Alpha Real Share Discussion Threads

[scburbs] 19/6/2015 11:20

Hi Erstwhile2, Please can you post the extract. Are you sure it isn't just FX?

From what I can see in the notes (note 3) it looks like rents will be up in Euros.

"For Euro based balances the year end exchange rate used is £1:€1.367 (2014: £1:€1.210) and the average rate for the year used is £1:€1.274 (2014: £1:€1.186)."

[scburbs] 19/6/2015 08:18

H20 appears to be performing well with income yield hitting a mighty 13.5% p.a. and occupancy up to 90.1% (86.5% last year).

[scburbs] 19/6/2015 07:56

Solid NAV growth, good earnings yield, solid and increasing dividend. Continues to look very good value at 65p. Difficult to see why the NAV discount is anywhere near the current 40+%.

[cwa1] 19/6/2015 07:12

Results time:-



David Jeffreys, Chairman of Alpha Real Trust, commented:

"ART has had a positive year with earnings continuing to grow. Value adding asset management and improved leasing have contributed to the value increases recorded in the Company's directly and indirectly held investments.

Taking advantage of the improving economic backdrop and increased investment market activity and pricing, the Company has sold a number of its non-core investments.

As ART's current investment portfolio is being improved, we continue to seek new opportunities focused around the twin strategy of investing in debt investments where capital can benefit from a preferred risk position and asset investments and co-investments with substantial cash flows or scope for high risk-adjusted returns. The Company is actively sourcing and analysing new investment opportunities and has the agility and financial reserves to capitalise on those that meet its investment criteria. Our improving earnings and enhanced cash reserves position the Company strongly for continued progress in the year ahead."

Highlights include:
-- NAV per share 113.2p: 31 March 2015 (107.0p: 31 March 2014)

-- Adjusted earnings per share of 7.5p for the year ended 31 March 2015 (40% up from prior year 5.3p)

-- Continued earnings growth: income from core and non-core investments, both equity and high yield debt continue to add to the Group's earnings position
-- Declaration of an increased dividend of 0.6p per share, expected to be paid on 17 July 2015

[scburbs] 27/4/2015 14:34

More positive Spanish news.

"Spain's government has raised the country's official growth forecast for the second time in two months, with the economy now expected to expand by 2.9 per cent this year.

Mariano Rajoy, the prime minister, said the revised forecast meant that Spain was on track to become the fastest-growing large economy in the eurozone in 2015, writes Tobias Buck in Madrid."

[scburbs] 27/4/2015 10:59

Interesting comparison on Spanish shopping centre prices (4% down on 2011). The Pinto one is also south of Madrid, ARTL's one looks better location wise in Rivas-Vaciamadrid which is closer to Madrid and has strong population growth.

"London-based private equity firm Doughty Hanson is finalising the sale of two shopping centres in Spain for a reported €115m, around €5m less than it paid for them four years ago."

hxxps://www.pie-mag.com/articles/9553/newsletter/44808,ac7abbb9d3f6e58f9879cacec1615c974f4c0d19,ed11ab4a8b9d7e177d355e0fe3e8b4b10eaafe07,1887d9fe72113e02de1ed4c1cd0e8799d6468c05

"Doughty Hanson & Co Real Estate acquires two shopping centres in Spain
01/03/2011

Doughty Hanson & Co Real Estate, one of Europe’s leading private equity real estate investors, has acquired two shopping centres from Sonae Sierra for €120m.

Plaza Éboli is a neighbourhood shopping centre located in Pinto, one of the main towns in the southern Madrid metropolitan area. It was completed in 2005 and occupies a commercial area of over 31,000m2.

El Rosal is a regional shopping centre located in Ponferrada, a town in the western province of León in north-west Spain. It was completed in 2007 and has a gross lettable area of over 50,000m2."

hxxp://www.doughtyhanson.com/real-estate/news/2011/01-03-2011.aspx

[battlebus2] 01/4/2015 16:43

Good to see after a few weeks.

[badtime] 01/4/2015 16:37

Spread narrowed late today..at one stage you could buy at .65 and sell at .651

[sharpshare] 31/3/2015 13:24

TD Direct Investing, new name for TD Waterhouse, will trade.

Today is the last day of the financial year for ARTL.
My guess is the NAV will be higher than 109.1p announced for 31 Dec 2014.

Ground rent portfolio is almost certainly to have risen in value.
Direct property values probably up.
Small loss for net Euro exposure.
Gross income should be higher than fees and dividend payments.

My guess is about 111p for year end reported NAV.

Anyone else want to have a guess at the reported year end NAV to be announced probably sometime in June?

I wonder if they will raise the dividend, they can afford to.

[cwa1] 31/3/2015 09:35

FWIW, both iDealing and Selftrade giving live quotes at the moment. Only tried for 10,000 though. Both quoting 64.99P.

[tiltonboy] 31/3/2015 09:33

Cerrito,

Looks like some brokers are not allowing Specialist Fund Market stocks. A few got the same issue with MVI.

[cerrito] 31/3/2015 09:27

I tried to buy some on Barclays on line but was told could not trade it; there have been trades today I note. Anyone have some insight?

[badtime] 27/3/2015 11:29

Not showing ..but bought back in today

[fozzie] 09/3/2015 16:13

Bought in at 69.5p last week, impeccable timing as ever ;o)

[battlebus2] 09/3/2015 16:10

Not surprised to see a slight retrace given the rise but the discount is still there and will close over time imv.

[sharpshare] 09/3/2015 16:03

IMPT results out last week. Small improvement in LTV over the year. Increases the cushion to about 22% of the £79.9m property assets. Nice 15% yield on loan asset for next 3.75 years.

[sharpshare] 09/3/2015 15:57

Yes, partly due to the low liquidity investors are able to buy £1 of assets for 62p.

[badtime] 09/3/2015 13:23

Bit of profit taking .. Contrary to whatI was going to do I dipped out at 70 end of last week as I didn't like the liquidity..down much more and I will consider getting back in

[badtime] 04/3/2015 10:02

Further to my previous comment they are happy to take 10k online but will only let me buy 1k without putting a limit in

[battlebus2] 03/3/2015 16:04

Thanks guys some excellent posts... full ask to buy 500 atm.

[sharpshare] 03/3/2015 16:04

"During November 2014, AURE refinanced its borrowings adding a second tranche to its bank debt and reducing the overall cost of the debt.

As part of a larger refinancing of AURE's loan facilities, in which £2.3 million was repaid to ART, ART provided a new mezzanine loan facility of £10.3 million for a two year term expiring November 2016. The loan earns a coupon of 9% per annum plus an upfront and exit fee and an extension fee if the loan is not repaid within the first year. The loan was amortised during the quarter to £9.6 million."

So around 10%+ return on loan asset. Very nice.

[scburbs] 03/3/2015 15:58

Thanks Sharpshare.

The LTV on the AURE loan is now in the c.40-60% tranche at 9% interest rate (plus fees) which looks like a great investment for ARTL with little downside risk. Probably one that should be valued at a slight premium (not too much as it is only a 2 year loan), but certainly not at a discount.

[sharpshare] 03/3/2015 15:56

Ground rent fund doing well.
Makes up about 22p in NAV for ARTL.

[sharpshare] 03/3/2015 15:45

Some key renters at H20 shopping centre Madrid

Net investment worth about 19p in NAV to ARTL.
Gross could be worth around 93p in NAV to ARTL?
(debt for H20 non recourse to ARTL)
So nice upside option for ARTL.