Alpha Real Trust Limited (ARTL) 2015年年度報告「LSE」.pdf

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1、Annual report and financial statementsFor the year ended 31March 201520151 Highlights2 Trust summary and objective3 Chairmans statement6 Investment review24 Directors25 Directors and corporate governance report29 Directors statement pursuant to the Disclosure and Transparency Rules30 Independent aud

2、itors report31 Consolidated statement of comprehensive income32 Consolidated balance sheet33 Consolidated cash flow statement34 Consolidated statement of changes in equity35 Notes to the financial statements59 Directors and Company information60 Shareholder information 60 Financial calendarCAlpha Re

3、al Trust Limited:Annual report 20151NAVpershare113.2p:31March2015(107.0p:31March2014)Adjustedearningspershareof7.5pfortheyearended31March2015(40%upfromprioryear5.3p)Continuedearningsgrowth:incomefromcoreandnon-coreinvestments,bothequityandhighyielddebtcontinuetoaddtotheGroupsearningspositionDeclarat

4、ionofanincreaseddividendof0.6ppershare,expectedtobepaidon17July2015Saleofnon-coreinvestments:saleofthefinalassetsinBCPreleased2.7millionforreinvestmentinopportunitiesacrosstheasset-backedspectrumthatofferhighrisk-adjustedtotalreturnsGalaxiaarbitrationawardedintheGroupsfavour:awardfortheoriginalamoun

5、tinvested,pluspenaltyinterestandcosts.AwardsubjecttoSection34challengeinIndianCourtsbyLogixAUREloanrefinance:aspartofawiderrefinancingofAUREsloanfacilities,inwhichtheCompanywasrepaid2.3million,ARTprovidedanewmezzanineloanfacilityof10.3millionforatwoyeartermexpiringNovember2016.Theloanearnsacouponof9

6、%plusentry,exitandextensionfees.Theloanwasrepaidduringthequarterto9.6million Europiploanrefinance:ARTextendeditsloantoEuropipfor2years.Thenewloanearnsacouponof9%perannumplusentry,exitand,whereapplicable,earlyprepaymentfees;theloanwasrepaidduringthequarterto1.3millionEuropipcapitalrecycling:3.5millio

7、nofcapitalreturnedtoARTforreinvestmentasaresultofstrategicassetsalesandrenegotiatedbankfinancetermsH2O:asaresultofassetmanagementinitiatives,includinganimprovedtenantmixandphysicalupgradesundertakenbyART,theMadridshoppingcentreattractedrecordvisitornumbersH2O:17newleasecontractssignedin2014,with5new

8、contractsalreadysignedin201593%oftheGroupsinvestmentportfolioisinincomeproducinginvestmentsintheUKandEurope0.6p Declaration of an increased dividend of 0.6p per share40%40%increase in adjusted earnings per share to 7.5p 113.2p NAV per share 113.2p93%93%of the Groups investment portfolio is in income

9、 producing investments in the UK andEuropeHighlightsAlpha Real Trust Limited targets investment opportunities across the asset-backed spectrum,including realestate operating companies,securities,services and other related businesses that offer high risk-adjusted totalreturns.Alpha Real Trust Limited

10、:Annual report 20152Trust summary and objectiveStrategyAlphaRealTrustLimited(“theCompany”or“ART”)targetsinvestmentopportunitiesacrosstheasset-backedspectrum,includingrealestateoperatingcompanies,securities,servicesandotherrelatedbusinessesthatofferhighrisk-adjustedtotalreturns.ARTcurrentlyfocusesonh

11、igh-yieldingpropertydebtandequityinvestmentsinWesternEuropethatbenefitfromunderlyingstrongcashflows.Thecurrentportfoliomix,excludingsundryassets/liabilities,isasfollows:Highyieldingdebt28.4%Highyieldingequityinpropertyinvestments26.4%Groundrentinvestments19.7%Otherinvestments9.0%Cash16.5%ManagementT

12、heCompanysInvestmentManagerisAlphaRealCapitalLLP(“ARC”)whoseteamofinvestmentandassetmanagementprofessionalsfocusesonthepotentialtoenhanceearningsandaddvaluetotheunderlyingassets,andontheriskprofileofeachinvestmentwithinthecapitalstructuretobestdeliverhighrisk-adjustedreturns.ControloftheCompanyrests

13、withthenon-executiveGuernseybasedBoardofDirectors.DividendsThecurrentintentionoftheDirectorsistopayadividendquarterly.ListingTheCompanyssharesaretradedontheSpecialistFundMarket(“SFM”)oftheLondonStockExchange(“LSE”),withthetickercodeARTL:LSE.FinancialhighlightsYear ended 31March 20156 months ended 30

14、September 2014Year ended 31March 2014Net asset value(000)79,93576,47375,693Net asset value per share113.2p108.3p107.0pEarnings per share(adjusted-basic and diluted)*7.5p3.0p5.3pEarnings per share(basic and diluted)10.2p3.3p2.2pDividend per share(paid during the period)2.1p1.1p2.6p*Theadjustedearning

15、spershareincludesadjustmentsfortheeffectofthefairvaluerevaluationofinvestmentpropertiesandindirectpropertyinvestmentsandthefairvaluemovementsonfinancialassets.Fullanalysisisprovidedinnote9tothefinancialstatements.High yielding equity in property investmentsCashinvestmentsGround rentOtherHigh yieldin

16、g debtIMPT equity1.0%Europip loan1.6%AURE loans12.2%IMPT loan14.6%FIAF19.7%Cash16.5%Galaxia6.1%HLP 2.5%Cambourne2.0%H2O19.3%Europipproperty4.1%Other 0.4%26.4%9.0%28.4%16.5%16.5%Groups assets allocation by sector and investment(bypercentage of Groups NAV)Alpha Real Trust Limited:Annual report 20153Ia

17、mpleasedtopresenttheCompanysannualreportfortheyearended31March2015.IthasbeenaveryactiveperiodforARTacrossallofitsinvestmentsectorswithactiveassetmanagement,newinvestmentandcapitalrecyclingallplayinganimportantroleinayearofconsolidationandgrowth.Thebackdropofanimprovingeconomicenvironmenthasassistedt

18、heCompanyinachievingsuccessfuldisposalsofnon-coreassets.ARTisinastrongpositionwiththecashresourcesatyearendtocontinuetoprudentlyinvest.Theflexibilityprovidedbyourstrategyoffocusingonhigh-yieldingpropertydebtandequityinvestmentsinWesternEuropethatbenefitfromunderlyingstrongcashflowsorscopeforhighrisk

19、-adjustedtotalreturnshasmeantthatARTiswellplacedtoadapttoopportunitiesandtakeadvantageofnewinvestments.Wecontinuetoremaindisciplinedaboutnewinvestmentsandassetselection.Whilstselective,wealsoremaincreativeandarealerttoopportunitiesthatrequirecomplexinvestmentstructures.Thisapproachhasserveduswellint

20、hepastandprovidesanadvantageinselectedmarketsinwhichinvestmentactivityandassetpricingcouldbeperceivedtoberunningslightlyaheadofcurrentlydemonstrableoccupationalmarketfundamentals,makingdirectassetpurchaseslessattractive.TheCompanysearningscontinuetoincreaseasaconsequenceofARTsinvestmentpolicyoftarge

21、tinginvestmentsandallocationofcapitaltoincomefocusedinvestmentsorinvestmentswhichwillgeneratestrongandgrowingcashflows.TheCompanyhasmaintaineditspolicyofpayingquarterlydividendsduringtheperiodandIampleasedtoannouncethat,supportedbyimprovingearnings,theCompanydeclaresanincreasedquarterlydividendof0.6

22、ppershare,relatingtothequarterended31March2015,whichisexpectedtobepaidon17July2015.Equity investmentsARTsdirectandindirectlyheldequityinvestmentsinrealestatecontinuetoperformstrongly.ThisisevidentbothintheUKandinothermarketsacrossEurope.InSpain,theH2OshoppingcentreinvestmentinMadridattractedarecordn

23、umberofannualvisitorsin2014andalsorecordedincreasinglypositivelike-for-liketenantsalesgrowth.ThisreflectstheassetmanagementimprovementsimplementedundertheCompanysownershipwhichincludeanimprovedcommercialmix,upgradedpublicareas,anewlakesideleisureareaanduniquemarketingevents.Therearesignsthateconomic

24、growthinSpainisalsobuilding,whichbodeswellfortheassetsfutureperformance.Duringtheyear,underlyingassetvalueincreaseshavebeenreportedwithintheCompanysIndustrialMultiPropertyTrustplc(“IMPT”)andActiveUKRealEstateFund(“AURE”)investmentsintheUK.Inadditiontoinvestorsentimentimprovingasriskpremiumsreduceand

25、pricingimproves,increasedleasingactivityalsopointstoanimprovementintheunderlyingoccupiermarket.TheCompanysinvestmentinFreeholdInvestmentAuthorisedFund(“FIAF”),whosestablecashflowsprovidesupporttotheCompanysearningsandportfoliobalance,performedstronglydeliveringatotalreturnof8.6%duringtheyear.David J

26、effreys ChairmanChairmans statementAlpha Real Trust Limited:Annual report 20154Debt investmentsARTrefinancedorextendedthetermsofitshighyieldingdebtinvestmentsinEuropipandAUREduringtheperiod.Ingeneral,thebroadeningofthedebtmarketsupplyhasmeantthatARTsdebtinvestmentsareinsomecasesnowyieldingreturnsine

27、xcessofthemarket.Underlyingassetvalueshavebenefitedfromanimprovementinthewiderinvestmentmarketresultinginenhancedcreditqualityasloantovalueratioshaveeitherimprovedoraremorefirmlysupportedasaresultofbothgreaterliquidityanddebtavailability.Theincreasedrealestateinvestorsentimentandliquidityinthemarket

28、hasfacilitatedsalesofnon-coreassetsfromtheEuropipportfolio,whichhaveenabledARTsinvestmentloantoberepaidfrom4.3millioninDecember2014to1.3millioninMarch2015.Capital recyclingRecyclingofcapitalfrommatureandnon-coreinvestmentshascontinued,providingtheopportunityfornewinvestmentthatoffersscopeforhigherri

29、sk-adjustedreturns.Tothisend,theremaininginvestmentinBusinessCentrePropertiesLimited(“BCP”)wassubstantiallyredeemed.BCPwasacquiredinlate2012aspartofthelargerPropertyInvestmentPortfolioPlcportfolioandwasoneoftheassetswithintheportfoliodeemedtobenon-core.Asuccessfulmanagedsell-downoftheassetswithinBCP

30、hasnowbeencompleted.TherehavebeenfurtherstrategicassetsalesintheCompanysEuropipinvestmentinNorwaywhereproceedsfromthesaleofnon-coreassetswillallowfurtheramortisationofARTshighyieldingloantoEuropipinadditiontoamortisationofEuropipsseniorbankloanfacility.Arbitration process in IndiaDuringtheyear,theIn

31、ternationalChamberofCommerce(“ICC”)ArbitrationdeclaredanawardinfavouroftheCompanywithrespecttoitsGalaxiainvestment,ajointventurewiththeLogixGroup(“Logix”)locatedinan11.2acreSpecialEconomicZone,inNOIDA,theNationalCapitalRegion,India.TheArbitralTribunalbyamajoritydecreedthatLogixanditsprincipalshadbre

32、achedtheTermsoftheShareholdersAgreementandhasawardedtheCompany:ReturnofitsentirecapitalinvestedofINR450Million(equivalentto4.9millionatyearendexchangerateof1:INR92.756)alongwithinterestat18%perannumfrom31January2011to20January2015.AllcostsincurredtowardstheArbitration.Thetotalawardamountsto9.2millio

33、nbasedonyearendexchangerates.Additionally,afurther15%perannuminterestonallsumswasawardedtotheCompanyfrom20January2015untiltheactualdateofpaymentbyLogixoftheaward.TheArbitralTribunalhasalsoruledthattheCompanyhasnoobligationorliabilitytofundtheoutstandingNOIDAleaserentundertheShareholdersAgreement.Fol

34、lowingthedeterminationofthearbitrationnotedabove,theawardtotheCompanyrepresentsapotentialrealisationofapproximately9.2million.TheDirectorscontinuetoholdtheindirectinvestmentatINR450million(4.9million)inthefinancialstatementsduetouncertaintyovertimingandfinalvalue.Aspreviouslyannounced,theCompanyhasb

35、eennotifiedthatLogixhasfiledapetitionunderSection34oftheIndianArbitrationandConciliationAct,1996beforetheDelhiHighCourtchallengingtheaward.ThematterhasbeenadjournedforahearingplannedforJuly2015.ThismatterwillcontinuetoberobustlypursuedbytheCompanytoseekfullrecoveryofthesumsawarded.Continued growth T

36、heCompanyiscontinuouslyevaluatingnewinvestmentopportunities.ARTsinvestmentpolicytotargetbothassetbackedinvestmentsandinvestmentinhighyielddebtmarketswillallowittocontinuetocapitaliseonnewinvestmentopportunitiesandoptimisereturns.TheCompanysliquidreservesandabilitytotransactquicklymakeitwellplacedtos

37、ecuresuitableopportunities.ARTiscommittedtoitsdisciplinedstrategyandinvestmentprincipleswhichfocusonopportunitiesthatcandeliverhighrisk-adjustedtotalreturns,whileseekingtomanageriskthroughacombinationofoperationalcontrols,diversificationandpreferredcapitalpositions.FortheCompanysinvestmentsthatsitou

38、tsidethecoreportfolioofequityinvestmentsandpreferredloanfacilities,amanagedexitisanticipatedoveraphasedperiodinordertorecyclecapitalintonewinvestmentopportunities.TheCompanyisactivelyseekingtoincreasetheyieldandunderlyingcapitalvalueofitsportfoliobyenhancedperformancefromexistinginvestments,assetman

39、agementinitiativesandbyadditionalinvestment,fundedfromitscashandliquidholdings,strongcashflowandcapitalrecycling.AdetailedsummaryoftheCompanysinvestmentsiscontainedwithintheinvestmentreviewsectionofthisannualreport.Chairmans statement(continued)The Companys earnings continue to increase as a consequ

40、ence of ARTs investment policy of targeting investments and allocation of capital to income focused investments or investments which will generate strong and growing cashflows.Alpha Real Trust Limited:Annual report 20155Results and dividendsDividendsAdjustedearningsfortheyearshowaprofitafterinterest

41、andtaxof5.3millionandadjustedearningspersharefortheyearof7.5pence(seenote9ofthefinancialstatements).Thiscompareswithadjustedearningspershareof5.3penceforthepreviousyearended31March2014.TheincreaseismainlytheresultoftheincrementalincomereceivedfromtheCompanysinvestmentsinIMPTandFIAFtogetherwithanimpr

42、ovedperformanceatH2OandlowercostsincurredfortheGalaxiainvestmentarbitrationproceedings.Inlinewithitsaimtopaydividendsquarterly,theBoardannouncesadividendof0.6pencepersharewhichisexpectedtobepaidon17July2015(Exdividenddate2July2015andrecorddate3July2015).Thedividendspaidanddeclaredforthetwelvemonthst

43、o31March2015total2.175pencepershare,representingadividendyieldof4.0%perannumonaveragesharepriceovertheperiodand1.9%oncurrentnetassetvalue.Thenetassetvaluepershareat31March2015is113.2pence(31March2014:107.0pencepershare)(seenote10ofthefinancialstatements).FinancingSomeofARTsunderlyinginvestmentsarepa

44、rtfundedthroughnon-recourseloanfacilitieswithexternaldebtproviders.FortheH2Oshoppingcentre,bankborrowingsnowstandat71.7million(52.5million),which,followingrepayments,representsareductionof3.3millionfromtheinitial75.0millionborrowed.Thebankfacilitiesdonothaveanyloantovaluecovenantsandthereissufficien

45、theadroominrelationtotheinterestcoverratiocovenants.Therecontinuestobeasubstantialsurplusofrentalincomeinexcessoffinancecharges.Furtherdetailsofindividualassetfinancingcanbefoundundertheindividualinvestmentreviewsectionslaterinthisreport.Foreign currency TheBoardmonitorsforeignexchangeexposuresandco

46、nsidershedgingwhereappropriate.Allforeigncurrencybalanceshavebeentranslatedattheperiod-endratesof1:1.367,1:NOK11.853and1:INR92.756.Share buybackOn13August2014,theCompanypublishedacirculargivingnoticeofitsAnnualGeneralMeetingon5September2014.Theproposedresolutions,includingthoseinrelationtotheTakeove

47、rPanelWaiverandtheSharePurchaseAuthoritywereapprovedbyshareholders.ThisallowstheCompanytoacquireupto24.99%oftheVotingShareCapitalduringtheperiodexpiringontheearlierof(i)theconclusionoftheAnnualGeneralMeetingoftheCompanyin2016,and(ii)4March2016.SummaryARThashadapositiveyearwithearningscontinuingtogro

48、w.ValueaddingassetmanagementandimprovedleasinghavecontributedtothevalueincreasesrecordedintheCompanysdirectlyandindirectlyheldinvestments.TheCompanyhassuccessfullyreneweditsdebtinvestmentsinEuropipNorwayandinAURE,maintainingbroadlythesamelevelofreturnswithimprovingcreditquality.Takingadvantageofthei

49、mprovingeconomicbackdropandincreasedinvestmentmarketactivityandpricing,theCompanyhassoldanumberofitsnon-coreinvestments.SalesofassetsfromEuropipsNorwegianportfolioandoftheremainingassetsintheBCPinvestmenthasallowedcapitaltoberecycledallowingforreinvestmentintohighyieldingopportunitiesinlinewithARTss

50、trategy.AsARTscurrentinvestmentportfolioisbeingimproved,wecontinuetoseeknewopportunitiesfocusedaroundthetwinstrategyofinvestingindebtinvestmentswherecapitalcanbenefitfromapreferredriskpositionandassetinvestmentsandco-investmentswithsubstantialcashflowsorscopeforhighrisk-adjustedreturns.TheCompanyisa

51、ctivelysourcingandanalysingnewinvestmentopportunitiesandhastheagilityandfinancialreservestocapitaliseonthosethatmeetitsinvestmentcriteria.OurimprovingearningsandenhancedcashreservespositiontheCompanystronglyforcontinuedprogressintheyearahead.David Jeffreys Chairman 18June2015Chairmans statement(cont

52、inued)Alpha Real Trust Limited:Annual report 20156Investment reviewPortfoliosummaryInvestmentInvestment valueIncome return p.a.Investment locationProperty type/underlyingsecurityInvestment notes%of portfolio 1High yielding debt(28.4%)Active UK Real Estate Fund plc(“AURE”)Mezzanineloan9.8m29.0%3UKHig

53、h-yielddiversifiedportfolioPreferredcapitalstructure12.2%Industrial Multi Property Trust plc(“IMPT”)Subordinateddebt11.8m215.0%3UKHigh-yielddiversifiedportfolioUnsecuredsubordinateddebt14.6%Europip plcMezzanineloan1.3m29.0%3NorwayLogistics,officeandretailSecuredmezzanineloan1.6%High yielding equity

54、in property investments(26.4%)H2O shopping centreDirectproperty15.6m(21.3m)13.5%4SpainHigh-yield,dominantMadridshoppingcentreDebtfacilitywithnoLTVcovenantanda1.1xICRcovenant19.3%Europip plcIndirectproperty3.3m(4.5m)7.6%4NorwayAgearedpropertyinvestmentvehicleinvestedinlogistics,officeandretailpropert

55、iesRecentlyextendedseniorandmezzanineloanposition4.1%Cambourne Business ParkIndirectproperty1.6m12.5%4UKHigh-yieldbusinessparklocatedinCambridgeBankfacilityat50%LTV(currentinterestcoverof2.4timescovenantlevel)2.0%Industrial Multi Property Trust plcEquity0.8mn/aUKHigh-yielddiversifiedportfolio19%ofor

56、dinarysharesinfundwithmediumtermdebt1.0%Ground rent investments(19.7%)Freehold Income Authorised FundGroundrentfund15.9m3.9%5UKHighlydefensiveincome;freeholdgroundrentsNogearing;monthlyliquidity19.7%Other investments(9.0%)Galaxia Indirectproperty4.9m(INR450m)n/aIndiaSpecialEconomicZonedevelopmentsit

57、elocatedinNOIDA,Delhi,NCRLegalprocessunderwaytorecoverinvestmentbyenforcingarbitrationaward6.1%Healthcare&Leisure Property LimitedIndirectproperty2.0m8.8%6UKLeisurepropertyfundNoexternalgearing2.5%Other0.3mn/aVariedVariedVaried0.4%Cash(16.5%)Cash(Companyonly)13.3m0.1-1%UKCurrentoroncallaccounts16.5%

58、1 PercentageshareshownbasedonNAVexcludingparentcompanyssundryassets/liabilities2 Includingaccruedinterestatthebalancesheetdate3 Annualcoupon4 Over12monthsto31March20155 12monthsincomereturn;posttax6 ReturnontheaverageinvestmentduringtheownershipperiodAlpha Real Trust Limited:Annual report 20157Highy

59、ieldingdebtMarket overviewOverthepastyear,therehasbeenamarkedchangeinintheavailabilityofdebtfinance.Althoughstillnotatthelevelsreachedin2007,ageneralsentimentthattherealestatemarketshavenormalisedhasleadtohigherloantovalueratiosaccompaniedbylowerfinancingmargins.Thereisaconsensusviewthatthenextmovef

60、orbaseinterestrateswillinevitablybeupwards,althoughtheforecastedtimingofsuchamoveisregularlypostponed.Whilstmovingoffhistoricinterestratelowsisalmostinevitable,theinitialincreaseislikelytobegreaterinsymbolismthaninquantum.Fromthecurrentlowbase,evenamoderateincreaseinbaserateswillstillleaveinterestra

61、tesatcomparativehistoriclows.Thisoutlook,combinedwithrecentreductionsinlendingmargins,ishelpingtosupportapositiveoutlookforassetsgenerallyandrealestateinparticular.ThistrendispositivenewsforARTsequityinvestmentswhosevaluesandliquidityarefurtherenhanced,andfortheCompanysdebtinvestmentswhichhaveincrea

62、singlyprotectedexitpositionsuponrefinancing.Whilstthereisincreasedcompetitionwithinthelendingmarket,itremainslesscompetitiveforsmallertransactionsinnon-primesectorswhereastrongknowledgeoftheunderlyingassetsisrequired.TheacquisitionandrefinancingneedsofmanyrealestateinvestmentvehiclesthroughoutEurope

63、remainhighandopportunitiesforlenderswithrealestatedebtexpertisecontinuetoremainattractivealthoughthisremainsacompetitiveenvironment.TheincreasedliquidityindebtmarketsandnumberofnewlendersenteringthemarkethelpsunderwriteexitassumptionsforARTscurrentdebtandmezzanineinvestmentswhilstalsocontributingtoi

64、mprovingassumptionsforreturnsonnetassetvalueswhichwillbenefitthevaluationsoftheCompanysequityinvestmentportfolio.AsevidencedbytherefinanceandextensionoftheEuropipandAUREloanfacilitiesduringtheyear,ARTremainswellpositionedtotakeadvantageoffurtherdebtinvestmentopportunitiesastheyareidentified.Investme

65、nt review(continued)Brad Bauman Joint fund managerGordon Smith Joint fund managerTheCompany continues to source new investment opportunities with strong cash-flows and/or managed risk profiles that are accretive to its earnings position.SectorIrish Stock Exchange listedUnderlying assetsUK offices,in

66、dustrial and retail propertyDescriptionAURE is an Irish Stock Exchange listed UK property fund with gross property assets of 47.9 million (asat 31 March 2015).AURE has a regionally diversified portfolio of UK office,industrial and retailproperties.Alpha Real Trust Limited:Annual report 20158Active U

67、K Real Estate Fund plc AUREAlpha Real Trust Limited:Annual report 20159Investment review(continued)Active UK Real Estate Fund plc(“AURE”)InvestmentInvestment typeInvestment valueIncome returnProperty type/underlying securityInvestment notesAlphaUKRealEstateFundplcMezzanineloan9.8m*9.0%p.a.*High-yiel

68、ddiversifiedUKportfolioPreferredcapitalstructure*Includingaccruedinterestatthebalancesheetdate*AnnualcouponDuringNovember2014,AURErefinanceditsborrowingsaddingasecondtranchetoitsbankdebtandreducingtheoverallcostofthedebt.AspartofalargerrefinancingofAUREsloanfacilities,inwhich2.3millionwasrepaidtoART

69、,ARTprovidedanewmezzanineloanfacilityof10.3millionforatwoyeartermexpiringNovember2016.Sincefunding,theloanprincipalhasbeenrepaidto9.6million.Theloanearnsacouponof9%perannumplusupfrontandexitfeesinadditiontoanextensionfeeiftheloanisnotrepaidwithinthefirstyear.BaseduponthevalueoftheunderlyingAUREportf

70、olioof47.9millionasat31March2015andthebalanceofthebankdebtof22.1millionasat31March2015,theseniorlendersloantovalueratiois46.1%.ARTsloanpositionsitsbetween46.1%and66.1%loantovalue.Demand from occupiers across the Companys investment markets is showing signs of improvement.This is evident across the C

71、ompanys portfolio with a high volume of new leases signed in the AURE and IMPT portfolios in the UK and also at H2O in Spain.SectorLSE listedUnderlying assetsUK offices and industrial propertyDescriptionIMPT is a London Stock Exchange listed UK property fund with gross property assets of 80.8 millio

72、n (as at 31March 2015).IMPT has a regionally diversified portfolio of UK light industrial and office property.Alpha Real Trust Limited:Annual report 201510Industrial Multi Property Trust plc IMPTAlpha Real Trust Limited:Annual report 201511Industrial Multi Property Trust plc(“IMPT”)InvestmentInvestm

73、ent typeInvestment valueIncome returnProperty type/underlying securityInvestment notesIndustrialMultiPropertyTrustplcSubordinateddebt11.8m*15.0%p.a.*High-yielddiversifiedUKportfolioUnsecuredsubordinateddebt*Includingaccruedinterestatthebalancesheetdate*AnnualcouponFurthertoitsequityinvestment(descri

74、bedbelow)ARThasprovidedaloantoIMPT.AspartoftherefinancingofIMPTinDecember2013,ARTprovidedanewsubordinateddebtfacilityof11.5million(11.8millionincludingaccruedinterest).Theloanhasafive-yearterm,expiringinDecember2018,andearnsacouponof15%perannum.BasedonthevalueoftheIMPTportfolioof80.8million(31March2

75、015valuation),andthebalanceofthebankandmezzaninefinanceof53.2millionasat31March2015,thisreflectsaloantovalueratioof65.8%.ARTssubordinatedloansitsbetween65.8%and80.1%loantovalue.European Property Investment Portfolio plc(“Europip”)InvestmentInvestment typeInvestment valueIncome returnProperty type/un

76、derlying securityInvestment notesEuropiploanMezzanineloan1.3m*9.0%p.a.*OfficeandlogisticsSecuredmezzanineloan*Includingaccruedinterestatthebalancesheetdate*AnnualcouponFurthertotheequityinvestment(describedbelow)ARThasprovidedmezzaninefinancetoEuropip.ARThasachargeoverEuropipsportfolioofcommercialas

77、setsrankingaftertheseniorlenderschargeovertheNorwayportfolioandMosaicinvestments.Inaddition,ARThastherighttotakeachargeoverasingleunencumberedpropertywithintheNorwayportfolio,whichisoutsidetheseniorlenderssecuritypoolofassets.DuringNovember2014ARTextendedthetermofthecurrentloanfacilitytoEuropipamoun

78、tingto4.3millionuntil27November2016.Inadditiontoanupfrontfeepaidatthetimeofsigning,thenewloanearnsacouponof9%perannumplusanexitfeeof1%;additionally,a2%feewillapplyshouldthefacilitynotberepaidwithin12months.FollowingthesaleoftheRoykenveienproperty,2.1millionoftheARTloanwaspartiallyrepaidduringJanuary

79、2015.Afurther0.9millionwaspaiddowninDecember2014followingthereleaseofacashreserveheldbytheseniorlender.ThesetworepaymentshavereducedtheARTloanbalanceto1.3million(NOK15.4million)includingaccruedinterest,asat31March2015.Thevalueoftheportfoliooffiveassetswas24.4million(NOK289million)basedonthe31Decembe

80、r2014valuation,andthebalanceofthebankdebtwas14.4million(NOK171.2million).Asat31March2015,includingthepropertywhichisoutsidetheseniorlenderssecuritypoolofassets,ARTsloanpositionsitsbetween59.2%and64.5%loantovalue.Postbalancesheet,followingthesaleoftheHvamsvingenproperty,0.8oftheARTloanwasrepaid,reduc

81、ingtheARTloanbalanceto0.5million(NOK5.9million).Investment review(continued)SectorBusiness parksUnderlying assetsOfficeTenantsRegus,Citrix Systems,NetcrackerTechnologyArea9,767 square metresDescriptionThe asset consists of three Grade A specification modern office buildings located in the town of Ca

82、mbourne.Phase 1000 is situated at the front of the business park.It is an institutional quality asset with Open B1 Business userplanning.Alpha Real Trust Limited:Annual report 201512Cambourne Business Park CambridgeAlpha Real Trust Limited:Annual report 201513HighyieldingequityinpropertyinvestmentsC

83、ommercial property market overviewTheUKandEuropeaneconomiesinwhichARToperateshavecontinuedtoprogresstowardseconomicstabilisationandgrowthdespitehesitantmacro-economicindicatorsfromtheEurozoneandheadwindsfrompoliticaluncertainties.Investorsentimentremainsoptimisticandthereappearstobeanincreasinglycon

84、fidentviewthattherecoverywillcontinue.Astheyearhasprogressed,therehasnotonlybeenanincreasedlevelofmarkettransactionvolumesandpricingforrealestateandassetbackedinvestmentsbutalsoabroadeningofinvestmentsearchesforbothassettypesandgeography,indicatingamoreoptimisticmarketoutlook.Thenarrowinvestorfocuso

85、nprimeassetsthatprevailedinrecentyearsisincreasinglygivingwaytoanobjectiveanalysisofstrengthsandweaknessofbroadercommercialpropertyandassetbackedinvestments.Anacceptanceofastabilisationofassetvaluesinmostmarkets,thelowinterestrateenvironmentandthegreateravailabilityofdebtfundinghasledtoinvestorsbroa

86、deningtheirinvestmentcriteriatoseekhigheryieldingassetsintandemwithahigherappetiteforriskwiththeconfidencethattotalreturnsinthesemarketsarelikelytooutstripreturnsfromlowyieldingprimeassets,particularlyonarisk-adjustedbasis.ThisbodeswellforARTsportfolio.ThereboundinassetvaluesinSpainhascontinuedandth

87、isisevidentattheCompanysH2OshoppingcentreinMadridwherevalueinEurohasincreasedby6%duringtheyear.DemandfromoccupiersacrosstheCompanysinvestmentmarketsisshowingsignsofimprovement.ThisisevidentacrosstheCompanysportfoliowithahighvolumeofnewleasessignedintheAUREandIMPTportfoliosintheUKandalsoatH2OinSpain.

88、Whilstoccupierdemandandleasingactivityhasincreased,rentalgrowthremainssubdued.Increasedleasingactivityishoweverlayingthefoundationforimprovingrentalgrowthprospects.Fornowhowever,withtheexceptionofprimeassetsinprimelocations,itappears“weightofmoney”,availabilityofdebtfinanceandarelativescarcityofqual

89、ityavailableinvestmentstockandnotrentalgrowthisdrivinginvestmenttransactionvalues.ARTcontinuestoremainfocusedoninvestmentsthatofferpotentialtodeliverhighrisk-adjustedreturnsviavalueenhancementthroughactiveassetmanagement,improvementofnetrentalincome,selectivedeploymentofcapitalexpenditureandtheabili

90、tytoundertakestrategicsaleswhentheachievablepriceisaccretivetoreturns.Investment review(continued)ART remains well placed to find value for its investors and to capitalise on new investment opportunities across asset backed investment and debt markets in the UK and Europe.SectorRetailAssetShopping c

91、entreTenants includeNike,Zara,Mango,Cortefiel,H&M,C&A and Massimo DuttiArea51,825 square metresDescriptionThe property is located in the Rivas-Vaciamadrid district of Madrid.H2O has a primary catchment area of 166,000 people but the location,due to the concentration of complementary retail,has a tot

92、al catchment of 2.2million people.The weighted average lease length as at 30 April 2015 is 10.3years to expiry and 1.9 years to next break.Centre occupancy 90.1%as at 30 April 2015.Alpha Real Trust Limited:Annual report 201514H2O Madrid-SpainTop ten tenants(30 April 2015)13%12%11%8%8%8%6%6%4%24%n In

93、ditexGroupn Yelmon C&An CortefielGroupn GrupoVIPS n Mercadonan SferaSportownn H&Mn Ozonen MuerdeLaPastaAlpha Real Trust Limited:Annual report 201515Investment review(continued)H2O Shopping Centre,Madrid InvestmentInvestment typeInvestment valueIncome returnProperty type/underlying securityInvestment

94、 notesH2ODirectproperty15.6m(21.3m)13.5%p.a.*High-yield,dominantshoppingcentreDebtfacilitywithnoLTVcovenantanda1.1xICRcovenant*Over12monthsto31March2015.H2OwasopenedinJune2007andbuilttoahighstandardprovidingshopping,restaurantsandleisurearoundacentralthemeoflandscapedgardensandanartificiallake.H2Oha

95、sagrosslettableareaof51,825squaremetrescomprising118retailunits.Inadditiontoamultiplexcinema,supermarket(lettoleadingSpanishsupermarketoperatorMercadona)andrestaurantsithasalargefashionretailerbase,includingsomeofthestrongestinternationalfashionbrands,suchasNike,Zara,Mango,Cortefiel,H&M,C&AandMassim

96、oDutti.TheH2OshoppingcentrewasacquiredinApril2010andtodateARThascommitted5.3millionincapitalimprovements.Assetmanagementhighlightsareasfollows:Centreoccupancy:90.1%byrentalvalue(82.2%byarea)asat30April2015.Footfall:thevisitornumbersatH2Oreachedrecordlevelsin2014withfootfallcontinuingtobeassistedbyth

97、epresenceofthenewbrandsandanimprovedcommercialmix;thispositivetrendhascontinuedinto2015.Salesgrowth:tenantsalesperformanceisimprovingandthepositivegrowthregisteredin2014hascontinuedinto2015;thisreflectsthegreatervisitornumbersatthecentreandtheimprovingeconomicenvironmentinSpain.Leaselength:weighteda

98、verageleaselengthof1.9yearstonextbreakand10.3yearstoexpiry(asat30April2015).Leasing:2014wasahighlysuccessfulyearfornewleasingwith17newleasessigned(including4currenttenantexpansions/relocations).Thepositivemomentumhascontinuedinto2015with5newleasessigned,3ofwhicharetoupgradecurrenttenants.Lakesideexp

99、erience:thenewlakeside“funboulevard”andcafeandbarskiosksthatwerecreatedunderARTsownershiphavebeenenlargedandnowserveasasocialdestinationforthelocalpopulation;thisofferwasreinforcedwiththelettingtotwoleadingrestaurantbrandsin2014.Costcontrol:anactivecostmanagementexercisecontinuestobeimplementedtored

100、ucethecentresoperatingcostsandimprovethequalityandefficiencyofservices,in2014thebuildingmanagementsystemandanumberoflargesuppliercontractswererenegotiated.Marketing:innovativeeventscontinuetobecarriedouttoattractnewvisitors,buildcustomerloyaltyandincreasedwelltime;anextendedkidssummercamphasbeenheld

101、duringrecentmonthsandtheexclusiveLegothemedplayareacontinuestoperformstrongly.The visitor numbers at H2O reached record levels in 2014 with footfall continuing to be assisted by the presence of the new brands and an improved commercial mix;this positive trend has continued into 2015.Alpha Real Trust

102、 Limited:Annual report 201516Investment review(continued)Industrial Multi Property Trust plc(“IMPT”)InvestmentInvestment typeInvestment valueIncome returnProperty type/underlying securityInvestment notesIndustrialMultiPropertyTrustplcEquity0.8mn/aHigh-yielddiversifiedUKportfolio19%ofordinarycapitalA

103、RThas19%ofIMPTsordinarysharecapital,representing0.8millioninequityvaluebasedonIMPTsshareprice,asat31March2015.IMPT,listedontheSFM,isaUKpropertyfundwitharegionallydiversifiedUKportfolioofover50multi-letlightindustrialandofficepropertiesvaluedat80.8million(at31March2015).Thefollowinghighlightswereincl

104、udedinIMPTstradingstatementforthequarterended31March2015(publishedMay2015):Adjustednetassetvalueperordinaryshare-227penceasat31March2015(220penceat31December2014),anincreaseof7pence(+3.1%).Adjustedearningsperordinaryshare-lossof3.6penceforthethreemonthsto31March2015(lossof19.4penceforthetwelvemonths

105、to31December2014).Portfoliovaluationincreased-thegroupspropertyportfoliowasvaluedat80.8millionasat31March2015(79.9millionasat31December2014),anincreaseof0.9million(+1.1%).Occupancyimproved-theoccupancylevelbyestimatedrentalvaluestoodat87.3%asat31March2015,comparedwith86.5%asat31December2014,anincrea

106、seof0.8%.Newlettingsachieved-22newlettingsand13leaserenewalsachievedduringthequarterended31March2015(representing7.6%oftheestimatedrentalvalueofthetotalportfolio,basedonthefinalachievableannualrentincludingsteppedrent).ARCistheinvestmentmanagerofIMPT.ARCispursuingvalueenhancementopportunitiesintheIM

107、PTportfolioassetstoincreasenetincomeandimprovetheprofileofthisincomethroughleaseextensions,renewalsandreducingunrecoverablevoidcosts.The Company continues to implement its active management policy and this has seen encouraging results in both directly and indirectly held investments.Alpha Real Trust

108、 Limited:Annual report 201517Investment review(continued)Cambourne Business Park,Phase 1000,Cambridge InvestmentInvestment typeInvestment valueIncome returnProperty type/underlying securityInvestment notesCambourneBusinessParkIndirectproperty1.6m12.5%p.a.*High-yieldbusinessparkBankfacilityat50%LTV(c

109、urrentinterestcoverof2.4timescovenantlevel)*Over12monthsto31March2015.TheCompanyhasinvested1.2millioninajointventurethatownsPhase1000ofCambourneBusinessPark.ThepropertyconsistsofthreeGradeAspecificationmodernofficebuildingsconstructedin1999andlocatedinthetownofCambourne,approximately8mileswestofCamb

110、ridgecitycentre.Thepropertycomprises9,767squaremetresoflettablearea,isself-containedandhas475carparkingspaces.Phase1000issituatedatthefrontofthebusinessparkwithgoodaccessandvisibility.Phase1000isahighqualityasset,fullylettoNetcrackerTechnologyEMEALtd,CitrixSystemsandRegus.ThepropertyhasopenB1Busines

111、suserplanningpermissionandhaspotentialvalue-addopportunities.Phase1000waspurchasedinajointventurepartnershipwithamajoroverseasinvestorfor23.0millionincludingacquisitioncosts.Bankfinanceof10.8millionwasobtained.ARTsequitycontributionof1.2million,whichrepresents10%ofthetotalequitycommitment,wasinveste

112、dintoanewlyformedjointventureentity,asubsidiaryofwhichholdstheproperty.Thepropertywasacquiredforan8.5%netinitialyieldandiscurrentlydeliveringanannualisedincomereturnof12.9%asat30September2014.ARCistheinvestmentmanagertothejointventureowningtheCambournepropertyandcontinuestopursueopportunitiestoaddva

113、luetotheinvestment.The Company remains active in both its target investment sectors of high yield debt and equity in assets with high risk-adjusted returns typically when there is scope to add value through active asset management and/or the restructuring or recapitalisation of property investment v

114、ehicles.SectorA 47%stake in an Isle of Man domiciled open ended investment company which invests in a geared property investment vehicle invested in Norway and a minority stake in a Central European commercial property fund called Mosaic Property CEE Limited.Underlying assetsThe investment predomina

115、tely comprises industrial and office properties in Norway,with a minority stake in a fund invested in commercial property in Central Europe.DescriptionThe Norwegian portfolio is concentrated around Oslo.Mosaic indirectly invests in a portfolio of commercial assets in Poland.Alpha Real Trust Limited:

116、Annual report 201518European Property Investment Portfolio plc EuropipAlpha Real Trust Limited:Annual report 201519European Property Investment Portfolio plc(“Europip”)InvestmentInvestment typeInvestment valueIncome returnProperty type/underlying securityInvestment notesEuropipNorwayIndirectproperty

117、3.3m(4.5m)7.6%p.a.*AgearedpropertyinvestmentvehicleinvestedinofficesandlogisticspropertiesinNorwayRecentlyrefinancedseniorandmezzanineloanpositionEuropipMosaicIndirectproperty0.3m(0.4m)n/aMinorityinvestmentinacentralEuropeancommercialpropertyfundPropertyheldviainvestmentvehicles,varyingdebtlevels*Ov

118、er12monthsto31March2015AspartofthePropertyInvestmentPortfoliotransaction,ARTacquireda47%stakeinEuropip(sharesarenon-voting),anIsleofMandomiciledopenendedinvestmentcompany.EuropipinvestsinadirectlyownedcommercialpropertyportfolioinNorwayandholdsaminorityinterestinMosaicPropertyCEELimited(“Mosaic”),aC

119、entralEuropeanfocusedcommercialpropertyfund.TheNorwegianportfolioofdirectlyownedcommercialpropertiesisconcentratedaroundOslo.Thevalueofthefiveassetportfolioasat31March2015isNOK289million(24.4million),basedonthe31December2014valuation,withapassingrentallevelofNOK27.6million(2.3million).TheNorwegianpo

120、rtfoliosoccupancyratewas98%byrentalvalueandtheweightedaverageleaselengthwas3.5yearsasat31March2015.InJanuary2015atwoyearextensionofthebankfacilityandareductionofthemarginto1.95%wasnegotiatedwiththeEuropiplendingbank.Therevisedloanmaturitydateis15January2020.Thefacilityistobeamortisedat3%oftheloanbal

121、anceperannumfromcashflows,soreducingpro-rataintheeventofpropertysales.17.7million(NOK210million)ofthisfacilityhasbeenfixedforfiveyearsataNIBORrateof2.49%perannum.Asat31March2015,thedebtbalancewas14.4million(NOK171.2million);reflectingaLTVof59.2%.AsubsidiaryofARC,AlphaRealPropertyInvestmentAdvisersLL

122、P(“ARPIA”)istheinvestmentmanagerfortheNorwayportfolioandMalling&Co.isresponsibleforthedaytodaypropertymanagement.Investment review(continued)SectorFreehold ground rents(UK)Underlying assetsFreehold residential ground rentsDescriptionFIAF is an open-ended investment company that provides secure and s

123、table investment returns from acquiring freehold residential ground rents,which offer an attractive income stream,capital growth prospects and attractive risk-adjusted returns.FIAF owns over 64,000 freeholds in the UK with a gross annual rent income of over8.1million.Alpha Real Trust Limited:Annual

124、report 201520Freehold Income Authorised Fund FIAFAlpha Real Trust Limited:Annual report 201521GroundrentinvestmentsTheCompanyholdsaninvestmentinafundwhichholdsadiversifiedportfolioofUKresidentialpropertyfreeholdgroundrentswithaviewtoachievingsteadyandpredictablereturns,aconsistentincomestreamandpros

125、pectsforgrowth.Agroundrentisthepaymentmadebythelesseeofapropertytothefreeholderofthatproperty.Itrepresentstheunderlyingfreeholdinterestinapropertywhichissubjecttoaleaseforaperiodoftimeusuallybetween99and999years.Freehold Income Authorised Fund(“FIAF”)InvestmentInvestment typeInvestment valueIncome r

126、eturnProperty type/underlying securityInvestment notesFreeholdIncomeAuthorisedFundEquityingroundrentfund15.9m3.9%p.a.*Highlydefensiveincome;freeholdgroundrentsNogearing;monthlyliquidity*12monthsincomereturn;posttax.TheCompanyhasinvestedatotalof15.9millionasat31March2015inFIAF,anopen-endedfundthatinv

127、estsinUKfreeholdgroundrentswithanetassetvalueof230.6millionasat31March2015.ThefollowinghighlightswerereportedintheFIAFfactsheetasat31March2015(publishedinApril2015):FIAFcontinuesitsunbroken22yeartrackrecordofpositiveinflationbeatingreturns,generatingatotalreturnfortheyearended31March2015of9.64%(base

128、donGrossAAccumulationshareclass)*ofwhich2.20%wasdistributedasincomeattheendofNovember2014,with2.72%expectedtobedistributedattheendofMay2015i.e.anincomedistributionfortheyearof4.92%.81%ofitsfreeholdshaveaformofinflationprotectionthroughperiodicupliftslinkedtoRetailPriceIndex,propertyvaluesorfixedupli

129、fts.Nodebthadbeendrawnandcashreservesare38.7millionasat31March2015.Asof13October2014a5%dilutionlevyappliestoallnewsubscriptionsintoFIAF.*Note:ARTholdsadifferentclassofshares.ARTtotalreturnonitsinvestmentis8.6%fortheperiod.ARCistheAuthorisedCorporateDirectorandARPIA,asubsidiaryofARC,istheinvestmentma

130、nagerofFIAF.Investment review(continued)Alpha Real Trust Limited:Annual report 201522CashInvestmentInvestment typeInvestment valueIncome returnProperty type/underlying securityInvestment notesCashbalanceCash13.3m0.1%-1%p.a.Cashdeposits/currentaccountsHeldbetweenbankswitharangeofdepositmaturitiesAsat

131、31March2015,theCompanyhadcashbalancesof13.3million.OtherinvestmentsGalaxia,National Capital Region,NOIDAInvestmentInvestment typeInvestment valueIncome returnProperty type/underlying securityInvestment notesGalaxiaIndirectproperty4.9m(INR450m)n/aSpecialEconomicZonedevelopmentsiteAssetheldforsaleARTi

132、nvestedINR450million(4.9million)intheGalaxiaproject,adevelopmentsiteextendingto11.2acreswhichenjoysSEZstatuswiththepotentialtodevelop1.2millionsquarefeet.GalaxiaislocatedinNOIDA,anestablished,wellplannedsuburbofDelhithatcontinuestobenefitfromnewinfrastructureprojectsandisoneoftheprincipalofficemicro

133、-marketsinIndia.TheCompanyhasa50%shareholdingintheSPVwhichcontrolstheGalaxiasite.Therearenobankborrowingsontheasset.On2February2011,ARTrecommencedarbitrationproceedingsagainstitsdevelopmentpartnerLogixGroupinordertoprotectitsGalaxiainvestment.DuringJanuary2015,theArbitralTribunal,byamajority,decreed

134、thatLogixanditsprincipalshadbreachedthetermsoftheshareholdersagreementandhasawardedtheCompany:ReturnofitsentirecapitalinvestedofINR450Million(equivalentto4.9millionusinganexchangerateof92.756asat31March2015)alongwithinterestat18%perannumfrom31January2011to20January2015.Allcostsincurredtowardsthearbi

135、tration.Afurther15%interestperannumonallsumswasawardedtotheCompanyfrom20January2015untiltheactualdateofpaymentbyLogixoftheaward.TheArbitralTribunalhasalsoruledthattheCompanyhasnoobligationorliabilitytofundtheoutstandingNOIDAleaserentundertheShareholdersAgreement.TheCompanywillactivelyseekfullrecover

136、yofthesumsawarded.TothisendtheCompanyhasbeenawardedbythecourtsofIndiaachargeovertheprivateresidenceoftheprincipalsofLogix:ShaktiNath,MeenaNathandVikramNath.InApril2015,theCompanyhasbeennotifiedthatLogixhasfiledapetitionunderSection34oftheIndianArbitrationandConciliationAct,1996beforetheDelhiHighCour

137、tchallengingtheAwardmadeinfavouroftheCompanybytheInternationalCourtofArbitrationinJanuary2015.Followingthedeterminationofthearbitrationnotedabove,theawardtotheCompanyrepresentsapotentialrealisationofapproximately9.2million.ARTcontinuestoholdtheindirectinvestmentatINR450million(4.9million)inthefinanc

138、ialstatementsduetouncertaintyovertimingandfinalvalue.Investment review(continued)Alpha Real Trust Limited:Annual report 201523Investment review(continued)Healthcare&Leisure Property Limited(“HLP”)InvestmentInvestment typeInvestment valueIncome returnProperty type/underlying securityInvestment notesH

139、ealthcare&LeisurePropertyLimitedIndirectproperty2.0m8.8%p.a.*LeisurepropertyfundNoexternalgearing*Returnovertheaverageinvestmentduringtheownershipperiod.HLPhasinvestedincompaniesoperatinginthehotel,carehome,housebuildingandleisuresectorsthroughouttheUK.HLPsinvestmentsarepredominantlyun-geared.HLPism

140、anagedbyAlbionVenturesLLP,aspecialistUKventurecapitalmanager.NonewinvestmentsarebeingmadebyHLP.Asat31March2015,ARThad2.0millioninvestedinHLP.HLPsubsequentlyholdsminoritystakesintheunderlyinginvestments.Postbalancesheet,ARTreceived0.5millionasredemptionfromHLP,whichreducedARTsinvestmentinHLPto1.5mill

141、ion.ARTcontinuestoreceiveincomefromitsinvestmentwhileHLPsunderlyingassetsaresold.HLPhasdeliveredareturnof8.8%overtheaverageinvestmentduringARTsownershipperiod,andARTwillcontinuetobenefitfromitsshareofnetproceedsfromthesalesoftheunderlyingassetsastheyareprogressed.SummaryRealestateinvestmentmarketsin

142、whichtheCompanyoperateshavebecomemorestableoverthepastyear.AlthoughdegreesofvariancestillexistbetweenARTsinvestmentmarkets,therehasbeenamarkedimprovementinrealestateinvestmentvolumesandvaluesinlinewithamorepositiveinvestorsentiment.Investmentactivityhascontinuedtowidenbeyondprimeassetsandmarketstobr

143、oadergeographicmarketsandassettypeswhichbodeswellforthevalueoftheCompanysportfolio.TheCompanyhashadanactiveyearacrossitshighyieldingdebtandhighyieldingequityinvestmentportfolio.Twoofthehighyieldingdebtinvestmentshavebeenrefinanced,anddespiteadditionalcompetition,loantermshavebeenbroadlymaintained.As

144、setmanagementoftheunderlyingrealestateequityinvestmentshasyieldedsuccessesacrosstheUK,NorwayandSpain,withrecordvisitornumbersrecordedintheH2OshoppingcentreinMadrid.OccupierdemandisincreasingwithleasingactivityacrosstheCompanysportfolio,withpositiveresultsrecordedatIMPTandH2O.Improvingoccupierdemandi

145、sgenerallyaprecursortorentalgrowthalthoughthisisnotyetprevalentoutsidetheprimemarketsandassets.ARTbenefitsfromthedepthofexperience,strengthandsizeoftheInvestmentManagersbusinesswithvariousfundsundermanagementanddebtstructuring,investmentandassetmanagementprofessionalsbasedthroughoutEurope.TheCompany

146、continuestosourcenewinvestmentopportunitieswithstrongcash-flowsand/ormanagedriskprofilesthatareaccretivetoitsearningsposition.TheCompanyremainsactiveinbothitstargetinvestmentsectorsofhighyielddebtandequityinassetswithhighrisk-adjustedreturnstypicallywhenthereisscopetoaddvaluethroughactiveassetmanage

147、mentand/ortherestructuringorrecapitalisationofpropertyinvestmentvehicles.ARTremainswellplacedtofindvalueforitsinvestorsandtocapitaliseonnewinvestmentopportunitiesacrossassetbackedinvestmentanddebtmarketsintheUKandEurope.Brad Bauman and Gordon Smith For and on behalf of the Investment Manager 18June2

148、015Alpha Real Trust Limited:Annual report 201524David Jeffreys Chairman Aged 55DavidJeffreysqualifiedasaCharteredAccountantwithDeloitteHaskinsandSellsin1985.Heworksasanindependentnon-executivedirectortoanumberofGuernseybasedinvestmentfundcompaniesandmanagersandisaGuernseyresident.From2007until2009Da

149、vidwastheManagingDirectorofEQTFundsManagementLimited,theGuernseymanagementofficeoftheEQTgroupofprivateequityfunds.HewaspreviouslytheManagingDirectorofAbacusFundManagers(Guernsey)Limitedbetween1993and2004,athirdpartyadministrationserviceprovidertoprimarilycorporateandfundclients.InadditiontotheCompan

150、y,Davidisadirectorofthefollowinglistedcompanies:AlphaPyreneesTrustLimitedandTetragonFinancialGroupLimited.Serena Tremlett Director Aged 50Serenahasover25yearsexperienceinfinancialservices,specialisinginclosed-endedpropertyandprivateequityfundsandfundadministrationoverthelast18years.Sheisanon-executi

151、vedirectoronthelistedcompanyboardofAlphaPyreneesTrustLimited,inadditiontovariousunlistedpropertyandprivatefundsandgeneralpartners.Serenawaspreviouslycompanysecretary(andadirector)ofAssuraGroup,atthattimeaFTSE250companylistedontheLondonStockExchange,investinginprimaryhealthcarepropertyandranAssurasGu

152、ernseyheadoffice.PriortoworkingforAssura,SerenawasheadofGuernseypropertyfundsatMourantInternationalFinanceAdministration(nowStateStreet)fortwoyearsandworkedforGuernseyInternationalFundManagers(nowNorthernTrust)forsevenyearswhereshesatonanumberoflistedandunlistedfundboards.Since2008,Serenahasbeenco-f

153、ounderandmanagingdirectorofMorganSharpeAdministration,aspecialistclosed-endedfundadministrator.Phillip Rose Director Aged 55PhillipRoseisaFellowoftheSecuritiesInstituteandholdsaMasterofLawdegree.Hehasover30yearsexperienceintherealestate,fundsmanagementandbankingindustriesinEurope,theUSAandAustralasi

154、a.HehasbeentheHeadofRealEstateforABNAMROBank,ChiefOperatingOfficerofEuropeanshoppingcentreinvestoranddeveloperTrizecHahnEurope,ManagingDirectorofretailandcommercialpropertydeveloperandinvestorLendLeaseGlobalInvestmentandExecutiveManageroflistedfundGeneralPropertyTrust.PhillipiscurrentlyCEOofAlphaRea

155、lCapitalLLPandisamemberoftheManagementCommitteeforHermesPropertyUnitTrustanditsAuditCommittee.Jeff Chowdhry Director Aged 55 JeffChowdhryiscurrentlyHeadofEmergingMarketEquitiesatF&CAssetManagementplc,withoverallresponsibilityforinvestmentsinglobalemergingmarkets.Previously,hewasadirectorofSunF&CAsse

156、tManagement(India)LimitedandalsomanagedtheIndianInvestmentCompanySICAV,anopenendedinvestmentfundregisteredinLuxembourg.Priortothis,JeffmanagedtheIndiaFundInc,aclosedendedinvestmentfundlistedinNewYorkthatseekslong-termcapitalappreciationthroughinvestingprimarilyinIndianequities.Roddy Sage Director Ag

157、ed 62 RoddySageiscurrentlyChiefExecutiveOfficeroftheAFPgroupofcompanies,providingcorporateandtaxationadvisoryservicesinAsia.Priortothat,hespent20yearswithKPMGHongKong,10yearsofwhichwereasSeniorTaxPartnerforHongKongandChina.HehasheldChairmanshipswithinKPMGandoutsideasChairmanoftheHongKongGeneralChamb

158、erofCommercesTaxationCommitteeandisanon-executivedirectorofTaiPingCarpetsInternationalandGuocoGroupLimited.DirectorsAlpha Real Trust Limited:Annual report 201525TheDirectorspresenttheirreportandfinancialstatementsoftheAlphaRealTrustLimitedgroup(“theGroup”)fortheyearended31March2015.Principal activit

159、ies and statusDuringtheyear,theCompany,anauthorisedclosed-endedGuernseyregisteredinvestmentcompany,carriedonbusinessasapropertyinvestmentanddevelopmentcompany,investingincommercialproperty.TheCompanyssharesaretradedontheSpecialistFundMarketoftheLondonStockExchange.Business review,results and dividen

160、dAreviewofthebusinessduringtheyeariscontainedintheChairmansStatementonpages3to5.Theresultsfortheyearto31March2015aresetoutinthefinancialstatements.On13February2015,theCompanydeclaredadividendof0.525ppershare,whichwaspaidtoshareholderson20March2015.ThecurrentintentionoftheCompanyistopayadividendquart

161、erly.Furtherdetailsondividendsaregiveninnote8ofthefinancialstatements.Corporate governanceAsaGuernseyregisteredcompanytradedonSFM,theCompanyisnotrequiredtocomplywithTheUKCorporateGovernanceCode(“UKCode”).However,asacompanyauthorisedbytheGuernseyFinancialServicesCommission(“GFSC”),itisrequiredtofollo

162、wtheprinciplesandguidancesetoutintheFinanceSectorCodeofCorporateGovernanceissuedbytheGFSCandeffectivefrom1January2012(“GuernseyCode”).CompliancewiththeGuernseyCodeandgeneralprinciplesofgoodcorporategovernancearereviewedbytheBoardatleastannuallyand,atthedateofsigningthesefinancialstatements,theBoardi

163、ssatisfiedthattheCompanyisfullycompliantwiththeGuernseyCode.TheGuernseyCodeisavailableforconsultationontheGFSCwebsite:www.gfsc.gg.The BoardBiographiesoftheDirectorsaresetoutonpage15.AlloftheDirectorswereappointedon15May2006.TheDirectorsinterestsinthesharesoftheCompanyasat31March2015aresetoutbelowand

164、therehavebeennochangesinsuchinterestsuptothecurrentdate:Number of ordinaryshares 31March 2015Number of ordinaryshares 31March 2014DavidJeffreys10,00010,000PhillipRose139,695139,695SerenaTremlett15,00015,000JeffChowdhry40,00040,000RoddySage-Non-executivedirectorsarenotappointedforspecifiedterms;appoi

165、ntmentsofBoardmemberscanbeterminatedatanytimewithoutpenaltyandtheCompanysArticlesofAssociation(“Articles”)requireeachDirectortoretireandsubmithimself/herselftore-electionbytheshareholdersateverythirdyear.Inaddition,theBoardbelievesthatcontinuityandexperienceaddstoitsstrength.TheAnnualGeneralMeetingo

166、ftheCompanywilltakeplaceon12August2015.Atthismeeting,SerenaTremlettandDavidJeffreyswillretireandsubmitthemselvesforre-election.TheremainderoftheBoardrecommendtheirre-appointmentandconfirmtheirindependence.IndividualDirectorsmayseekindependentlegaladviceinrelationtotheirdutiesonbehalfoftheCompany.Dir

167、ectors and corporate governance reportAlpha Real Trust Limited:Annual report 201526Directors and corporate governance report(continued)Operations of the BoardTheBoardhasdeterminedthatitsroleistoconsideranddeterminethefollowingprincipalmatterswhichitconsidersareofstrategicimportancetotheCompany:1)Rev

168、iewtheoverallobjectivesfortheCompanyandsettheCompanysstrategyforfulfillingthoseobjectiveswithinanappropriateriskframework2)Consideranyshiftsinstrategythatitconsidersmaybeappropriateinlightofmarketconditions3)ReviewthecapitalstructureoftheCompanyincludingconsiderationofanyappropriateuseofgearingbothf

169、ortheCompanyandinanyjointventuresinwhichtheCompanymayinvestfromtimetotime4)AppointtheInvestmentManager,Administratorandotherappropriatelyskilledserviceprovidersandmonitortheireffectivenessthroughregularreportsandmeetings5)ReviewkeyelementsoftheCompanysperformanceincludingNetAssetValueandpaymentofdiv

170、idends.AtBoardmeetings,theBoardensuresthatallthestrategicmattersareconsideredandresolvedbytheBoard.CertainissuesassociatedwithimplementingtheCompanysstrategyaredelegatedeithertotheInvestmentManagerortheAdministrator.SuchdelegationisoverminorincidentalmattersandtheBoardcontinuallymonitorstheservicesp

171、rovidedbytheseindependentagents.TheBoardconsidersthereareimplementationmattersthataresignificantenoughtobeofstrategicimportanceandshouldbereservedsolelyfortheBoard(e.g.allacquisitions,alldisposals,significantcapitalexpenditure,leasinganddecisionsaffectingtheCompanysfinancialgearing).TheBoardmeetsatl

172、eastquarterlyandasrequiredfromtimetotimetoconsiderspecificissuesreservedfordecisionbytheBoardincludingallpotentialacquisitionsandinvestments.AttheBoardsquarterlymeetingsitconsiderspaperscirculatedinadvanceincludingreportsprovidedbytheInvestmentManagerandtheAdministrator.TheInvestmentManagersreportco

173、mmentson:ThepropertymarketsoftheUK,EuropeandIndiaincludingrecommendationsforanychangesinstrategythattheInvestmentManagerconsidersmaybeappropriatePerformanceoftheGroupsportfolioandkeyassetmanagementinitiativesTransactionalactivityundertakenoverthepreviousquarterandbeingcontemplatedforthefutureTheGrou

174、psfinancialpositionincludingrelationshipswithbankersandlenders.ThesereportsenabletheBoardtoassessthesuccesswithwhichtheGroupspropertystrategyandotherassociatedmattersarebeingimplementedandalsoconsideranyrelevantrisksandtoconsiderhowtheyshouldbeproperlymanaged.TheBoardalsoconsidersreportsprovidedfrom

175、timetotimebyitsvariousserviceprovidersreviewingtheirinternalcontrols.Inbetweenitsregularquarterlymeetings,theBoardhasalsometonanumberofoccasionsduringtheyeartoapprovespecifictransactionsandforothermatters.Board and Directors appraisalsTheBoardcarriesoutanannualreviewofitscompositionandperformance(in

176、cludingtheperformanceofindividualDirectors)andthatofitsstandingcommittees.SuchappraisalincludesreviewingtheperformanceandcompositionoftheBoard(andwhetherithasanappropriatemixofknowledge,skillsandexperience),therelationshipsbetweentheBoardandtheInvestmentManagerandAdministrator,theprocessesinplaceand

177、theinformationprovidedtotheBoardandcommunicationbetweenBoardmembers.Board Meeting attendanceThetablebelowshowstheattendanceatBoardmeetingsduringtheyearto31March2015:DirectorNo of meetings attendedDavidJeffreys13PhillipRose4SerenaTremlett11JeffChowdhry8RoddySage9No.of meetings during the year13Direct

178、ors and officers insuranceAnappropriatelevelofDirectorsandofficersinsuranceismaintainedwherebyDirectorsareindemnifiedagainstliabilitiestothirdpartiestotheextentpermittedbyGuernseycompanylaw.Board CommitteesTheBoardhasestablishedthreestandingcommittees,allofwhichoperateunderdetailedtermsofreference,c

179、opiesofwhichareavailableonrequestfromtheCompanySecretary.Alpha Real Trust Limited:Annual report 201527Directors and corporate governance report(continued)Audit CommitteeTheAuditCommitteeconsistsofDavidJeffreys(Chairman),RoddySageandSerenaTremlett.TheBoardissatisfiedthatDavidJeffreyscontinuestohaveth

180、erequisiterecentandrelevantfinancialexperiencetofulfilhisroleasChairmanoftheAuditCommittee.Role of the CommitteeTheroleoftheAuditCommittee,whichmeetsatleasttwiceayear,includes:Theengagement,reviewoftheworkcarriedoutbyandtheperformanceoftheGroupsexternalauditorsTomonitorandreviewtheindependence,objec

181、tivityandeffectivenessoftheexternalauditorsTodevelopandapplyapolicyfortheengagementoftheexternalauditfirmstoprovidenon-auditservicesToassisttheBoardindischargingitsdutytoensurethatfinancialstatementscomplywithalllegalrequirementsToreviewtheGroupsfinancialreportingandinternalcontrolpoliciesandtoensur

182、ethattheproceduresfortheidentification,assessmentandreportingofrisksareadequateToreviewregularlytheneedforaninternalauditfunctionTomonitortheintegrityoftheGroupsfinancialstatements,includingitsannualandhalf-yearreportsandannouncementsrelatingtoitsfinancialperformance,reviewingthesignificantfinancial

183、reportingissuesandjudgementswhichtheycontainToreviewtheconsistencyofaccountingpoliciesandpracticesToreviewandchallengewherenecessarythefinancialresultsoftheGroupbeforesubmissiontotheBoard.TheAuditCommitteemakesrecommendationstotheBoardwhicharewithinitstermsofreferenceandconsidersanyothermattersasthe

184、Boardmayfromtimetotimerefertoit.MembersoftheAuditCommitteemayalso,fromtimetotime,meetwiththeGroupsindependentpropertyvaluertodiscussthescopeandconclusionsoftheirwork.Committee meeting attendanceDirectorNo of meetings attendedDavidJeffreys4RoddySage3SerenaTremlett3No.of meetings during the year4Polic

185、y for non audit servicesTheCommitteehasadoptedapolicyfortheprovisionofnon-auditservicesbytheCompanysexternalauditor,BDOLimited,andreviewsandapprovesallmaterialnon-auditrelatedservicesinaccordancewiththeneedtoensuretheindependenceandobjectivityoftheexternalauditors.Noservices,otherthanaudit-relatedon

186、es,werecarriedoutbyBDOLimitedduringtheyear.Internal auditTheBoardreliesuponthesystemsandproceduresemployedbytheInvestmentManagerandtheAdministratorwhichareregularlyreviewedandareconsideredtobesufficienttoprovideitwiththerequireddegreeofcomfort.Therefore,theBoardcontinuestobelievethatthereisnoneedfor

187、aninternalauditfunction,althoughtheAuditCommitteeconsidersthisannually,reportingitsfindingstotheBoard.Nomination Committee and attendanceTheNominationCommitteeconsistsofRoddySage(Chairman),PhillipRoseandSerenaTremlett.TheCommitteesprincipaltaskistoreviewthestructure,sizeandcompositionoftheBoardinrel

188、ationtoitssizeandpositioninthemarketandtomakerecommendationstofillBoardvacanciesastheyariseanditmeetsatleastannually.ItmetonceduringtheyearandallCommitteememberswerepresent.Remuneration Committee and attendanceTheRemunerationCommitteeconsistsofSerenaTremlett(Chairman),JeffChowdhryandDavidJeffreys.Th

189、eBoardhasapprovedformaltermsofreferencefortheCommitteeandacopyoftheseisavailableonrequestfromtheCompanySecretary.AstheCompanycomprisesonlynon-executivedirectors,theCommitteesmainroleistodeterminetheirremunerationwithinthecapsetoutintheCompanysArticles.ItmetonceduringtheyearandallCommitteememberswere

190、present.Remuneration reportTheaggregatefeespayabletotheDirectorsarelimitedto200,000perannumundertheCompanysArticlesandtheannualfeespayabletoeachDirectorhavenotmateriallychangedsincetheCompanysshareswerelistedin2006.ThefeespayabletotheDirectorsareexpectedtoreflecttheirexpertise,responsibilitiesandtim

191、espentonthebusinessoftheGroup,takingintoaccountmarketequivalents,theactivities,thesizeoftheGroupandmarketconditions.Undertheirrespectiveappointmentletters,eachDirectorisentitledtoanannualfeetogetherwithaprovisionforreimbursementforanyreasonableoutofpocketexpenses.Alpha Real Trust Limited:Annual repo

192、rt 201528Directors and corporate governance report(continued)DuringtheyeartheDirectorsreceivedthefollowingemolumentsintheformoffeesfromGroupcompanies:Year ended 31March 2015 Year ended 31March 2014 DavidJeffreys31,50031,500PhillipRose22,00022,000SerenaTremlett34,50032,583JeffChowdhry22,00022,000Rodd

193、ySage22,00022,000Total132,000130,083Internal control and risk managementTheBoardunderstandsitsresponsibilityforensuringthattherearesufficient,appropriateandeffectivesystems,procedures,policiesandprocessesforinternalcontroloffinancial,operational,complianceandriskmanagementmattersinplaceinordertomana

194、getheriskswhichareaninherentpartofbusiness.SuchrisksaremanagedratherthaneliminatedinordertopermittheCompanytomeetitsfinancialandotherobjectives.TheBoardreviewstheinternalproceduresofbothitsInvestmentManageranditsAdministratoruponwhichitisreliant.TheInvestmentManagerhasascheduleofmatterswhichhavebeen

195、delegatedtoitbytheBoardanduponwhichitreportstotheBoardonaquarterlybasis.Thesemattersincludequarterlymanagementaccountsandreportingbothagainstkeyfinancialperformanceindicatorsanditspeergroup.Further,acompliancereportisproducedbytheAdministratorfortheBoardonaquarterlybasis.TheCompanymaintainsariskmana

196、gementframeworkwhichconsidersthenon-financialaswellasfinancialrisksandthisisreviewedbytheAuditCommitteepriortosubmissiontotheBoard.Investment management agreementTheCompanyhasanagreementwiththeInvestmentManager.ThissetsouttheInvestmentManagerskeyresponsibilities,whichincludeproposingapropertyinvestm

197、entstrategytotheBoard,identifyingpropertyinvestmentstorecommendforacquisitionandarrangingappropriatelendingfacilities.TheInvestmentManagerisalsoresponsibletotheBoardforallissuesrelatingtopropertyassetmanagement.Substantial shareholdingShareholderswithholdingsofmorethan3percentofthevotingrightsoftheC

198、ompanyasat20May2015wereasfollows:Name of investorNo.of voting rights%heldAlphaGlobalPropertySecuritiesFundPte.Ltd22,550,00032.01BillienLimited14,154,59320.10ArmstrongInvestments4,000,0005.68IPGLLimited3,010,1004.27MitonAssetManagement2,780,0003.95CharlesStanley2,741,9663.89AmiyaCapital2,600,0003.69S

199、hareholder relationsTheBoardplaceshighimportanceonitsrelationshipwithitsshareholders,withmembersoftheInvestmentManagersInvestmentCommitteemakingthemselvesavailableformeetingswithkeyshareholdersandsectoranalysts.ReportingofthesemeetingsandmarketcommentaryisreceivedbytheBoardonaquarterlybasistoensuret

200、hatshareholdercommunicationfulfilstheneedsofbeinguseful,timelyandeffective.OneormoremembersoftheBoardandtheInvestmentManagerwillbeavailableattheAnnualGeneralMeetingtoansweranyquestionsthatshareholdersattendingmaywishtoraise.Directors Responsibilities StatementCompanylawrequirestheDirectorstopreparef

201、inancialstatementsforeachfinancialyear,whichgiveatrueandfairviewofthestateofaffairsoftheGroupattheendoftheyearandoftheprofitorlossoftheGroupforthatyear.Inpreparingthosefinancialstatements,theDirectorsarerequiredto:(1)selectsuitableaccountingpoliciesandthenapplythemconsistently;(2)makejudgementsandes

202、timatesthatarereasonableandprudent;(3)statewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and(4)preparethefinancialstatementsonthegoingconcernbasisunlessitisappropriatetoassumethattheCompanyandGroupwillnotcontinueinbus

203、iness.SofaraseachoftheDirectorsisaware,thereisnorelevantinformationofwhichtheCompanysauditorisunaware,andtheyhavetakenallthestepstheyoughttohavetakenasDirectorstomakethemselvesawareofanyrelevantinformationandtoestablishthattheCompanysauditorisawareofthatinformation.Alpha Real Trust Limited:Annual re

204、port 201529TheDirectorsareresponsibleforkeepingproperaccountingrecordswhichdisclosewithreasonableaccuracyatanytimethefinancialpositionoftheCompanyandoftheGroupandtoenablethemtoensurethatthefinancialstatementscomplywiththeCompanies(Guernsey)Law,2008.Theyarealsoresponsibleforsafeguardingtheassetsofthe

205、CompanyandGroupandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.TheDirectorsconfirmthattheyhavecompliedwiththeaboverequirementsinpreparingthefinancialstatements.Going concernAftermakingenquiries,andbearinginmindthenatureoftheGroupsbusinessandassets,theDirecto

206、rsconsiderthattheCompanyandGrouphaveadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Forthisreason,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.Annual General MeetingTheAGMoftheCompanywillbeheldinGuernseyat9.00amon12August2015atOldBankChambers,LaGr

207、andeRue,StMartins,Guernsey.ThemeetingwillbeheldtoreceivetheAnnualReportandFinancialStatements,re-electDirectorsandproposethereappointmentoftheauditorandthattheDirectorsbeauthorisedtodeterminetheauditorsremuneration.Independent AuditorBDOLimitedhasexpresseditswillingnesstocontinueinofficeasauditor.Da

208、vid Jeffreys DirectorSerena Tremlett DirectorByorderoftheBoard,18June2015Directors statement pursuant to the Disclosure and Transparency RulesEachoftheDirectors,whosenamesandfunctionsarelistedintheDirectorsandcorporategovernancereportconfirmthat,tothebestofeachpersonsknowledgeandbelief:Thefinancials

209、tatements,preparedinaccordancewithIFRSsasadoptedbytheEU,giveatrueandfairviewoftheassets,liabilities,financialpositionandprofitoftheGroup,andTheChairmansstatementandtheinvestmentreviewincludeafairreviewofthedevelopmentandperformanceofthebusinessandthepositionoftheGroupandnote23tothefinancialstatement

210、sprovidesadescriptionoftheprincipalrisksanduncertaintiesthattheGroupfaces.David Jeffreys DirectorSerena Tremlett DirectorByorderoftheBoard,18June2015Directors and corporate governance report(continued)Directors and corporate governance report(continued)Alpha Real Trust Limited:Annual report 201530To

211、 the Members of Alpha Real Trust LimitedWehaveauditedtheconsolidatedfinancialstatementsofAlphaRealTrustLimitedfortheyearended31March2015whichcomprisetheConsolidatedStatementofComprehensiveIncome,theConsolidatedBalanceSheet,theConsolidatedCashFlowStatement,theConsolidatedStatementofChangesinEquityand

212、therelatednotes1to25.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEuropeanUnion.ThisreportismadesolelytotheCompanysmembers,asabody,inaccordancewithSection262oftheCompanies(Guernsey)Law,2008.Ourauditwo

213、rkisundertakensothatwemightstatetotheCompanysmembersthosematterswearerequiredtostatetotheminanauditorsreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompanysmembersasabody,forourauditwork,forthisreport,orfortheopinionsw

214、ehaveformed.Respective responsibilities of the directors and auditor AsexplainedmorefullyintheDirectorsResponsibilitiesStatementwithintheDirectorsReport,thedirectorsareresponsibleforthepreparationoftheconsolidatedfinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.Ourresponsibilityis

215、toauditandexpressanopinionontheconsolidatedfinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeFinancialReportingCouncils(FRCs)EthicalStandardsforAuditors.Scope of the audit of the financial statements Anauditinvolve

216、sobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriatetotheGroupscircumstancesandhavebeencons

217、istentlyappliedandadequatelydisclosed;thereasonablenessofsignificantaccountingestimatesmadebythedirectors;andtheoverallpresentationofthefinancialstatements.Inaddition,wereadallthefinancialandnonfinancialinformationintheDirectorsReporttoidentifymaterialinconsistencieswiththeauditedfinancialstatements

218、andtoidentifyanyinformationthatisapparentlymateriallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.Ifwebecomeawareofanyapparentmisstatementsorinconsistenciesweconsidertheimplicationsforourreport.Opinion on the financial statements Inouropiniont

219、hefinancialstatements:giveatrueandfairviewofthestateoftheGroupsaffairsasat31March2015andoftheGroupsprofitfortheyearthenended;havebeenproperlypreparedinaccordancewithIFRSsasadoptedbytheEuropeanUnion;andhavebeenproperlypreparedinaccordancewiththerequirementsoftheCompanies(Guernsey)Law,2008.Matters on

220、which we are required to report by exception WehavenothingtoreportinrespectofthefollowingmatterswheretheCompanies(Guernsey)Law,2008requiresustoreporttoyouif,inouropinion:properaccountingrecordshavenotbeenkeptbytheCompany;orthefinancialstatementsarenotinagreementwiththeaccountingrecords;orwehavefaile

221、dtoobtainalltheinformationandexplanations,which,tothebestofourknowledgeandbelief,arenecessaryforthepurposesofouraudit.Richard Michael Searle FCA For and on behalf of BDO LimitedCharteredAccountantsandRecognisedAuditorPlaceduPr,RueduPr,StPeterPort,Guernsey18June2015Independent auditors reportAlpha Re

222、al Trust Limited:Annual report 201531For the year ended 31March 2015For the year ended 31March 2014 NotesRevenue000Capital000Total000Revenue 000Capital 000Total000IncomeRevenue38,178-8,1788,243-8,243Changeintherevaluationofinvestmentproperty13-2,7212,721-(658)(658)Netgains/(losses)onfinancialassetsa

223、ndliabilitiesheldatfairvaluethroughprofitorloss231,407(1,131)2761,253(1,539)(286)Total income9,5851,59011,1759,496(2,197)7,299ExpensesPropertyoperatingexpenses3(3,615)-(3,615)(3,940)-(3,940)InvestmentManagersfee(1,581)-(1,581)(1,707)-(1,707)Otheradministrationcosts4(823)-(823)(1,244)-(1,244)Total op

224、erating expenses(6,019)-(6,019)(6,891)-(6,891)Operating profit/(loss)3,5661,5905,1562,605(2,197)408Shareofprofitofjointventure13134247313515150Financeincome53,496-3,4963,11643,120Financecosts6(1,899)(2)(1,901)(2,098)-(2,098)Profit/(loss)before taxation5,2941,9307,2243,758(2,178)1,580Taxation7(10)-(1

225、0)(10)-(10)Profit/(loss)for the year5,2841,9307,2143,748(2,178)1,570Other comprehensive expense for the yearItemsthatmaybeclassifiedtoprofitandlossinsubsequentperiodsExchangedifferencesarisingontranslationofforeignoperations-(1,338)(1,338)-(1,176)(1,176)Other comprehensive expense for the year-(1,33

226、8)(1,338)-(1,176)(1,176)Total comprehensive income/(expense)for theyear5,2845925,8763,748(3,354)394Earnings per share(basic&diluted)910.2p2.2pAdjusted earnings per share(basic&diluted)97.5p5.3pThetotalcolumnofthisstatementrepresentstheGroupsstatementofcomprehensiveincome,preparedinaccordancewithIFRS

227、.TherevenueandcapitalcolumnsaresuppliedassupplementaryinformationpermittedunderIFRS(seepages36and37).Allitemsintheabovestatementderivefromcontinuingoperations.Theaccompanyingnotesonpages35to58formanintegralpartofthefinancialstatements.Consolidated statement of comprehensive incomeAlpha Real Trust Li

228、mited:Annual report 201532Notes31March 201500031March 2014000Non-current assetsInvestmentproperty1365,54469,942Indirectpropertyinvestmentheldatfairvalue144,8514,525Investmentsheldatfairvalue156,56611,275Investmentinjointventure121,5631,214Derivativesheldatfairvaluethroughprofitorloss231163Tradeandot

229、herreceivables1622,44311,500100,97898,519Current assetsInvestmentsheldatfairvalue1515,86813,145Derivativesheldatfairvaluethroughprofitorloss23388159Tradeandotherreceivables162,30319,135Cashandcashequivalents14,8175,44433,37637,883Total assets134,354136,402Current liabilitiesTradeandotherpayables17(2

230、,347)(1,374)Bankborrowings18(515)(595)(2,862)(1,969)Total assets less current liabilities131,492134,433Non-current liabilitiesBankborrowings18(51,557)(58,740)Total liabilities(54,419)(60,709)Net assets79,93575,693EquitySharecapital19-Specialreserve2080,27780,296Translationreserve20(3,423)(2,085)Capi

231、talreserve20(8,560)(10,358)Revenuereserve2011,6417,840Total equity79,93575,693Net asset value per ordinary share10113.2p107.0pThefinancialstatementswereapprovedbytheBoardofDirectorsandauthorisedforissueon18June2015.TheyweresignedonitsbehalfbyDavidJeffreysandSerenaTremlett.Theaccompanyingnotesonpages

232、35to58formanintegralpartofthefinancialstatements.Consolidated balance sheetDavid Jeffreys DirectorSerena Tremlett DirectorAlpha Real Trust Limited:Annual report 201533For the year ended 31March 2015000For the year ended 31March 2014000Operating activities Profitfortheyearaftertaxation7,2141,570Adjus

233、tments for:Changeinrevaluationofinvestmentproperty(2,721)658Net(gains)/lossesonfinancialassetsandliabilitiesheldatfairvaluethroughprofitorloss(276)286Taxation1010Shareofprofitofjointventure(473)(150)Financeincome(3,496)(3,120)Financecost1,9012,098Operating cash flows before movements in working capi

234、tal2,1591,352Movements in working capital:(Increase)/decreaseintradeandotherreceivables(1,574)286Decrease/(increase)intradeandotherpayables969(1,650)Cash from/(used in)operations1,554(12)Interestreceived5891Interestpaid(1,763)(1,938)Taxationpaid(6)(118)Cash flows used in operating activities(157)(1,

235、977)Investing activitiesAcquisitionofinvestments(2,000)-Redemptionofinvestments2,5952,500Redemptiononpreferencesharesinvestment350100Capitalexpenditureoninvestmentproperty(602)(417)Loangrantedtorelatedparties-(8,880)Loanrepaymentsfromrelatedparties7,2664,347Loaninterestreceived2,747736CULSinterestre

236、ceived352240Dividendincomefromjointventure124139Dividendincomefromotherinvestments711779Cash flows from/(used in)investing activities11,543(456)Financing activitiesBankloanrepayments(426)(916)Sharebuyback-(1,659)Sharebuybackcosts-(4)Shareissuecosts(19)(29)Currencyoptionsettlement-142Foreignexchangef

237、orwardsettlement322-Foreignexchangeforwardcollateralreceived/(paid)62(362)SpecialdividendpaidtoAshareholders(132)-Dividendspaid(1,483)(1,876)Cash flows used in financing activities(1,676)(4,704)Net increase/(decrease)in cash and cash equivalents9,710(7,137)Cash and cash equivalents at beginning of y

238、ear5,44412,602Exchangetranslationmovement(337)(21)Cash and cash equivalents at end of year14,8175,444Theaccompanyingnotesonpages35to58formanintegralpartofthefinancialstatements.Consolidated cash flow statementAlpha Real Trust Limited:Annual report 201534For the year ended 31March 2014Special reserve

239、 000Translation reserve000Capital reserve000Revenue reserve000Total equity000At 1 April 201381,381(909)(8,180)5,96878,260Total comprehensive income/(expense)for the yearProfit/(loss)fortheyear-(2,178)3,7481,570Othercomprehensiveexpensefortheyear-(1,176)-(1,176)Total comprehensive(expense)/income for

240、 the year-(1,176)(2,178)3,748394Transactions with ownersDividends-(1,876)(1,876)Shareissuecosts(29)-(29)Sharebuyback(1,053)-(1,053)Sharebuybackcosts(3)-(3)Total transactions with owners(1,085)-(1,876)(2,961)At 31 March 201480,296(2,085)(10,358)7,84075,693Notes19,20For the year ended 31March 2015Spec

241、ial reserve 000Translation reserve000Capital reserve000Revenue reserve000Total equity000At 1 April 201480,296(2,085)(10,358)7,84075,693Total comprehensive income/(expense)for the yearProfitfortheyear-1,9305,2847,214Othercomprehensiveexpensefortheyear-(1,338)-(1,338)Total comprehensive(expense)/incom

242、e for the year-(1,338)1,9305,2845,876Transactions with ownersDividends-(132)(1,483)(1,615)Shareissuecosts(19)-(19)Sharebuyback-Sharebuybackcosts-Total transactions with owners(19)-(132)(1,483)(1,634)At 31 March 201580,277(3,423)(8,560)11,64179,935Notes19,20Theaccompanyingnotesonpages35to58formaninte

243、gralpartofthefinancialstatements.Consolidated statement of changes in equityAlpha Real Trust Limited:Annual report 2015351.General informationTheCompanyisalimitedliability,closed-endedinvestmentcompanyincorporatedinGuernsey.Theaddressoftheregisteredofficeisgivenonpage59.ThenatureoftheGroupsoperation

244、sanditsprincipalactivitiesaresetoutintheChairmansStatementonpages3to5.Thefinancialstatementswereapprovedandauthorisedforissueon18June2015andsignedbyDavidJeffreysandSerenaTremlettonbehalfoftheBoard.2(a).Significant accounting policiesAsummaryoftheprincipalaccountingpoliciesissetoutbelow.Thepoliciesha

245、vebeenconsistentlyappliedforallperiodspresentedunlessotherwisestated.ThepreparationoffinancialstatementsinconformitywithIFRS,asadoptedbytheEU,requirestheuseofcertaincriticalaccountingestimates.Italsorequiresmanagementtoexerciseitsjudgementintheprocessofapplyingtheaccountingpolicies.Theareasinvolving

246、ahighdegreeofjudgementorcomplexity,orareaswheretheassumptionsandestimatesaresignificanttothefinancialstatementsaredisclosedinthisnote.Basis of preparationThesefinancialstatementshavebeenpreparedinaccordancewithIFRS,whichcomprisestandardsandinterpretationsapprovedbytheInternationalAccountingStandards

247、Board(“IASB”),andInternationalAccountingStandardsandStandardsInterpretationsCommitteesinterpretationsapprovedbytheInternationalAccountingStandardsCommittee(“IASC”)thatremainineffect,andtotheextentthattheyhavebeenadoptedbytheEuropeanUnion.Duringtheyear,theDirectorshavereconsideredthelayoutoftheconsol

248、idatedstatementofcomprehensiveincome.Accordingly,theorderthatcertainitemsappearhasbeenchangedandtwoitemshavebeenreclassified.Thecomparativeshavebeenamendedonaconsistentbasiswhichhasrequiredthetransferof1,412,000ofgainsoninvestmentsheldatfairvalueandonthesettlementoftheforeignexchangeforwardcontractf

249、romfinanceincometonetgainsonfinancialassetsandliabilitiesheldatfairvaluethroughprofitorlossandthetransferof1,698,000oflossesoninvestmentsheldatfairvalueandoncurrencyoptionsandinterestratecapcontractstonetlossesonfinancialassetsandliabilitiesheldatfairvaluethroughprofitorloss.Thishashadnoimpactonther

250、eportedprofitbeforetaxoronnetassetssoathirdconsolidatedstatementoffinancialpositionhasnotbeenpresentedaswouldordinarilyberequiredbyIAS1:10(f).a)Adoption of new and revised StandardsAnumberofnewandrevisedstandardsandinterpretationsissuedbytheIASBandtheInternationalFinancialReportingInterpretationsCom

251、mitteebecameeffectiveforthecurrentyear.Thesewere:Revised and amended StandardsIAS32:FinancialInstruments:Presentation-Amendmentstoapplicationguidanceontheoffsettingoffinancialassetsandfinancialliabilities-foraccountingperiodscommencingonorafter1January2014IAS36:ImpairmentofAssets-AmendmentsforRecove

252、rableAmountDisclosuresforNon-FinancialAssets-foraccountingperiodscommencingonorafter1January2014IAS39:FinancialInstruments:RecognitionandMeasurement-AmendmentsforNovationofDerivativesandContinuationandHedgeAccountingeffectivewhenIFRS9isapplied*.InterpretationsNointerpretations,relevantfortheGroup,we

253、reissuedorrevisedduringtheyear.TheadoptionofthesestandardsandinterpretationshasnotledtoanychangesintheGroupsaccountingpolicies.b)Standards and Interpretations in issue and not yet effectiveAtthedateofauthorisationofthesefinancialstatements,thefollowingstandardsandinterpretations,whichhavenotbeenappl

254、iedinthesefinancialstatements,wereinissuebutnotyeteffective:IFRS9:FinancialInstrumentsforaccountingperiodscommencingonorafter1January2018*IFRS15:RevenuefromContractswithCustomers-foraccountingperiodscommencingonorafter1January2017*Revised and amended StandardsIFRS7:FinancialInstruments:Disclosures-A

255、mendmentsrequiringdisclosuresabouttheinitialapplicationofIFRS9-foraccountingperiodscommencingonorafter1January2018*IFRS10:ConsolidatedFinancialStatements-amendedforsaleorcontributionofassetsbetweenaninvestoranditsassociateorjointventure-foraccountingperiodscommencingonorafter1January2016*IFRS11:Join

256、tArrangements-amendedbyaccountingforacquisitionsofinterestinjointoperations-foraccountingperiodscommencingonorafter1January2016*IAS27:SeparateFinancialStatements-amendedbyequitymethodinseparatefinancialstatements-foraccountingperiodscommencingonorafter1January2016*IAS28:InvestmentsinAssociatesandJoi

257、ntVentures-amendedforsaleorcontributionofassetsbetweenaninvestoranditsassociateorjointventure-foraccountingperiodscommencingonorafter1January2016*StilltobeendorsedbytheEUNotes to the financial statementsFor the year ended 31March 2015Alpha Real Trust Limited:Annual report 201536Notes to the financia

258、l statements(continued)For the year ended 31 March 2015InterpretationsNointerpretations,relevantfortheGroup,arecurrentlyinissue.InDecember2013,theIASBissuedfurtherimprovementstoIFRS,whichhavebecomeeffectiveforaccountingperiodscommencingonorafter1July2014.Thesecoveramendmentstoninestandards.InSeptemb

259、er2014,theIASBissuedfurtherimprovementstoIFRS,whichwillbecomeeffectiveforaccountingperiodscommencingonorafter1January2016(stilltoreceiveendorsementbytheEU).Thesecoveramendmentstofivestandards.TheDirectorsanticipatethat,withtheexceptionofIFRS9,theadoptionofthesestandardsandinterpretationsinfutureperi

260、odswillnothaveamaterialimpactonthefinancialstatementsoftheGroup.IFRS9usesasingleapproachtodeterminewhetherafinancialassetismeasuredatamortisedcostoratfairvalue,replacingthemanydifferentrulesinIAS39.TheapproachinIFRS9isbasedonhowanentitymanagesitsfinancialinstruments(itsbusinessmodel)andthecontractua

261、lcashflowcharacteristicsofthefinancialassets(paymentsthataresolelypaymentsofprincipalandinterest).Therecognitionandde-recognitionrequirementsforfinancialassetsandfinancialliabilitiesareunchangedfromthosesetoutinIAS39.Theclassificationandmeasurementrequirementsoffinancialliabilitiesarebroadlysimilart

262、oIAS39althoughtherequirementsrelatingtofinancialliabilitiesmeasuredatfairvaluehavebeenamendedsothatchangesinfairvaluerelatedtoanentitysowncreditriskaregenerallyrecogniseddirectlyinothercomprehensiveincome.IFRS9requiresoneimpairmentmethodwhichwouldreplacethevariousdifferentmethodsindicatedbyIAS39that

263、arisefromthedifferentcategoriesclassification.AtthetimeofadoptionofthenewstandarditisexpectedonlythattheGroupsfinancialassetswillberequiredtobeclassifiedinaccordancewiththenewstandardandnochangesinmeasurementwillberequired.Theprincipalaccountingpoliciesadoptedaresetoutbelow.Basis of consolidationa)S

264、ubsidiariesTheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandthesubsidiaryundertakingscontrolledbytheCompany,madeupto31Marcheachyear.ControlisachievedwheretheCompanyhaspowerovertheinvestee,exposureorrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandtheabilit

265、ytouseitspowertoaffecttheamountoftheinvestorsreturns.Theresultsofsubsidiaryundertakingsacquiredordisposedofduringtheyearareincludedintheconsolidatedstatementofcomprehensiveincomefromtheeffectivedateofacquisitionsoruptotheeffectivedateofdisposalasappropriate.Whennecessary,adjustmentsaremadetothefinan

266、cialstatementsofsubsidiaryundertakingstobringtheaccountingpoliciesusedintolinewiththoseusedbytheGroup.Allintra-grouptransactions,balances,incomeandexpensesareeliminatedonconsolidation.b)Joint venturesTheGroupappliesIFRS11toitsjointarrangement.UnderIFRS11investmentsinjointarrangementsareclassifiedase

267、itherjointoperationsorjointventuresdependingonthecontractualrightsandobligationseachinvestor.TheGrouphasassessedthenatureofitsjointarrangementsanddeterminedthemtobejointventures.JointventuresareaccountedforusingtheequitymethodUndertheequitymethodofaccounting,interestsinjointventuresareinitiallyrecog

268、nisedatcostandadjustedthereaftertorecognisetheGroupsshareofthepost-acquisitionprofitsorlossesandmovementsinothercomprehensiveincome.WhentheGroupsshareoflossesinajointventureequalsorexceedsitsinterestsinthejointventures(whichincludesanylong-termintereststhat,insubstance,formpartoftheGroupsnetinvestme

269、ntinthejointventures),theGroupdoesnotrecognisefurtherlosses,unlessithasincurredobligationsormadepaymentsonbehalfofthejointventures.UnrealisedgainsontransactionsbetweentheGroupanditsjointventuresareeliminatedtotheextentoftheGroupsinterestinthejointventures.Unrealisedlossesarealsoeliminatedunlessthetr

270、ansactionprovidesevidenceofanimpairmentoftheassettransferred.Presentation of statement of comprehensive incomeInordertobetterreflecttheactivitiesofaninvestmentcompanyandinaccordancewithguidanceissuedbytheAssociationofInvestmentCompanies(“AIC”),supplementaryinformation,whichanalysesthestatementofcomp

271、rehensiveincomebetweenitemsofarevenueandcapitalnature,hasbeenpresentedalongsidethestatementofcomprehensiveincome(seenote20).Revenue recognitionRentalincomeandservicechargeincomefrominvestmentpropertyleasedoutunderanoperatingleasearerecognisedinthestatementofcomprehensiveincomeonastraightlinebasisove

272、rthetermofthelease.Leaseincentivesgrantedarerecognisedasanintegralpartofthenetconsiderationfortheuseofthepropertyandarethereforealsorecognisedonthesamestraightlinebasis.Rentalrevenuesareaccountedforonanaccrualsbasis.Therefore,deferredrevenuegenerallyrepresentsadvancepaymentsfromtenants.Revenueisreco

273、gnisedwhenitisprobablethattheeconomicbenefitsassociatedwiththetransactionwillflowtotheGroupandtheamountofrevenuecanbemeasuredreliably.Uponearlyterminationofaleasebythelessee,thereceiptofasurrenderpremium,netofdilapidationsandnon-recoverableoutgoingsrelatingtotheleaseconcerned,isimmediatelyrecognised

274、asrevenue.Interestincomeisaccruedonatimebasis,byreferencetotheprincipaloutstandingandtheeffectiveinterestrateapplicable.Otherincomeisrecognisedwhenreceived.2(a).Significant accounting policies(continued)Alpha Real Trust Limited:Annual report 201537Notes to the financial statements(continued)For the

275、year ended 31 March 2015Leasing Leasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptothelessee.Allotherleasesareclassifiedasoperatingleases.Foreign currenciesa)Functional and presentation currencyItemsincludedinthefinancialstatementsofeac

276、hoftheGroupentitiesaremeasuredinthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(the“functionalcurrency”).TheconsolidatedfinancialstatementsarepresentedinSterling,whichistheCompanysfunctionalandpresentationcurrency.b)Transactions and balancesTransactionsincurrenciesotherthanthefunc

277、tionalcurrencyarerecordedattheratesofexchangeprevailingonthedatesofthetransactions.Ateachbalancesheetdate,monetaryassetsandliabilitiesthataredenominatedinforeigncurrenciesareretranslatedattheratesprevailingonthebalancesheetdate.Gainsandlossesarisingonretranslationareincludedinnetprofitorlossfortheye

278、ar,exceptforexchangedifferencesarisingonnon-monetaryassetsandliabilitieswherethechangesinfairvaluearerecogniseddirectlyinothercomprehensiveincome/(expense).c)Group companiesTheresultsandfinancialpositionofalltheGroupentitiesthathaveafunctionalcurrencywhichdiffersfromthepresentationcurrencyaretransla

279、tedintothepresentationalcurrencyasfollows:(i)assetsandliabilitiesforeachbalancesheetpresentedaretranslatedattheclosingrateatthedateofthebalancesheet(ii)incomeandexpensesforeachstatementofcomprehensiveincomearetranslatedattheaverageexchangerateprevailingintheperiod,and(iii)allresultingexchangediffere

280、ncesarerecognisedasaseparatecomponentofequity.Onconsolidation,theexchangedifferencesarisingfromthetranslationofthenetinvestmentinforeignentitiesaretakentoequity.Whenaforeignoperationissold,suchexchangedifferencesarerecognisedinthestatementofcomprehensiveincomeaspartofthegainorlossonsale.ForEurobased

281、balancestheyearendexchangerateusedis1:1.367(2014:1:1.210)andtheaverageratefortheyearusedis1:1.274(2014:1:1.186).Theyear-endexchangerateusedforIndianrupee(INR)balancesis1:INR92.756(2014:1:INR99.418)andtheaverageratefortheyearusedis1:INR98.408(2014:1:INR95.890).ExpensesAllexpensesareaccountedforonanac

282、crualsbasisandincludefeesandotherexpensespaidtotheAdministrators,theInvestmentManagerandtheDirectors.Inrespectoftheanalysisbetweenrevenueandcapitalitems,presentedwithinthestatementofcomprehensiveincome,allexpenseshavebeenpresentedasrevenueitemsexceptexpenseswhichareincidentaltotheacquisitionofaninve

283、stmentpropertywhichareincludedwithinthecostofthatinvestmentproperty.Borrowing costsBorrowingcostsdirectlyattributabletotheacquisitionorconstructionofpropertyareaddedtothecostsofthoseassetsuntilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduse.Thecapitalisationrateisarrivedatbyreferencetoth

284、eactualratepayableonborrowingacquiredforatargetedproperty,ortotheaverageratewithregardtoanacquisitionfinancedoutofgeneralborrowings.Allotherborrowingcostsarerecognisedinthestatementofcomprehensiveincomeintheperiodinwhichtheyareincurred.TaxationTheCompanyisexemptfromGuernseytaxationonincomederivedout

285、sideofGuernseyandbankinterestearnedinGuernsey.Afixedannualfeeof600waspayabletotheStatesofGuernseyinrespectofthisexemptionfortheyear.NochargetoGuernseytaxationarisesoncapitalgains.TheGroupisliabletoforeigntaxarisingonactivitiesintheoverseassubsidiaries.TheGrouphassubsidiaryoperationsinCyprusandIndia.

286、TheGroupalsoholdsinvestmentsinSpain,ownedthroughinvestmententitiesinLuxembourgandtheNetherlands,andintheUnitedKingdom,ownedthroughaninvestmententityincorporatedinJersey.TheGroupisthereforeliabletotaxationintheseoverseasjurisdictions.Thetaxexpenserepresentsthesumofthetaxcurrentlypayableanddeferredtax

287、.Thetaxcurrentlypayableisbasedontaxableprofitfortheyear.Taxableprofitdiffersfromnetprofitasreportedinthestatementofcomprehensiveincomebecauseitexcludesitemsofincomeandexpensethataretaxableordeductibleinotheryearsanditfurtherexcludesitemsthatarenevertaxableordeductible.TheGroupsliabilityforcurrenttax

288、iscalculatedusingtaxratesthathavebeenenactedatthebalancesheetdate.2(a).Significant accounting policies(continued)Alpha Real Trust Limited:Annual report 201538Notes to the financial statements(continued)For the year ended 31 March 2015Deferredtaxisthetaxexpectedtobepayableorrecoverableondifferencesbe

289、tweenthecarryingamountofassetsandliabilitiesinthefinancialstatementsandthecorrespondingtaxbasesusedinthecomputationoftaxableprofit,andisaccountedforusingthebalancesheetliabilitymethod.Deferredtaxliabilitiesaregenerallyrecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognisedtothee

290、xtentthatitisprobablethattaxableprofitswillbeavailableagainstwhichdeductibletimingdifferencescanbeutilised.Thecarryingamountofdeferredtaxassetsisreviewedateachbalancesheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitswillbeavailabletoallowallorpartoftheassettoberecover

291、ed.Deferredtaxiscalculatedatthetaxratesthatareexpectedtoapplyintheyearwhentheliabilityissettledortheassetrealised.Deferredtaxischargedorcreditedinthestatementofcomprehensiveincome,exceptwhenitrelatestoitemschargedorcrediteddirectlytoequity,inwhichcasethedeferredtaxisalsodealtwithinequity.DividendsDi

292、videndsarerecognisedasaliabilityintheGroupsfinancialstatementsintheperiodinwhichtheybecomeobligationsoftheGroup.Fair value measurementTheGroupmeasurescertainfinancialinstrumentssuchasderivatives,andnon-financialassetssuchasinvestmentproperty,atfairvalueattheendofeachreportingperiod,usingrecognisedva

293、luationtechniquesandfollowingtheprinciplesofIFRS13.Inaddition,fairvaluesoffinancialinstrumentsmeasuredatamortisedcostaredisclosedinthefinancialstatements.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.T

294、hefairvaluemeasurementisbasedonthepresumptionthatthetransactiontoselltheassetortransfertheliabilitytakesplaceeither:intheprincipalmarketfortheassetorliabilityorintheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.TheGroupmustbeabletoaccesstheprincipalorthemostadvantageous

295、marketatthemeasurementdate.Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability,assumingthatmarketparticipantsactintheireconomicbestinterest.Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipantsabilitytogen

296、erateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.TheGroupusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,maximisingtheuseofrelevantobservablei

297、nputsandminimisingtheuseofunobservableinputssignificanttothefairvaluemeasurementasawhole:Level1Quoted(unadjusted)marketpricesinactivemarketsforidenticalassetsorliabilities.Level2 Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisdirectlyorindirectlyobservable.

298、Level3Valuationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisunobservable.Forassetsandliabilitiesthatarerecognisedinthefinancialstatementsonarecurringbasis,theGroupdetermineswhethertransfershaveoccurredbetweenlevelsinthehierarchybyre-assessingcategorisation(basedon

299、thelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole)attheendofeachreportingperiod.Investment propertyInvestmentproperty,whichispropertyheldtoearnrentalsand/orforcapitalappreciation,isinitiallyrecognisedatcostbeingthefairvalueofconsiderationgivenincludingrelatedtransactioncosts.Afte

300、rinitialrecognitionatcost,investmentpropertyiscarriedattheirfairvaluesbasedonhalfyearlyprofessionalvaluationsmadebyindependentvaluers.ThevaluationsareinaccordancewithstandardscomplyingwiththeRoyalInstitutionofCharteredSurveyorsAppraisalandValuationmanualandtheInternationalValuationStandardsCommittee

301、.Gainsorlossesarisingfromchangesinfairvalueofinvestmentpropertyareincludedinthestatementofcomprehensiveincomeintheperiodinwhichtheyarise.PropertiesaretreatedasacquiredwhentheGroupassumesthesignificantrisksandreturnsofownershipandasdisposedofwhenthesearetransferredtothebuyer.Allcostsdirectlyassociate

302、dwiththepurchaseandconstructionofapropertyandallsubsequentexpendituresqualifyingasacquisitioncostsarecapitalised.2(a).Significant accounting policies(continued)Alpha Real Trust Limited:Annual report 201539Notes to the financial statements(continued)For the year ended 31 March 2015Segmental reporting

303、Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtothechiefoperatingdecision-maker.Thechiefoperatingdecision-maker,whichisresponsibleforallocatingresourcesandassessingperformanceoftheoperatingsegments,hasbeenidentifiedastheBoardofDirectorsoftheCompany.Theinvestingpolicy

304、meanstheGroupmayinvestinrealestateopportunitiesunconstrainedbygeography,butwithaparticularfocusontheUK,EuropeandAsia.Atpresent,formanagementpurposes,theGroupisorganisedintoonemainoperatingsegmentbeingEurope.AlloftheGroupsrevenueisfromentitiesthatareincorporatedinEurope.WiththeexceptionoftheGalaxiain

305、vestment(note14),alloftheGroupsnon-currentassetsarelocatedinEurope.Financial instrumentsFinancialassetsandfinancialliabilitiesarerecognisedontheGroupsbalancesheetwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.TheGroupshalloffsetfinancialassetsandfinancialliabilitiesiftheGrouphasa

306、legallyenforceablerighttosetofftherecognisedamountsandinterestsandintendstosettleonanetbasis.(a)Financial assetsTheGroupsfinancialassetsfallintothecategoriesdiscussedbelow,withtheallocationdependingtoanextentonthepurposeforwhichtheassetwasacquired.AlthoughtheGroupusesderivativefinancialinstrumentsin

307、economichedgesofcurrencyandinterestraterisk,itdoesnothedgeaccountforthesetransactions.TheGrouphasnotclassifiedanyofitsfinancialassetsasheldtomaturityorasavailableforsale.Unlessotherwiseindicated,thecarryingamountsoftheGroupsfinancialassetsareareasonableapproximationoftheirfairvalues.(a)(i)Investment

308、s held at fair value through profit or lossInvestmentsareclassifiedas“fairvaluethroughprofitorloss”andareinitiallyrecognisedatcost,beingthefairvalueoftheconsiderationgiven.Financialassetsdesignatedatfairvaluethroughprofitorlossatinceptionarethosethataremanagedandtheirperformanceevaluatedonafairvalue

309、basisinaccordancewiththeGroupsinvestmentstrategy.TheGroupspolicyisfortheInvestmentManagerandtheBoardofDirectorstoevaluatetheinformationaboutthesefinancialassetsonafairvaluebasistogetherwithotherrelatedfinancialinformation.RecognitionPurchasesandsalesofinvestmentsarerecognisedonthetransactiondate,the

310、dateonwhichtheGroupcommitstopurchaseorselltheinvestment.MeasurementFinancialassetsatfairvaluethroughprofitorlossareinitiallyrecognisedatfairvaluewithtransactioncostsbeingexpensedinthestatementofcomprehensiveincome.Subsequenttoinitialrecognition,allfinancialassetsatfairvaluethroughprofitorlossaremeas

311、uredatfairvalue.Gainsandlossesarisingfromchangesinthefairvalueofthefinancialassetsatfairvaluethroughprofitorlosscategoryarepresentedinthestatementofcomprehensiveincomeintheperiodinwhichtheyarise.(a)(ii)Loans and receivablesTheseassetsarenon-derivativefinancialassetswithfixedordeterminablepaymentstha

312、tarenotquotedinanactivemarket.Theymainlyrelatetointerestbearingloansgrantedtothirdpartiesbutalsoarisethroughrentalleaseswithtenants(e.g.tradereceivablesandcashandcashequivalents)andincorporateothertypesofcontractualmonetaryassets.Theyareinitiallyrecognisedatfairvalueplustransactioncoststhataredirect

313、lyattributabletotheacquisitionorissueandsubsequentlycarriedatamortisedcostusingtheeffectiveinterestratemethod,lessprovisionforimpairment.Theeffectofdiscountingonthesefinancialinstrumentsisnotconsideredtobematerial.Impairmentprovisionsarerecognisedwhenthereisobjectiveevidence(suchassignificantfinanci

314、aldifficultiesonthepartofthecounterpartyordefaultorsignificantdelayinpayment)thattheGroupwillbeunabletocollectalloftheamountsdueunderthetermsofthereceivable,theamountofsuchaprovisionbeingthedifferencebetweenthenetcarryingamountandthepresentvalueofthefutureexpectedcashflowsassociatedwiththeimpairedre

315、ceivable.Fortradereceivables,suchimpairmentsdirectlyreducethecarryingamountoftheimpairedassetandarerecognisedagainsttherelevantincomecategoryinthestatementofcomprehensiveincome.Cashandcashequivalentsarecarriedatcostandconsistofcashinhandandshorttermdepositsinbankswithanoriginalmaturityofthreemonthso

316、rless.(a)(iii)Derivatives at fair value through profit or lossThiscategorycomprisesonlyinthemoneyfinancialderivatives.Theyarecarriedinthebalancesheetatfairvaluewithchangesinfairvaluerecognisedinthestatementofcomprehensiveincome.ThefairvalueoftheGroupsderivativesisbasedonvaluationsasdescribedinnote24

317、.2(a).Significant accounting policies(continued)Alpha Real Trust Limited:Annual report 201540Notes to the financial statements(continued)For the year ended 31 March 2015(a)(iv)Derecognition of financial assetsAfinancialasset(inwholeorinpart)isderecognisedeither:whentheGrouphastransferredsubstantiall

318、yalltherisksandrewardsofownership,orwhenithasneithertransferrednorretainedsubstantiallyalltherisksandrewardsandwhenitnolongerhascontrolovertheassetoraportionoftheasset,orwhenthecontractualrighttoreceivecashflowhasexpired.(b)Financial liabilities TheGroupclassifiesitsfinancialliabilitiesintooneoftwoc

319、ategories,dependingonthepurposeforwhichtheliabilitywasissuedanditscharacteristics.AlthoughtheGroupusesderivativefinancialinstrumentsineconomichedgesofcurrencyandinterestraterisk,itdoesnothedgeaccountforthesetransactions.Unlessotherwiseindicated,thecarryingamountsoftheGroupsfinancialliabilitiesareare

320、asonableapproximationoftheirfairvalues.(b)(i)Derivatives at fair value through profit or lossThiscategorycomprisesonlyout-of-the-moneyfinancialderivatives.Theyarecarriedinthebalancesheetatfairvaluewithchangesinfairvaluerecognisedinthestatementofcomprehensiveincome.Otherthanderivativefinancialinstrum

321、ents,theGroupdoesnothaveanyliabilitiesheldfortradingnorhasitdesignatedanyotherfinancialliabilitiesasbeingatfairvaluethroughprofitorloss.ThefairvalueoftheGroupsderivativesisbasedonthevaluationsasdescribedinnote24.(b)(ii)Financial liabilities measured at amortised costOtherfinancialliabilitiesincludet

322、hefollowingitems:Tradepayablesandothershort-termmonetaryliabilities,whichareinitiallyrecognisedatfairvalueandsubsequentlycarriedatamortisedcostusingtheeffectiveinterestmethodBankborrowingsareinitiallyrecognisedatfairvaluenetofattributabletransactioncostsincurred.Suchinterestbearingliabilitiesaresubs

323、equentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.(b)(iii)Derecognition of financial liabilitiesAfinancialliability(inwholeorinpart)isderecognisedwhentheCompanyorGrouphasextinguisheditscontractualobligations,itexpiresoriscancelled.Anygainorlossonderecognitionistakentothestatementofc

324、omprehensiveincome.(c)Share capitalFinancialinstrumentsissuedbytheGrouparetreatedasequityonlytotheextentthattheydonotmeetthedefinitionofafinancialliability.TheCompanysordinarysharesandclassAsharesareclassifiedasequityinstruments.Forthepurposesofthedisclosuresgiveninnote23theGroupconsidersallitsshare

325、capital,sharepremiumandallotherreservesasequity.TheCompanyisnotsubjecttoanyexternallyimposedcapitalrequirements.(d)Effective interest rate methodTheeffectiveinterestratemethodisamethodofcalculatingtheamortisedcostofafinancialassetorliabilityandofallocatinginterestincomeorexpenseovertherelevantperiod

326、.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashreceiptsorpayments(includingallfeesonpointspaidorreceivedthatformanintegralpartoftheeffectiveinterestrate,transactioncostsandotherpremiumsordiscounts)throughtheexpectedlifeofthefinancialassetorliability,or,whereappropriate,asho

327、rterperiod.2(b).Significant accounting estimates and judgementsTheGroupmakesestimatesandassumptionsconcerningthefuture.Theresultingaccountingestimateswill,bydefinition,seldomequaltherelatedactualresults.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamount

328、sofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow.Estimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.(a)Investment propertyTheGroupusesthevaluationcarried

329、outbyitsindependentvaluersasthefairvalueofitsinvestmentproperty.Thevaluationisbaseduponassumptionsincludingfuturerentalincome,anticipatedmaintenancecosts,futuredevelopmentcostsandtheappropriatediscountrate.Thevaluersalsomakereferencetomarketevidenceoftransactionpricesforsimilarproperties.Refertonote

330、13forfurtherdetails.2(a).Significant accounting policies(continued)Alpha Real Trust Limited:Annual report 201541Notes to the financial statements(continued)For the year ended 31 March 2015(b)Estimate of fair value of indirect property investment-Galaxia ThepropertyinterestinGalaxiaisclassifiedasanin

331、directpropertyinvestmentheldatfairvaluethroughprofitorlossandhasbeenincludedwithinthefinancialstatementsbasedonthecurrentestimateofrealisablevaluetotheGroup.InJanuary2015,theInternationalChamberofCommerce(ICC)ArbitrationconcludeditsarbitrationproceedingsanddeclaredinfavouroftheGroupsclaimsagainstLog

332、ixGroup,whichwasfoundtohavebreachedtheTermsoftheShareholdersAgreementwiththeGroup.TheICCawardedtheGroupthereturnofitsentirecapitalinvestedofINR450Million,withinterestat18%perannumfrom31January2011to20January2015,andtherefundofallcostsincurredtowardstheArbitration.Thetotalawardamountsto9.2million(the

333、“Award”)basedonyearendexchangerates.Additionally,afurther15%perannuminterestonallsumswasawardedtotheGroupfrom20January2015untiltheactualdateofpaymentbyLogixoftheAward.InApril2015,theGroupwasnotifiedthatLogixhasfiledapetition,underSection34oftheIndianArbitrationandConciliationAct1996,beforetheDelhiHighCourtchallengingtheAward.Thematterhasbeenadjournedforahearingon15July2015.TheDirectors,takingintoc