- Net asset value (NAV) falls slightly to £65.7mn (81.6p)
- 9.2 per cent prospective dividend yield
- 21 per cent discount to NAV
Alternative Income Reit’s (AIRE:64.4p) interim results were flagged up in a second-quarter trading update, so there were no major surprises.
In the second half of 2023, the upward yield movement seen across the wider UK real estate sector clipped £1.9mn off the fair valuation of the group’s portfolio of 19 commercial long-leasehold and freehold properties. The portfolio includes care homes, hotels, student housing, nurseries, car showrooms and petrol stations. The net initial yield (NIY) used to value the portfolio increased from 6.58 per cent to 6.94 per cent, hence the 1.9 per cent like-for-like fall in the portfolio valuation to £103.3mn, which is based on annualised gross passing rent of £7.7mn.