A better argument might be that the tenants of AIRE properties are somewhat susceptible to power prices and Truss did less than required to satisfy their requirements.
An even better argument is that AIRE is randomly traded by "people" who believe in lizards and goblins - and chartists. That's not even counting retail. |
Ha ha apologies to holders - had assumed it'd gone XD or something.
AIRE never an inflation hedge ;) Not unless inflation in the 3% area. |
A good inflation hedge? And with systemically lower inflation owing to government actions? Index-linked Gilts at the short end getting walloped.
Perhaps!
And yet SUPR up on the day. |
Specto someone spotted your comment and took action!! |
Is holding up way better than most in fairness. |
Hawksmoor dropped another 1% |
Also the reviews are for 3 or 5 years but got to remember average inflation over some of those years was sub 3%
U.K. inflation rate for 2021 was 2.52%
U.K. inflation rate for 2020 was 0.99%
U.K. inflation rate for 2019 was 1.74%
U.K. inflation rate for 2018 was 2.29%
But what no-one seems to know is if the caps are cumulative or annual between reviews. If it's cumulative then a period of low inflation would mean that periods of high inflation are more likely to be reflected in the rent review (e.g. inflation of 2.52%, 0.99%, 1.74%, 2.29% and 7.6%) is still 3% pa) |
ST in IC. Also AEW uk reit |
Am sure ramper Tommo will have comment to make on it, and probably has already. |
Has this been tipped somewhere overnight? Lots of buying this morning. |
'safer 7%' - try PHNX |
Also the reviews are for 3 or 5 years but got to remember average inflation over some of those years was sub 3%
U.K. inflation rate for 2021 was 2.52%
U.K. inflation rate for 2020 was 0.99%
U.K. inflation rate for 2019 was 1.74%
U.K. inflation rate for 2018 was 2.29%
so might not get that much of an uplift and as Specto says it certainly no longer "inflation linked" but am happy collecting my 10% yield at my entry price for the time being. |
Is there a safer 7%pa out there; I doubt it |
Particularly liked this:
"Over the next 12 - month period , 59 % of the Group's income will be reviewed ( eight annual index-linked rent reviews and six periodic index-linked rent reviews (3 or 5 years since the previous reviews))." |
 Alan Sippetts, Non-Executive Chair of Alternative Income REIT plc, comments:
"The Board is pleased to announce that we have met our target dividend of 5.5 pence per share (pps) with full dividend cover for the year ended 30 June 2022, following the declaration of our fourth quarterly dividend of 1.6 pps.
At 30 June 2022, the Company's unaudited net asset value per share was 96.40 pence, representing a 3.3% increase over the quarter, due to increases in our portfolio valuation and rents as well as the careful control of costs. When combined with the 1. 60 pps dividend paid for the quarter, this produces an unaudited NAV total return for the quarter of 5.19 %.
This quarterly update demonstrates that the Company's attractive, well managed and resilient portfolio continues to increase in value with growing contracted rents, 96% of which are linked to inflation. Together with our track record of collecting 100% of rents due, this helps ensure that AIRE is well-positioned to continue to provide our shareholders with attractive, secure, long dated income, including a potentially progressive dividend and capital growth." |
All true @nickrl - there's an argument that baked-in small increases are better. However, if (& I agree) consumer spending is heading off a cliff, the units with "3.4% pa" uplifts will be first to go.
AIRE is one of my least favourite REITs, I believe "inflation-linked" is a misnomer bordering on misselling. |
Specto at least its a reliable 3-4% pa. The others are getting a degree of catch up on ERV on renewal/rent reviews currently so will outperform this in some cases. However, if there is no action over next energy price cap increase that is going to suck a vast amount of discretionary spending out of the economy which surely will feedback into retail and leisure being badly affected and thus put a lid on further upward rents in those sectors for sometime given most peoples income isn't going to catch up with new energy price levels for sometime. |
Gone quiet on here. AIRE has held up a lot better than many other small REITs.
Not sure why - RPI 11.8%, CPI 9.4%, for the 12 months to June. CPI expected to top out over 11% itself in October.
How are those caps going? |
That's me out here having sold 40 odd thousand this morning (10,10,10,12+). Thanks to SKYSHIP and others for your thoughts. Will now cycle the proceeds to other REITs including in the US to broaden my exposure to the sector. |
HP - thnx for that - missed it somehow! At 80.5p the yield is indeed 4.97%
-------------------------------------------------------------
"Following the dividend increase announced for the prior quarter, to 1p per share, dividend cover for Q1 2022 is 103%. and the Board continues to consider this rate to be sustainable.
The Board fully recognises the importance of dividends to the Company’s shareholders and will keep the quarterly dividend of 1p per share under review as rental collection levels improve further and the Company deploys available resources to acquire further investment property." |
"# SLI - 80.5p - Disc. 24.5%; Yield 4.43%"
SLI increased the dividend to 1p per quarter so its actually yielding 5% now. |
Sky its weird that SREI had a good run up after their NAV results then has dropped back so much. AIRE was slow to move up compared to its peer group and with level of trading I agree it wouldn't take much to retreat back. Am happy that i bought at a much higher yield which they can sustain albeit their ability to grow that by more than 2-3% a year is unlikely but how quickly can any of those improve their divis. |
I may be wrong but full dividend cover was to be sorted by Sept this year which means excluding any RPI inflationary increases they still yield 6.5%, i know collars and caps are in place etc but its a different animal from the others as far as i can see and if they can fully utilise the RPI increases yield improves ? but a small REIT so maybe a takeover target ? |
These now look to be a clear sale when weighed against their peers. At 84p the 10% discount and prospective 6.55% yield (note prospective, not actual) does not compare well with the likes of:
# BREI - 91p - Disc. 28.9%; Yield 4.4%
# CREI - 98.4p - Disc. 17.8%; Yield 5.59%
# SLI - 80.5p - Disc. 24.5%; Yield 4.43%
# SREI - 54.5p - Disc. 22.6% (likely higher on Tuesday's RNS); Yield 5.67%
The slightly higher yield will not compensate for the likelihood of a relative capital decline. |
I did get a chunk in lockdown at 59.5p topping up my core holding in AIRE and have added again since. The trust is small but in a good place on all metrics and pays a good dividend so I am happy to hold. |
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