Important Information

The material contained herein are not for release, publication or distribution, directly or indirectly, in whole or in part, to U.S. persons or in or into the United States, Canada, Japan, Australia or the Republic of South Africa or in any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.

The information contained herein does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or in any jurisdiction or jurisdictions in which such offers or sales are unlawful. The securities referred to herein and on the pages that follow have not been nor will they be registered under the US Securities Act of 1933, as amended (the “Securities Act”), or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, within the United States or to or for the account or benefit of U.S. Persons (as defined in Regulation S of the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws of any state or other jurisdiction of the United States. The information contained herein does not constitute a public offer of securities in the United States, Canada, Japan, Australia or the Republic of South Africa or any jurisdiction in which such an offer would constitute a violation of the relevant laws or regulations of such jurisdiction. Alternative Income REIT PLC has not been and will not be registered under the U.S. Investment Company Act of 1940, as amended, and investors are not entitled to the benefits of that Act.

Subject to certain exceptions, the securities referred to herein and on the pages that follow may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in Canada, Japan, Australia or the Republic of South Africa or to any resident or citizen of Canada, Japan, Australia or the Republic of South Africa. The securities referred to herein have not been and will not be registered under the applicable securities laws of Canada, Japan, Australia or the Republic of South Africa.

Recipients of this information in any other jurisdiction should inform themselves about and observe any applicable legal requirements in their jurisdiction.

The distribution in the UK of the information provided herein is restricted by law. Accordingly such information is directed only at (a) persons outside the United Kingdom to whom it is lawful to communicate it, or (b) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”), or (c) high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Financial Promotion Order provided that in the case of persons falling into categories (b) or (c), the communication is only directed at persons who are also “qualified investors” as defined in section 86 of the Financial Services and Markets Act 2000 (each a “Relevant Person”). Any investment or investment activity to which the information in this website relates is available only to, and will be engaged in only with, such Relevant Persons.

CONFIRMATION OF UNDERSTANDING AND ACCEPTANCE OF DISCLAIMER

By clicking on the “Agree” button you represent, warrant and agree that you (1) have read and understood the information set out above, (2) agree to be bound by its terms, (3) do not have a registered address in, and are not resident  or located in the United States, Canada, Japan, Australia or the Republic of South Africa  or any other jurisdiction where accessing these materials is unlawful and are not a U.S. Person (as defined in Regulation S of the Securities Act), (4) are a Relevant Person and (5) agree that you will not transmit or otherwise send any information contained in this website to any person in the United States, Canada, Japan, Australia, the Republic of South Africa or any other territory where to do so would breach applicable local law or regulation or would require registration or licensing within such jurisdiction.

I have read and understood the disclaimer set out above.

I understand that it may affect my rights and I agree to be bound by its terms.

By clicking on the “Agree” button, I confirm that I am permitted to proceed to electronic versions of the materials:

Agree

Interim Report and Financial Statements for the Half Year Ended 31 December 2023

On track to deliver target annual dividend of at least 5.9 pence per share for the financial year ending 30 June 2024

Resilient portfolio well placed to continue to provide secure, index-linked income with the potential forcapital growth

 

The Board of Directors of Alternative Income REIT plc (ticker: AIRE), the owner of a diversified portfolio of UK
commercial property assets predominantly let on long leases with index-linked rent reviews, is pleased to announce
its interim report and financial statements for the half year ended 31 December 2023 (the Period).

Simon Bennett, Non-Executive Chairman of Alternative Income REIT Plc, comments:

“The Group completed the disposal of its hotel in Glasgow, generating proceeds of £7.5 million in August 2023, representing a 7.9% premium to its fair value as at 30 June 2023, and in December 2023 we completed the acquisition of the Virgin Active in Ockley Road, Streatham for £5.5 million (gross of acquisition costs). The Group is looking into reinvesting the remaining proceeds in another property in Q1 2024.

The Board has set an annual dividend target of at least 5.9 pence per share A (“pps”) for the year ending 30 June 2024 (year ended 30 June 2023: 5.7pps), which is expected to be fully covered, subject to the reinvestment of the Glasgow sale proceeds as anticipated and the continued collection of rent from the Group’s property portfolio as it falls due.

The Group’s contracted annualised rent grew by 2.9% in the Period predominantly because of the index-linked rent reviews in Birmingham, Salford, Sittingbourne, Brough and Solihull, and after taking account of the rent-free incentive period for Pets at Home in Droitwich. Nearly all the leases within the portfolio are index-linked (95.8%), with 35.9% of this rental income reviewed annually.

At 31 December 2023, the Group owned 19 properties valued at £103.3 million (30 June 2023: £107.0 million). On a like-for-like basis, the Company’s property values decreased by £1.9 million or 1.9%. The largest falls in value were in the residential, leisure and retail warehouse sectors.

At 31 December 2023, the Group’s unaudited Net Asset Value was £65.7 million, or 81.62pps (30 June 2023: £67.8 million, or 84.16pps), representing a 3.0% decrease over the Period. When combined with the two interim dividends paid in the Period of 3.35pps, this produced an unaudited NAV total return for the Period of 1.0%. Conversely, following a substantial narrowing of the discount, the share price increased substantially by 10.5% to 71.50pps and the share price total return for the Period was 15.7%.

The Group’s portfolio is relatively insulated from market fluctuations, benefiting from being 100% let and with 100% collection of rent due. In addition, the Group benefits from low fixed borrowing costs. Combining these factors provides a secure and growing rental income stream.

The Board remains confident that the Company is well-positioned for the future, with a portfolio that continues to deliver secure, index-linked income and has the potential for capital growth as the property market recovers.”

For results document see Download.