Alpha Real Trust Limited (ARTL) 2021年年度報告「LSE」.pdf

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1、Annual reportFor the year ended 31 March 202120211 Highlights2 Companys summary and objective4 Chairmans statement8 Investment review22 Directors23 Directors and corporate governance report28 Directors statement pursuant to the Disclosure and Transparency Rules29 Independent auditors report36 Consol

2、idated statement of comprehensive income37 Consolidated balance sheet38 Consolidated cash flow statement39 Consolidated statement of changes in equity40 Notes to the financial statements67 Directors and Company information68 Shareholder information68 Financial calendar CAlpha Real Trust Limited:Annu

3、al report 20211 NAV per ordinary share 207.7p as at 31March2021(31March 2020:213.7p).Basic earnings for the year ended 31March 2021 of 0.0p per ordinary share(31March 2020:5.8p per ordinary share).Adjusted earnings for the year ended 31March 2021 of 3.4p per ordinary share(31March 2020:6.4p per ordi

4、nary share)*.Declaration of a quarterly dividend of 1.0p per ordinary share expected to be paid on 16July2021.Robust financial position:in a year characterised by uncertainty,ART adopted a cautious approach to new investment and conserved cash.As the economy reopens post Covid,the Companys robust fi

5、nancial footing makes it well positioned to take advantage of new investment opportunities.New loan investments:after a strategic pause to evaluate how the effects of the economic shock from Covid-19 unfolded,new lending has now recommenced.Growth of the loan portfolio remains a key focus for ART an

6、d is expected to attract a dominant weighting of capital allocated for new investments.Diversified secured loan portfolio:the Companys existing loan portfolio has demonstrated resilient performance;the average income return on senior secured loans is 8.6%and on mezzanine secured loans is 14.4%.The s

7、enior portfolio has an average Loan to Value(LTV)*of 51.6%based on loan commitments,with mezzanine loans having an LTV range of between 54.8%and 76.9%.Capital recycling:during the year ART completed the successful sales of its Birmingham development site and the final asset in its UK industrial port

8、folio and also recovered its original capital investment from its Galaxia investment inIndia.*The basis of the adjusted earnings per share is provided in note 9 *See page 4 for more detailsAlpha Real Trust targets investment,development,financing and other opportunities in real estate,real estate op

9、erating companies and securities,real estate services,infrastructure,infrastructure services,other asset-backed businesses and related operations and services businesses that offer attractive risk-adjusted total returns.HighlightsAlpha Real Trust Limited:Annual report 20212Companys summary and objec

10、tiveStrategyAlpha Real Trust Limited(“the Company”or“ART”or“the Group”)targets investment,development,financing and other opportunities in real estate,real estate operating companies and securities,real estate services,infrastructure,infrastructure services,other asset-backed businesses and related

11、operations and services businesses that offer attractive risk-adjusted total returns.ART currently focusses on asset-backed lending,debt investments and high return property investments in Western Europe that are capable of delivering strong risk adjusted cash flows.The portfolio mix as at 31March 2

12、021,excluding sundry assets/liabilities,was as follows:31March 202131March 2020High return debt26.1%31.9%High return equity in propertyinvestments19.5%26.1%Other investments0.5%6.2%Cash53.9%35.8%The Company currently plans to invest the majority of its cash into secured senior or secured mezzanine d

13、ebt and grow its diversified loan portfolio.High return investmentsequity in property High return debt CashSecured mezzanine debt 15.0%Secured senior debt 11.1%Cash 53.9%Realhousingco 0.5%Cambourne 1.4%Hamburg 5.4%H2O 12.7%Other19.5%0.5%53.9%26.1%Companys asset allocation by sector and investment(by

14、 percentage of Groups NAV,based on the balance sheet carrying values,excluding the Companys sundry assets/liabilities)as at 31 March 2021(see page 8 for further details).Alpha Real Trust Limited:Annual report 20213Companys summary and objective(continued)Financial highlights12 months ended 31March 2

15、02112 months ended 31March 202012 months ended 31March 2019Net asset value(000)126,076127,055127,627Net asset value per ordinary share207.7p211.1p213.7pEarnings per ordinary share(basic and diluted)(adjusted)*3.4p1.6p6.4p(Losses)/earnings per ordinary share(basic and diluted)0.0p(1.3)p5.8pDividend p

16、er ordinary share(paid during the period)4.0p2.0p3.6p*The adjusted earnings per share includes adjustments for the effect of the fair value revaluation of investment property and indirect property investments,capital element on Investment Managers fees,the fair value movements on financial assets an

17、d deferred tax provisions:full analysis is provided in note 9 to the financial statements.4.0p Dividend per ordinary share paidduring the year3.4p Adjusted earnings per share of 3.4p207.7p NAV per share 207.7pDividendsThe current intention of the Directors is to pay a dividend and offer ascrip divid

18、end alternative quarterly to all shareholders.ListingThe Companys shares are traded on the Specialist Fund Segment(“SFS”)of the London Stock Exchange(“LSE”),ticker ARTL:LSE.ManagementThe Companys Investment Manager is Alpha Real Capital LLP(“ARC”),whose team of investment and asset management profes

19、sionals focus on the potential to enhance earnings in addition to adding value to the underlying assets,and also focus on the risk profile of each investment within the capital structure to best deliver attractive risk adjusted returns.Control of the Company rests with the non-executive Guernsey bas

20、ed Board of Directors.Alpha Real Trust Limited:Annual report 20214I am pleased to present the Companys annual report and accounts for the year ended 31March 2021.Given the extraordinary events of the past year,the health and wellbeing of ARTs stakeholders remains foremost in our minds.The economic a

21、nd social impact of Covid-19 continues to dominate the economic backdrop in which the Company operates.Vaccine development and the fast pace of deployment,particularly in the United Kingdom,provides a supportive tailwind for a return to social normalisation and economic recovery.ARTs investment port

22、folio benefits from diversification across geographies,sectors and asset types.Prior to the emergence of Covid-19,the Company had focused on recycling capital into asset backed lending while reducing exposure to development risk.During the past year the result of these efforts yielded successes,with

23、 noteworthy capital recycling successes being secured from the sale of two assets and recovery of part of the court award from the historic investment in India.In this time of heightened uncertainty,the Company is benefiting from that strategy and it has placed the Company on a robust financialfooti

24、ng.Over the past financial year,the Company adopted a cautious approach to new investment,including new lending.Supported by the positive performance of the Companys existing investments and more favourable economic indicators,ART has reactivated its investment activities with a key focus on continu

25、ing to grow its diversified loan portfolio.Diversified secured lending investment Despite a year that was characterised by significant uncertainty,the Companys loan portfolio has proved to be relatively resilient.In terms of debt servicing,allowing for some temporary agreed extensions,interest and d

26、ebt repayments have been received in accordance with the loan agreements.The growth of the loan portfolio remains a key investment objective for ART and is likely to attract a dominant weighting of capital allocated for new investments.As at 31March 2021,ART had committed 34.9million across twenty t

27、hree senior and mezzanine loan investments,of which 32.8million was drawn.The loans are typically secured on real estate investment and development assets.Overall activity and values in the UK housing market remained relatively resilient during the financial year,with notable demand pick up and valu

28、e increases witnessed in some markets.Housing market activity has been supported by continued low interest rates and competitive mortgage availability coupled with ongoing Government support,particularly for first time buyers via the“Help to Buy”scheme and the recently announced government-backed mo

29、rtgage scheme to help people with 5%deposits.The scheme will help buyers secure a mortgage with a 5%deposit on purchases of up to 600,000.The government will offer lenders a guarantee to provide mortgages that cover the other 95%,subject to affordability checks.These initiatives support ongoing resi

30、dential development,which bodes well for the Companys lending ambitions.Reflecting the strategic cautious approach to new lending adopted as the Covid-19 pandemic unfolded,the loan portfolio was characterised by net repayments during the financial year.Eighteen loans were fully repaid,and four loans

31、 were partly repaid,for total receipts of 17.8million(including accrued interest and exit fees),resulting in a decrease in the loan portfolio by 17.8%over the period.The largest individual loan in the portfolio as at 31March 2021 is a senior loan of 4.0million which represents 3.2%of the Companys NA

32、V.Post year end,three new loans were granted for 3.9million,0.7million was drawn from previously committed loans and loan repayments of 2.9million were received(including accrued interest and exit fees).Portfolio loans are underwritten against value for investment loans or gross development value fo

33、r development loans as relevant and collectively referred to as LTV in this report.The portfolio has an average LTV of 59.3%(with an average approved LTV between 54.8%and 76.9%for mezzanine loans whilst the highest approved LTV for senior loans is 72.9%).As at 31March 2021,42.4%of the Companys loan

34、investments were senior loans and 57.6%were mezzanine loans,with a weighted average LTV ratio of 59.3%based on commitments,i.e.including amounts available for drawing.The underlying assets in the loan portfolio as at 31March 2021 had geographic diversification with a London and South East focus.The

35、South of England(including London)accounted for 67%,of which London accounted for 38%,of the committed capital within the loan investment portfolio.To date,the Company has experienced no defaults,but the underlying loan portfolio continues to be closely monitored especially considering the Covid-19

36、pandemic and its potential impact on construction timelines and sales periods.Where it is considered appropriate,on a case-by-case basis,underlying loan terms may be extended or varied.David Jeffreys ChairmanChairmans statementAlpha Real Trust Limited:Annual report 20215Capital recycling During the

37、period the Companys capital recycling programme continued with total proceeds of 8.3million being received from investment sales.In June 2020,the sale of the Unity and Armouries development site in Birmingham completed in line with book value.This was followed in September 2020 by the sale of the fi

38、nal asset in the Alpha UK Property Fund Asset Company(No.2)Limited portfolio of UK industrial assets at a price marginally ahead of book value.Further capital was recovered from the Galaxia investment in India as outlinedbelow.H2O,Madrid ART has a 30%stake in joint venture with CBRE Global Investors

39、 in the H2O shopping centre in Madrid.It has been a very challenging year for shopping centre assets.At the start of the financial year all shopping centres in Spain were required to close,except for stores deemed essential such as supermarkets and pharmacies.For H2O this resulted in partial closure

40、 from mid-March to early June 2020.Less onerous restrictions were applied at a local level periodically for much of the remaining calendar year,limiting store and restaurant capacity and opening hours.The last quarter of the year was marked by an extreme storm in Madrid in early 2021,which had the e

41、ffect of limiting mobility across the Madrid region,further complicating trading conditions.During the period of mandatory closure,a rent-free period was offered to tenants experiencing trading distress in return for lease extensions and/or an increase in turnover rent to capture any future increase

42、 in trading.A practical approach continues to be taken with tenants to manage any rent arrears whilst seeking to protect the long-term value of the centre.Unsurprisingly,there have been store closures resulting from the stressed trading conditions.More positively,there has also been some notable new

43、 lease signings during the period amounting to c.2,800 sqm.These include top tier restaurants such as Tony Romas ribs and popular domestic burger chain Goiko,along with international electronics retailer Xiaomi and a new tenant for a 1,100 square metre retail park unit located on part of the centres

44、 surface car park area which completed in March 2021.H2O occupancy by area as at 31March 2021 was 90.1%including new lease signings outlined above,which compares to 93.8%as at 31March 2020.The H2O valuation reduced by 9.0%over the past year.The lingering economic effect of Covid-19 on the retail sec

45、tor is expected to continue to have a significant,albeit less severe,impact on the earnings of H2O for the coming year.Galaxia,India As previously announced,the Supreme Court of India ruled in favour of ARTs dispute regarding its Galaxia investment,a 50:50 joint venture with Logix Group(“Logix”)that

46、 owns an 11.2acre development site located in NOIDA,the National Capital Region,India.In upholding the arbitration award in favour of ART and dismissing Logixs appeal,the Supreme Court ordered Logix to pay ART a total of INR 860million(8.5million at the year end exchange rate).Including amounts reco

47、vered during the financial year,amounting to 3.0million,ART has now successfully recovered in excess of the full amount of its capital originally invested into the Galaxia joint venture(2.5million):the excess of 0.5million received during the year has been recognised as a gain in the consolidated st

48、atement of comprehensive income.The court permitted Logix to sell the Galaxia site,which was previously charged in favour of ART,to raise capital to contribute towards the balance of the award.A purchaser for the site has been identified who,during November 2020,deposited INR 568million with the Sup

49、reme Court towards the sale price.The potential purchaser is seeking an amendment of development consents and payment obligations in relation to the land.The release of the funds deposited with the Supreme court to ART is dependent on how the sale process advances.Failure to recover the proceeds fro

50、m a sale would mean that Logix would be required to pay the remainder of the liability due to ART under the court award of INR 568million(5.6million at the year end exchange rate)plus a higher interest rate applicable under the arbitration award.ART continues to actively pursue its claim to collect

51、the balance of the arbitration award.Given the uncertainty about the quantum and timing of any future recovery,the Company carried the joint venture in arbitration in its accounts as at 31March 2021 at nil value.Any future receipt will be accounted for as a capital gain from the joint venture.Chairm

52、ans statement(continued)Over the past financial year the Company adopted a cautious approach to new investment,including new lending.Supported by the positive performance of the Companys existing investments and more favourable economic indicators,ART has reactivated its investment activities with a

53、 key focus on continuing to grow its diversified loan portfolio.Alpha Real Trust Limited:Annual report 20216Chairmans statement(continued)Results and dividendsResultsAdjusted earnings for the year ended 31March 2021 are 2.1million(3.4 pence per ordinary share,see note 9 of the financial statements).

54、This compares with adjusted earnings per ordinary share of 6.4 pence for the previous year.The decrease in earnings was mainly the result of the Companys cautious approach to new investment,including lending commitments,combined with the cost of tenant support measures at the H2O shopping centre joi

55、nt venture.The net asset value per ordinary share as at 31March 2021 is 207.7 pence per share(31March 2020:213.7 pence per ordinary share)(see note 10 of the financial statements).This reduction is primarily due to the impact of the reduced property valuation of the H2O shopping centre joint venture

56、 in Madrid.DividendsThe dividends paid and declared in respect of the year ended 31March 2021 totalled 4.0 pence per ordinary share representing an annual dividend yield of 2.5%p.a.by reference to the average closing share price over the 12 months to 31March 2021.A dividend of 1.0p per share,for the

57、 quarter ended 31December 2020,was paid on 9 April 2021.The Board announces a dividend of 1.0 pence per ordinary share which is expected to be paid on 16 July 2021(ex-dividend date 24 June 2021 and record date 25 June 2021).During the year,dividends of 635,213 were paid in cash and 1,767,700 were co

58、nverted into 1,091,765 ordinary shares as a result of the scrip dividend alternative option exercised byshareholders.Scrip dividend alternativeShareholders of the Company have the option to receive shares in the Company in lieu of a cash dividend,at the absolute discretion of the Directors,from time

59、 to time.The number of ordinary shares that an Ordinary Shareholder willreceive under the Scrip Dividend Alternative will be calculated using the average of the closing middle market quotations of an ordinary share for five consecutive dealing days after the day on which the ordinary shares are firs

60、t quoted“ex”the relevantdividend.The Board has elected to offer the scrip dividend alternative to Shareholders for the dividend for the quarter ended 31March 2021.Shareholders who returned the Scrip Mandate Form and elected to receive the scrip dividend alternative will receive shares in lieu of the

61、 next dividend.Shareholders who have not previously elected to receive scrip may complete a Scrip Mandate Form(this can be obtained from the registrar:contact Computershare(details below),which must be returned by 2July 2021 to benefit from the scrip dividend alternative for the next dividend.Financ

62、ingAs at 31March 2021 the Group has one direct bank loan of 9.5million(8.1million),a non-recourse facility,with no financial covenant tests,to an SPV used to finance the acquisition of the Hamburg property.Further details of individual asset financing can be found under the individual investment rev

63、iew sections later in this report.Share buybacksUnder the general authority,approved by Shareholders on 7August 2020,Shareholders approved a resolution giving the Company a general authority to buy back Ordinary Shares.Under this authority,the Company purchased 103,623 shares in the market at the av

64、erage price of 1.61 per share during the twelve month period ended 31March 2021:these shares are held in treasury.Post year end,the Company purchased 26,936 shares in the market at the average price of 1.62 per share:these shares are held in treasury.As at the date of this announcement,the ordinary

65、share capital of the Company is 63,056,829(including 2,071,356 ordinary shares held in treasury)and the total voting rights in the Company are 60,985,473.The growth of its loan portfolio remains a key investment objective for ART and is likely to attract a dominant weighting of capital allocated for

66、 new investments.Secured lending:Golders Green,LondonAlpha Real Trust Limited:Annual report 20217Chairmans statement(continued)Foreign currencyThe Company monitors foreign exchange exposures and considers hedging where appropriate.Foreign currency balances have been translated at the period end rate

67、s of 1:1.175 or 1:INR100.855,as appropriate.BrexitOn 30 December 2020,parliament accepted a post-Brexit trade deal agreed between the UK and the EU.The transition period during which the UK has been able to continue to access the Single Market and Customs Union ended at 11pm on 31December 2020.There

68、 has been no significant disruption to the ART business caused by the UKs exit from the EU and the completion of the free trade agreement.No material adverse impacts have been noted within the Companys portfolio to date and risks are mitigated by the Companys investments held in Europe.However,the B

69、oard continues to monitor the situation for potential risks to the Companys investments.The economic backdrop is highly dynamic,and the spread of possible outcomes is wide.In this context,ART is well placed to both weather market volatility and take advantage of any dislocation should it arise.Going

70、 concern and Covid-19 pandemicThe Company has not been isolated from the ubiquitous impact of the Covid-19 pandemic on global economies in the past year.The Companys long-term strategy remains resilient.The Company adopted a prudent short-term strategy to move to cash conservation and a cautious app

71、roach to commitments to new investments during the financial year.Alert to the impact of potentially reducing income returns,this approach supported a robust balance sheet position during these uncertain times.Investment in new lending and growing the Companys diversified loan portfolio has recommen

72、ced and remains a key focus.As noted above,the Company holds approximately 53.9%of its assets currently in cash with no current contractual capital commitments.While there is external financing in the Groups investment interests,this is limited and non-recourse to the Company;the borrowings in these

73、 special purpose vehicles are compliant with their banking covenants.While the Boards dividend policy intention is unchanged the Company continues to actively monitor its investments and the impact of these unusual economic circumstances on earnings and dividends.See the investment review section fo

74、r more details on the pandemics impact on relevant investments.Bearing in mind the nature of the Groups business and assets,after making enquiries,with the support of revenue forecasts for the next twelve months and considering the above,the Directors consider that the Group has adequate resources t

75、o continue in operational existence for the foreseeable future.For this reason,they continue to adopt the going concern basis in preparing the financial statements.Strategy and outlookThe economic and social impact of Covid-19 continues to dominate the economic backdrop in which the Company operates

76、.Vaccine development and the fast pace of deployment,particularly in the United Kingdom,provides a supportive tailwind for a return to social normalisation and economic recovery.Prior to the emergence of Covid-19,the Company had focused on recycling capital into asset backed lending while reducing e

77、xposure to development risk.During the past year the result of these efforts yielded successes,with noteworthy capital recycling successes being secured from the sale of two assets and recovery of part of the court award from the historic investment in India.In this time of heightened uncertainty,th

78、e Company is benefiting from that strategy and it has placed the Company on a robust financial footing.Over the past financial year,the Company adopted a cautious approach to new investment,including new lending.Supported by the positive performance of the Companys existing investments and more favo

79、urable economic indicators,ART has reactivated its investment activities with a key focus on continuing to grow its diversified loan portfolio.David Jeffreys Chairman 10 June 2021 Secured lending:Clevedon,BristolSecured lending:Bermondsey,LondonAlpha Real Trust Limited:Annual report 20218Investment

80、reviewPortfolio overview 31 March 2021InvestmentCarrying valueIncome return p.a.Investment locationProperty type/underlyingsecurityInvestment notes%of portfolio 1Note*High return debt(26.1%)Secured senior financeSenior secured loans(excluding committed but undrawn facilities of 2.2m)13.9m 28.6%3 UKD

81、iversified loan portfolio focussed on real estate investments and developments Senior secured debt(during the period the average senior facilities commitments were 13.5m)11.1%17Secured mezzanine financeSecond charge mezzanine loans18.9m 214.4%3 UKDiversified loan portfolio focussed on real estate in

82、vestments and developments Secured mezzanine debt and subordinated debt(during the period the average mezzanine facilities commitments were 18.3m)15.0%17High return equity in property investments(19.5%)H2O shopping centreIndirect property16.0m(18.8m)1.4%4SpainDominant Madrid shopping centre and sepa

83、rate development site30%shareholding;medium term moderately geared bank financefacility 12.7%12Long leased industrial facility,HamburgDirect property6.8m 5(8.0m)7.1%4GermanyLong leased industrial complex in major European industrial and logistics hubLong term moderately geared bank finance facility5

84、.4%13Cambourne Business ParkIndirect property 1.8m9.6%4UKHigh-yield business park located in CambridgeMedium term moderately geared bank finance facility1.4%12 Other investments(0.5%)RealhousingcoAffordable housing Residential Investment0.6mn/aUKHigh-yield residential UKportfolio100%shareholding;no

85、external gearing 0.5%13Cash and short-term investments(53.9%)Cash 667.7m0.1%7UKOn call and current accounts53.9%*See notes to the financial statements for more details1 Percentage share shown based on NAV excluding the companys sundry assets/liabilities2 Including accrued interest/coupon at the bala

86、nce sheet date3 The income returns for high return debt are the annualised actual finance income return over the period shown as a percentage of the average committed capital over the period4 Yield on equity over 12 months to 31March 20215 Property value including sundry assets/liabilities and cash,

87、net of associated debt6 Group cash of 68.2m excluding cash held with the Hamburg holding company of 0.5m7 Weighted average interest earned on call accountsAlpha Real Trust Limited:Annual report 20219High return debtART has a portfolio of secured loan investments which contribute a risk-adjusted retu

88、rn to the Companys earnings position.The portfolio comprises high return senior(first charge)loans and mezzanine(second charge)loans secured on real estate assets and developments.ART loan underwriting is supported by the Investment Managers asset-backed lending experience and knowledge of the under

89、lying assets and sectors,in addition to the Groups partnerships with specialist debt providers.Investment review(continued)Brad Bauman Joint fund managerGordon Smith Joint fund managerSecured lending:Duporth View,St Austell,Cornwall Total commitment2,627,000 Loan typeSenior bridging finance on compl

90、eted buildingLoan term10 months(on demand repayment)LTV47.80%Underlying securityA terrace of 4 luxury houses in South-East London being marketed for sale Alpha Real Trust Limited:Annual report 202110Honor Oak,London Senior bridging financeTotal commitment1,072,000 Loan typeDevelopment mezzanine fina

91、nceLoan term26 months(on demand repayment)LTV58.0-69.1%Underlying securityConstruction of 38 apartments and houses(for sale to persons aged 55 and over)St.Austell,Cornwall Development mezzanine financeAlpha Real Trust Limited:Annual report 202111Investment review(continued)Secured finance Investment

92、Investment typeCarrying valueIncome return p.a.Property type/underlying securityInvestment notesSecured senior financeFirst charge secured loans13.9m*8.6%*Diversified loan portfolio focussed on real estate investments and developmentsSecured debt Secured mezzanine financeSecond charge secured loans1

93、8.9m*14.4%*Diversified loan portfolio focussed on real estate investments and developmentsSecond charge secured debt and subordinated debt*Including accrued interest/coupon at the balance sheet date*The income returns for high return debt are the annualised actual finance income return over the peri

94、od shown as a percentage of the average committed capital over the period Diversified secured lending investment Despite a year that was characterised by significant uncertainty,the Companys loan portfolio has proved to be relatively resilient.In terms of debt servicing,allowing for some temporary a

95、greed extensions,interest and debt repayments have been received in accordance with the loan agreements.The growth of the loan portfolio remains a key investment objective for ART and is likely to attract a dominant weighting of capital allocated for new investments.As at 31March 2021,ART had commit

96、ted 34.9million across twenty three senior and mezzanine loan investments,of which 32.8million was drawn.The loans are typically secured on real estate investment and development assets with attractive risk-adjusted income returns.Overall activity and values in the UK housing market remained relativ

97、ely resilient during the financial year,with notable demand pick up and value increases witnessed in some sectors.Continued low interest rates and competitive mortgage availability,coupled with ongoing Government support,particularly for first time buyers via the“Help to Buy”scheme,supports ongoing

98、residential development,which bodes well for the Companys lending ambitions.Reflecting the strategic cautious approach to new lending temporarily adopted,the loan portfolio was characterised by net repayments during the financial year.Eighteen loans were fully repaid and four loans were partly repai

99、d for total receipts of 17.8million(including accrued interest and exit fees),resulting in a decrease in the loan portfolio by 17.8%over theperiod.The largest individual loan in the portfolio as at 31March 2021 is a senior loan of 4.0million which represents 11.5%of committed capital and 3.2%of the

100、Companys NAV.Post year end,three new loans were granted for 3.9million,0.7million was drawn from previously committed loans and loan repayments of 2.9million were received(including accrued interest and exit fees).Loan portfolio by geography8%5%16%10%13%10%38%LondonRegional-South EastRegional-South

101、WestRegional-MultipleRegional-North WestRegional-MidlandsRegional-Scotland Loan portfolio by asset class(%of approved principal)84%2%3%11%Care HomeMixed-Residential&CommercialResidentialCommercialAlpha Real Trust Limited:Half year report 202012Golders Green,London Bridging mezzanine financeWillesden

102、,London Development mezzanine financeTotal commitment2,506,675 Loan typeBridging mezzanine finance on completed buildingLoan term24 months(on demand repayment)LTV51.0-75.0%Underlying security9 luxury apartments in North West London being marketed for sale.Total commitment400,000Loan typeDevelopment

103、mezzanine financeLoan term15 months(on demand repayment)LTV50-62%Underlying securityConstruction of 9 new build apartments in North West London being marketed forsale.Alpha Real Trust Limited:Annual report 202113Investment review(continued)Portfolio loans are underwritten against value for investmen

104、t loans or gross development value for development loans as relevant and collectively referred to as LTV in this report.The portfolio has an average LTV of 59.3%(with an average approved LTV between 54.8%and 76.9%for mezzanine loans whilst the highest approved LTV for senior loans is72.9%).As at 31M

105、arch 2021,42.4%of the Companys loan investments were senior loans and 57.6%were mezzanine loans,with a weighted average LTV ratio of 59.3%based on commitments,i.e.including amounts available for drawing.The underlying assets in the loan portfolio as at 31March 2021 had geographic diversification wit

106、h a London and South East focus.The South of England(including London)accounted for 67%,of which London accounted for 38%,ofthe committed capital within the loan investment portfolio.To date,the Company has experienced no defaults,but the underlying loan portfolio continues to be closely monitored e

107、specially considering the Covid-19 pandemic and its potential impact on construction timelines and sales periods.Where it is considered appropriate,on a case-by-case basis,underlying loan terms may be extended orvaried.Considering the Covid-19 impact on the current economic environment,the Group has

108、 carried out a stress test of its total Expected Credit Loss(ECL)analysis and,in consideration of the main qualities of its secured loan portfolio,the underlying loans LTVs,the number of loans where development is advanced and the number of seasoned facilities,the resulting total ECL was immaterial(

109、seenote 2(b)(c).As at 31 March 2021,ART had committed 34.9 million across twenty three senior and mezzanine loan investments,of which 32.8 million was drawn.The loans are typically secured on real estate investment and development assets with attractive risk-adjusted income returns.SectorRetailAsset

110、Shopping centreTenants includeNike,Zara,Mango,Cortefiel,H&M,C&A and Massimo DuttiArea53,250 square metres DescriptionThe property is located in the Rivas-Vaciamadrid district ofMadrid.H2O has a primary catchment area of 166,000 people but the location,due to the concentration of complementary retail

111、,has a total catchment of 2.2million people.The weighted average lease length as at 31 March 2021 is 8.1years to expiry and 2.4 years to next break.Alpha Real Trust Limited:Annual report 202114H2O Madrid-SpainTop ten tenants(31 March 2021)14%11%10%10%9%8%8%7%5%18%n n Inditex Groupn n Grupo Zena Alse

112、an n C&An n Yelmon n Cortefiel Group n n Mercadonan n Niken n H&Mn n Sfera-Sportownn n OzoneAlpha Real Trust Limited:Annual report 202115Investment review(continued)High return equity in property investmentsART continues to remain focused on investments that offer the potential to deliver attractive

113、 risk-adjusted returns by way of value enhancement through active asset management,improvement of income,selective deployment of capital expenditure and the ability to undertake strategic sales when the achievable price is accretive to returns.H2O Shopping Centre,Madrid InvestmentInvestment typeCarr

114、ying valueIncome returnProperty type/underlying securityInvestment notesH2OIndirect property16.0m (18.8m)1.4%*High-yield,dominant Madrid shopping centre and separate development site30%shareholding;6-year term bank finance facility*Yield on equity over twelve months to 31 March 2021 H2O was opened i

115、n 2007 and built to a high standard providing shopping,restaurants and leisure around a central theme of landscaped gardens and an artificial lake.H2O has a gross lettable area of approximately 52,425 square metres comprising 123 retail units.In addition to a multiplex cinema,supermarket(let to lead

116、ing Spanish supermarket operator Mercadona)and restaurants,it has a large fashion retailer base,including some of the strongest international fashion brands,such as Nike,Zara,Mango,Cortefiel,H&M and C&A.ART has a 30%stake in joint venture with CBRE Global Investors in the H2O shopping centre in Madr

117、id.It has been a very challenging year for shopping centre assets.At the start of the financial year all shopping centres in Spain were required to close,except for stores deemed essential such as supermarkets.For H2O this resulted in closure from mid-March to early June 2020.Less onerous restrictio

118、ns were applied at a local level periodically for much of the remaining calendar year,limiting store and restaurant capacity and opening hours.The last quarter of the year was marked by an extreme storm in Madrid in early 2021,which had the effect of limiting mobility across the Madrid region,furthe

119、r complicating tradingconditions.During the period of mandatory closure,a rent-free period was offered to tenants experiencing trading distress in return for lease extensions and/or an increase in turnover rent to capture any future increase in trading.A practical approach continues to be taken with

120、 tenants to manage any rent arrears whilst seeking to protect the long-term value of the centre.Unsurprisingly,there have been store closures resulting from the stressed trading conditions.More positively,there has also been some notable new lease signings during the period amounting to c.2,800 sqm.

121、These include top tier restaurants such as TonyRomas ribs and popular domestic burger chain Goiko,along with international electronics retailer Xiaomi and a new tenant for a 1,100 square metre retail park unit located on part of the centres surface car park area which completed in March 2021.In para

122、llel with leasing this unit,an agreement was reached with the pre-let tenant to terminate their contract in lieu of a penalty of over a years rent.H2O occupancy by area as at 31March 2021 was 90.1%including new lease signings outlined above,which compares to 93.8%as at 31March 2020.The H2O valuation

123、 reduced by 8.3%over the past year.The lingering economic effect of Covid-19 on the retail sector is expected to continue to have a significant,albeit less severe,impact on the earnings of H2O for the coming year.The asset management highlights are as follows:Valuation:119.8million(101.9million)as a

124、t 31March 2021(31March 2020:130.6million(115.5million).Centre occupancy:90.1%by area as at 31March 2021(93.8%as at 31March 2020).Weighted average lease length:2.4 years to next break and 8.1 years to expiry(31March 2021).Footfall:post the March-June 2020 centre closure,visitor numbers to 31March 202

125、1 are circa-30%which is in line with other Madrid centres.SectorIndustrial Underlying assetsIndustrial facility in Hamburg GermanyTenantVeolia Umweltservice Nord GmbH,part of the Veolia groupDescriptionLong leased investment with moderately geared,long term,bank finance facility.Alpha Real Trust Lim

126、ited:Annual report 202116Long leased industrial facility HamburgAlpha Real Trust Limited:Annual report 202117Long leased industrial facility,Hamburg InvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesIndustrial facility,Werner-Siemens-Strae Hamburg,G

127、ermany Direct property 6.8m*(8.0m)7.1%*High return industrial facility in Hamburg GermanyLong leased investment with moderately geared,long term,bank finance facility*Property value including sundry assets/liabilities and cash,net of associated debt*Yield on equity over twelve months to 31March 2021

128、 ART has an investment of 8.0million(6.8million)in an industrial facility leased to a leading international group.The property is held freehold and occupies a site of 11.8 acres in Billbrook,a well-established and well-connected industrial area located approximately 8 kilometres south-east of Hambur

129、g centre.Hamburg is one of the main industrial and logistics markets in Germany.The property is leased to Veolia Umweltservice Nord GmbH,part of the Veolia group,an international industrial specialist in water,waste and energy management,with a 23-year unexpired lease term.Under the operating lease,

130、the tenant is responsible for building maintenance and the rent has periodic inflation linked adjustments.Propertys independent valuation:16.8million(14.3million)as at 31March 2021(31March 2020:16.7million(14.8million).The Hamburg asset is funded by way of a 9.5million(8.1million)non-recourse,fixed

131、rate,bank debt facility from Nord LB which matures on 31 July 2028.The facility carries no financial covenant tests.After months of a takeover battle,Veolia SA has announced the acquisition of Suez for 12.8 billion in April 2021 afinal agreement on the deal should be in place by May.The combined ent

132、ity is expected to generate annual revenue of around 37 billion.The effect on the Veolia business will be closely monitored.This investment offers the potential to benefit from a long term secure and predictable inflation-linked income stream which is forecast to generate stable high single digit in

133、come returns.In addition,the investment offers the potential for associated capital growth from an industrial location in a major German logistics and infrastructure hub.Investment review(continued)SectorBusiness parksUnderlying assetsOfficeTenantsCambridgeCambourne Centre Ltd(previously called Regu

134、s(CambridgeCambourne)Ltd)and CarlZeiss Microscopy Ltd&Carl Zeiss LtdArea9,767 square metresDescriptionThe asset consists of three Grade A specification modern office buildings located in the town ofCambourne.Phase 1000 is situated at the front of the business park.It is an institutional quality asse

135、t with Open B1 Business userplanning.Alpha Real Trust Limited:Annual report 202118Cambourne Business Park CambridgeAlpha Real Trust Limited:Annual report 202119Cambourne Business Park,Phase 1000,Cambridge InvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment

136、 notesCambourne Business ParkIndirect property 1.8m9.6%*High-yield business park located in CambridgeMedium term moderately geared bank finance facility*Yield on equity over twelve months to 31March 2021 The Company has an investment of 1.8million in a joint venture that owns Phase 1000 of Cambourne

137、 Business Park.The property consists of three Grade A specification modern office buildings constructed in 1999 and located in the town of Cambourne,approximately 8 miles west of Cambridge city centre.The property comprises 9,767 square metres of lettable area,is self-contained and has 475 car parki

138、ng spaces.Phase1000 is situated at the front of the business park with good access and visibility.Phase 1000 is a high-quality multi let office asset,whose tenants include Cambridge Cambourne Centre Ltd(previously called Regus(Cambridge Cambourne)Ltd)and Carl Zeiss Microscopy Ltd&Carl Zeiss Ltd.As a

139、t 31March 2021,the asset was 74%occupied.The vacant space is currently being refurbished and is being actively marketed.Agreements to lease have been signed with two occupiers,subject to refurbished being completed,and would increase the area occupied to 83%.The property has open B1 Business user pl

140、anning permission and has potential value-add opportunities.Phase 1000 was purchased in a joint venture partnership with a major overseas investor.ARTs equity contribution of 1.2million is 10.0%of the total equity invested into a joint venture entity,a subsidiary of which holds the property.Property

141、s Directors valuation:29.3million as at 31March 2021(31March 2020:30.5million).The Directors valuation was based on an independent valuation carried out at 31December 2020 of 29.0million and considering a capital expenditure programme carried out in the quarter ended 31March 2021 of which 0.3million

142、 was spent.The Cambourne asset is funded by way of a 12.6million(as at 31March 2021)non-recourse bank debt facility which matures on 6 September 2023.ARC is the investment manager to the joint venture owning the Cambourne property and continues to pursue opportunities to add value to the investment.

143、Investment review(continued)Alpha Real Trust Limited:Annual report 202120Investment review(continued)Cash balances InvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesCash balance*Cash67.7m0.1%*On call and current accountsn/a*Group cash of 68.2m exclu

144、ding cash held with the Hamburg holding company(0.5m)*Weighted average interest earned on call accounts As at 31March 2021,the Group had cash balances of 68.2million(31March 2020:46.1million),excluding cash held with the Hamburg holding company(0.5million).The Groups cash is held with established in

145、ternational banks such as Barclays PLC,BGL BNP Paribas,Lloyds PLC and RBSInternational.Other investmentsGalaxia,National Capital Region,NOIDA,India InvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesGalaxiaJoint venture in arbitrationNiln/aDevelopmen

146、t site located in NOIDA,Delhi,NCRLegal process underway to recover investment by enforcing arbitrationawardAs announced in February 2020,the Supreme Court of India ruled in favour of ARTs dispute regarding its Galaxia investment,a 50:50 joint venture with Logix Group(“Logix”)that owns an 11.2 acre d

147、evelopment site located in NOIDA,the National Capital Region,India.In upholding the arbitration award in favour of ART and dismissing Logixs appeal,the Supreme Court ordered Logix to pay ART a total of INR 860million(8.5million at the year end exchange rate).ART successfully recovered in excess of t

148、he full amount of its capital originally invested into the Galaxia jointventure.The court permitted Logix to sell the Galaxia site,which was previously charged in favour of ART,to raise capital.Apurchaser for the site has been identified who,during November 2020,deposited INR 568million with the Sup

149、reme Court towards the sale price.The potential purchaser is seeking an amendment of development consents and payment obligations in relation to the land.The release of the funds deposited with the Supreme court to ART is dependent on how the sale process advances.Failure to recover the proceeds fro

150、m a sale would mean that Logix would be required to pay the remainder of the liability due to ART under the court award of INR 568million(5.6million at the year end exchange rate)plus a higher interest rate applicable under the arbitration award.ART continues to actively pursue its claim to collect

151、the balance of the arbitration award.Given the uncertainty about the quantum and timing of any future recovery,the Company carried the joint venture in arbitration in its accounts as at 31March 2021 at nil value.Any future receipt will be accounted for as a capital gain from the joint venture.Alpha

152、Real Trust Limited:Annual report 202121Investment review(continued)SummaryART is well positioned to take advantage of new investment opportunities and,while adhering to its disciplined investment principles,is actively seeking to grow its diversified loan portfolio.Brad Bauman and Gordon Smith For a

153、nd on behalf of the Investment Manager 10 June 2021Secured lending:Greenfield,MusselburghAlpha Real Trust Limited:Annual report 202122David Jeffreys Chairman Aged 61David Jeffreys qualified as a Chartered Accountant with Deloitte Haskins and Sells in 1985.He works as an independent non-executive dir

154、ector to a number of Guernsey based investment fund companies and managers and is a Guernsey resident.From 2007 until 2009 David was the Managing Director of EQT Funds Management Limited,the Guernsey management office of the EQT group of private equity funds.He was previously the Managing Director o

155、f Abacus Fund Managers(Guernsey)Limited between 1993 and 2004,a third-party administration service provider to primarily corporate and fund clients.Phillip Rose Director Aged 61Phillip Rose is a Fellow of the Securities Institute and holds a Master of Law degree.He has over 40 years experience in th

156、e real estate,funds management and banking industries in Europe,the USA and Australasia.He has been the Head of Real Estate for ABNAMRO Bank,Chief Operating Officer of European shopping centre investor and developer TrizecHahn Europe,Managing Director of retail and commercial property developer and

157、investor Lend Lease Global Investment and Executive Manager of listed fund General Property Trust.Phillip is currently CEO of Alpha Real Capital LLP and has been a member of the Management Committee for Hermes Property Unit Trust and its Audit Committee,and has been a Non-Executive Director of Great

158、 Portland Estates plc.William Simpson Director Aged 65William Simpson has over 30 years experience as a lawyer in financial services.His focus has been on regulated and unregulated investment vehicles,encompassing banking,finance,corporate,investment,trust and regulatory work.William studied law at

159、Leeds University and practised at the Bar in England before moving to the Cayman Islands and then the British Virgin Islands.William was a partner at Ozannes,now Mourant,and then managing partner of Ogier Guernsey,during which time he also served on the Ogier Group board.In 2017 William became an in

160、dependent consultant and remains a director of a number of Guernsey based financial services companies.William is a member of the English,Virgin Islands and Guernsey Bars and is also a member of The Society of Trust and Estate Practitioners.Jeff Chowdhry Director Aged 60 Jeff is currently a Partner

161、at RLC Ventures,an early stage,software focused,VC fund.He has an investment career which spans over 35 years having held senior positions at F&C,as head of emerging markets and BMO Asset Management where he was responsible for AUM of over$5billion.He is an active Angel investor having backed over 3

162、0 start-up companies and has several board advisory positions within these rapidly growing businesses.Mel TorodeDirector Aged 41 Mel Torode has 20 years experience in the fund administration industry specifically including private equity,property and mezzanine debt and is a Non-Executive Director fo

163、r Ocorian Guernsey(formerly Estera).Prior to founding Morgan Sharpe in April 2008(a fund administration company sold to Estera in 2017),Mel was the Company Secretary of Assura Administration,overseeing the administration of listed property funds.During the period from 2017 to 2020,Mel held the roles

164、 of Operations Director of Ocorian Guernsey and subsequently Managing Director of Ocorian Guernsey,overseeing the integration,transformation and strategic growth of the fund and fiduciarybusinesses.Mel began her career at Guernsey International Fund Managers(now Northern Trust),working on large priv

165、ate equity funds and European holding companies,moving to Mourant International Finance Administration(now State Street)where she spent more than two years concentrating primarily on listed property funds.DirectorsAlpha Real Trust Limited:Annual report 202123The Directors present their report and fi

166、nancial statements of the Group for the year ended 31March 2021.Principal activities and statusDuring the year,the Company,an authorised closed-ended Guernsey registered investment company,carried on business as an investment company,investing in direct property,development,financing and other oppor

167、tunities in real estate,real estate operating companies and securities,real estate services,infrastructure,infrastructure services,other asset-backed businesses and related operations and servicesbusinesses.The Companys shares are traded on the Specialist Fund Segment(“SFS”)of the London Stock Excha

168、nge(“LSE”).Business review,results and dividendA review of the business during the year is contained in the Chairmans Statement on pages 4 to 7.The results for the year to 31March 2021 are set out in the financial statements.On 26 February 2021,the Company declared a dividend of 1.0pper share,which

169、was paid to shareholders on 9 April 2021.The intention of the Company is to pay a dividend quarterly.Share buybacksUnder the general authority,approved by Shareholders on 7August 2020,Shareholders approved a resolution giving the Company a general authority to buy back Ordinary Shares.Under this aut

170、hority,the Company purchased 103,623 shares in the market at the average price of 1.61 per share during the twelve month period ended 31March 2021:these shares are held in treasury.Post year end,the Company purchased 26,936 shares in the market at the average price of 1.62 per share:these shares are

171、 held in treasury.As at the date of this announcement,the ordinary share capital of the Company is 63,056,829(including 2,071,356 ordinary shares held in treasury)and the total voting rights in the Company are 60,985,473.Scrip dividend alternativeIn the circular published on 18 December 2018,the Com

172、pany sought shareholders approval to enable a scrip dividend alternative to be offered to ordinary shareholders whereby they could elect to receive additional ordinary shares in lieu of a cash dividend,at the absolute discretion of the Directors,from time to time.This was approved by shareholders at

173、 the extraordinary general meeting on 8 January 2019.The number of ordinary shares that an ordinary shareholder will receive under the scrip dividend alternative will be calculated using the average of the closing middle market quotations of an ordinary share for five consecutive dealing days after

174、the day on which the ordinary shares are first quoted“ex”the relevantdividend.The Board elected to offer the scrip dividend alternative to shareholders for the dividend for the quarter ended 31December 2020:for this period,scrip dividend alternative elections were received in respect of 49,732,297 s

175、hares of the Company,which has resulted in the issue of 310,822 new ordinary shares in April 2021.Further details on dividends are given in note 8 of the financial statements.Corporate governanceAs a Guernsey registered company traded on SFS,the Company is not required to comply with the UK Corporat

176、e Governance Code(“UK Code”).However,as a company authorised by the Guernsey Financial Services Commission(“GFSC”),it is required to follow the principles and guidance set out in the Finance Sector Code of Corporate Governance issued by the GFSC and effective from 1 January 2012(re-issued in 2016,ef

177、fective from 1 April 2016 year ends onwards)(“Guernsey Code”).Compliance with the Guernsey Code and general principles of good corporate governance are reviewed by the Board at least annually and,at the date of signing these financial statements,the Board is satisfied that the Company is fully compl

178、iant with the Guernsey Code.The Guernsey Code is available for consultation on the GFSC website:www.gfsc.gg.The BoardBiographies of the Directors are set out on page 22.The Directors interests in the shares of the Company as at 31March 2021 are set out below:Number of ordinaryshares 31March 2021Numb

179、er of ordinaryshares 31March 2020David Jeffreys15,36215,082Phillip Rose933,867908,691Jeff Chowdhry5,0005,000Melanie Torode-William Simpson18,00018,000Post year end,Phillip Rose increased his shareholding in ART to 939,047 ordinary shares.Directors and corporate governance reportAlpha Real Trust Limi

180、ted:Annual report 202124Directors and corporate governance report(continued)Non-executive directors are not appointed for specified terms;appointments of Board members can be terminated at any time without penalty and the Companys Articles of Association(“Articles”)require each Director to retire an

181、d submit himself/herself to re-election by the shareholders at every third year.In addition,the Board believes that continuity and experience add to its strength.The Annual General Meeting of the Company will take place on 6 August 2021.At this meeting,Melanie Torode will retire and submit herself f

182、or re-election.The remainder of the Board recommend her re-appointment.Individual Directors may seek independent legal advice in relation to their duties on behalf of the Company.Operations of the BoardThe Board has determined that its role is to consider and determine the following principal matter

183、s which it considers are of strategic importance to the Company:1)Review the overall objectives for the Company and set the Companys strategy for fulfilling those objectives within an appropriate risk framework2)Consider any shifts in strategy that it considers may be appropriate in light of market

184、conditions3)Review the capital structure of the Company including consideration of any appropriate use of gearing both for the Company and in any joint ventures in which the Company may invest from time to time4)Appoint the Investment Manager,Administrator and other appropriately skilled service pro

185、viders and monitor their effectiveness through regular reports and meetings5)Review key elements of the Companys performance including Net Asset Value and payment of dividends.At Board meetings,the Board ensures that all the strategic matters are considered and resolved by the Board.Certain issues a

186、ssociated with implementing the Companys strategy are delegated either to the Investment Manager or the Administrator.Such delegation is over minor incidental matters,and the Board continually monitors the services provided by these independent agents.The Board considers matters that are significant

187、 enough to be of strategic importance and are therefore reserved solely for the Board(e.g.all acquisitions,all disposals,significant capital expenditure,leasing and decisions affecting the Companys financial gearing).The Board meets at least quarterly and as required from time to time to consider sp

188、ecific issues reserved for decision by the Board,as noted above.At the Boards quarterly meetings,it considers papers circulated in advance including reports provided by the Investment Manager and the Administrator.The Investment Managers report comments on:The property and debt markets of the UK,Eur

189、ope and India including recommendations for any changes in strategy that the Investment Manager considers may be appropriate Performance of the Groups portfolio and key asset management initiatives Transactional or lending activity undertaken over the previous quarter and being contemplated for the

190、future The Groups financial position including relationships with bankers,borrowers and lenders.These reports enable the Board to assess the success with which the Groups investment strategy and other associated matters are being implemented and also consider any relevant risks and to consider how t

191、hey should be properly managed.The Companys service providers issue reports on their own internal controls and these reports are considered by the Board periodically.In between its regular quarterly meetings,the Board has also met on a number of occasions during the year to approve specific transact

192、ions and for other matters.Board and Directors appraisalsThe Board carries out an annual review of its composition and performance(including the performance of individual Directors)and that of its standing committees.Such appraisal includes reviewing the performance and composition of the Board(and

193、whether it has an appropriate mix of knowledge,skills and experience),the relationships between the Board and the Investment Manager and Administrator,the processes in place and the information provided to the Board and communication between Board members.Board Meeting attendanceThe table below show

194、s the attendance at Board meetings during the year to 31March 2021:DirectorNo of meetings attendedDavid Jeffreys13Phillip Rose5Jeff Chowdhry9Melanie Torode14William Simpson15No.of meetings during the year16Alpha Real Trust Limited:Annual report 202125Directors and corporate governance report(continu

195、ed)Directors and officers insuranceAn appropriate level of Directors and officers insurance is maintained whereby Directors are indemnified against liabilities to third parties to the extent permitted by Guernsey companylaw.Board CommitteesThe Board has established three standing committees,all of w

196、hich operate under detailed terms of reference,copies of which are available on request from the Company Secretary.Audit and Risk CommitteeThe Audit and Risk Committee consists of David Jeffreys(Chairman),Jeff Chowdhry and William Simpson.The Board is satisfied that David Jeffreys continues to have

197、the requisite recent and relevant financial experience to fulfil his role as Chairman of the Audit and Risk Committee.Role of the CommitteeThe role of the Audit and Risk Committee,which meets at least twice a year,includes:The engagement,review of the work carried out by and the performance of the G

198、roups external auditor To monitor and review the independence,objectivity and effectiveness of the external auditor To develop and apply a policy for the engagement of the external audit firm to provide non-audit services To assist the Board in discharging its duty to ensure that financial statement

199、s comply with all legal requirements To review the Groups financial reporting and internal control policies and to ensure that the procedures for the identification,assessment and reporting of risks are adequate To review regularly the need for an internal audit function To monitor the integrity of

200、the Groups financial statements,including its annual and half-year reports and announcements relating to its financial performance,reviewing the significant financial reporting issues and judgements which they contain To review the consistency of accounting policies and practices To review and chall

201、enge where necessary the financial results of the Group before submission to the Board.The Audit and Risk Committee makes recommendations to the Board which are within its terms of reference and considers any other matters as the Board may from time to time refer to it.Members of the Audit and Risk

202、Committee may also,from time to time,meet with the Groups independent property valuers to discuss the scope and conclusions of their work.Committee meeting attendanceDirectorNo of meetings attendedDavid Jeffreys3William Simpson3Jeff Chowdhry2No.of meetings during the year3Policy for non-audit servic

203、esThe Committee has adopted a policy for the provision of non-audit services by the Companys external auditor,BDO Limited,and reviews and approves all material non-audit related services in accordance with the need to ensure the independence and objectivity of the external auditor.No services,other

204、than audit-related ones,were carried out by BDO Limited during the year.Internal auditThe Board relies upon the systems and procedures employed by the Investment Manager and the Administrator which are regularly reviewed and are considered to be sufficient to provide it with the required degree of c

205、omfort.Therefore,the Board continues to believe that there is no need for an internal audit function,although the Audit and Risk Committee considers this annually,reporting its findings to the Board.Nomination Committee and attendanceThe Nomination Committee consists of David Jeffreys(Chairman),Phil

206、lip Rose and Melanie Torode.The Committees principal task is to review the structure,size and composition of the Board in relation to its size and position in the market and to make recommendations to fill Board vacancies as they arise and it meets at least annually.It met once during the year and a

207、ll Committee members were present.Remuneration Committee and attendanceThe Remuneration Committee consists of Melanie Torode(Chairman),Jeff Chowdhry and David Jeffreys.The Board has approved formal terms of reference for the Committee and a copy of these is available on request from the Company Secr

208、etary.As the Company comprises only non-executive directors,the Committees main role is to determine their remuneration within the cap set out in the Companys Articles.It met once during the year and all Committee members were present.Alpha Real Trust Limited:Annual report 202126Directors and corpor

209、ate governance report(continued)Remuneration reportThe aggregate fees payable to the Directors are limited to 200,000 per annum under the Companys Articles and the annual fees payable to each Director have been increased by only 10%(Chairman)and 15%(other Directors)since the Companys shares were lis

210、ted in 2006.The fees payable to the Directors are expected to reflect their expertise,responsibilities and time spent on the business of the Group,taking into account market equivalents,the activities,the size of the Group and market conditions.Under their respective appointment letters,each Directo

211、r is entitled to an annual fee together with a provision for reimbursement for any reasonable out of pocketexpenses.During the year the Directors received the following emoluments in the form of fees from Group companies:Year ended 31March 2021 Year ended 31March 2020 David Jeffreys36,00036,000Phill

212、ip Rose25,00025,000Jeff Chowdhry25,00025,000William Simpson25,00025,000Melanie Torode*62,33550,375Total173,335161,375*This comprises 25,000 for the ARTs directorship plus fees for directorships of ARTs subsidiaries and joint ventures Internal control and risk managementThe Board understands its resp

213、onsibility for ensuring that there are sufficient,appropriate and effective systems,procedures,policies and processes for internal control of financial,operational,compliance and risk management matters in place in order to manage the risks which are an inherent part of business.Such risks are manag

214、ed rather than eliminated in order to permit the Company to meet its financial and otherobjectives.The Board reviews the internal procedures of both its Investment Manager and its Administrator upon which it is reliant.The Investment Manager has a schedule of matters which have been delegated to it

215、by the Board and upon which it reports to the Board on a quarterly basis.These matters include quarterly management accounts and reporting both against key financial performance indicators and its peer group.Further,a compliance report is produced by the Administrator for the Board on a quarterly ba

216、sis.The Company maintains a risk management framework which considers the non-financial as well as financial risks and this is reviewed by the Audit and Risk Committee prior to submission to the Board.Investment management agreementThe Company has an agreement with the Investment Manager.This sets o

217、ut the Investment Managers key responsibilities,which include proposing a property investment strategy to the Board,identifying property investments to recommend for acquisition and arranging appropriate lending facilities.The Investment Manager is also responsible to the Board for all issues relati

218、ng to property asset management.Substantial shareholdingShareholders with holdings of more than 3 per cent of the voting rights of the Company as at 17 May 2021 were as follows:Name of investorNo.of voting rights%heldAlpha Global Property Securities Fund Pte.Ltd23,740,59338.93%Rockmount Ventures Ltd

219、20,300,07133.29%Miton Global Opportunities2,650,0004.35%Shareholder relationsThe Board places high importance on its relationship with its shareholders,with members of the Investment Managers Investment Committee making themselves available for meetings with key shareholders and sector analysts.Repo

220、rting of these meetings and market commentary is received by the Board on a quarterly basis to ensure that shareholder communication fulfils the needs of being useful,timely and effective.One or more members of the Board and the Investment Manager will be available at the Annual General Meeting to a

221、nswer any questions that shareholders attending may wish to raise.Directors Responsibilities StatementThe Directors are responsible for preparing the annual report and the financial statements in accordance with the applicable law and regulations.Company law requires the Directors to prepare financi

222、al statements for each financial year,which give a true and fair view of the state of affairs of the Group at the end of the year and of the profit or loss of the Group for that year.In preparing those financial statements,the Directors are required to:1)select suitable accounting policies and then

223、apply them consistently;2)make judgements and estimates that are reasonable andprudent;3)state whether applicable accounting standards have been followed,subject to any material departures disclosed and explained in the financial statements;andAlpha Real Trust Limited:Annual report 2021274)prepare t

224、he financial statements on the going concern basis unless it is appropriate to assume that the Group will not continue in business.So far as each of the Directors is aware,there is no relevant information of which the Groups auditor is unaware,and they have taken all the steps they ought to have tak

225、en as Directors to make themselves aware of any relevant information and to establish that the Groups auditor is aware of that information.The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and w

226、hich enable them to ensure that the financial statements comply with the Companies(Guernsey)Law,2008.They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.The Directors confirm that

227、they have complied with the above requirements in preparing the financial statements.Going concern and Covid-19 pandemicThe Company has not been isolated from the ubiquitous impact of the Covid-19 pandemic on global economies in the past year.The Companys long term strategy remains resilient.The Com

228、pany adopted a prudent short term strategy to move to cash conservation and a cautious approach to commitments to new investments during the financial year.Alert to the impact of potentially reducing income returns,this approach supported a robust balance sheet position during these uncertain times.

229、Investment in new lending and growing the Companys diversified loan portfolio has recommenced and remains a key focus.As noted above,the Company holds approximately 53.9%of its assets currently in cash with no current contractual capital commitments.While there is external financing in the Groups in

230、vestment interests,this is limited and non-recourse to the Company;the borrowings in these special purpose vehicles are compliant with their banking covenants.While the Boards dividend policy intention is unchanged the Company continues to actively monitor its investments and the impact of these unu

231、sual economic circumstances on earnings and dividends.See the investment review section for more details on the pandemics impact on relevant investments.Bearing in mind the nature of the Groups business and assets,after making enquiries,with the support of revenue forecasts for the next twelve month

232、s and considering the above,the Directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future.For this reason,they continue to adopt the going concern basis in preparing the financial statements.Annual General MeetingThe AGM of the Company w

233、ill be held in Guernsey at 9.00 am on 6 August 2021 at Floor 2,Trafalgar Court,Les Banques,StPeter Port,Guernsey.The meeting will be held to receive the Annual Report and Financial Statements,re-elect Directors and propose the reappointment of the auditor and that the Directors be authorised to dete

234、rmine the auditors remuneration.Independent AuditorBDO Limited has expressed its willingness to continue in office as auditor.David Jeffreys DirectorMelanie Torode Director By order of the Board,10 June 2021Directors and corporate governance report(continued)Alpha Real Trust Limited:Annual report 20

235、2128Each of the Directors,whose names and functions are listed in the Directors and corporate governance report confirm that,to the best of each persons knowledge and belief:The financial statements,prepared in accordance with IFRSs as adopted by the EU,give a true and fair view of the assets,liabil

236、ities,financial position and profit of the Group,and The Chairmans statement and the investment review include a fair review of the development and performance of the business and the position of the Group and note 26 to the financial statements provides a description of the principal risks and unce

237、rtainties that the Group faces.Brexit and the Covid-19 pandemic are also considered to be a significant risk and uncertainty for the Group(page 7)that the Board will continue to monitor.David Jeffreys DirectorMelanie Torode Director By order of the Board,10 June 2021Directors statement pursuant to t

238、he Disclosure and Transparency RulesAlpha Real Trust Limited:Annual report 202129Opinion on the financial statementsIn our opinion,the financial statements of Alpha Real Trust Limited(“the Parent Company”)and its subsidiaries(the“Group”):give a true and fair view of the state of the Groups affairs a

239、s at 31March 2021 and of its profit for the year then ended;have been properly prepared in accordance with International Financial Reporting Standards(“IFRS”)as adopted by the European Union;and have been properly prepared in accordance with the requirements of the Companies(Guernsey)Law,2008.We hav

240、e audited the financial statements of the Group for the year ended 31March 2021 which comprise the Consolidated Statement of Comprehensive Income,the Consolidated Balance Sheet,the Consolidated Cash Flow Statement,the Consolidated Statement of Changes in Equity and notes to the financial statements,

241、including a summary of significant accounting policies.The financial reporting framework that has been applied in their preparation is applicable law and IFRS as adopted by the European Union.Basis for opinionWe conducted our audit in accordance with International Standards on Auditing(UK)(ISAs(UK)a

242、nd applicable law.Ourresponsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Our

243、audit opinion is consistent with the additional report to the audit committee.IndependenceWe remain independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,including the FRCs Ethical Standard as

244、applied to listed entities,and we have fulfilled our other ethical responsibilities in accordance with these requirements.Conclusions relating to going concern In auditing the financial statements,we have concluded that the Directors use of the going concern basis of accounting in the preparation of

245、 the financial statements is appropriate.Our evaluation of the Directors assessment of the Group and the Parent Companys ability to continue to adopt the going concern basis of accounting included:Obtaining those charged with governance and managements paper in respect of going concern and challengi

246、ng this,based on our knowledge of the Group,with both those charged with governance and management.Consideration of the cash available together with the expected annual running expenses of the Company and determining whether these assumptions were reasonable based on our knowledge of the Company.Per

247、forming our own sensitivity analysis of the headroom of the investment portfolio over the annual running expenses.Reviewing the minutes of meetings of those charged with governance,the RNS announcements and the compliance reports for indication of any events or conditions which may impact on going c

248、oncern.Based on the work we have performed,we have not identified any material uncertainties relating to events or conditions that,individually or collectively,may cast significant doubt on the Groups ability to continue as a going concern for a period of at least twelve months from when the financi

249、al statements are authorised for issue.Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.Overview Key audit matters (2021 and 2020)Property valuations Loans advanced and IFRS 9MaterialityGroup financial

250、statements asawhole2,023,000(2020:2,060,000)based on 1.5%(2020:1.5%)oftotalassets.Independent auditors reportTo the Members of Alpha Real Trust LimitedAlpha Real Trust Limited:Annual report 202130Independent auditors report(continued)An overview of the scope of our auditOur Group audit was scoped by

251、 obtaining an understanding of the Group and its environment,including the Groups system of internal control,and assessing the risks of material misstatement in the financial statements.We also addressed the risk of management override of internal controls,including assessing whether there was evide

252、nce of bias by the Directors that may have represented a risk of material misstatement.We tailored the scope of our audit taking into account the nature of the Groups investments,involvement of the Investment Manager,the accounting and reporting environment and the industry in which the Group operat

253、es.This assessment took into account the likelihood,nature and potential magnitude of any misstatement.As part of this risk assessment,we considered the Groups interaction with the Investment Manager.We assessed the control environment in place within the Group to the extent that it was relevant to

254、our audit.Following this assessment,we applied professional judgement to determine the extent of testing required over each balance in the financial statements.The Group consists of the Parent Company,numerous subsidiaries and two joint venture entities.We concluded that the most effective audit app

255、roach to the Group,with the exception of the joint venture structures,was to audit the consolidated financial statements as if they were one entity,during which we have performed audit procedures on all key risk areas.The materiality applied was that calculated above,which had been based on the cons

256、olidated financialinformation.For the H2O joint venture entity,we assessed the main property holding company within this structure to be a significant component.This component was subject to a full scope audit and was completed by a component auditor.For the remaining joint venture entity,we conclud

257、ed that it was significant due to risks identified only and not due to size.This component was not subject to a full scope audit but instead we performed audit procedures over all of the risk areas identified.Our involvement with component auditorsFor the work performed by the component auditor of t

258、he H2Ojoint venture entity,we determined the level of involvement needed in order to be able to conclude whether sufficient appropriate audit evidence has been obtained as a basis for our opinion on the Group financial statements as a whole.We issued group instructions to the component auditor and r

259、eviewed the key risk areas of their work.In addition to the work performed by the component auditor,we have also performed our own audit procedures on the property valuation.Key audit mattersKey audit matters are those matters that,in our professional judgement,were of most significance in our audit

260、 of the financial statements of the current period and include the most significant assessed risks of material misstatement(whether or not due to fraud)that we identified,including those which had the greatest effect on:the overall audit strategy,the allocation of resources in the audit,and directin

261、g the efforts of the engagement team.These matters were addressed in the context of our audit of the financial statements as a whole,and in forming our opinion thereon,and we do not provide a separate opinion on these matters.Alpha Real Trust Limited:Annual report 202131Independent auditors report(c

262、ontinued)Key audit matterHow the scope of our audit addressed the key audit matterProperty valuations (notes 2(b)(a),12,13 and 27)The Group holds several investment properties within its subsidiaries and joint venture structures.All properties have been valued using either:an independent RICS valuat

263、ion performed by independent valuers.This is the case for 14.9million(100%)of the investment properties and 30.6million(91%)of the share of properties within joint venture structures;or directors valuation.This is the case for 2.9million(9%)of the share of properties within joint venture structures.

264、Such property valuations are a highly subjective area as the valuers will make judgements as to property yields,quality of tenants,development costs and other variables to arrive at the current open market value of the property.Such subjectivity and judgements are greater this year due to the Covid-

265、19 pandemic.As disclosed in note 2(b)(a)which explains that as a result of the impact of Covid-19 on the market,certain valuers have advised that less certainty,and a higher degree of caution,should be attached to their valuation than would normally be the case.Any input inaccuracies or unreasonable

266、 bases used in the valuation judgements(such as in respect of estimated rental value and yield profile applied)could result in a material misstatement of the Consolidated Statement of Comprehensive Income and the Consolidated Balance Sheet.Independent valuationsFor all independent property valuation

267、s,we evaluated the competence of the external valuers,which included consideration of their qualifications and expertise.We discuss the valuers terms of engagement with the Group to determine whether there were any matters that might have affected their objectivity or may have imposed scope limitati

268、ons upon their work.We have read the valuation reports for the properties,noted the material uncertainty clauses inserted as result of the impact of Covid-19 on the property markets,discussed the basis of the property valuations,including the Covid-19 impact,with the valuers to understand the proces

269、s undertaken by them and confirmed that the valuations were prepared in accordance with professional valuation standards and IFRS.We have considered the reasonableness,and where appropriate agreed through to supporting documentation(for example rental income)of the inputs used by the valuers in the

270、valuations,such as the terms of void periods,rent free periods and other assumptions that impact the value.Directors valuationsFor the directors valuations we obtained the directors valuation of these assets and noted that the valuation was based on a third-party valuation undertaken as at 31Decembe

271、r 2020.We challenged whether the property market had moved since this date to the 31March 2021 by considering external publicly available market reports together with the market information provided by management.DisclosuresWe reviewed and obtained support for the disclosures in relation to property

272、 valuations within note 2(b)(a),12,13 and in particular note 27(sensitivities)given the“Material Uncertainty”paragraphs within the valuations reports“.Key observationsBased on the procedures performed,we did not identify any indications to suggest that the judgements made in respect of the property

273、valuations were unreasonable and we consider the disclosures to be appropriate.Alpha Real Trust Limited:Annual report 202132Independent auditors report(continued)Key audit matterHow the scope of our audit addressed the key audit matterLoans advanced and IFRS 9 (note 2(b)(c)and 17)The Groups activiti

274、es include advancing senior loans and mezzanine loans secured over real estate assets.The amounts advanced represent a material balance in the financial statements and IFRS 9 requires losses to be recognised on an expected,forward looking basis,reflecting the Groups view of potential future economic

275、 events.As a result,the Groups IFRS 9 methodology incorporates a number of estimates to determine the expected credit loss provisions.Through challenge,discussion and review of example scenarios,we gained a detailed understanding of,and evaluated,the expected credit loss methodology applied by manag

276、ement.This was undertaken with reference to accounting standards and industry practice.We then tested the methodology used in determining the amortised cost amount and recognition of any impairment loss.Our testing included:updating our understanding of the expected credit loss methodology used unde

277、r IFRS 9;reviewing the methodology,including key assumptions and parameters,to ensure it is in line with IFRS 9 and appropriate,given our understanding of the loans advanced;obtaining and reviewing all loan agreements to confirm the appropriateness of all loans except 1 being classified as stage 3 d

278、ue to the repayable on demand feature.obtaining and challenging,through discussion,the updates made to the existing methodology to appropriately reflect the changes required due to Covid-19,for example increasing the probability of default and also the consequential loss.obtaining underlying support

279、ing documentation,on a sample basis,we tested the inputs that drive the economic scenario applied to the loans.undertaking procedures to ensure that the ECL model applied by management was mathematically accurate;challenging managements expected credit loss output in light of the Covid-19 pandemic o

280、n individual loans and whether manual adjustments were required over the mechanical model.DisclosuresWe reviewed the disclosures made in relation to the expected credit loss assessment within note 2(b)(c)to the financial statements and consider these to be appropriate given that expected credit loss

281、es are not material to the financial statements.Key observationsBased on the procedures performed,we did not identify any indications to suggest that the expected credit losses were materially misstated and we consider the disclosures to be appropriate.Alpha Real Trust Limited:Annual report 202133In

282、dependent auditors report(continued)Our application of materialityWe apply the concept of materiality both in planning and performing our audit,and in evaluating the effect of misstatements.We consider materiality to be the magnitude by which misstatements,including omissions,could influence the eco

283、nomic decisions of reasonable users that are taken on the basis of the financial statements.In order to reduce to an appropriately low level the probability that any misstatements exceed materiality,we use a lower materiality level,performance materiality,to determine the extent of testing needed.Im

284、portantly,misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements,and the particular circumstances of their occurrence,when evaluating their effect on the financial statements as a whole.Based on our professio

285、nal judgement,we determined materiality for the financial statements as a whole and performance materiality as follows:Group financial statements20212020Materiality2,023,0002,060,000Basis for determining materiality1.5%of total assetsRationale for the benchmark appliedDue to it being an investment f

286、und with the objective of long-term capital growth with investment values being a key focus of users of the financial statements.Performance materiality1,517,0001,545,000Basis for determining performance materiality75%of materiality This was determined using our professional judgement and took into

287、account the complexity of the group and our long-standing knowledge of the engagement together with a history of minimal errors and adjustments.Specific materialityWe also determined that for sensitive fees including:management fees,performance fees,legal fees,directors fees and audit fees,a misstat

288、ement of less than materiality for the financial statements as a whole,specific materiality,could influence the economic decisions of users.As a result,we determined materiality for these items based on 10%of materiality being 203,000(2020:206,000).We further applied a performance materiality level

289、of 75%of specific materiality to ensure that the risk of errors exceeding specific materiality was appropriately mitigated.Component materialityWe set materiality for the significant component of the Group based on 90%(2020:50%)of Group materiality at based on our assessment of the risk of material

290、misstatement of the component.The percentage applied in the current year was increased to better reflect that the Group only has an economic interest in 30%of the underlying joint venture and hence a higher tolerance for error is possible without a material impact on the financial statements of the

291、Group.Component materiality was set at 1,822,050(2020:1,018,250).In the audit of the component,we further applied performance materiality levels of 75%of the component materiality to our testing to ensure that the risk of errors exceeding component materiality was appropriately mitigated.Reporting t

292、hreshold We agreed with the Audit Committee that we would report to them all individual audit differences in excess of 60,700(2020:61,000).We also agreed to report differences below this threshold that,in our view,warranted reporting on qualitativegrounds.Other informationThe Directors are responsib

293、le for the other information.The other information comprises the information included in the annual report and financial statements,other than the financial statements and our auditors report thereon.Our opinion on the financial statements does not cover the other information and,except to the exten

294、t otherwise explicitly stated in our report,we do not express any form of assurance conclusion thereon.Our responsibility is to read the other information and,in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

295、course of the audit,or otherwise appears to be materially misstated.If we identify such material inconsistencies or apparent material misstatements,we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.If,based on the work we have perf

296、ormed,we conclude that there is a material misstatement of this other information,we are required to report that fact.We have nothing to report in this regard.Alpha Real Trust Limited:Annual report 202134Independent auditors report(continued)Other Companies(Guernsey)Law,2008 reportingWe have nothing

297、 to report in respect of the following matters where the Companies(Guernsey)Law,2008 requires us to report to you if,in our opinion:proper accounting records have not been kept by the ParentCompany;or the Parent Company financial statements are not in agreement with the accounting records;or we have

298、 failed to obtain all the information and explanations which,to the best of our knowledge and belief,are necessary for the purposes of our audit.Responsibilities of DirectorsAs explained more fully in the directors Responsibilities Statement within the Directors and Corporate Governance Report,the D

299、irectors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view,and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement,whethe

300、r due to fraud or error.In preparing the financial statements,the Directors are responsible for assessing the Companys ability to continue as a going concern,disclosing,as applicable,matters related to going concern and using the going concern basis of accounting unless the Directors either intend t

301、o liquidate the Company or to cease operations,or have no realistic alternative but to do so.Auditors responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,whe

302、ther due to fraud or error,and to issue an auditors report that includes our opinion.Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with ISAs(UK)will always detect a material misstatement when it exists.Misstatements can arise from frau

303、d or error and are considered material if,individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.Extent to which the audit was capable of detecting irregularities,including fraudIrregularities,i

304、ncluding fraud,are instances of non-compliance with laws and regulations.We design procedures in line with our responsibilities,outlined above,to detect material misstatements in respect of irregularities,including fraud.The extent to which our procedures are capable of detecting irregularities,incl

305、uding fraud is detailed below:Based on our understanding of the Group and the industry in which it operates,we identified that the principal risks of non-compliance with laws and regulations related to its investment activities,and we considered the extent to which non-compliance might have a materi

306、al effect on the Groups financialstatements.We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and have a direct impact on the preparation of the financial statements.We determined that the most significant frameworks which are directly relevant to

307、 specific assertions in the financial statements are those that relate to the reporting framework such as IFRS and the Companies(Guernsey)Law,2008.Weevaluated managements incentives and opportunities for fraudulent manipulation of the financial statements(including the risk of management override of

308、 controls),and determined that the principal risks were related to revenue recognition in relation to the rental income from properties held,revenue recognition in relation to loan interest from loans advanced and management bias and judgement involved in accounting estimates,specifically in relatio

309、n to the valuation of properties and the expected credit loss provisions(the response to which are detailed in our key audit matters above).We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and the component auditor,and remained alert t

310、o any indications of fraud or non-compliance with laws and regulations throughout the audit.Alpha Real Trust Limited:Annual report 202135Independent auditors report(continued)Audit procedures performed by the engagement team to respond to the risks identified included:Discussion with and enquiry of

311、management and those charged with governance concerning known or suspected instances of non-compliance with laws and regulations andfraud;Obtaining an understanding of the internal control environment in place to prevent and detect irregularities;Reading minutes of meetings of those charged with gov

312、ernance,correspondence with the Guernsey Financial Services Commission,internal compliance reports,complaint registers and breach registers to identify and consider any known or suspected instances of non-compliance with laws and regulations and fraud;Recalculating loan interest income based on the

313、underlying loan agreements;and Recalculating the rental income based on the lease agreements and required accounting by IFRS and comparing to that of managements and challenging differences.Our audit procedures were designed to respond to risks of material misstatement in the financial statements,re

314、cognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error,as fraud may involve deliberate concealment by,for example,forgery,misrepresentations or through collusion.There are inherent limitations in the audit proce

315、dures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements,the less likely we are to become awareofit.A further description of our responsibilities is available on the Financial Reporting Councils website

316、 at:https:/www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditors report.The engagement director on the audit resulting in this independent auditors opinion is Justin Hallett.Use of our reportThis report is made solely to the Parent Companys members,as a body,in accordan

317、ce with Section 262 of the Companies(Guernsey)Law,2008.Our audit work has been undertaken so that we might state to the Parent Companys members those matters we are required to state to them in an auditors report and for no other purpose.To the fullest extent permitted by law,we do not accept or ass

318、ume responsibility to anyone other than the Parent Company and the Parent Companys members as a body,for our audit work,for this report,or for the opinions we have formed.Justin Marc Hallett FCA For and on behalf of BDO Limited Chartered Accountants and Recognised Auditor Place du Pr,Rue du Pr,St Pe

319、ter Port,Guernsey10 June 2021Alpha Real Trust Limited:Annual report 202136For the year ended 31March 2021For the year ended 31March 2020 NotesRevenue000Capital000Total000Revenue 000Capital 000Total000IncomeRevenue35,318-5,3186,119-6,119Change in the revaluation of investment property and assets held

320、 for sale13-14-9999-1,1941,194Gains/(losses)on financial assets and liabilities heldat fair value through profit or loss2672400472393(204)189Profit/(loss)on investment property disposal 14-110110-(167)(167)Total income5,3906095,9996,5128237,335ExpensesProperty operating expenses3(86)-(86)(74)-(74)In

321、vestment Managers fee25(2,322)-(2,322)(2,335)-(2,335)Other administration costs 4(1,074)-(1,074)(1,647)-(1,647)Total operating expenses(3,482)-(3,482)(4,056)-(4,056)Operating profit1,9086092,5172,4568233,279Share of profit/(loss)of joint ventures and associates12446(2,973)(2,527)1,579(1,107)472Gain

322、on joint venture in arbitration15-503503-Finance income54-4118-118Finance costs 6(207)(194)(401)(204)(55)(259)Profit/(loss)before taxation2,151(2,055)963,949(339)3,610Taxation7(76)-(76)(93)-(93)Profit/(loss)for the year2,075(2,055)203,856(339)3,517Other comprehensive income/(expense)for the yearItem

323、s that may be classified to profit and loss in subsequent periodsExchange differences arising on translation of foreign operations-(705)(705)-610610Other comprehensive(expense)/income for the year-(705)(705)-610610Total comprehensive income/(expense)for the year2,075(2,760)(685)3,8562714,127Earnings

324、 per ordinary share(basic&diluted)90.0p5.8pAdjusted earnings per ordinary share(basic&diluted)93.4p6.4pThe total column of this statement represents the Groups statement of comprehensive income,prepared in accordance with IFRS.The revenue and capital columns are supplied as supplementary information

325、 permitted under IFRS(see page 41).All items in the above statement derive from continuing operations.The accompanying notes on pages 40 to 66 form an integral part of the financial statements.Consolidated statement of comprehensive incomeAlpha Real Trust Limited:Annual report 202137Notes31March 202

326、100031March 2020000Non-current assetsInvestment property1314,91815,389Joint venture in arbitration15-2,510Investments held at fair value1631139Investment in joint ventures and associates1217,76121,227Loans advanced175,6308,63138,34047,896Current assetsAsset held for sale14-8,065Derivatives held at f

327、air value through profit or loss26-203Loans advanced1727,17731,253Collateral deposit181,1061,364Trade and other receivables19362,427Cash and cash equivalents68,21346,06896,53289,380Total assets134,872137,276Current liabilitiesTrade and other payables20(752)(1,291)Corporation tax7(42)(51)Bank borrowi

328、ngs21(29)(32)(823)(1,374)Total assets less current liabilities134,049135,902Non-current liabilitiesBank borrowings21(7,973)(8,275)Deferred tax7-(7,973)(8,275)Total liabilities(8,796)(9,649)Net assets126,076127,627EquityShare capital22-Special reserve2366,65565,118Translation reserve23(677)28Capital

329、reserve2338,29540,350Revenue reserve 2321,80322,131Total equity126,076127,627Net asset value per ordinary share10207.7p213.7p The financial statements were approved by the Board of Directors and authorised for issue on 10 June 2021.They were signed on its behalf by David Jeffreys and MelanieTorode.T

330、he accompanying notes on pages 40 to 66 form an integral partof the financial statements.Consolidated balance sheetDavid Jeffreys DirectorMelanie Torode Director Alpha Real Trust Limited:Annual report 202138For the year ended 31March 2021000For the year ended 31March 2020000Operating activities Prof

331、it for the year after taxation203,517Adjustments for:Change in revaluation of investment property and assets held for sale(99)(1,194)Net gains on financial assets and liabilities held at fair value through profit or loss(472)(189)(Profit)/loss on investment property disposals(110)167Taxation7693Shar

332、e of profit of joint ventures and associates2,527(472)Gain on joint venture in arbitration(503)-Interest receivable on loans to third parties(4,278)(4,952)Finance income(4)(118)Finance costs401259Operating cash flows before movements in working capital(2,442)(2,889)Movements in working capital:Movem

333、ent in trade and other receivables4102,311Movement in trade and other payables(539)(1,141)Cash flows used in operations(2,571)(1,719)Loan interest received*1,6462,099Loans granted to third parties*(6,329)(24,483)Loans repaid by third parties*16,10923,982Interest received4118Interest paid(192)(188)Tax paid(83)(2,761)Cash flows from/(used in)operating activities 8,584(2,952)Investing activitiesAcqui