REG - Alternative Inc REIT - Dividend Declaration

Alternative Income REITAnnouncement

06/05/2020 18:15

RNS Number : 1881M
  
Alternative Income REIT PLC
  
06 May 2020
  
 

6 May 2020
Alternative Income REIT PLC
("AIRE", the "Company" or the "Group")
DIVIDEND DECLARATION
The Board of Directors of Alternative Income REIT PLC (ticker: AIRE), the owner of a diversified portfolio of 19 UK commercial property assets let on long leases, declares today an interim dividend of 0.825 pence per share for the quarter ended 31 March 2020.
 
The dividend will be paid on 29 May 2020 to shareholders on the register on 15 May 2020. The ex-dividend will be 14 May 2020. This dividend will be a Property Income Distribution ("PID").
 
In light of the exceptional circumstances affecting global economies and markets and the Group's rental collection levels for the March 2020 quarter day as announced on 24 April 2020 and set out below, the Board considers it prudent at this time to reduce the dividend for the quarter ended 31 March 2020. However, the Board expects the Company to continue paying an attractive quarterly dividend even if a prolonged economic downturn results in some potential impairment from the Company's previously announced aggregate dividend target of 5.5 pence per share for the year ending 30 June 20201.
 
This quarterly dividend of 0.825 pence per share equates to 60% of the interim dividend for the quarter ended 31 December 2019 of 1.375 pence per share that the Board declared on 6 February 2020 and was paid to shareholders on 28 February 2020.
 
However, the Board continues to believe that the Company is relatively well positioned given its resilient balance sheet, diversified portfolio of long let, index-linked assets that remain fully let, relatively strong rent collection and low recurring annual overhead.
 
The Board will continue to monitor closely the dividend position and keep shareholders and wider stakeholders updated as the situation evolves.
 
As announced on 24 April 2020, the Group received 82% of the rents which were due on the March 2020 rent quarter day in respect of the forthcoming quarter, which represents 64% of the Group total rent roll. The remainder of the rents remain due as the collection dates fall outside of the usual English quarter days. The rents due to the Company do not include the rents from Meridian Steel Limited, whose rent-free period ends from the June 2020 rent quarter day.
 
Despite having fundamentally sound business models, some of the Group's tenants are experiencing unprecedented short-term disruption to their operations, which is impacting their near-term cash flows. Where realistic, the Group is continuing to provide proportional assistance to those tenants whose operations are being materially impacted, whilst protecting its own position and its responsibility to shareholders.
 
The Company remains in discussion with tenants (who represent 39% of the rent roll) which include conversions to monthly or payments in arrears or deferral and stage repayments over defined periods. The Company is continuing to treat each case on its individual merit.
 
ENQUIRIES



Alternative Income REIT PLC








Steve Smith - Chairman


via Maitland/AMO below














Maitland/AMO (Communications Adviser)








James Benjamin 


james.benjamin@maitland.co.uk
+44(0) 20 7379 5151














Cenkos








Will Rogers


wrogers@cenkos.com
+44(0) 20 7397 1920




Rob Naylor


rnaylor@cenkos.com 
+44(0) 20 7397 1922



 
The Company's LEI is 213800MPBIJS12Q88F71.
 
Further information on Alternative Income REIT plc is available at www.alternativeincomereit.com2
 
About the Group
Alternative Income REIT PLC aims to generate a sustainable, secure and attractive income return for shareholders from a diversified portfolio of UK property investments, predominately in alternative and specialist sectors. The majority of the assets in the Group's portfolio are let on long leases which contain inflation linked rent review provisions, which help to underpin income distributions to shareholders with the potential for income and capital growth.
 
Notes
1      Investors should note that any dividend targets are for illustrative purposes only, based on current market conditions and is not intended to be, and should not be taken as, a profit forecast or estimate. Actual returns cannot be predicted and may differ materially from this illustrative figure. There can be no assurance that the target will be met or that any dividend or total return will be achieved.
2      Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website or any other website, is incorporated into, or forms part of, this announcement nor, unless previously published on a Regulatory Information Service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.


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