Alpha Real Share Discussion Threads

[colonel a] 02/10/2013 16:28

At a 53% discount to their last NAV there have to be some serious issues.
I've got about 1/3 as much in these as I have in ERET, which reflects relative confidence.
But appreciate the sanity check, it is easy to get carried away when a sector is going well and assume the trend will carry all before it.

[profitaker] 02/10/2013 15:56

Colonel

The question is what is the true NAV of this one ? If AURE & AUMP go into administration what will be the recovery rate on those loans ? The Spanish property obviously has a value, but is it booked at fair value in the accounts ? Legal goings on with the property in India and what about the exchange rate ?

These trade on a thumping discount to NAV, so it's not all bad. Just not as good as it first looks, I suggest.

I might have another look at these in the future but will give it a miss for now. Good luck.

[colonel a] 02/10/2013 15:29

Thanks,
I'll look into the fees in more detail, I can live with risky investments but snouts in the trough puts me right off.

[profitaker] 02/10/2013 15:24

I'd be careful with this one.

Their loans to AURE & AUMP look dodgy. Total investment £ 14.7m representing 21.98% of their investment portfolio. Both companies struggling to extend banking facilities. Can't find out anything about their loan to Norway. 20.78% of their portfolio is invested in a Spanish shopping centre. Their property in India (7.4% of their portfolio) is involved in an "arbitration process" to protect the investment. Not sure how these valuations would stack up against their book value, but I'd certainly be worried about the true value of the above, which combined represent 50.16% of ARTL investments.

The only sound investments I could find was in Freehold Income Authorised Fund, which in turn is invested in ground rents. Safe as houses, but only yielding 5.2%. Cambourne business park looks good, but represents just 1.8% of their portfolio.

Interestingly ARTL pays an "Investment Management Fee" to a company called "Alpha Real Estate Capital LLP", as does, er, each of it's subsidaries. Bit of a gravy train going on here I think.

[colonel a] 02/10/2013 09:18

There are fewer and fewer property companies at a significant discount to NAV.
This one is not easy to figure out but I've bought some on the basis that property generally seems to have bottomed out and ARTL seem to have enough cash to profit.

[bisiboy] 05/9/2013 18:34

on board with these looks like some upside.

[ibarty] 24/2/2013 12:34

Quiet a defensive structure here, with prospect of 5% yield and with price at 40% discount to NAV. It will be interesting to see how the investment in AURM and AURE turns out. Not worthwhile converting, but AUMP and AURE would have difficulty repaying so ARTL should be in a good position to change terms