Alternative Income Reit Share Discussion Threads

[stemis] 29/9/2022 08:24

Good results from AIRE...like the market cares

[stemis] 13/9/2022 12:24

Although there must be some concern over cost of debt in REITs in a rising interest environment, AIRE's £41m facility is fixed interest at 3.19%, repayable in just over 3 years time. Hopefully enough time for the high(er) interest environment to pass...

[lord gnome] 08/9/2022 15:45

I prefer random lizards and goblins. Perhaps the odd gnome might be involved somewhere along the line.

Interesting to note that all my REITs are down recently and down quite markedly. Time to buy if I can decide what to sell, first.

[marktime1231] 08/9/2022 15:39

Oh this is absolutely cerrainly definitely for sure a mm undermining the price ahead of taking a major position and making an offer around NAV.

Or not.

[skinny] 08/9/2022 15:18

I'd opt for the second scenario.

[chucko1] 08/9/2022 15:13

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.

[spectoacc] 08/9/2022 15:11

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.

[chucko1] 08/9/2022 15:05

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.

[nickrl] 08/9/2022 09:58

Specto someone spotted your comment and took action!!

[spectoacc] 06/9/2022 05:45

Is holding up way better than most in fairness.

[nickrl] 05/9/2022 17:20

Hawksmoor dropped another 1%

[stemis] 04/8/2022 12:44

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)

[scorpio13] 04/8/2022 08:10

ST in IC. Also AEW uk reit

[spectoacc] 04/8/2022 08:07

Am sure ramper Tommo will have comment to make on it, and probably has already.

[lord gnome] 04/8/2022 07:55

Has this been tipped somewhere overnight? Lots of buying this morning.

[vinceelliott] 04/8/2022 07:51

'safer 7%' - try PHNX

[nickrl] 03/8/2022 21:29

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.

[smidge21] 03/8/2022 18:29

Is there a safer 7%pa out there; I doubt it

[makinbuks] 03/8/2022 15:00

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))."

[cwa1] 03/8/2022 06:08

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."

[spectoacc] 20/7/2022 09:11

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.

[nickrl] 20/7/2022 08:53

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.

[spectoacc] 20/7/2022 07:22

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?

[flyer61] 06/6/2022 08:09

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.

[skyship] 06/6/2022 06:28

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."