Alpha Real Trust quarterly adjusted earnings slip despite NAV growth

Real estate investor Alpha Real Trust reported that adjusted earnings had fallen in the three months ended 30 June despite seeing its net asset value continue to increase in the period.

Alpha Real Trust said on Friday that its net asset value had grown from 207.7p on 31 March to 208.1p at the end of June, partly due to positive foreign exchange movements in the quarter.

However, adjusted earnings slipped to 1.4p per share from 3.4p in the previous 12-week period and the firm also posted a 0.1p per share basic loss for the period, down from the previous quarter's breakeven position.

Alpha Real also declared a quarterly dividend of 1.0p per ordinary share, expected to be paid on 22 October.

The AIM-listed group also added that its senior portfolio had an average loan-to-value of 50.9 % based on loan commitments.

"The economic and social impact of Covid-19 continues to dominate the economic backdrop in which the Company operates. Vaccine development and the fast pace of deployment, particularly in the United Kingdom, provides a supportive tailwind for a return to social normalisation and economic recovery, which will bode well for the property security underpinning the company's loan investments," said Alpha.

As of 0930 BST, Alpha Real shares were down 3.56% at 162.50p.