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Bargain Shares 2024: An outstanding investment with an anomalous discount

A 45 per cent discount is non-sensical when its assets include cash, gilts and high-yield property
February 8, 2024

Aim: Share price: 118p

Bid-offer spread: 114-122p

Market value: £69mn

  • Net cash backs up 36 per cent of market capitalisation
  • 45 per cent discount to net asset value
  • Free ride on property investments worth £56mn

The track record of the investment team behind Alpha Real Trust (ARTL), a company that invests in high-yielding property and asset-backed debt and equity investments, is outstanding.

In the 10 years to 30 September 2023, the investment manager has doubled the company’s net asset value (NAV) per share from 106p to 214p and paid out total dividends of 34.5p per share, to deliver a total return of 134 per cent. In the same 10-year holding period, the FTSE All-Share Total Return index has shed 4.5 per cent of its value.

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