(Alliance News) - Alpha Real Trust Ltd on Friday said its net asset value per share increased in its most recent year after the sale of its data centre site in Frankfurt and residential site in Leeds.
The investment firm's net asset value, both for its 'A' shares and ordinary shares, stood at 204.3 pence per share on March 31 compared to 172.9p per share the year before.
"The sale of the company's data centre site in Frankfurt and its residential site in Leeds were completed, following the securing of significantly enhanced planning consents under the company's ownership. These sales have helped deliver 15.4% growth in [Alpha Real's] NAV per ordinary share over the year," said Chair David Jeffreys.
The Frankfurt site was sold for EUR44.8 million and the Leeds site for GBP15.2 million, both were sold above their most recently published value.
The company has declared a final dividend of 0.8p per share, lifting the total for the year by a third to 2.4p per share from 1.8p per share the year before.
"The company is actively repositioning its investments to deliver attractive income returns. For the medium term, the company's returns are likely to see greater contributions from the growing senior debt and mezzanine loan portfolio and less from capital gains. The company maintains an active pipeline of potential new secured senior and mezzanine loans and equity investment opportunities under review."
Alpha Real also launched a share tender offer on Friday worth up to GBP29 million following a series of asset sales.
Alpha has offered to purchase up to 16.7 million shares at 175 pence each under the offer, equivalent to GBP29.2 million. Shares in Alpha were 14% higher at 172.00p in London on Friday, giving it a market capitalisation of GBP115 million.
The offer follows the property firm selling two assets for a combined GBP55.9 million. The company is currently targeting sales of up to GBP85 million in order to invest in secured senior and mezzanine loans.
Alpha argued the offer was in the interests of shareholders and the company itself as it undertakes a repositioning of its portfolio and currently trades at a substantial discount to its 204.3p per share net asset value as of the end of March.
Alpha Real (ARTL)