets: the Company is currently focussed on
managing risk in its loan portfolio and opportunistically extending
its wider investment strategy to target investments offering
inflation protection via index linked income adjustments and
investments that have potential for capital gains.
-- Addition to long leased property portfolio: in August 2023,
ART acquired a hotel and public house in Yardley, Birmingham for
GBP5.1 million (including acquisition costs) with inflation linked
rentals.
-- Diversified portfolio of secured senior and secured mezzanine
loan investments: as at 30 September 2023, the size of ART's drawn
secured loan portfolio was GBP57.9 million, representing 46.4% of
the investment portfolio.
-- The senior portfolio has an average Loan to Value ('LTV')**
of 60.1% based on loan commitments (with mezzanine loans having an
LTV range of between 49.5% and 68.0% whilst the highest approved
senior loan LTV is 65.6%).
-- Loan commitments: including existing loans at the balance
sheet date and loans committed post period end, ART's current total
committed but undrawn loan commitments amount to GBP3.4
million.
-- H2O Madrid: three Inditex group brands entered into updated
lease contracts to extend the footprint of existing stores and
extend the lease terms.
-- Cash management: including investments post period end, the
Company has invested GBP12.0 million in short term UK Treasury
Bonds (Gilts) and GBP7.1 million in UK Treasury Bills to enhance
returns on its liquid holdings.
* The basis of the adjusted earnings per share is provided in
note 8
** See below for more details
William Simpson, Chairman of Alpha Real Trust, commented:
"ART's investment portfolio benefits from diversification across
geographies, sectors, and asset types. As inflationary pressures
and interest rate policy continue to shape the economic backdrop in
which the Company operates, ART remains on a robust financial
footing and is well placed to capitalise on new investment
opportunities.
ART remains committed to growing its diversified investment
portfolio. 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."
The Investment Manager of Alpha Real Trust is Alpha Real Capital
LLP.
For further information please contact:
Alpha Real Trust Limited
William Simpson, Chairman, Alpha Real Trust +44 (0) 1481 742
742
Gordon Smith, Joint Fund Manager, Alpha Real Trust +44 (0) 207
391 4700
Brad Bauman, Joint Fund Manager, Alpha Real Trust +44 (0) 207
391 4700
Panmure Gordon, Broker to the Company
Atholl Tweedie +44 (0) 20 7886 2500
Notes to editors:
About Alpha Real Trust
Alpha Real Trust Limited targets investment, development,
financing and other opportunities in real estate, real estate
operating companies and securities, real estate services,
infrastructure, infrastructure services, other asset-backed
businesses and related operations and services businesses that
offer attractive risk-adjusted total returns.
Further information on the Company can be found on the Company's
website: www.alpharealtrustlimited.com .
About Alpha Real Capital LLP
Alpha Real Capital is a value-adding international property fund
management group. Alpha Real Capital is the Investment Manager to
ART. Brad Bauman and Gordon Smith of Alpha Real Capital are joint
Fund Managers to ART. Both have experience in the real estate and
finance industries throughout the UK, Europe and Asia.
For more information on Alpha Real Capital please visit
www.alpharealcapital.com .
Company's summary and objective
Strategy
ART targets investment, development, financing and other
opportunities in real estate, real estate operating companies and
securities, real estate services, infrastructure, infrastructure
services, other asset-backed businesses and related operations and
services businesses that offer attractive risk-adjusted total
returns.
ART 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.
The portfolio mix at 30 September 2023, excluding sundry
assets/liabilities, was as follows:
30 September 31 March 2023
2023
High return debt: 46.4% 44.5%
High return equity in property investments: 29.7% 26.5%
Other investments: 14.3% 15.2%
Cash: 9.6% 13.8%
The Company is currently focussed on risk managing its loan
portfolio and opportunistically extending its wider investment
strategy to target high return mezzanine and property investments
offering inflation protection via index linked income adjustments
and investments that have potential for capital gains.
The Company's Investment Manager is Alpha Real Capital LLP
("ARC").
Dividends
The current intention of the Directors is to pay a dividend and
offer a scrip dividend alternative quarterly to all
shareholders.
Listing
The Company's shares are traded on the Specialist Fund Segment
("SFS") of the London Stock Exchange ("LSE"), ticker ARTL: LSE.
Management
The Company's Investment Manager is Alpha Real Capital LLP
('ARC'), whose team of investment and asset management
professionals focus on the potential to enhance earnings in
addition to adding value to the underlying assets, and also focus
on the risk profile of each investment within the capital structure
to best deliver attractive risk adjusted returns.
Control of the Company rests with the non-executive Guernsey
based Board of Directors.
Financial highlights
6 months 12 months 6 months
ended ended ended
30 September 31 March 30 September
2023 2023 2022
------------------------------------ -------------- ---------- --------------
Net asset value (GBP'000) 125,354 125,067 125,025
------------------------------------ -------------- ---------- --------------
Net asset value per ordinary share 214.3 216.8p 219.6
------------------------------------ -------------- ---------- --------------
Earnings per ordinary share (basic
and diluted) (adjusted)* 4.6p 7.7p 3.3p
------------------------------------ -------------- ---------- --------------
Earnings per ordinary share (basic
and diluted) 1.5p 1.1p 0.4p
------------------------------------ -------------- ---------- --------------
Dividend per ordinary share (paid
during the period) 2.0p 4.0p 2.0p
* The adjusted earnings per share includes adjustments for the
effect of the fair value revaluation of investment property and
indirect property investments, capital element on Investment
Manager's fees, the fair value movements on financial assets and
deferred tax provisions: full analysis is provided in note 8 to the
accounts.
Chairman's statement
I am pleased to present the Company's half year report and
accounts for the six months ended 30 September 2023.
ART's investment portfolio benefits from diversification across
geographies, sectors and asset types and the Company remains on a
robust financial footing and is well placed to capitalise on new
investment opportunities.
Inflationary pressures and persistently relatively high central
bank interest rates continue dominate the economic backdrop in
which the Company operates and clouds the outlook for the real
estate market. The uncertain market will offer opportunities in the
medium term for ART to grow its diversified investment portfolio.
The Company is currently focussed on risk managing its loan
portfolio and opportunistically extending its wider investment
strategy to target mezzanine opportunities as companies seek to
refinance and recapitalise. The Company is also investing in assets
offering inflation protection via index linked income adjustments
and investments that have potential for capital appreciation.
ART's investment portfolio benefits from diversification across
geographies, sectors and asset types. We continue to take a
cautious approach to new investment, including new lending, as we
observe ongoing pressures in the economy. Recently the Company has
again focused on recycling capital into more conservative asset
backed lending while reducing exposure to development risk. In this
time of heightened uncertainty, the Company is benefiting from that
strategy and it has placed the Company on a robust financial
footing.
ART continues to adhere to its disciplined strategy and
investment underwriting principles which seek to manage risk
through a combination of operational controls, diversification and
an analysis of the underlying asset security.
Long leased assets
The Company's portfolio of long leased properties, comprising
three hotels leased to Travelodge in the UK and an industrial
facility in Hamburg, Germany, leased to a leading industrial group
are well positioned in the current inflationary environment. The
leased assets have inflation linked rent adjustments which offer
the potential to benefit from a long term, predictable, inflation
linked income stream and the potential for associated capital
growth.
During the period ART acquired a hotel and public house in
Yardley, Birmingham, United Kingdom for GBP5.1 million (including
acquisition costs), leased to Travelodge Hotels Limited reflecting
an initial yield of 8.3% p.a. ART has acquired the asset for
cash.
The property is let until November 2060 with a tenant only break
option in 2035, providing 12 years term certain to the break clause
and the rent has inflation linked adjustments.
The 64-bedroom hotel and public house is held freehold and is
situated to the east of Birmingham City Centre off the A45. The
hotel is in a well-connected location equidistant between
Birmingham City Centre to the west and Birmingham Airport to the
east.
Diversified secured lending investment
The Company invests in a diversified portfolio of secured senior
and mezzanine loan investments. The loans are typically secured on
predominately residential real estate investment and development
assets with attractive risk adjusted income returns. As at 30
September 2023, ART had committed GBP67.6 million across eighteen
loans, of which GBP57.9 million (excluding a GBP5.1 million
provision for Expected Credit Loss discussed below) was drawn.
The Company's debt portfolio comprises predominately floating
rate loans. Borrowing rates are typically set at a margin over Bank
of England ('BoE') Base Rate and benefit from rising interest rates
as outstanding loans deliver increasing returns as loan rates track
increases in the BoE Base Rate.
During the quarter ended 30 September 2023, one new loan was
drawn for GBP0.8 million and additional drawdowns of GBP5.0 million
were made on existing loans, one loan totalling GBP0.5 million
(including accrued interest and exit fees) was fully repaid and a
further GBP5.0 million (including accrued interest) was received as
part repayments.
Post period end, GBP1.5 million of drawdowns were made on
existing loans, one loan was fully repaid for GBP1.5 million
(including accrued interest and applicable fees) and part payments
were received amounting to GBP4.5 million (including accrued
interest).
As at 30 September 2023, 68.6% of the Company's loan investments
were senior loans and 31.4% were mezzanine loans. The portfolio has
an average LTV of 60.1% based on loan commitments (with mezzanine
loans having a LTV range of between 49.5% and 68.0% whilst the
highest approved senior loan LTV is 65.6%). Portfolio loans are
underwritten against value for investment loans or gross
development value for development loans as relevant and
collectively referred to as LTV in this report.
The largest individual loan in the portfolio as at 30 September
2023 is a senior loan of GBP10.2 million which represents 15.1% of
committed loan capital and 8.1% of the Company's NAV.
Four loans in the portfolio have entered receivership: ART is
closely working with stakeholders to maximise capital recovery. The
Company has considered the security on these loans (which are a
combination of a first charge and a second charge over the
respective assets and personal guarantees) and has calculated an
Expected Credit Loss ('ECL') on these four loans of approximately
GBP3.7 million; the Group have also provided for an ECL on the
remainder of the loans' portfolio for an additional GBP1.4 million:
in total, the Group have provided for an ECL of GBP5.1 million in
its consolidated accounts.
Aside from the isolated cases of receivership, illustrated
above, the Company's loan portfolio has proved to be resilient
despite the recent extended period of heightened uncertainty and
risk. In terms of debt servicing, allowing for some temporary
agreed extensions, interest and debt repayments have been received
in accordance with the loan agreements. Where it is considered
appropriate, on a case-by-case basis, underlying loan terms may be
extended or varied with a view to maximising ART's risk adjusted
returns and collateral security position. The Company's loan
portfolio and new loan targets continue to be closely reviewed to
consider the potential impact on construction timelines, building
cost inflation and sales periods.
The underlying assets in the loan portfolio as at 30 September
2023 had geographic diversification with a London and South East
focus. London accounted for 25.4% and the South East of England
accounted for 17.1% of the committed facilities within the loan
investment portfolio.
H2O, Madrid
ART has a 30% stake in a joint venture with CBRE Investment
Management in the H2O shopping centre in Madrid.
H2O occupancy, by area, as at 30 September 2023 was 91.5%. The
centre's visitor numbers remain below pre-Covid highs; however, a
recovery is evident. In the calendar year to 30 September 2023,
visitor numbers were approximately 6.8% below those in 2019
(pre-Covid) and 7.0% above 2022.
During the period, a notable asset management action included
the signing of contracts with three existing Inditex group brands
within the centre to extend the footprint of existing stores and
extend the lease terms. The works to deliver the new 3,000 square
metre store for anchor retailer Primark continue to advance on
schedule. The store is expected to be delivered during 2024.
Other investments
Investment in listed and authorised funds
The Company has invested (value as at 30 September 2023: GBP4.1
million) across three investments that offer potential to generate
attractive risk adjusted returns. Current market volatility and
rises in interest rates have impacted the capital value of these
investments. The investment yield offers a potentially accretive
return to holding cash while the Company deploys capital in
opportunities in line with its investment strategy. These funds
invest in ungeared long-dated leased real estate, debt and
infrastructure.
Cash management
The Company adopts an active approach to enhance returns on its
cash balances .
As at 30 September 2023, the Company had invested a total of
GBP6.0 million in short dated UK Treasury Bonds (Gilts) (annualised
yield to maturity of 4.8% with maturity in September 2024) and
GBP7.1 million in UK Treasury Bills (annualised yield to maturity
of 5.5% with maturity in March 2024). These government backed short
term investments offer the Company enhanced returns over cash
balances.
Post period end, the Company invested further GBP6.0 million in
short dated UK Treasury Bonds (Gilts) with an annualised yield to
maturity of 4.9% with maturity in October 2025.
During the period, the Company also invested GBP6.0 million in
the Morgan Stanley GBP Liquidity Fund, which invests in high
quality short-term money market instruments denominated in
sterling, offers same day liquidity and earns an annualised return,
net of Morgan Stanley's fees, of 5.3%.
Results and dividends
Results
Basic earnings for the six months ended 30 September 2023 are
GBP0.9 million (1.5 pence per ordinary share, see note 8 of the
financial statements).
Adjusted earnings, which the Board believe is a more appropriate
assessment of the operational income accruing to the Group's
activities, for the six months ended 30 September 2023 are GBP2.7
million: this represents 4.6 pence per ordinary share, which
compares with adjusted earnings of 3.3 pence per ordinary share in
the same period of last year (see note 8 of the financial
statements). Earnings have increased primarily due to enhanced
revenues from new long income investments and accretion from
cash/treasury management.
The net asset value per ordinary share at 30 September 2023 is
214.3 pence per share (31 March 2023: 216.8 pence per ordinary
share) (see note 9 of the financial statements). The net asset
values reflects the fair value movement on the investment property
and listed and authorised funds, an increase in the ECL provisions
on the loan portfolio mitigated by positive earnings in excess of
dividends.
Dividends
The Board announces a dividend of 1.0 pence per ordinary share
which is expected to be paid on 24 January 2024 (ex-dividend date 7
December 2023 and record date 8 December 2023).
The dividends paid and declared in respect of the twelve month
period ended 30 September 2023 totalled 4.0 pence per ordinary
share representing an annual dividend yield of 3.0% p.a. by
reference to the average closing share price over the twelve months
to 30 September 2023.
During the period, GBP105,561 dividends were paid in cash and
GBP1,052,519 settled by scrip issue of shares.
Scrip dividend alternative
Shareholders of the Company have the option to receive shares in
the Company in lieu of a cash dividend, at the absolute discretion
of the Directors, from time to time.
The number of ordinary shares that an Ordinary Shareholder will
receive under the Scrip Dividend Alternative will be calculated
using the average of the closing middle market quotations of an
ordinary share for five consecutive dealing days after the day on
which the ordinary shares are first quoted "ex" the relevant
dividend.
The Board has elected to offer the scrip dividend alternative to
Shareholders for the dividend for the quarter ended 30 September
2023 . Shareholders who returned the Scrip Mandate Form and elected
to receive the scrip dividend alternative will receive shares in
lieu of the next dividend. Shareholders who have not previously
elected to receive scrip may complete a Scrip Mandate Form (this
can be obtained from the registrar: contact Computershare (details
below)), which must be returned by 9 January 2024 to benefit from
the scrip dividend alternative for the next dividend.
Financing
As at 30 September 2023 the Group has one direct bank loan of
EUR9.5 million (GBP8.2 million), with no financial covenant tests,
to a subsidiary used to finance the acquisition of the Hamburg
property. The loan is secured over the Hamburg property and has no
recourse to the other assets of the Group.
Further details of individual asset financing can be found under
the individual investment review sections later in this report.
Share buybacks
Following the Annual General Meeting held on 7 September 2023
the Company has the authority to buy back 14.99% of its share
capital (assessed on 29 June 2023) for a total of 8,709,579 shares.
No shares have been yet bought back under this authority.
During the period and post period end, the Company did not
purchase any shares in the market.
As at the date of this announcement, the ordinary share capital
of the Company is 66,629,772 (including 7,717,581 ordinary shares
held in treasury) and the total voting rights in the Company is
58,912,191.
Foreign currency
The Company monitors foreign exchange exposures and considers
hedging where appropriate. Foreign currency balances have been
translated at the period end rates of GBP1:EUR1.154 as
appropriate.
Russian invasion of Ukraine and going concern
As previously stated, ART has no investments in Ukraine, Russia,
nor exposure to any companies that have investments in, or links
to, Ukraine or Russia. ART has no arrangements with any person
currently on (or potentially on) any sanctions list, or links to
Ukraine or Russia. The Board continues to monitor the global
political and economic situation regularly assessing impacts
arising from inflation and interest rate changes for a potential
material impact on ART's portfolio.
The Company has adopted a prudent short-term strategy to move to
cash conservation and a cautious approach to commitments to new
investments over this uncertain time. Alert to the impact of
potentially reducing income returns, this approach has supported a
robust balance sheet position. The Company continues to adopt this
cautious approach to new investment and is conserving cash because
of the uncertainty that has characterised the past few months; this
ensures the Company retains a robust financial footing, making it
well positioned to take advantage of new investment
opportunities.
As noted above, the Company held approximately (as at 30
September 2023) 9.6% of its assets (excluding sundry net assets) in
cash (including the investment in the Morgan Stanley GBP Liquidity
Fund ) and 10.5% in highly liquid UK Treasury Bonds and Bills with
limited current contractual capital commitments. While there is
external financing in the Group's investment interests, this is
limited and non-recourse to the Company; the borrowings in these
special purpose vehicles are compliant with their banking
covenants. See the investment review section for more details on
relevant investments.
Bearing in mind the nature of the Group's business and assets,
after making enquiries, with the support of revenue forecasts for
the next twelve months and considering the above, the Directors
consider that the Group has adequate resources to continue in
operational existence for the foreseeable future. For this reason,
they continue to adopt the going concern basis in preparing the
financial statements.
Strategy and outlook
ART's investment portfolio benefits from diversification across
geographies, sectors, and asset types. As inflationary pressures
and interest rate policy continue to shape the economic backdrop in
which the Company operates, ART remains on a robust financial
footing and is well placed to capitalise on new investment
opportunities.
ART remains committed to growing its diversified investment
portfolio. 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.
William Simpson
Chairman
23 November 2023
Investment review
Portfolio overview & risk analysis as at 30 September
2023
Investment name
Investment type Carrying Income Investment Property type / underlying security Investment notes % of Notes
value return location portfolio(1) **
p.a. *
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
High return debt (46.4%)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------
Secured senior
finance
Senior secured loans
(excluding committed
but undrawn
facilities of GBP4.6 GBP39.7m
million) (2) 9.8% (3) UK Diversified loan portfolio focussed on real estate investments and developments Senior secured debt 31.8% 13
Secured mezzanine finance
Second charge GBP18.2m 18.6% (3) UK Diversified loan portfolio focussed on real estate investments and developments Secured mezzanine debt and subordinated debt 14.6% 13
mezzanine loans (2)
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
High return equity in property investments (29.7%)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ------------- -----
H2O shopping centre
Indirect property GBP17.4m 5.1% (4) Spain Dominant Madrid shopping centre and separate development site 30% shareholding; moderately geared bank finance 14.0% 12
(EUR 20.1m) facility
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
Long leased industrial facility, Hamburg
Direct property GBP8.4m (5) 8.9% (4) Germany Long leased industrial complex in major European industrial and logistics hub with RPI linked Long term moderately geared bank finance facility 6.7% 10
rent
(EUR9.7m)
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
Long leased hotel, Wadebridge
Direct property GBP3.6m 5.3% (6) UK Long leased hotel to Travelodge, a large UK hotel group with CPI linked rent No external gearing 2.9% 10
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
Long leased hotel, Lowestoft
Direct property GBP2.7m 5.2% (6) UK Long leased hotel to Travelodge, a large UK hotel group with RPI linked rent No external gearing 2.2% 10
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
Long leased hotel, Yardley
Direct property GBP4.8m 7.7% (6) UK Long leased hotel to Travelodge, a large UK hotel group with RPI linked rent No external gearing 3.9% 10
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
Other investments (14.3%)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------
Listed and authorised
fund investments GBP4.1m UK & Commercial real estate, infrastructure and debt funds Short to medium term investment in listed and
6.2% (4) Channel authorised funds 3.3% 11
Islands
Affordable housing
Residential
Investment GBP0.6 m n/a UK High-yield residential UK portfolio 100% shareholding; no external gearing 0.5% 10
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
UK Treasury Bonds GBP6.0m 4.8% (7) UK UK government bonds - 4.8% 11
2.8% (8)
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
UK Treasury Bills GBP7.1m 5.5% (7) UK UK government bonds - 5.7% 11
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
Cash and short-term investments (9.6%)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ -------------
Cash (9) GBP6.0 m 1.5% (10) UK 'On call' and current accounts - 4.8% -
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- -------------
Sterling Liquidity
Fund GBP6.0m 5.3% UK Money market fund, daily liquidity - 4.8% 16
--------------------- ----------- ---------- ---------- --------------------------------------------------------------------------------------------- ------------------------------------------------- ------------- -----
* Return from underlying investments excluding Fund fees
** See notes to the financial statements
(1) Percentage share shown based on NAV excluding the company's
sundry assets/liabilities
(2) Including accrued interest/coupon at the balance sheet
date
(3) The income returns for high return debt are the annualised
actual finance income return over the period shown as a percentage
of the average committed
capital over the period
(4) Yield on equity over 12 months to 30 September 2023
(5) Property value including sundry assets/liabilities, net of
associated debt
(6) Annualised monthly return
(7) Annualised yield to maturity
(8) Fixed annual coupon
(9) Group cash of GBP7.1m excluding cash held with the Hamburg
holding company of GBP1.1m
(10) Weighted average interest earned on call accounts
High return debt
Overview
ART has a portfolio of secured loan investments which contribute
a diversified return to the Company's earnings position. The
portfolio comprises high return senior (first charge) loans and
mezzanine (second charge) loans secured on real estate investment
assets and developments. ART loan underwriting is supported by the
Investment Manager's asset-backed lending experience, developer and
investor relationships and knowledge of the underlying assets and
sectors, in addition to the Group's partnerships with specialist
debt providers.
Secured Finance
Investment Investment Carrying Income Property type Investment
type value return / underlying notes
p.a. security
================== ============== ========= ======== ================== ==============
Secured senior First charge GBP39.7m 9.8%** Diversified Secured debt
finance secured * loan portfolio
loans focussed on
real estate
investments
and developments
================== ============== ========= ======== ================== ==============
Secured mezzanine Second charge GBP18.2m 18.6%** Diversified Second charge
finance secured * loan portfolio secured debt
loans focussed on and secured
real estate subordinated
investments debt
and developments
================== ============== ========= ======== ================== ==============
* Including accrued interest/coupon at the balance sheet date
** The income returns for high return debt are the annualised
actual finance income return over the period shown as a percentage
of the average committed capital over the period
These loans are typically secured on real estate investment and
development assets with attractive risk-adjusted income returns
from either current or capitalised interest or coupons.
As at 30 September 2023, ART had invested a total amount of
GBP57.9 million across eighteen loans. Over the past twelve months
the loan portfolio has increased by 20.4%.
During the six months to 30 September 2023, one new loan was
drawn for GBP0.8 million and additional drawdowns of GBP8.9 million
were made on existing loans; two loans for GBP2.1 million
(including accrued interest and exit fees) were fully repaid and a
further GBP7.3 million (including accrued interest) was received as
part repayments.
Post period end, GBP1.5 million of drawdowns were made on
existing loans, one loan was fully repaid for GBP1.5 million
(including accrued interest and applicable fees) and part payments
were received amounting to GBP4.5 million (including accrued
interest).
Each loan will typically have a term of up to two years, a
maximum 75% loan to gross development value ratio and be targeted
to generate attractive risk-adjusted income returns. As at 30
September 2023 , the senior portfolio has an average LTV of 59.5%
based on loan commitments (with mezzanine loans having an LTV range
of between 49.5% and 68.0% whilst the highest approved senior loan
LTV is 65.6%).
Four loans in the portfolio have entered receivership: ART is
closely working with stakeholders to maximise capital recovery. The
Company has considered the security on these loans (which are a
combination of a first charge and a second charge over the
respective assets and personal guarantees) and have calculated an
ECL on these four loans of approximately GBP3.7 million; the Group
have also provided for an ECL on the remainder of the loans'
portfolio for an additional GBP1.4 million: in total, the Group
have provided for an ECL of GBP5.1 million in its consolidated
accounts.
Current loan investment examples:
Location Total Loan type Loan term Current Underlying security
commitment LTV
MezzanineDevelopment Development of eight
Fleet, Hampshire GBP1,400,000 Loan 18 55.00% new build apartments
=============== ====================== ========== ======== =========================
St. Lawrence, Senior Development Development of eleven
Jersey GBP11,731,000 Loan 24 63.00% new build apartments
=============== ====================== ========== ======== =========================
Temple Fortune, Senior Development Development of eight
London GBP8,600,000 Loan 19 63.00% new build houses
=============== ====================== ========== ======== =========================
Throughout Senior Investment Refinance of a portfolio
the UK GBP12,000,000 Loan 36 60.58% of six care homes
================== =============== ====================== ========== ======== =========================
High return equity in property investments
Overview
ART continues to remain focused on investments that offer the
potential to deliver attractive risk-adjusted returns by way of
value enhancement through active asset management, improvement of
income, selective deployment of capital expenditure and the ability
to undertake strategic sales when the achievable price is accretive
to returns.
H2O Shopping Centre, Madrid
Investment Investment Carrying Income Property type Investment
type value return / underlying notes
p.a. security
=========== =========== ============ ======== ================= ==================
H2O Indirect GBP17.4m 5.1%* High-yield, 30% shareholding;
property (EUR20.1m) dominant Madrid 6-year term
shopping centre bank finance
and separate facility
development
site
=========== =========== ============ ======== ================= ==================
* Yield on equity over twelve months to 30 September 2023, excluding Fund fees
ART has a 30% stake in joint venture with CBRE Investment
Management in the H2O shopping centre in Madrid. H2O was opened in
2007 and built to a high standard providing shopping, restaurants
and leisure around a central theme of landscaped gardens and an
artificial lake. H2O has a gross lettable area of approximately
55,000 square metres comprising over 100 retail units. In addition
to a multiplex cinema, supermarket (let to leading Spanish
supermarket operator Mercadona) and restaurants, it has a large
fashion retailer base, including some of the strongest
international fashion brands, such as Nike, Zara, Mango, JD Sports,
Cortefiel, H&M and C&A.
H2O occupancy, by area, as at 30 September 2023 was 92.6%. The
centre trading levels remain below the pre-covid highs, however a
recovery is evident. In the calendar year to 30 September 2023,
visitor numbers were approximately 6.8% below those of the same
period in 2019 (pre-Covid) and 7.0% above the same period in
2021.
During the period, a notable asset management action included
the signing of contracts with three existing Inditex group brands
within the centre to extend the footprint of existing stores and
extend the lease terms. The works to deliver the new 3,000 square
metre store for anchor retailer Primark continue to advance on
schedule. The store is expected to be delivered during 2024.
The asset management highlights are as follows:
-- Valuation: 30 September 2023: EUR120.0 million (GBP103.9
million) (31 March 2023: EUR119.3 million (GBP104.9 million)).
-- Centre occupancy: 92.6% by area as at 30 September 2023.
-- Weighted average lease length to next break of 2.3 years and
7.9 years to expiry as at 30 September 2023.
Long leased industrial facility, Hamburg
Investment Investment Carrying Income Property type Investment
type value return / notes
p.a. underlying
security
==================================== ================ =========== ======== ================= ====================
Industrial Direct property GBP8.4 8.9% ** High return Long leased
facility, m* industrial investment with
Werner-Siemens-Straße (EUR9.7m) facility in moderately geared,
Hamburg, Germany Hamburg Germany long term, bank
finance facility
==================================== ================ =========== ======== ================= ====================
* Property value including sundry assets/liabilities and cash, net of associated debt
** Yield on equity over twelve months to 30 September 2023, excluding Fund fees
ART has an investment of EUR9.7 million (GBP8.4 million) in an
industrial facility leased to a leading international group.
The property is held freehold and occupies a site of 11.8 acres
in Billbrook, a well-established and well-connected industrial area
located approximately 8 kilometres south-east of Hamburg centre.
Hamburg is one of the main industrial and logistics markets in
Germany.
The property is leased to Veolia Umweltservice Nord GmbH, part
of the Veolia group, an international industrial specialist in
water, waste and energy management, with a 23-year unexpired lease
term. Under the operating lease, the tenant is responsible for
building maintenance and the rent has periodic inflation linked
adjustments.
The Hamburg asset is funded by way of a EUR9.5 million (GBP8.2
million) non-recourse, fixed rate, bank debt facility which matures
in 31 July 2028. The facility carries no financial covenant
tests.
This investment offers the potential to benefit from a long term
secure and predictable inflation-linked income stream which is
forecast to generate stable high single digit income returns. In
addition, the investment offers the potential for associated
capital growth from an industrial location in a major German
logistics and infrastructure hub.
Long leased hotel, Wadebridge, Cornwall
Investment Investment Carrying Income Property type Investment
type value return / notes
p.a. underlying
security
================== ================ ========= ======== ====================== ============
Hotel, Wadebridge Direct property GBP3.6 5.3% * Long leased No external
Cornwall, UK m hotel to Travelodge, gearing
a large UK
hotel group
with RPI linked
rent
================== ================ ========= ======== ====================== ============
* Annualised monthly return, excluding Fund fees
ART has an investment of GBP3.6 million (property valuation as
at 30 September 2023) in a 55-bedroom property, which is held
freehold and is situated on the outskirts of Wadebridge in the
county of Cornwall. The hotel is in a well-connected location in
close proximity to the A39.
The property is leased to Travelodge Hotels Limited on a 20 year
unexpired lease term. Under the lease, the tenant is responsible
for building maintenance
The passing rent of GBP0.3 million p.a. has inflation linked
adjustments.
Long leased hotel, Lowestoft
Investment Investment Carrying Income Property type Investment
type value return / notes
p.a. underlying
security
================== ================ ========= ======== ====================== ============
Hotel, Lowestoft, Direct property GBP2.7 5.2% * Long leased No external
UK m hotel to Travelodge, gearing
a large UK
hotel group
with RPI linked
rent
================== ================ ========= ======== ====================== ============
* Annualised monthly return, excluding Fund fees
ART has an investment of GBP2.7 million (property valuation as
at 30 September 2023) in a 47-bedroom property, which is held
freehold and occupies a site of 1.08 acres in Lowestoft, a well
established and well connected area located in close proximity to
the A47 which runs to Norwich.
The property is leased to Travelodge Hotels Limited on an 18
year unexpired lease term. Under the lease, the tenant is
responsible for building maintenance.
The passing rent of GBP0.2 million p.a. has inflation linked
adjustments.
Long leased hotel, Yardley, Birmingham
Investment Investment Carrying Income Property type Investment
type value return / notes
p.a. underlying
security
================ ================ ========= ======== ====================== ============
Hotel, Yardley, Direct property GBP4.8 7.7% * Long leased No external
UK m hotel to Travelodge, gearing
a large UK
hotel group
with RPI linked
rent
================ ================ ========= ======== ====================== ============
* Annualised monthly return, excluding Fund fees
ART has an investment of GBP4.8 million in a 64-bedroom
property, which is held freehold and occupies a site of 1.42 acres
and has 116 car parking spaces in Yardley. The hotel is situated to
the east of Birmingham City Centre off the A45. The hotel is in a
well-connected location equidistant between Birmingham City Centre
to the west and Birmingham Airport to the east.
The property is leased to Travelodge Hotels Limited until
November 2060 with a tenant only break option in 2035. Under the
lease, the tenant is responsible for building maintenance.
The passing rent of GBP0.4 million p.a. has inflation linked
adjustments.
Other Investments
Listed and authorised fund investments
Investment Investment Carrying Income Property type Investment
type value return / underlying notes
p.a. * security
==================== =============== ========== ======== ================== ========================
Sequoia Economic Listed equity GBP2.3m 6.1% Listed investment FTSE 250 infrastructure
Infrastructure fund debt fund
Income Fund
Limited
==================== =============== ========== ======== ================== ========================
GCP Infrastructure Listed equity GBP0.9m 6.7% Listed investment FTSE 250 infrastructure
Investments fund fund
Limited
==================== =============== ========== ======== ================== ========================
GCP Asset Backed Listed equity GBP0.9m 6.1% Listed investment Diversified
Income Fund fund asset back
Limited debt fund
==================== =============== ========== ======== ================== ========================
Total GBP4.1m 6.2%
===================================== ========= ======== ================== ========================
*Yield on equity based on 12 months to 30 September 2023
The Company invested (value as at 30 September 2023: GBP4.1
million) across three investments that offer potential to generate
attractive risk adjusted returns. Current market volatility and
rise in interest rates has impacted the capital value of these
investments. The investment yield offers a potentially accretive
return to holding cash while the Company deploys capital in
opportunities in line with its investment strategy. These funds
invest in ungeared long-dated leased real estate, debt and
infrastructure.
Affordable Housing
The Company's wholly owned investment, RealHousingCo Limited
("RHC") has obtained successful registration with the Regulator of
Social Housing as a For Profit Registered Provider of affordable
homes. This status provides RHC with a platform to undertake future
investment in the affordable housing sector which offers scope to
generate long term, inflation-linked returns while addressing the
chronic undersupply of affordable homes in the UK.
RHC owns a residential property located in Liverpool (UK), which
is comprised of seven units, all of which are occupied by private
individuals, each with a six month term contract. The fair value of
the Liverpool property as at 30 September 2023 was GBP0.6
million.
UK Treasury Bonds (Gilts) and Bills
Investment Investment Carrying Income Property type Investment
type value return / underlying notes
p.a. * security
=========== ============ ========= ======== ================== =================
Gilts UK Treasury GBP6.0m 4.8% Liquid Government Short dated
Bonds security (maturity in
September 2024)
=========== ============ ========= ======== ================== =================
Treasuries UK Treasury GBP7.1m 5.5% Liquid Government Short dated
Bills security (maturity in
March 2024)
=========== ============ ========= ======== ================== =================
Total GBP13.1m 5.2%
**
=========== ============ ========= ======== ================== =================
* Annualised yield to maturity
** Weighted average
These government backed short term investments offer the Company
enhanced returns over cash balances.
During the period, GBP7.0m in Gilts matured and earned a yield
to maturity of 4.0% and GBP7.1m in UK Treasury Bills matured and
earned a yield to maturity of 4.2%. Post period end, the Company
invested further GBP6.0 million in short dated Gilts with an
annualised yield to maturity of 4.9% with maturity in October
2025.
Cash balances
Investment Investment Carrying Income Property type Investment
type value return / underlying notes
p.a. security
==================== ============ ========= ======== ================== ===========
Cash balance Cash GBP6.0m 1.5% ** 'On call' and n/a
* current accounts
==================== ============ ========= ======== ================== ===========
Morgan Stanley Short-term GBP6.0m 5.3% Money market n/a
Sterling Liquidity investment fund, daily
Fund liquidity
==================== ============ ========= ======== ================== ===========
* Group cash of GBP7.1m excluding cash held with the Hamburg holding company of GBP1.1m
** weighted average interest earned on call accounts
As at 30 September 2023, the Group had cash balances of GBP6.0
million, excluding cash held with the Hamburg holding company of
GBP1.1 million.
The Group's cash is held with established banks with strong
credit ratings.
Summary
ART has a diversified portfolio focussed on asset-backed lending
and property investments in Western Europe.
The Company is currently focussed on risk managing its loan
portfolio and extending its wider investment strategy to
opportunistically target investments in mezzanine and assets
offering inflation protection via index linked income adjustments
and investments that have potential for capital gains.
Brad Bauman and Gordon Smith
For and on behalf of the Inv estment Manager
23 November 2023
Principal risks and uncertainties
The principal risks and uncertainties facing the Group can be
outlined as follows:
-- Rental income, fair value of investment properties (directly
or indirectly held) and fair value of the Group's equity
investments are affected, together with other factors, by general
economic conditions and/or by the political and economic climate of
the jurisdictions in which the Group's investments and investment
properties are located.
-- The Group's loan investments are exposed to credit risk which
arise by the potential failure of the Group's counter parties to
discharge their obligations when falling due; this could reduce the
amount of future cash inflows from financial assets on hand at the
balance sheet date; the Group receives regular updates from the
relevant investment manager as to the performance of the underlying
investments and assesses their credit risk as a result.
-- The Russian invasion of Ukraine is also considered to be a
significant risk and uncertainty for the Group: this is discussed
on the first paragraph of the above going concern section.
The Board believes that the above principal risks and
uncertainties, which are discussed more extensively in the annual
report for the year ended 31 March 2023, would be equally
applicable to the remaining six month period of the current
financial year.
Statement of Directors' Responsibilities
The Directors confirm that to the best of their knowledge:
-- the condensed consolidated financial statements have been
prepared in accordance with IAS 34 'Interim Financial Reporting',
as adopted by the European Union; and
-- the half year report includes a fair review of the
information required by DTR 4.2.7R, being an indication of the
important events that have occurred during the first six months of
the financial year, and their impact on the half year report, and a
description of the principal risks and uncertainties for the
remaining six months of the financial year; and
-- the half year report includes a fair review of the
information required by DTR 4.2.8R, being the related parties
transactions that have taken place in the first six months of the
current financial year and that have materially affected the
financial position or the performance of the Group during that
period; and any changes in the related parties transactions
described in the last annual report that could have a material
effect on the financial position or performance of the enterprise
in the first six months of the current financial year.
The Directors of ART are listed below.
By order of the Board
William Simpson
Chairman
23 November 2023
Independent review report
To Alpha Real Trust Limited
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed consolidated set of
financial statements in the half-yearly financial report for the
six months ended 30 September 2023 is not prepared, in all material
respects, in accordance with International Accounting Standard 34,
as adopted by the European Union, and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
We have been engaged by the company to review the condensed
consolidated set of financial statements in the half-yearly
financial report for the six months ended 30 September 2023 which
comprises the condensed consolidated statement of comprehensive
income, condensed consolidated balance sheet, condensed
consolidated cash flow statement, condensed consolidated statement
of changes in equity and related notes.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410, "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" ("ISRE (UK) 2410"). A review of interim financial
information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the
group are prepared in accordance with International Financial
Reporting Standards ("IFRSs") as adopted by the European Union. The
condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
conclusion section of this report, nothing has come to our
attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410, however future events or conditions
may cause the group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the company a conclusion on the condensed set of
financial statement in the half-yearly financial report. Our
conclusion, including our Conclusions Relating to Going Concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority and for no other purpose. No person is
entitled to rely on this report unless such a person is a person
entitled to rely upon this report by virtue of and for the purpose
of our terms of engagement or has been expressly authorised to do
so by our prior written consent. Save as above, we do not accept
responsibility for this report to any other person or for any other
purpose and we hereby expressly disclaim any and all such
liability.
BDO Limited
Chartered Accountants
Place du Pré
Rue du Pré
St Peter Port
Guernsey
23 November 2023
Condensed consolidated statement of comprehensive income
For the six months ended For the six months ended
30 September 2023 30 September 2022
(unaudited) (unaudited)
---------------------------------------------------- ------------------------------- -------------------------------
Revenue Capital Total Revenue Capital Total
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Income
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Revenue 3 4,218 - 4,218 2,977 - 2,977
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Change in the revaluation of investment
properties 10 - (867) (867) - 143 143
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
(Losses)/gains on financial assets and
liabilities held at fair value through
profit or loss 5 (62) (48) (110) 272 (1,406) (1,134)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Total income/(expense) 4,156 (915) 3,241 3,249 (1,263) 1,986
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Expenses
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Expected credit losses (277) (779) (1,056) - (608) (608)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Property operating expenses (41) - (41) (41) - (41)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Investment Manager's fee 21 (1,158) - (1,158) (1,189) - (1,189)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Other administration costs (546) - (546) (476) - (476)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Total operating expenses (2,022) (779) (2,801) (1,706) (608) (2,314)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Operating profit/(loss) 2,134 (1,694) 440 1,543 (1,871) (328)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Share of profit/(loss) of joint ventures
and associates 12 167 (120) 47 525 324 849
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Finance income 4 481 4 485 44 - 44
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Finance costs (102) - (102) (100) (66) (166)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Profit/(loss) before taxation 2,680 (1,810) 870 2,012 (1,613) 399
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Taxation 6 (18) 23 5 (66) (112) (178)
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Profit/(loss) after taxation 2,662 (1,787) 875 1,946 (1,725) 221
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Other comprehensive income/(expense) for
the period
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Items that may be reclassified to profit
or loss in subsequent periods:
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Exchange differences arising on
translation of foreign operations - (443) (443) - 1,478 1,478
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Other comprehensive (expense)/income for
the period - (443) (443) - 1,478 1,478
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Total comprehensive income/ (expense) for
the period 2,662 (2,230) 432 1,946 (247) 1,699
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Earnings per ordinary share
(basic & diluted) 8 1.5p 0.4p
------------------------------------------- ------- --------- --------- --------- --------- --------- ---------
Adjusted earnings per ordinary
share (basic & diluted) 8 4.6p 3.3p
The total column of this statement represents the Group's
statement of comprehensive income , prepared in accordance with
IFRS. The revenue and capital columns are supplied as supplementary
information permitted under IFRS. All items in the above statement
derive from continuing operations.
The accompanying notes form an integral part of these financial
statements.
Condensed consolidated balance sheet
Notes 30 September 2023 31 March 2023
(unaudited) (audited)
GBP'000 GBP'000
------------------------------ ------- ------------------- ---------------
Non-current assets
------------------------------ ------- ------------------- ---------------
Investment property 10 27,506 23,496
------------------------------ ------- ------------------- ---------------
Investment in joint ventures
and associates 12 17,441 17,654
------------------------------ ------- ------------------- ---------------
Loans advanced 13 10,296 16,051
------------------------------ ------- ------------------- ---------------
55,243 57,201
------------------------------ ------- ------------------- ---------------
Current assets
------------------------------ ------- ------------------- ---------------
Investments held at fair
value 11 17,214 18,310
------------------------------ ------- ------------------- ---------------
Derivatives held at fair 243 -
value through profit or
loss
------------------------------ ------- ------------------- ---------------
Loans advanced 13 47,583 39,385
------------------------------ ------- ------------------- ---------------
Collateral deposit 14 1,131 1,143
------------------------------ ------- ------------------- ---------------
Trade and other receivables 15 471 414
------------------------------ ------- ------------------- ---------------
Cash and cash equivalents 16 13,092 18,455
------------------------------ ------- ------------------- ---------------
79,734 77,707
------------------------------ ------- ------------------- ---------------
Total assets 134,977 134,908
------------------------------ ------- ------------------- ---------------
Current liabilities
------------------------------ ------- ------------------- ---------------
Derivatives held at fair
value through profit or
loss - (171)
------------------------------ ------- ------------------- ---------------
Trade and other payables 17 (1,088) (986)
------------------------------ ------- ------------------- ---------------
Corporation tax (26) (34)
------------------------------ ------- ------------------- ---------------
Bank borrowings 18 (31) (30)
------------------------------ ------- ------------------- ---------------
Total current liabilities (1,145) (1,221)
------------------------------ ------- ------------------- ---------------
Total assets less current
liabilities 133,832 133,687
------------------------------ ------- ------------------- ---------------
Non-current liabilities
------------------------------ ------- ------------------- ---------------
Bank borrowings 18 (8,157) (8,271)
------------------------------ ------- ------------------- ---------------
Deferred tax 6 (321) (349)
------------------------------ ------- ------------------- ---------------
(8,478) (8,620)
------------------------------ ------- ------------------- ---------------
Total liabilities (9,623) (9,841)
------------------------------ ------- ------------------- ---------------
Net assets 125,354 125,067
------------------------------ ------- ------------------- ---------------
Equity
------------------------------ ------- ------------------- ---------------
Share capital 19 - -
------------------------------ ------- ------------------- ---------------
Special reserve 61,564 60,550
------------------------------ ------- ------------------- ---------------
Translation reserve 9 452
------------------------------ ------- ------------------- ---------------
Capital reserve 38,360 40,147
------------------------------ ------- ------------------- ---------------
Revenue reserve 25,421 23,918
------------------------------ ------- ------------------- ---------------
Total equity 125,354 125,067
------------------------------ ------- ------------------- ---------------
Net asset value per ordinary
share 9 214.3p 216.8p
The financial statements were approved by the Board of Directors
and authorised for issue on 23 November 2023. They were signed on
its behalf by William Simpson.
William Simpson
Director
The accompanying notes form an integral part of these financial
statements.
Condensed consolidated cash flow statement
For the six months For the six months
ended ended 30 September
30 September 2023 2022
(unaudited) GBP'000 (unaudited) GBP'000
-------------------------------------- --------------------- ---------------------
Operating activities
-------------------------------------- --------------------- ---------------------
Profit for the period after
taxation 875 221
-------------------------------------- --------------------- ---------------------
Adjustments for:
-------------------------------------- --------------------- ---------------------
Change in revaluation of investment
property 867 (143)
-------------------------------------- --------------------- ---------------------
Net losses on financial assets
and liabilities held at fair
value through profit or loss 110 1,134
-------------------------------------- --------------------- ---------------------
Taxation (5) 178
-------------------------------------- --------------------- ---------------------
Share of profit of joint ventures
and associates (47) (849)
-------------------------------------- --------------------- ---------------------
Interest receivable on loans
to third parties (3,398) (2,394)
-------------------------------------- --------------------- ---------------------
Expected credit losses 1,056 608
-------------------------------------- --------------------- ---------------------
Finance income (485) (44)
-------------------------------------- --------------------- ---------------------
Finance cost 102 166
-------------------------------------- --------------------- ---------------------
Operating cash flows before
movements in working capital (925) (1,123)
-------------------------------------- --------------------- ---------------------
Movements in working capital:
-------------------------------------- --------------------- ---------------------
Movement in trade and other
receivables (42) (123)
-------------------------------------- --------------------- ---------------------
Movement in trade and other
payables 93 (43)
-------------------------------------- --------------------- ---------------------
Cash flows used in operations (874) (1,289)
-------------------------------------- --------------------- ---------------------
Loan interest received 678 1,091
-------------------------------------- --------------------- ---------------------
Loans granted to third parties (9,739) (9,581)
-------------------------------------- --------------------- ---------------------
Loans repaid by third parties 8,710 10,359
-------------------------------------- --------------------- ---------------------
Cash returned from escrow for
loans granted post year end - 1,928
-------------------------------------- --------------------- ---------------------
Interest received 131 44
-------------------------------------- --------------------- ---------------------
Interest paid (93) (91)
-------------------------------------- --------------------- ---------------------
Tax paid (30) (29)
-------------------------------------- --------------------- ---------------------
Cash flows (used in)/generated
from operating activities (1,217) 2,432
-------------------------------------- --------------------- ---------------------
Investing activities
-------------------------------------- --------------------- ---------------------
Acquisition of investment property (5,118) (7,403)
-------------------------------------- --------------------- ---------------------
Investment in UK Treasury Bonds (13,140) -
and Bills
-------------------------------------- --------------------- ---------------------
Redemption of UK Treasury Bonds 14,130 -
and Bills
-------------------------------------- --------------------- ---------------------
Investment in Morgan Stanley (5,990) -
Sterling Liquidity Fund
-------------------------------------- --------------------- ---------------------
Redemption on investments - 5,348
-------------------------------------- --------------------- ---------------------
Capital return from joint venture
in arbitration - 5,868
-------------------------------------- --------------------- ---------------------
Dividend income from joint
ventures and associates - 411
-------------------------------------- --------------------- ---------------------
Dividend income from investments 187 178
-------------------------------------- --------------------- ---------------------
Income from UK Treasury Bonds 163 -
and Bills
-------------------------------------- --------------------- ---------------------
Dividend income from Morgan 33 -
Stanley Sterling Liquidity Fund
-------------------------------------- --------------------- ---------------------
Collateral deposit increase 12 (348)
-------------------------------------- --------------------- ---------------------
Cash flows (used in)/generated
from investing activities (9,723) 4,054
-------------------------------------- --------------------- ---------------------
Financing activities
-------------------------------------- --------------------- ---------------------
Share issue costs - (78)
-------------------------------------- --------------------- ---------------------
Share buyback - (9,553)
-------------------------------------- --------------------- ---------------------
Share buyback costs (39) (49)
-------------------------------------- --------------------- ---------------------
Cash paid on maturity of foreign (202) -
exchange forward
-------------------------------------- --------------------- ---------------------
Ordinary dividends paid (106) (250)
-------------------------------------- --------------------- ---------------------
Cash flows used in financing
activities (347) (9,930)
-------------------------------------- --------------------- ---------------------
Net decrease in cash and cash
equivalents (11,287) (3,444)
-------------------------------------- --------------------- ---------------------
Cash and cash equivalents at
beginning of period 18,455 41,250
-------------------------------------- --------------------- ---------------------
Exchange translation movement (66) 128
-------------------------------------- --------------------- ---------------------
Cash and cash equivalents at
end of period 7,102 37,934
The accompanying notes form an integral part of these financial
statements.
Condensed consolidated statement of changes in equity
For the six months ended Notes Special Translation Capital Revenue Total
30 September 2023 reserve reserve reserve reserve equity
(unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2023 60,550 452 40,147 23,918 125,067
------ --------- ------------ --------- --------- ---------
Total comprehensive income/(expense)
for the period
------ --------- ------------ --------- --------- ---------
Loss/(profit) for the period - - (1,787) 2,662 875
------ --------- ------------ --------- --------- ---------
Other comprehensive expense
for the period - (443) - - (443)
------ --------- ------------ --------- --------- ---------
Total comprehensive (expense)/income
for the period - (443) (1,787) 2,662 432
------ --------- ------------ --------- --------- ---------
Transactions with owners
------ --------- ------------ --------- --------- ---------
Cash dividends 7 - - - (106) (106)
------ --------- ------------ --------- --------- ---------
Scrip dividends 7 1,053 - - (1,053) -
------ --------- ------------ --------- --------- ---------
Share issue costs (39) - - - (39)
------ --------- ------------ --------- --------- ---------
Total transactions with
owners 1,014 - - (1,159) (145)
------ --------- ------------ --------- --------- ---------
At 30 September 2023 61,564 9 38,360 25,421 125,354
------ --------- ------------ --------- --------- ---------
For the six months ended Notes Special Translation Capital Revenue Total
30 September 2022 reserve reserve reserve reserve equity
(unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2022 68,243 (801) 44,017 21,797 133,256
------ --------- ------------ --------- --------- ---------
Total comprehensive income/(expense)
for the period
------ --------- ------------ --------- --------- ---------
Loss/(profit) for the period - - (1,725) 1,946 221
------ --------- ------------ --------- --------- ---------
Other comprehensive income
for the period - 1,478 - - 1,478
------ --------- ------------ --------- --------- ---------
Total comprehensive income/(expense)
for the period - 1,478 (1,725) 1,946 1,699
------ --------- ------------ --------- --------- ---------
Transactions with owners
------ --------- ------------ --------- --------- ---------
Cash dividends 7 - - - (250) (250)
------ --------- ------------ --------- --------- ---------
Scrip dividends 7 987 - - (987) -
------ --------- ------------ --------- --------- ---------
Share issue costs (78) - - - (78)
------ --------- ------------ --------- --------- ---------
Share buyback 21 (9,553) - - - (9,553)
------ --------- ------------ --------- --------- ---------
Share buyback costs (49) - - - (49)
------ --------- ------------ --------- --------- ---------
Total transactions with
owners (8,693) - - (1,237) (9,930)
------ --------- ------------ --------- --------- ---------
At 30 September 2022 59,550 677 42,292 22,506 125,025
------ --------- ------------ --------- --------- ---------
The accompanying notes form an integral part of these financial
statements.
Notes to the condensed consolidated financial statements for the
period ended 30 September 2023
1. General information
The Company is a limited liability, closed-ended investment
company incorporated in Guernsey. The Group comprises the Company
and its subsidiaries. The condensed consolidated financial
statements are presented in pounds Sterling as this is the currency
in which the funds are raised and in which investors are seeking a
return. The Company's functional currency is Sterling and the
subsidiaries' currencies are Euro and Sterling. The presentation
currency of the Group is Sterling. For Euro based transactions the
period end exchange rate used is GBP1:EUR1.154 (31 March 2023:
GBP1:EUR1.137) and the average rate for the period used is
GBP1:EUR1.157 (30 September 2022: GBP1:EUR1.174).
The address of the registered office is given below. The nature
of the Group's operations and its principal activities are set out
in the Chairman's Statement. The half year report was approved and
authorised for issue on 23 November 2023 and signed by William
Simpson on behalf of the Board.
2. Significant accounting policies
Basis of preparation
The unaudited condensed consolidated financial statements in the
half year report for the six months ended 30 September 2023 have
been prepared in accordance with International Accounting Standard
(IAS) 34, 'Interim Financial Reporting' as adopted by the European
Union. This half year report and condensed consolidated financial
statements should be read in conjunction with the Group's annual
report and consolidated financial statements for the year ended 31
March 2023, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union and are available at the Company's website (
www.alpharealtrustlimited.com ).
The accounting policies adopted and methods of computation
followed in the condensed consolidated financial statements are
consistent with those applied in the preparation of the Group's
annual consolidated financial statements for the year ended 31
March 2023 and are expected to be applied to the Group's annual
consolidated financial statements for the year ending 31 March
2024.
The Group continues to only have one operating segment.
3. Revenue
For the six months For the six months
ended ended
30 September 30 September
2023 2022
GBP'000 GBP'000
------------------------------ ------------------- -------------------
Rental income 768 552
------------------------------ ------------------- -------------------
Service charges 26 26
------------------------------ ------------------- -------------------
Rental revenue 794 578
------------------------------ ------------------- -------------------
Interest receivable on loans
to third parties 3,398 2,394
------------------------------ ------------------- -------------------
Interest revenue 3,398 2,394
------------------------------ ------------------- -------------------
Other income 26 5
------------------------------ ------------------- -------------------
Other revenue 26 5
------------------------------ ------------------- -------------------
Total 4,218 2,977
4. Finance income
For the six months For the six months
ended ended
30 September 30 September
2023 2022
GBP'000 GBP'000
-------------------------------- ------------------- -------------------
Bank interest receivable 131 44
-------------------------------- ------------------- -------------------
Income from UK Treasury Bonds 317 -
and Bills
-------------------------------- ------------------- -------------------
Income from Morgan Stanley GBP 33 -
Liquidity Fund
-------------------------------- ------------------- -------------------
Foreign exchange gain 4 -
-------------------------------- ------------------- -------------------
Total 485 44
5. Net gains and losses on financial assets and liabilities held
at fair value through profit or loss
For the six months For the six months
ended ended
30 September 30 September
2023 2022
GBP'000 GBP'000
--------------------------------------- ------------------- -------------------
Unrealised gains and losses on
financial assets and financial
liabilities held at fair value
through profit or loss
--------------------------------------- ------------------- -------------------
Movement in fair value of loans (314) -
------------------- -------------------
Movement in fair value of investments (260) (943)
------------------- -------------------
Movement in fair value of foreign
exchange forward contract 414 (463)
------------------- -------------------
Undistributed investment income - 57
------------------- -------------------
Realised gains and losses on
financial assets and financial
liabilities held at fair value
through profit or loss
------------------- -------------------
Movement in fair value of loans 65 37
------------------- -------------------
Dividends received from investments
held at fair value 187 178
------------------- -------------------
Realised loss on foreign exchange (202) -
forward contract
------------------- -------------------
Net losses on financial assets
and financial liabilities held
at fair value through profit or
loss (110) (1,134)
------------------- -------------------
6. Taxation
For the six months For the six months
ended ended
30 September 30 September
2023 2022
GBP'000 GBP'000
-------------- ------------------- -------------------
Current tax 18 66
-------------- ------------------- -------------------
Deferred tax (23) 112
-------------- ------------------- -------------------
Tax expense 5 178
The Company is exempt from Guernsey taxation on income derived
outside of Guernsey and bank interest earned in Guernsey. A fixed
annual fee of GBP1,200 is payable to the States of Guernsey in
respect of this exemption. No charge to Guernsey taxation arises on
capital gains. The Group is liable to foreign tax arising on
activities in the overseas subsidiaries. The Company has
investments, subsidiaries and joint venture operations in
Luxembourg, United Kingdom, the Netherlands, Spain, Germany and
Cyprus.
The current tax charge is due in Cyprus (where all Company's
subsidiaries are in the liquidation process and all local taxes
have been settled), Luxembourg and the Netherlands.
Unused tax losses in Luxembourg, Spain, Germany and the United
Kingdom can be carried forward indefinitely. Unused tax losses in
the Netherlands can be carried forward for nine years.
A deferred tax liability has been provided for in relation to
the Hamburg investment property in Germany and its movement can be
analysed as follows:
30 September 31 March 2023
2023 GBP'000
GBP'000
---------------------------- ------------- --------------
Opening balance 349 265
---------------------------- ------------- --------------
Movement for the period (23) 74
---------------------------- ------------- --------------
Foreign exchange movements (5) 10
---------------------------- ------------- --------------
Closing balance 321 349
7. Dividends
Dividend reference period Shares Dividend Paid Date of
payment
'000 per share GBP
Quarter ended 31 December
2022 5,299 1.0p 52,990 6 April 2023
--------------------------- ------- ---------- -------- -------------
Quarter ended 31 March
2023 5,257 1.0p 52,570 28 July 2023
--------------------------- ------- ---------- -------- -------------
Total paid in the period 105,560
--------------------------- ------- ---------- -------- -------------
Quarter ended 30 June 27 October
2023 5,037 1.0p 50,368 2023
--------------------------- ------- ---------- -------- -------------
Total 155,928
--------------------------- ------- ---------- -------- -------------
The Company will pay a dividend of 1.0p per share for the
quarter ended 30 September 2023 on 24 January 2024.
In accordance with IAS 10, the dividends for quarters ended 30
June 2023 and 30 September 2023 have not been included in these
financial statements as the dividends were declared or paid after
the period end. The current intention of the Directors is to pay a
dividend quarterly.
Dividends paid and payable after the balance sheet date have not
been included as a liability in the half year report.
Scrip dividend alternative
In the circular published on 18 December 2018, the Company
sought shareholders' approval to enable a scrip dividend
alternative to be offered to ordinary shareholders whereby they
could elect to receive additional ordinary shares in lieu of a cash
dividend, at the absolute discretion of the Directors, from time to
time. This was approved by shareholders at the extraordinary
general meeting on 8 January 2019.
The number of ordinary shares that an ordinary shareholder will
receive under the scrip dividend alternative will be the average of
the closing middle market quotations of an ordinary share for five
consecutive dealing days after the day on which the ordinary shares
are first quoted "ex" the relevant dividend.
The Board elected to offer the scrip dividend alternative to
shareholders for all quarterly dividends from the quarter ended 31
December 2018 onwards. These issued shares are ranked pari passu in
all respects with the Company's existing issued ordinary
shares.
During the six month period ended 30 September 2023, the Company
issued 791,549 ordinary shares: on 6 April 2023, 401,545 were
issued at the price of GBP1.31 and, on 28 July 2023, 390,004 were
issued at the price of GBP1.36.
8. Earnings per share
The calculation of the basic and diluted earnings per ordinary
share is based on the following data:
For the Year For the
six months ended six months
ended 30 31 March ended 30
September 2023 September
2023 2022
----------------------------------------- ------------ ---------- ------------
Ordinary Ordinary Ordinary
share share share
----------------------------------------- ------------ ---------- ------------
Earnings per statement of comprehensive
income (GBP'000) 875 631 221
----------------------------------------- ------------ ---------- ------------
Basic and diluted earnings (pence
per share) 1.5 1.1 0.4
----------------------------------------- ------------ ---------- ------------
Earnings per statement of comprehensive
income (GBP'000) 875 631 221
----------------------------------------- ------------ ---------- ------------
Net change in the revaluation
of investment properties 867 548 (143)
----------------------------------------- ------------ ---------- ------------
Movement in fair value of investments 260 1,338 943
----------------------------------------- ------------ ---------- ------------
Movement in fair value of foreign
exchange forward contract (212) 259 463
----------------------------------------- ------------ ---------- ------------
Net change in the revaluation
of the joint ventures' investment
property 120 569 (324)
----------------------------------------- ------------ ---------- ------------
Expected credit losses 779 881 608
----------------------------------------- ------------ ---------- ------------
Foreign exchange (gain)/loss (4) 201 66
----------------------------------------- ------------ ---------- ------------
Deferred tax (23) 74 112
----------------------------------------- ------------ ---------- ------------
Adjusted earnings 2,662 4,501 1,946
----------------------------------------- ------------ ---------- ------------
Adjusted earnings (pence per
share) 4.6 7.7 3.3
----------------------------------------- ------------ ---------- ------------
Weighted average number of shares
('000s) 57,879 58,606 59,778
The adjusted earnings are presented to provide what the Board
believes is a more appropriate assessment of the operational income
accruing to the Group's activities. Hence, the Group adjusts basic
earnings for income and costs which are not of a recurrent nature
or which may be more of a capital nature.
9. Net asset value per share
At 30 September At 31 March At 30 September
2023 2023 2022
GBP'000 GBP'000 GBP'000
------------------------------ ---------------- ------------ ----------------
Net asset value (GBP'000) 125,354 125,067 125,025
------------------------------ ---------------- ------------ ----------------
Net asset value per ordinary
share 214.3p 216.8p 219.6p
------------------------------ ---------------- ------------ ----------------
Number of ordinary shares
('000s) 58,493 57,701 56,937
10. Investment property
30 September 31 March 2023
2023 GBP'000
GBP'000
------------------------------------------ ------------- --------------
Fair value of investment property
at 1 April 23,496 15,984
------------------------------------------ ------------- --------------
Additions 5,118 7,407
------------------------------------------ ------------- --------------
Fair value adjustment in the period/year (867) (548)
------------------------------------------ ------------- --------------
Foreign exchange movements (241) 653
------------------------------------------ ------------- --------------
Fair value of investment property
at 30 September / 31 March 27,506 23,496
Investment property is represented by a property located in
Hamburg (Werner-Siemens-Straße), Germany, a residential property
located in Liverpool, UK and three hotels located in the UK.
The fair value of the Hamburg property of EUR18.2 million
(GBP15.8 million) (31 March 2023: EUR18.5 million (GBP16.3
million)) has been arrived at on the basis of an independent
valuation carried out at the balance sheet date by Cushman &
Wakefield ('C&W').
On 23 August 2023, the Group acquired a further UK hotel located
in Yardley, Birmingham, leased to Travelodge Hotels Limited, the
United Kingdom's largest independent hotel brand, for GBP4.8
million plus acquisition costs of GBP0.3 million. This hotel is
carried in the balance sheet at its cost of GBP4.8 million.
The fair values of the two UK hotels of GBP3.6 million (31 March
2023: GBP3.8 million; located in Wadebridge) and GBP2.7 million (31
March 2023: GBP2.8 million; located in Lowestoft) have been arrived
at on the basis of an independent valuation carried out at the
balance sheet date by C&W.
The fair value of the Liverpool residential property of GBP0.6
million (31 March 2023: GBP0.6 million) has been arrived at on the
basis of an independent valuation carried out at the balance sheet
date by ASL Chartered Surveyors & Valuers ('ASL').
C&W and ASL are independent valuers and are not connected to
the Group.
The valuation basis used is fair value as defined by the Royal
Institution of Chartered Surveyors Appraisal and Valuations
Standards ("RICS"). The approved RICS definition of fair value is
"the price that would be received to sell an asset, or paid to
transfer a liability, in an orderly transaction between market
participants at the measurement date".
Foreign exchange movement is recognised in other comprehensive
income.
11. Investments held at fair value
30 September 31 March 2023
2023 GBP'000
GBP'000
--------------------------------------- ------------- --------------
Current
--------------------------------------- ------------- --------------
As at 1 April 18,310 10,990
--------------------------------------- ------------- --------------
Additions 13,140 13,948
--------------------------------------- ------------- --------------
Redemptions (14,130) (5,290)
--------------------------------------- ------------- --------------
Accrued income on UK Treasury Bonds
and Bills 154 -
--------------------------------------- ------------- --------------
Movement in fair value of investments (260) (1,338)
--------------------------------------- ------------- --------------
As at 30 September / 31 March 17,214 18,310
The investments, which are disclosed as current investments held
at fair value, are as follows:
-- Sequoia Economic Infrastructure Income Fund Limited ('SEQI'),
a listed fund: the market value of SEQI as at 30 September 2023 was
GBP2.3 million (31 March 2023: GBP2.2 million).
-- GCP Infrastructure Investments Limited ('GCP') a listed fund:
the market value of GCP as at 30 September 2023 was GBP0.9 million
(31 March 2023: GBP1.1 million).
-- GCP Asset Backed Income Fund Limited ('GABI'): the market
value of GABI as at 30 September 2023 was GBP0.9 million (31 March
2023: GBP1.0 million).
-- In June 2023, ART invested GBP6.0 million in UK Treasury
Bonds earning a coupon of 2.75% and with maturity in September
2024: the market value of this investment as at 30 September 2023
was GBP6.0 million.
-- In September 2023, ART invested GBP7.0 million in UK Treasury
Bills: the market value of this investment as at 30 September 2023
was GBP7.1 million.
-- HLP (participating redeemable preference shares): HLP
provides quarterly valuations of the net asset value of its shares;
the net asset value of the investment as at 30 September 2023 was
nil (31 March 2023: nil).
During the period, one investment in UK Treasury Bonds and one
investment in UK Treasury Bills came to maturity and generated
proceeds for ART of GBP7.0 and GBP7.1 million, respectively.
ART also received payments of coupon interests on UK Treasury
Bonds amounting to GBP0.2 million.
12. Investment in joint ventures and associates
The movement in the Group's share of net assets of the joint
ventures and associates can be summarised as follows:
H2O H2O SPHL Total
---------------------------- --------- --------- --------- ---------
30 Sep 31 March 31 March 31 March
2023 2023 2023 2023
GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- --------- --------- --------- ---------
As at 1 April 17,654 17,075 118 17,193
---------------------------- --------- --------- --------- ---------
Group's share of joint
ventures' profits before
fair value movements
and dividends 167 1,012 - 1,012
---------------------------- --------- --------- --------- ---------
Fair value adjustment
for investment property
and interest rate cap (119) (569) - (569)
---------------------------- --------- --------- --------- ---------
Dividends paid by joint
venture and associate
to the Group - (582) - (582)
---------------------------- --------- --------- --------- ---------
Capital return - - (118) (118)
---------------------------- --------- --------- --------- ---------
Foreign exchange movements (261) 718 - 718
---------------------------- --------- --------- --------- ---------
As at 30 September
/ 31 March 17,441 17,654 - 17,654
The Group's investments in joint ventures can be summarised as
follows:
-- Joint venture investment in the H2O shopping centre in
Madrid, Spain: the Group holds a 30% equity investment in CBRE H2O
Rivas Holding NV ('CBRE H2O'), a company based in the Netherlands,
which in turn owns 100% of the Spanish entities that are owners of
H2O. CBRE H2O is a Euro denominated company hence the Group
translates its share of this investment at the relevant year end
exchange rate with movements in the period translated at the
average rate for the period. As at 30 September 2023, the carrying
value of ART's investment in CBRE H2O was GBP17.4 million (EUR20.1
million) (31 March 2023: GBP17.7 million (EUR20.1 million)).
Foreign exchange movement is recognised in other comprehensive
income.
The fair value of the H2O property in Madrid (Spain) of EUR120.0
million (GBP103.9 million) (31 March 2023: EUR119.3 million
(GBP104.9 million)) has been arrived at on the basis of an
independent valuation carried out at the balance sheet date by
Savills Aguirre Newman Valoraciones y Tasaciones S.A., an
independent valuer not connected to the Group.
The valuation basis used is fair value as defined by the Royal
Institution of Chartered Surveyors Appraisal and Valuations
Standards ("RICS"). The approved RICS definition of fair value is
"the price that would be received to sell an asset, or paid to
transfer a liability, in an orderly transaction between market
participants at the measurement date".
The CBRE H2O group bank borrowings' balance as at 30 September
2023 is EUR62.2 million (GBP53.9 million): this loan is provided by
Aareal Bank, carries an interest rate of EURIBOR plus 190 basis
points and matures on 18 May 2024. During the period, the CBRE H2O
group entered into an interest rate cap contract with Nomura
Financial Products Europe Gmbh to cap EURIBOR at the strike rate of
2.5%. The bank loan is secured by a first charge mortgage against
the Spanish property.
The above borrowings are non-recourse to the Group's other
investments.
13. Loans advanced
30 September 31 March 2023
2023 GBP'000
GBP'000
---------------------------------------- ------------- --------------
Non-current
---------------------------------------- ------------- --------------
Loans granted to third parties 10,296 15,530
---------------------------------------- ------------- --------------
Interest receivable from loans granted
to third parties - 521
---------------------------------------- ------------- --------------
Total loans at amortised cost 10,296 16,051
---------------------------------------- ------------- --------------
Loans at fair value through profit - -
or loss
---------------------------------------- ------------- --------------
Total non-current loans 10,296 16,051
---------------------------------------- ------------- --------------
Current
---------------------------------------- ------------- --------------
Loans granted to third parties 48,454 40,187
---------------------------------------- ------------- --------------
Interest receivable from loans granted
to third parties 3,516 2,279
---------------------------------------- ------------- --------------
Total loans at amortised cost 51,970 42,466
---------------------------------------- ------------- --------------
Loans at fair value through profit
or loss 354 604
---------------------------------------- ------------- --------------
Expected credit losses (4,741) (3,685)
---------------------------------------- ------------- --------------
Total current loans 47,583 39,385
As at 30 September 2023, the Group had granted a total of
GBP57.9 million (31 March 2023: GBP55.4 million) of secured senior
and secured mezzanine loans to third parties. These comprised
eighteen loans to UK entities, which assisted with the purchase of
property developments, predominantly residential, in the UK. These
facilities typically range from a 6 to 36 month term and entitle
the Group to a weighted average overall return on the investment of
18.6% for mezzanine loans and 9.8% for senior loans.
All senior and mezzanine loans granted by the Group are secured
asset backed real estate loans. Senior loans have a first charge
security and mezzanine loans have a second charge security on the
property developments.
Loans at fair value through profit or loss represents loans that
failed the 'solely payment of principal and interest' criteria of
IFRS 9 to be measured at amortised cost: this is due to a loan
facility agreement's clause that links those loans to a return
other than interest.
Movement in expected credit losses can be summarised as
follows:
30 September 31 March 2023
2023 GBP'000
GBP'000
----------------------------------- ------------- --------------
Opening balance of ECL (3,685) (2,572)
----------------------------------- ------------- --------------
Movement for the period (revenue) (277) (232)
----------------------------------- ------------- --------------
Movement for the period (capital) (779) (881)
----------------------------------- ------------- --------------
Closing balance of ECL (4,741) (3,685)
As at 30 September 2023 four loans in the portfolio are in
receivership: ART is closely working with stakeholders to maximise
their capital recovery. The Company has considered the security on
these loans (which are a combination of a first charge and a second
charge over the respective assets and personal guarantees) and have
impaired one loan, which is accounted for at fair value, by GBP0.3
million; the Group also calculated an ECL on the other three loans
of approximately GBP3.3 million and provided for an ECL on the
remainder of the loans' portfolio for an additional GBP1.4 million:
in total, the Group have provided for an ECL of GBP4.7 million in
its consolidated accounts.
Loans maturity of the total GBP57.9 million loans granted by the
Group at year end, can be analysed as follows:
Less than Between Between Over 24 Total
6 months 6 to 12 12 to months GBP'm
GBP'm months 24 months GBP'm
GBP'm GBP'm
------------- ---------- --------- ----------- -------- -------
Non-current - - 10,296 - 10,296
------------- ---------- --------- ----------- -------- -------
Current 41,418 6,165 - - 47,583
------------- ---------- --------- ----------- -------- -------
Post period end, GBP1.5 million of drawdowns were made on
existing loans, one loan was fully repaid for GBP1.5 million
(including accrued interest and applicable fees) and part payments
were received amounting to GBP4.5 million (including accrued
interest).
Despite all of the loans having a set repayment term all but two
of the loans have a repayable on demand feature so the Group may
call for an early repayment of their principal, interest and
applicable fees at any time.
Considering the 'on demand' clause, the Group concluded that the
loans are in stage 3 of the IFRS 9 model as should the loans be
called on demand the borrowers would technically be in default as
repayment would only be possible on demand if the property had
already been sold. One of the loans without a repayable on demand
clause amounts to GBP3.8 million and matures on 31 December 2025,
the second loan without a repayable on demand clause amounts to
GBP9.5 million and matures on 1 April 2025; both loans remain in
stage 1 of the IFRS 9 model.
14. Collateral deposit
30 September 31 March 2023
2023 GBP'000
GBP'000
-------------------- ------------- --------------
Collateral deposit 1,131 1,143
The collateral deposit of GBP1.1 million (31 March 2023: GBP1.1
million) is a cash deposit with Barclays Bank PLC ('Barclays') in
Guernsey in relation to the foreign exchange forward contract
entered into by the Group at period end: this cash has been placed
on deposit.
15. Trade and other receivables
30 September 31 March 2023
2023 GBP'000
GBP'000
--------------- ------------- --------------
Current
--------------- ------------- --------------
Trade debtors 330 295
--------------- ------------- --------------
VAT - -
--------------- ------------- --------------
Other debtors 141 119
--------------- ------------- --------------
Total 471 414
The Directors consider that the carrying amount of trade and
other receivables approximates to their fair value.
16. Cash and cash equivalents
30 September 31 March 2023
2023 GBP'000
GBP'000
----------------------------------- ------------- --------------
Morgan Stanley Sterling Liquidity 5,990 -
Fund
----------------------------------- ------------- --------------
Cash at bank 7,102 18,455
----------------------------------- ------------- --------------
Total 13,092 18,455
During period, the Company invested GBP6.0 million in the Morgan
Stanley Sterling Liquidity Fund, which invests in high quality
short-term money market instruments denominated in sterling, offers
same day liquidity and earns an annualised return, net of Morgan
Stanley's fees, of 5.3%.
17. Trade and other payables
30 September 31 March 2023
2023 GBP'000
GBP'000
---------------------------------- ------------- --------------
Trade creditors 36 51
---------------------------------- ------------- --------------
Deferred revenue 218 106
---------------------------------- ------------- --------------
Investment Manager's fee payable 584 589
---------------------------------- ------------- --------------
Accruals 207 229
---------------------------------- ------------- --------------
VAT 20 5
---------------------------------- ------------- --------------
Other creditors 23 6
---------------------------------- ------------- --------------
Total 1,088 986
Trade and other payables primarily comprise amounts outstanding
for trade purchases and ongoing costs. The Group has financial risk
management policies in place to ensure that all payables are paid
within the credit time frame. The Directors consider that the
carrying amount of trade and other payables approximates their fair
value.
18. Bank borrowings
30 September 31 March 2023
2023 GBP'000
GBP'000
------------------------------------------ ------------- --------------
Current liabilities: interest payable 31 30
------------------------------------------ ------------- --------------
Total current liabilities 31 30
------------------------------------------ ------------- --------------
Non-current liabilities: bank borrowings 8,157 8,271
------------------------------------------ ------------- --------------
Total liabilities 8,188 8,301
------------------------------------------ ------------- --------------
The borrowings are repayable as
follows:
------------------------------------------ ------------- --------------
Interest payable 31 30
------------------------------------------ ------------- --------------
On demand or within one year - -
------------------------------------------ ------------- --------------
In the second to fifth years inclusive 8,157 -
------------------------------------------ ------------- --------------
After five years - 8,271
------------------------------------------ ------------- --------------
Total 8,188 8,301
Movements in the Group's non-current bank borrowings are
analysed as follows:
30 September 31 March 2023
2023 GBP'000
GBP'000
------------------------------------- ------------- --------------
As at 1 April 8,271 7,921
------------------------------------- ------------- --------------
Amortisation of deferred finance
costs 8 15
------------------------------------- ------------- --------------
Exchange differences on translation
of foreign currencies (122) 335
------------------------------------- ------------- --------------
As at 30 September / 31 March 8,157 8,271
As at 30 September 2023, bank borrowings represent the Nord LB
(a German bank) loan principal for EUR9.5 million (GBP8.2 million),
excluding deferred finance costs, which was used to partly fund the
acquisition of the investment property in Hamburg
(Werner-Siemens-Straße), Germany. This loan is composed of two
tranches of EUR4.9 million (GBP4.2 million) and EUR4.6 million
(GBP4.0 million), which bear a 1.85% and 2.7% fixed rate
respectively and that are due to mature in August 2028.
The borrowings are secured over the Hamburg property and have no
recourse to the other assets of the Group and the facility carries
no financial covenant tests. The fair value of bank borrowings at
the balance sheet date is EUR9.5 million (GBP8.2 million).
The table below sets out an analysis of net debt and the
movements in net debt for the period ended 30 September 2023 .
Other Derivatives Liabilities
assets from
financing activities
------------------------------ --------- ------------ ------------------------ ---------
Cash Foreign Interest Borrowings Total
GBP'000 exchange payable GBP'000 GBP'000
forward GBP'000
GBP'000
------------------------------ --------- ------------ ---------- ------------ ---------
Net asset/(debt) as at
1 April 2023 18,455 (171) (30) (8,271) 9,983
------------------------------ --------- ------------ ---------- ------------ ---------
Cash movements (11,287) 202 93 - (10,992)
------------------------------ --------- ------------ ---------- ------------ ---------
Non cash movements
------------------------------ --------- ------------ ---------- ------------ ---------
Foreign exchange adjustments (66) - 8 122 64
------------------------------ --------- ------------ ---------- ------------ ---------
Unrealised gain on foreign
exchange forward contract - 212 - 212
------------------------------ --------- ------------ ---------- ------------ ---------
Loan fee amortisation and
other costs - - - (8) (8)
------------------------------ --------- ------------ ---------- ------------ ---------
Interest charge - - (102) - (102)
------------------------------ --------- ------------ ---------- ------------ ---------
Net asset/(debt) as at
30 September 2023 7,102 243 (31) (8,157) (843)
------------------------------ --------- ------------ ---------- ------------ ---------
Other Derivatives Liabilities
assets from
financing activities
------------------------------ --------- ------------ ------------------------ ---------
Cash Foreign Interest Borrowings Total
GBP'000 exchange payable GBP'000 GBP'000
forward GBP'000
GBP'000
------------------------------ --------- ------------ ---------- ------------ ---------
Net asset/(debt) as at
1 April 2022 41,250 88 (29) (7,921) 33,388
------------------------------ --------- ------------ ---------- ------------ ---------
Cash movements (3,444) - 91 - (3,353)
------------------------------ --------- ------------ ---------- ------------ ---------
Non cash movements
------------------------------ --------- ------------ ---------- ------------ ---------
Foreign exchange adjustments 128 - 6 (400) (266)
------------------------------ --------- ------------ ---------- ------------ ---------
Unrealised gain on foreign
exchange forward contract - (463) - (463)
------------------------------ --------- ------------ ---------- ------------ ---------
Loan fee amortisation and
other costs - - - (8) (8)
------------------------------ --------- ------------ ---------- ------------ ---------
Interest charge - - (100) - (100)
------------------------------ --------- ------------ ---------- ------------ ---------
Net asset/(debt) as at
30 September 2022 37,934 (375) (32) (8,329) 29,198
------------------------------ --------- ------------ ---------- ------------ ---------
19. Share capital
Number
of shares
-------------------- ---------- ----------- -----------
Authorised
-------------------- ---------- ----------- -----------
Ordinary shares Unlimited
of no par value
-------------------- ---------- ----------- -----------
Ordinary Ordinary Ordinary
-------------------- ---------- ----------- -----------
Issued and fully treasury external total
paid
-------------------- ---------- ----------- -----------
At 1 April 2023 7,717,581 57,701,049 65,418,630
-------------------- ---------- ----------- -----------
Share issue for
scrip dividend - 791,549 791,549
-------------------- ---------- ----------- -----------
Shares bought back - - -
-------------------- ---------- ----------- -----------
Shares cancelled - - -
following buyback
-------------------- ---------- ----------- -----------
At 30 September
2023 7,717,581 58,492,598 66,210,179
The Company has one class of ordinary shares. The Company has
the right to reissue or cancel the remaining treasury shares at a
later date.
Following the Annual General Meeting held on 7 September 2023
the Company has the authority to buy back 14.99% of its share
capital (assessed on 29 June 2023) for a total of 8,709,579 shares.
No shares have been yet bought back under this authority.
During the period, the Company did not purchase any shares in
the market.
As at 30 September 2023, the ordinary share capital of the
Company was 66,210,179 (including 7,717,581 ordinary shares held in
treasury) and the total voting rights in the Company was
58,492,598.
Scrip dividend alternative
In the circular published on 18 December 2018, the Company
sought shareholders' approval to enable a scrip dividend
alternative to be offered to ordinary shareholders whereby they
could elect to receive additional ordinary shares in lieu of a cash
dividend, at the absolute discretion of the Directors, from time to
time. This was approved by shareholders at the extraordinary
general meeting on 8 January 2019.
The number of ordinary shares that an ordinary shareholder will
receive under the scrip dividend alternative will be the average of
the closing middle market quotations of an ordinary share for five
consecutive dealing days after the day on which the ordinary shares
are first quoted "ex" the relevant dividend.
The Board elected to offer the scrip dividend alternative to
shareholders for all quarterly dividends from the quarter ended 31
December 2018 onwards. These issued shares are ranked pari passu in
all respects with the Company's existing issued ordinary
shares.
During the six month period ended 30 September 2023, the Company
issued 791,549 ordinary shares: on 6 April 2023, 401,545 were
issued at the price of GBP1.31 and, on 28 July 2023, 390,004 were
issued at the price of GBP1.36.
All transaction amounts in relation to the issue and buyback of
shares in the period are recognised within the Special Reserve and
shown in the Statement of Changes in Equity.
Post period end, the Company made no share buybacks.
On 27 October 2023, as a result of the scrip dividend elections
related to the dividend of the quarter ended 30 June 2023, the
Company issued 419,593 ordinary shares at the price of GBP1.27.
As at the date of this announcement, the ordinary share capital
of the Company is 66,629,772 (including 7,717,581 ordinary shares
held in treasury) and the total voting rights in the Company is
58,912,191.
20. Events after the balance sheet date
Post period end, GBP1.5 million of drawdowns were made on
existing loans, one loan was fully repaid for GBP1.5 million
(including accrued interest and applicable fees) and part payments
were received amounting to GBP4.5 million (including accrued
interest).
In October 2023, ART invested a further GBP6.0 million in UK
Treasury Bonds earning a coupon of 3.5% and with maturity in
October 2025.
On 27 October 2023, as a result of the scrip dividend elections
related to the dividend of the quarter ended 30 June 2023, the
Company issued 419,593 ordinary shares at the price of GBP1.27
(note 19).
As at the date of this announcement, the Company declares a
quarterly dividend of 1.0p per ordinary share, which is expected to
be paid on 24 January 2024.
21. Related party tra ns actions
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. ARC is the Investment Manager to the Company under the
terms of the Management Agreement and is thus considered a related
party of the Company.
The Investment Manager is entitled to receive a fee from the
Company at an annual rate of 2% of the net assets of the Group,
payable quarterly in arrears. The Investment Manager is also
entitled to receive an annual performance fee calculated with
reference to total shareholder return ("TSR"), whereby the fee is
20% of any excess over an annualised TSR of 15% subject to a
rolling three year high water mark.
Prior to the 70% disposal of the H2O property, ARC had a
management agreement directly with the H2O property company, Alpha
Tiger Spain 1, SLU ('ATS1') under which it earned a fee of 0.9% per
annum based upon the gross assets of ATS1. In order to avoid double
counting of fees, ARC provided a rebate to the Company of a
proportion of its fee equivalent to the value of the Group's net
asset value attributable to the H2O investment. Subsequent to the
sale of ATS1 to CBRE H2O Rivas Holding NV ('CBRE H2O'), ARC has
been appointed as Asset Manager to ATS1 and Investment Manager to
CBRE H2O. ARC has agreed to rebate to ART all of the fees charged
by ARC directly to CBRE H2O and ATS1 that relate to the Company's
30% share in CBRE H2O.
Details of the Investment Manager's fees for the current period
are disclosed on the face of the condensed consolidated statement
of comprehensive income and the balance payable at 30 September
2023 is provided in note 17.
The Directors of the Company received total fees as follows:
For the six For the six
months ended months ended
30 September 30 September
2023 2022
----------------- -------------- --------------
Phillip Rose 13,750 13,750
----------------- -------------- --------------
Jeff Chowdhry 13,750 13,750
----------------- -------------- --------------
Melanie Torode 24,000 27,811
----------------- -------------- --------------
William Simpson 19,750 19,750
----------------- -------------- --------------
Peter Griffin 13,750 13,750
----------------- -------------- --------------
Total 85,000 88,811
The Directors' interests in the shares of the Company are
detailed below:
30 September 31 March 2
2023 023
Number of ordinary Number of ordinary
shares held shares held
----------------- -------------------- --------------------
Phillip Rose 992,195 978,999
----------------- -------------------- --------------------
Brad Bauman 61,000 60,092
----------------- -------------------- --------------------
Jeff Chowdhry 5,000 -
----------------- -------------------- --------------------
Melanie Torode - -
----------------- -------------------- --------------------
William Simpson 40,000 -
----------------- -------------------- --------------------
Peter Griffin - -
Post period end, following the October 2023 scrip issue by the
Company, Phillip Rose and Brad Bauman increased their shareholdings
in ART to 999,159 and 61,478 ordinary shares, respectively.
Alpha Global Property Securities Fund Pte. Ltd, a company
registered in Singapore, owned directly by the partners of ARC,
held 25,491,369 shares in the Company at 30 September 2023 (31
March 2023: 25,060,728).
ARC did not hold any shares in the Company at 30 September 2023
(31 March 2023: nil). The following, being partners of the
Investment Manager, hold direct interests in the following shares
of the Company:
30 September 31 March 2023
2023 Number of ordinary
Number of ordinary shares held
shares held
-------------- -------------------- --------------------
Brian Frith - -
-------------- -------------------- --------------------
Phillip Rose 992,195 978,999
-------------- -------------------- --------------------
Brad Bauman 61,000 60,092
Karl Devon-Lowe, a partner of ARC, received fees of GBP3,750 (31
March 2023: GBP5,000) in relation to directorial responsibilities
on a number of the Company's subsidiary companies.
During the period the Company paid Ocorian fees of GBP31,200 (31
March 2023: GBP96,300) and an amount of GBP14,200 was outstanding
at period end.
22. Financial assets and financial liabilities held at fair
value through profit or loss
Financial assets and
liabilities carrying value
---------------------------------------- ------------------------------
30 September 31 March
2023 2023
GBP'000 GBP'000
---------------------------------------- ----------------- -----------
Financial assets at fair value through
profit or loss
---------------------------------------- ----------------- -----------
Investments held at fair value 17,214 18,310
----------------------------------------- ----------------- -----------
Foreign exchange forward contract 243 -
---------------------------------------- ----------------- -----------
Loans advanced 354 604
----------------------------------------- ----------------- -----------
Total financial assets at fair value
through profit or loss 17,811 18,914
----------------------------------------- ----------------- -----------
Financial liabilities at fair value
through profit or loss
---------------------------------------- ----------------- -----------
Foreign exchange forward contract - (171)
Fair value measurement
The Group discloses fair value measurements by level of the
following fair value measurement hierarchy:
-- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
-- Inputs other than quoted prices included within level 1 that
are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (level
2)
-- Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (level
3).
The level in the fair value hierarchy within which the financial
asset or financial liability is categorised is determined on the
basis of the lowest input that is significant to the fair value
measurement. Financial instruments are classified in their entirety
into one of the three levels.
The following methods and assumptions are used to estimate fair
values:
Level 1
-- The fair values of the ART's investments in the SEQI, GCP and
GABI shares, which are traded daily on the LSE, are based upon the
market value of the shares at the balance sheet date.
-- The fair value of the investments in UK Treasury Bonds which
are traded on the LSE, is based upon the market price of those
instruments at the balance sheet date.
-- The fair value of the investments in UK Treasury Bills, is
based upon the market valuation of those instruments provided by
Barclays Bank PLC at the balance sheet date.
Level 2
-- The fair value of the foreign exchange forward contract is
determined by reference to the quarter end applicable forward
market rate provided by the contractual counter party.
Level 3
-- The fair value of the HLP investment is based upon the price
provided by the issuer for the relevant share class owned: this is
calculated by reference to the net asset value of the investment
and principally driven by the fair value of HLP's underlying
property investments. This net asset value is therefore mainly
based on unobservable inputs and is deemed to be a level 3
financial asset. HLP's accounts are audited annually. HLP's
underlying investment properties are fair valued as per RICS
definition and the ART Board considers that any reasonable possible
movement in the valuation of HLP's individual properties would not
be material to the value of ART's investment.
Financial assets and financial liabilities held at fair value
are valued on a recurring basis as indicated above. There have been
no changes to the valuation methods applied from the Group's annual
report and accounts for the year ended 31 March 2023.
The Board determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation (based on
the lowest level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
The following table shows an analysis of the fair values of
financial instruments recognised in the balance sheet by level of
the fair value hierarchy described above:
Assets and liabilities measured at fair
value
----------------------------------------------
Level 1 Level 2 Level 3 Total
---------- ---------- ---------- ----------
30 September 2023 GBP'000 GBP'000 GBP'000 GBP'000
---------- ---------- ---------- ----------
Assets measured at fair
value
------------------------------ ---------- ---------- ---------- ----------
Non-current
------------------------------ ---------- ---------- ---------- ----------
Investment property - - 27,506 27,506
------------------------------ ---------- ---------- ---------- ----------
Loans advanced - - 354 354
------------------------------ ---------- ---------- ---------- ----------
Current
------------------------------ ---------- ---------- ---------- ----------
Investments held at fair
value 17,214 - - 17,214
------------------------------ ---------- ---------- ---------- ----------
Foreign exchange forward
contract - 243 - 243
Assets and liabilities measured at fair
value
----------------------------------------------
Level 1 Level 2 Level 1 Total
---------- ---------- ---------- ----------
31 March 2023 GBP'000 GBP'000 GBP'000 GBP'000
---------- ---------- ---------- ----------
Assets measured at fair
value
--------------------------- ---------- ---------- ---------- ----------
Non-current
--------------------------- ---------- ---------- ---------- ----------
Investment property (note
13) - - 23,496 23,496
--------------------------- ---------- ---------- ---------- ----------
Loans advanced - - 604 604
--------------------------- ---------- ---------- ---------- ----------
Current
--------------------------- ---------- ---------- ---------- ----------
Investments held at fair
value (note 15) 18,310 - - 18,310
--------------------------- ---------- ---------- ---------- ----------
Liabilities measured at
fair value
--------------------------- ---------- ---------- ---------- ----------
Current
--------------------------- ---------- ---------- ---------- ----------
Foreign exchange forward
contract - (171) - (171)
There were no transfers between level 1 and level 2 fair value
measurements and no transfers into or out of level 3 fair value
measurements during the six month period ended 30 September
2023.
Directors and Company information
Directors Independent valuers Legal advisors in Guernsey
William Simpson (Chairman) in the UK Carey Olsen
Jeff Chowdhry Cushman & Wakefield PO Box 98, Carey House
Peter Griffin No 1 Colmore Square Les Banques
Phillip Rose Birmingham B4 6AJ St Peter Port
Melanie Torode Guernsey GY1 4BZ
Registered office Independent valuers Legal advisors in the
Floor 2, Trafalgar Court in Spain UK
Les Banques Savills Aguirre Newman Norton Rose
St Peter Port Paseo de la Castellana, 3 More London Riverside
Guernsey GY1 4LY 81 London SE1 2AQ
Madrid, 28046
Spain
Investment Manager Independent valuers Legal advisors in Spain
Alpha Real Capital LLP in Germany Ashurst LLP
Level 6, 338 Euston Cushman & Wakefield Alcalá, 44
Road Rathenauplatz, 1 Madrid, 28014
London NW1 3BG Frankfurt, 60313 Spain
Germany
Administrator and secretary Independent Auditor Registrar
Ocorian Administration BDO Limited Computershare Investor
(Guernsey) Limited Place du Pré, Services (Jersey) Limited
Floor 2, Trafalgar Court Rue du Pré 13 Castle Street
Les Banques, St Peter St Peter Port St Helier
Port Guernsey GY1 3LL Jersey JE1 1ES
Guernsey GY1 4LY
Broker Tax advisors in Europe
Panmure Gordon (UK) KPMG LLP
Limited 15 Canada Square
One New Change London E14 5GL
London EC4M 9AF
Ernst & Young LLP
1 More London Riverside
London SE1 2AF
Shareholder information
Further information on the Company can be found at the Company's
website:
www.alpharealtrustlimited.com
Dividends
Ordinary dividends are declared and paid quarterly. Shareholders
who wish to have dividends paid directly into a bank account rather
than by cheque to their registered address can complete a mandate
form for this purpose. Mandates may be obtained from the Company's
Registrar. Where dividends are paid directly to shareholders' bank
accounts, dividend vouchers are sent directly to shareholders'
registered addresses.
Share price
The Company's Ordinary Shares are listed on the SFS of the
LSE.
Change of address
Communications with shareholders are mailed to the addresses
held on the share register. In the event of a change of address or
other amendment, please notify the Company's Registrar under the
signature of the registered holder.
Investment Manager
The Company is advised by Alpha Real Capital LLP, which is
authorised and regulated by the Financial Conduct Authority in the
United Kingdom.
Financial calendar
Financial Reporting/ Dividend Ex-dividend Record Last Share Payment
reporting Meeting period date date date for certificates date
dates election posted
to scrip (if applicable)
dividend
(if applicable)
--------------- ----------- -------------- ------------ ---------- ---------------- ----------------- ---------
Half year 24 Quarter 7 8 9 23 24
report and November ending December December January January January
dividend 2023 30 September 2023 2023 2024 2024 2024
announcement 2023
--------------- ----------- -------------- ------------ ---------- ---------------- ----------------- ---------
Trading 1 Quarter 14 15 26 11 12
update March ending March March March April April
(Qtr 3) 2024 31 December 2024 2024 2024 2024 2024
2023
--------------- ----------- -------------- ------------ ---------- ---------------- ----------------- ---------
Annual report 21 Quarter 4 5 11 25 26
and dividend June ending July July July July July
announcement 2024 31 March 2024 2024 2024 2024 2024
2024
--------------- ----------- -------------- ------------ ---------- ---------------- ----------------- ---------
Annual report 5
published July
2024
--------------- ----------- -------------- ------------ ---------- ---------------- ----------------- ---------
Annual General 5
Meeting September
2024
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END
IR FLFLDLELVFIV
(END) Dow Jones Newswires
November 24, 2023 02:00 ET (07:00 GMT)
Grafico Azioni Alpha Real (LSE:ARTL)
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