Alpha Real Share Discussion Threads

[pavey ark] 27/1/2020 17:32

IC,Simon Thompson, tip update. Buy: they will increase the dividend and the discount should narrow.

[davebowler] 27/1/2020 13:39

LAST FIVE PUBLISHED TRADES Time/date of execution Price Currency Volume Trade value* Trade type Trade flags MIC 13:10:15 27-Jan-2020 190.00 GBX 1,578 2,998.20 Off-book XLON 13:04:18 27-Jan-2020 189.95 GBX 300 569.85 Off-book XLON 13:01:44 27-Jan-2020 189.95 GBX 1,000 1,899.50 Off-book XLON 12:41:17 27-Jan-2020 189.55 GBX 1,576 2,987.31 Off-book XLON 12:41:16 27-Jan-2020 189.55 GBX 923 1,749.55 Off-book XLON

[davebowler] 23/12/2019 18:59

Chairman's statement :Increased portfolio weighting towards secured loan investment: ART continues toaugment and diversify its portfolio of securedsenior and secured mezzanine loan investments.As at 30 September 2019, the size of ART'ssecured loan portfolio was £47.5 million,representing 38.6% of the investment portfolio;post period end, further loans totalling£3.4 million have been funded.

[davebowler] 29/9/2019 05:25

Mention here as a major holding in MIGO.HTtps://www.ii.co.uk/analysis-commentary/best-multi-asset-investment-trusts-market-ii509336?utm_source=IBMW&utm_medium=email&utm_campaign=ii_weekend_round_up_newsletter_280919&utm_content=&spMailingID=7311659&spUserID=MTIxNjc2Mzk1NDM1S0&spJobID=1353191942&spReportId=MTM1MzE5MTk0MgS2

[pavey ark] 28/9/2019 09:33

With the Birmingham site under offer (£4.9m) and the recent purchase funded by treasury stock there is certainly potential for a sizeable boost to income. The £4.9m will probably go onto their loan book and the yield from the property fund is 8.5% I doubt if either will greatly increase admin expenses but even so 10% on the £4.9m (conservative) and a net 7% on the £10m invested in the fund gives £1.2m. This £1.2m should end up very close to the bottom line. I would think that given the new profile of the company the dividend would certainly rise, as will the share price. A 5% yield on 200p would cost £6m/year I'm not suggesting this will happen this year but it looks like the company is heading for a steady and sustainable c. 10% total return/year. This return will be from loans and property investment returns but I don't think they can resist a bit of capital gains return and they are rather good at that. NB: number of shares is now 59m

[jt35] 25/9/2019 16:19

Was re-tipped by Simon Thompson in the IC today

[davebowler] 25/9/2019 15:34

It could be a very positive sign that the Alpha UK Property Fund has accepted ARTL shares in lieu of their unquoted holdings.Are they looking forward to good news from ARTL's expected payout from India? In any event it looks like its had an effect on the share price.

[pavey ark] 17/9/2019 15:07

The NAV is 212p (from results) and an absolute minimum additional 12p from Spain and India. There has been no additional upgrade to H20 shopping centre valuation even though it looks like additional value has been added with the recent planning/development. I am only adding a fraction up the money due from India as its been a very long time coming. If the price falls further I will certainly buy back the 20% I sold. At 170p I calculate the discount to be 24% Some may remember that I called the recent buy back, almost to the day, and I suspect that an offer may come soon for the remainder of the shares.

[davebowler] 16/9/2019 12:12

So,High Return Secured Loans now are about 33% of NAV. If so cash must be about 4% lower than the previous 38%, at about 34% Its shares are at about 17% to NAV.

[davebowler] 16/9/2019 12:10

.... with an additional GBP7.7 million of loans granted post period end. During the quarter to 30 June 2019, six loans were repaid for GBP4.0 million, generating an annualised return of 14.7%, and two loans were partly repaid by GBP1.3 million. Post period end, loan repayments of GBP1.5 million were received. The Company is currently targeting up to GBP70 million for investment in secured senior and mezzanine loans. Each loan will typically have a term of up to two years, a maximum 75% loan to value ratio and be targeted to generate attractive risk-adjusted income returns. Repayment proceeds will be reinvested into new facilities. The Company continues to develop a strong pipeline of new lending opportunities.

[davebowler] 16/9/2019 12:04

RNS Number : 1859M Alpha Real Trust Limited 13 September 2019 13 September 2019 ALPHA REAL TRUST LIMITED ("ART" OR THE "COMPANY") TRADING UPDATE and dividend announcement ART today publishes its trading update for the period ended 30 June 2019 and the period up until the date of this announcement. The information contained herein has not been audited. About the Company Alpha Real Trust Limited ("the Company" or "ART" or "Trust") 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 focusses on asset-backed lending, debt investments and high return property investments in Western Europe that are capable of delivering strong risk adjusted cash flows. The portfolio mix at 30 June 2019, excluding sundry assets/liabilities, was as follows: 30 June 31 Mar 2019 2019 High return equity in property investments: 26.6% 25.1% High return debt: 29.1% 26.3% Other investments: 6.4% 6.3% Cash: 37.9% 42.3% The Company's Investment Manager is Alpha Real Capital LLP ("ARC"). Highlights -- NAV per ordinary share 205.3p: 30 June 2019 (204.3p: 31 March 2019); the pro forma NAV per ordinary share, taking into account the Tender Offer share buyback in the period, is 212.5p*. -- Basic earnings for the period ended 30 June 2019 of 0.3p per ordinary share (33.1p per ordinary share and 33.5p per A share for the year ended 31 March 2019). -- Adjusted earnings for the period ended 30 June 2019 of 1.3p per ordinary share (3.9p per ordinary and A share for year ended 31 March 2019). -- Declaration of an increased quarterly dividend of 1.0p per ordinary share (0.8p: quarter ended 31 March 2019), expected to be paid on 18 October 2019. -- Active management of shareholder returns: post period end, the Company announced the result of its tender offer, in which 13,065,348 ordinary shares were validly tendered, representing approximately 19.48 per cent of the Company's voting shares. All valid tenders were subsequently satisfied in full. -- Increased portfolio weighting towards secured loan investment: ART continues to augment and diversify its portfolio of secured senior and secured mezzanine loan investments. As at 30 June 2019, the size of ART's secured loan portfolio was GBP39.1 million, representing 29.1% of the investment portfolio; post period end, further loans totalling GBP7.7 million have been funded. -- UK industrial portfolio: asset sales completed during and post period end in line with valuation. -- H2O shopping centre Madrid: record visitor numbers were recorded in the six months to June 2019. Following a successful transfer of additional building rights to the shopping centre, a pre-let commitment has been signed for a new retail park unit which is to be created on the surface parking area. * This is the 30 June 2019 NAV adjusted for the Tender Offer payment of GBP22.9 million and the share base adjusted for the cancellation of 13,065,348 shares. Investment summary Portfolio overview as at 30 June 2019 Investment name Investment Carrying Income Investment Property type Investment notes % of type value return location / underlying portfolio(1) p.a. security ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- High return debt (29.1%) ------------------------------------------------------------------------------------------------- ------------- Secured senior finance Diversified loan portfolio focussed on real estate Senior secured GBP23.9m 10.4% investments Senior secured loans (2) (3) UK and developments debt 17.8% Secured mezzanine finance Diversified loan portfolio focussed on Secured mezzanine Second charge real estate debt and mezzanine GBP15.2m 15.2% investments subordinated loans (2) (3) UK and developments debt 11.3% ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- High return equity in property investments (26.6%) ------------------------------------------------------------------------------------------------- ------------- H2O shopping centre Dominant Madrid 30% shareholding; shopping centre medium term and separate moderately geared Indirect GBP20.6m 5.5% development bank finance property (EUR23.0m) (4) Spain site facility 15.3% ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- Long leased industrial facility, Hamburg Long leased industrial complex Long term in major European moderately GBP6.3m* 6.4% industrial and geared bank Direct property (EUR7.0m) (5) Germany logistics hub finance facility 4.7% ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- Alpha UK Property Fund Asset Company (No 2) High-yield 33.6% of ordinary Indirect 8.4% commercial shares in the property GBP7.2m (5) UK UK portfolio company 5.3% ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- Cambourne Business Park Medium term High-yield moderately business geared bank Indirect 9.4% park located finance property GBP1.7m (4) UK in Cambridge facility 1.3% ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- Other investments (6.4%) ------------------------------------------------------------------------------------------------- ------------- Unity and Armouries, Birmingham Planning consent for 90,000 square feet / 162 units plus commercialHeads Central of Terms and PRS development, Birmingham exclusivity held for residential agreed for offer sale GBP4.5m n/a UK build-to-rent of GBP4.9m 3.3% ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- Galaxia Legal process underway to recover Development investment GBP4.0m site located by enforcing Joint venture (INR in NOIDA, Delhi, arbitration in arbitration 350m) n/a India NCR award 3.0% ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- Healthcare & Leisure Property Limited Indirect Leisure property No external property GBP0.2m n/a UK fund gearing 0.1% ----------------- ------------------- ------- ---------- ----------------- ----------------- ------------- Cash and short-term investments (37.9%) ------------------------------------------------------------------------------------------------- ------------- Short term deposits, 0.8% 'on call' and Cash GBP51.0m (6) UK current accounts 37.9% ------------------------ ------------ ------- ---------- ----------------- ----------------- ------------- * Property value net of associated debt including sundry assets/liabilities (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) Weighted average income return (4) Yield on equity over 12 months to 30 June 2019 (5) Annualised income return, post tax (6) weighted average interest earned on current deposits Further to the annual results announcement on 14 June 2019, the following are key investment updates. Active management of shareholder returns ART seeks to actively manage shareholder returns. In July 2019, post period end, the Company announced the result of its tender offer in which 13,065,348 ordinary shares were validly tendered, representing approximately 19.48 per cent of the Company's voting shares. All valid tenders were subsequently satisfied in full. Income focussed investment Following an active period of capital recycling, ART currently focusses on asset-backed lending, debt investments and high return property investments in Western Europe that are capable of delivering strong risk-adjusted cashflows. In line with this focus, capital is predominantly being deployed to augment and diversify its portfolio of secured real estate senior and mezzanine loan investments. Over the medium term the Company's returns are likely to see greater contributions from the growing senior debt and mezzanine loan portfolio and less from capital gains. The Company continues to maintain a pipeline of new investment opportunities under active review which compete for capital allocation. ART benefits from the depth of experience, strength and size of its Investment Manager. Alpha Real Capital has a team of over one hundred investment, asset management, sales and debt professionals based throughout the UK and Europe. ART's active management approach has helped deliver improvements in underlying asset values, in both directly and indirectly held investments across our investment markets. New secured lending investment The Company's portfolio of secured senior and mezzanine loan investments continues to increase in scale and diversity. The loans are typically secured on real estate investment and development assets with attractive risk-adjusted income returns. As at 30 June 2019, ART had invested a total amount of GBP39.1 million across thirty-one loans, of which five were completed during the quarter to 30 June 2019. Over the past year the loan portfolio has almost tripled, with GBP7.1 million of investment into the secured loan portfolio completing in the quarter ending 30 June 2019, with an additional GBP7.7 million of loans granted post period end. During the quarter to 30 June 2019, six loans were repaid for GBP4.0 million, generating an annualised return of 14.7%, and two loans were partly repaid by GBP1.3 million. Post period end, loan repayments of GBP1.5 million were received. The Company is currently targeting up to GBP70 million for investment in secured senior and mezzanine loans. Each loan will typically have a term of up to two years, a maximum 75% loan to value ratio and be targeted to generate attractive risk-adjusted income returns. Repayment proceeds will be reinvested into new facilities. The Company continues to develop a strong pipeline of new lending opportunities. Selective asset disposals UK industrial portfolio ART owns a 33.6% share in Alpha UK Property Fund Asset Company (No 2) Limited ('Alpha2'). As at 30 June 2019, Alpha2 owned four UK industrial assets. During the period, one of the assets was sold and is reflected in the 30 June 2019 reporting. Post period end, a further asset was sold for GBP1.7 million, in line with its 30 June 2019 valuation. Birmingham residential site ART owns Unity and Armouries, a development site located in central Birmingham with planning consent for 90,000 square feet of net saleable space comprising 162 residential apartments with ground floor commercial areas. A sale of the investment is being pursued. H2O, Madrid ART has a 30% stake in joint venture with CBRE Global Investors in the H2O shopping centre in Madrid. H2O continues to benefit from ongoing asset management initiatives. The centre attracted record visitor numbers during the six-month period to 30 June 2019, increasing 5.6% above the same period in 2018. The H2O investment includes a small vacant site located in the same planning zone as H2O that was acquired during 2017. As previously announced, following a successful planning process which involved an amendment to the local zoning plan, 9,000 square metres of building rights have been transferred to the H2O plot which, subject to obtaining building licences, creates potential for the future expansion of the shopping centre. An active leasing programme has helped secured a pre-let to a leading Spanish pet supplies company for a 1,100 square metre retail park unit which will be constructed by the landlord over the coming year on part of the centre's surface car park area. This creation of new retail park units was anticipated as part of a recently completed masterplan design for the shopping centre. Other investments Galaxia, India The Galaxia project is a joint venture with Logix Group, to develop a site extending to 11.2 acres with the potential to develop 1.2 million square feet. Galaxia is located in NOIDA, an established, well planned suburb of Delhi that continues to benefit from new infrastructure projects and is one of the principal office micro-markets in India. The Company has a 50.0% shareholding in the SPV which controls the Galaxia site. There are no bank borrowings on the asset. In February 2011, ART recommenced arbitration proceedings against Logix Group ("Logix") in order to protect its Galaxia investment, an 11.2 acre development site, in NOIDA, the National Capital Region (NCR), India. In January 2015, the ICC Arbitral Tribunal decreed that Logix and its principals had breached the terms of the shareholders agreement and has awarded the Company: -- Return of the Company's entire capital invested of INR 450 million (equivalent to GBP5.1 million using the period end exchange rate as at 30 June 2019) along with interest at 18% per annum from 31 January 2011 to 20 January 2015. -- All costs incurred towards the arbitration. -- A further 15% interest per annum on all sums was awarded to the Company from 20 January 2015 until the actual date of payment by Logix of the award. Logix challenged the validity of the arbitration award in the Delhi High Court and latterly to the Division Bench of the Delhi High Court. Both courts dismissed the respective appeals and upheld the award declared in favour of the Company. Logix appealed the dismissal before the Supreme Court of India. Following several postponements to scheduled hearings, the next Supreme Court hearing is scheduled for 17(th) September 2019. ART continues to actively pursue Logix directors for the recovery of the award. The sum awarded to ART, including the recovered deposits, has now accrued to GBP15.1 million at the period end exchange rates. The Directors, taking into consideration legal advice received following Logix's challenge of the Award and following the recovery of INR 100 million (GBP1.1 million) deposited by Logix at the Supreme Court, consider it appropriate to carry this joint venture in its accounts at INR 350 million (GBP4.0 million). The amount recognised in the accounts does not include the additional compensation awarded by the courts due to uncertainty over timing and final value of the award. Share buybacks Under the general authority, approved by Shareholders on 8 January 2019, the Company announced a tender offer on 14 June 2019 for up to 16,666,771 ordinary shares at a price (before expenses) of 175.0 pence per share. In total 13,065,348 ordinary shares were validly tendered under the tender offer. All purchased ordinary shares were cancelled. The Company additionally purchased 52,124 shares in the market during the period ended 30 June 2019, and a further 10,000 shares on 1 August 2019. As at the date of this announcement, the ordinary share capital of the Company is 61,165,783 (including 6,971,081 ordinary shares held in treasury) and the total voting rights in the Company is 54,194,702. 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 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 June 2019. 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 receive scrip may complete a Scrip Mandate Form (this can be obtained from the registrar: contact Computershare (details below)), which must be returned by 4 October 2019 to benefit from the scrip dividend alternative for the next dividend. Net asset value ('NAV') As at 30 June 2019, the unaudited NAV per ordinary share of the Company was 205.3p (31 March 2019: 204.3p). The movement in NAV mainly reflects the earnings of the Company less the dividend paid in the period plus positive foreign currency movements. The pro forma NAV per ordinary share, taking into account the Tender Offer share buyback in the period, is 212.5p (this is the 30 June 2019 NAV adjusted for the Tender Offer payment of GBP22.9 million and the share base adjusted for the cancellation of 13,065,348 shares). 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:EUR1.117 or GBP1:INR87.587, as appropriate. Strategy and outlook ART's diversified portfolio continues to increase the weighting towards cashflow driven investments, particularly senior debt, whilst retaining scope for creating capital value growth. Following an active period of capital recycling, ART currently focusses on asset-backed lending, debt investments and high return property investments in Western Europe that are capable of delivering strong risk-adjusted cashflows. ART continues to actively augment and diversify its portfolio of secured real estate loan and secured mezzanine loan investments which are expected to enhance the Company's current earnings. Over the past year the loan portfolio has increased almost threefold, with GBP7.1 million of investment into the secured loan portfolio completing in the quarter ending 30 June 2019, with an additional GBP7.7 million of loans granted post period end. The Company is actively repositioning its investments to deliver attractive income returns. For the medium term, the Company's returns are likely to see greater contributions from the growing senior debt and mezzanine loan portfolio and less from capital gains. The Company maintains an active pipeline of potential new secured senior and mezzanine loans and equity investment opportunities under review. Contact: Alpha Real Trust Limited David Jeffreys, Chairman, ART [phone] Brad Bauman, Joint Fund Manager, ART [phone] Gordon Smith, Joint Fund Manager, ART [phone] Panmure Gordon, Broker to the Company Atholl Tweedie / Joanna Langley [phone]

[cerrito] 14/9/2019 20:23

As someone who is negative on the UK and property risk given the current political situation, I have been giving some thought as to what to do with my ARTL exposure. Adjusting for the execution of the July buy back, the total assets at end June were £113m approx. with £4m in India, £26m in Spain and Germany and £30m in cash so they are reasonably well diversified. That said, I ask myself if now is the time to go full blast into the property finance market where they are talking about investing £70m. I do recognize that I have been overly pessimistic in this area-ie I sold out of RECI too early a couple of years back.However if there is a change of government the development property market could really seize up.

[davebowler] 05/9/2019 13:49

I've reluctantly moved on to SMTP -German Commercial property at a 40% discount to NAV, whilst keeping a few ARTL I managed to buy back at £1.73.

[pavey ark] 24/8/2019 08:55

Trading update is overdue (18/19 August for the past five years or so) I sold c. 20% of my holdings in the buy back but I suspect there could be a final offer for all of the remaining shares. NAV about 214p but I can find a good 10-15p extra in the figures. Little prospect of buying my 20% back at less than 175p unless the mad Telegraph readers and their pin up boy Boris manage to pull the plug on the whole market.

[davebowler] 16/7/2019 03:54

I was surprised by that and inadvertently sold all my shares, so I'm hoping to buy back in at a lower price!

[skyship] 08/7/2019 15:01

Result of Tender - see above in Header. All valid tenders will be satisfied in full. Well pleased with that outcome.

[dekle] 29/6/2019 19:04

I've decided not to tender any of my shares. These shares have doubled for me and I think it will continue to grow. If the price falls a little after the offer closes I will probably buy more

[pavey ark] 28/6/2019 18:45

Well I think that people will get any amount of their tendered shares taken. Given that c. 50% of share are not being tendered then you are guaranteed to get at least 50% of your entire holding taken and I suspect that this is a low figure. Whither people tender their entire holding or not depends on how they see the prospects for the company and their own cash position.

[davebowler] 17/6/2019 06:58

Expected Timetable of Principal Events The expected timetable for the Tender Offer is as follows: Latest time and date for receipt 3.00 p.m. on 5 July 2019 of Tender Forms or for settlement of TTE Instructions in respect of the Tender Offer Record Date for participation in 6.00 p.m. on 5 July 2019 the Tender Offer Results of the Tender Offer announced 8 July 2019 Settlement date: cheques despatched from 12 July 2019 and CREST accounts credited with proceeds in respect of successfully tendered Ordinary Shares Balancing certificates despatched week commencing 15 July and CREST accounts credited in respect of unsold Ordinary Shares

[skyship] 14/6/2019 06:48

Oops - sorry all - seriously, I hadn't seen today's news!!! 175p - YES - good news.

[skyship] 14/6/2019 06:44

PA - Agreed, let's have a large Tender Offer - 165p looks like a good level.

[pavey ark] 14/6/2019 06:43

Nav 31st March 204.3p/share Shares 67.13m Nav £137.14m Buy back 16.66m @ 175p cost £29.15m Shares now 50.47m Nav now £108m NAV/ share NOW 214p Obviously there are other benefits to the holder but they have purchased 204p of assets for 175p.

[yieldsearch] 13/6/2019 21:02

Buy back and cancel the shares. If held in treasury how does it change nav per shares?