Alpha Real Trust Limited (ARTL) 2023年年度報告「LSE」.pdf

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1、Annual reportFor the year ended 31 March 202320231 Highlights2 Companys summary and objective4 Chairmans statement8 Investment review20 Directors21 Directors and corporate governance report26 Directors statement pursuant to the Disclosure and Transparency Rules27 Independent auditors report32 Consol

2、idated statement of comprehensive income33 Consolidated balance sheet34 Consolidated cash flow statement35 Consolidated statement of changes in equity36 Notes to the financial statements64 Directors and Company information65 Shareholder information66 Financial calendarCAlpha Real Trust targets inves

3、tment,development,financing and other opportunities in real estate,real estate operating companies and securities,real estate services,infrastructure,infrastructure services,other assetbacked businesses and related operations and services businesses that offer attractive riskadjusted total returns.A

4、lpha Real Trust Limited:Annual report 20231 Robust financial position:ART continues to adopt a cautious approach to new investment and has conserved cash as a result of the uncertainty that characterised the past year;this has placed the Company on a robust financial footing making it well positione

5、d to take advantage of new investment opportunities.Investment targets:the Company is currently focussed on selectively increasing its loan portfolio and opportunistically extending its wider investment strategy to target investments offering inflation protection via index linked income adjustments

6、and investments that have potential for capital gains.H2O Madrid:signing of a lease with anchor retailer Primark for a new 3,000 square metre store as part of a mall reconfiguration.Diversified portfolio of secured senior and secured mezzanine loan investments:as at 31March 2023,the size of ARTs dra

7、wn secured loan portfolio was 55.4million,representing 44.5%of the investment portfolio.The senior portfolio has an average Loan to Value(LTV)*of 63.5%based on loan commitments(with mezzanine loans having an LTV range of between 48.8%and 78.6%whilst the highest approved senior loan LTV is 72.9%).Loa

8、n commitments:including existing loans at the balance sheet date and loans committed post period end,ARTs current total committed but undrawn loan commitments amount to 9.4million.Cash management:during the period the Company invested 14million in short term UK Treasury Bonds(Gilts)and UK Treasury B

9、ills to enhance returns on its liquid holdings.*See page 4 for more details NAV per ordinary share 216.8p as at 31March2023(31March 2022:216.0p).Basic earnings for the year ended 31March2023 of 1.1p per ordinary share (31March 2022:earnings of 13.3p per ordinary share).Adjusted earnings for the year

10、 ended 31March 2023 of 7.7p per ordinary share(31March2022:4.0p per ordinary share)*.Declaration of a quarterly dividend of 1.0p per ordinary share expected to be paid on 28July 2023.*The basis of the adjusted earnings per share is provided in note 9HighlightsAlpha Real Trust Limited:Annual report 2

11、0232Companys summary and objectiveStrategyART 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 operations and services b

12、usinesses that offer attractive risk-adjusted total returns.ART currently selectively 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 at 31 March 2023,excluding s

13、undry assets/liabilities,was as follows:31 March 202331 March 2022High return debt:44.5%27.3%High return equity in property investments:26.5%18.8%Other investments:15.2%13.1%Cash:13.8%40.8%The Company is currently focussed on selectively increasing its loan portfolio and opportunistically extending

14、its wider investment strategy to target high return property investments offering inflation protection via index linked income adjustments and investments that have potential for capital gains.In a market of higher interest rates and volatility of valuations,alternative credit remains an attractive

15、investment opportunity.As geared asset owners seek to refinance at current valuations in an environment of more conservative lending criteria,higher margins and base rates,requirements will emerge for opportunistic capital to provide mezzanine finance at attractive risk adjusted returns.DividendsThe

16、 current intention of the Directors is to pay a dividend and offer a scrip dividend 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 Al

17、pha Real Capital LLP(“ARC”),whose team of investment and asset management professionals 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 a

18、djusted returns.Control of the Company rests with the non-executive Guernsey based Board of Directors.4.0p Dividend per ordinary share paidduring the period7.7pAdjusted earnings per ordinary share of 7.7p216.8p NAV per ordinary share 216.8pAlpha Real Trust Limited:Annual report 20233Companys summary

19、 and objective(continued)Financial highlights12 months ended 31March 20236 months ended 30 September 202212 months ended 31March 2022Net asset value(000)125,067125,025133,256Net asset value per ordinary share216.8p219.6216.0pEarnings per ordinary share(basic and diluted)1.1p0.4p13.3pEarnings per ord

20、inary share(basic and diluted)(adjusted)*7.7p3.3p4.0pDividend per ordinary share(paid during the period)4.0p2.0p4.0p*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 Investmen

21、t Managers fees,the fair value movements on financial assets and deferred tax provisions:full analysis is provided in note 9 to the accounts.High return investmentsequity in property High return debt OtherCashSecured mezzanine debt 13.3%Secured senior debt 31.2%Cash 13.8%Listed&authorisedfund invest

22、ments3.5%Treasury bondsand bills11.2%Affordable housing0.5%Hamburg 7.0%Hotel,Lowestoft 2.2%Hotel,Wadebridge 3.1%H2O 14.2%26.5%15.2%13.8%44.5%Companys asset allocation by sector and investment(by percentage of Groups NAV,based on the balance sheet carrying values,excluding the Companys sundry assets/

23、(liabilities)as at 31 March 2023(see page 8 for further details).Alpha Real Trust Limited:Annual report 20234I am pleased to present the Companys annual report and accounts for the year ended 31 March 2023.ARTs investment portfolio benefits from diversification across geographies,sectors and asset t

24、ypes.As inflationary pressures increasingly dominate the economic backdrop in which the Company operates,ART remains on a robust financial footing and is well placed to capitalise on new investment opportunities.During the year there has been elevated volatility across the markets in which the Compa

25、ny operates.Inflationary pressures and rising central bank interest rates continue to dominate the economic agenda.The impact of these events on real asset prices is yet to be fully determined.The uncertain market will offer opportunities in the medium term for ART to grow its diversified investment

26、 portfolio.In recent years the Company focused on recycling capital into cashflow driven investments.The Company is currently focussed on its loan portfolio and opportunistically extending its wider investment strategy to target investments offering inflation protection via index linked income adjus

27、tments and investments that have potential for capital gains.ART continues to adhere to its disciplined strategy and investment underwriting principles which seek to manage risk through a combination of operational controls,diversification and an analysis of the underlying asset security.Long leased

28、 assetsThe Companys portfolio of long leased properties,comprising two hotels leased to Travelodge in the UK and an industrial facility in Hamburg,Germany,leased to a leading industrial group are well positioned in the current inflationary environment.The leased assets have inflation linked rent adj

29、ustments which offer the potential to benefit from a long term,predictable,inflation linked income stream and the potential for associated capital growth.Diversified secured lending investmentThe Company invests in a diversified portfolio of secured senior and mezzanine loan investments.The loans ar

30、e typically secured on predominately residential real estate investment and development assets with attractive risk adjusted income returns.As at 31March 2023,ART had committed 72.0million across nineteen loans,of which 55.4million(excluding a 3.7million provision for Expected Credit Loss discussed

31、below)was drawn.The Companys debt portfolio comprises predominately floating rate loans.Borrowing rates are typically set at a margin over Bank of England(BoE)Base Rate and benefit from rising interest rates as outstanding loans deliver increasing returns as loan rates track increases in the BoE Bas

32、e Rate.During the year,six loans totalling 10.7million(including accrued interest and exit fees)were fully repaid and a further 5.2million(including accrued interest)was received as part repayments.Post year end,no new loans were drawn but additional drawdowns of 3.3million were made on existing loa

33、ns,one loan was fully repaid for 1.5million(including accrued interest and exit fees)and part payments for other loans were received amounting to 2.3million(including accrued interest).As at 31March 2023,70.0%of the Companys loan investments were senior loans and 30.0%were mezzanine loans.The portfo

34、lio has an average LTV of 63.5%based on loan commitments(with mezzanine loans having an LTV range of between 48.8%and 78.6%whilst the highest approved senior loan LTV is 72.9%).Portfolio loans are underwritten against value for investment loans or gross development value for development loans as rel

35、evant and collectively referred to as LTV in this report.The largest individual loan in the portfolio as at 31March 2023 is a senior loan of 10.3million which represents 14.3%of committed loan capital and 8.2%of the Companys NAV.William Simpson ChairmanChairmans statementThe Company is currently foc

36、ussed on selectively increasing its loan portfolio and opportunistically extending its wider investment strategy to target high return property investments offering inflation protection via index linked income adjustments and investments that have potential for capital gains.Alpha Real Trust Limited

37、:Annual report 20235Three loans in the portfolio have entered receivership:ART is closely working with stakeholders to maximise capital recovery.The Company has considered the security on these loans(which are a combination of a first charge and a second charge over the respective assets and persona

38、l guarantees)and have calculated an Expected Credit Loss(ECL)on these three loans of approximately 2.9million;the Group have also provided for an ECL on the remainder of the loans portfolio for an additional 0.8million:in total,the Group have provided for an ECL of 3.7million in its consolidated acc

39、ounts.Aside from the isolated cases of receivership,illustrated above,the Companys loan portfolio has proved to be resilient despite the recent extended period of heightened uncertainty and risk.In terms of debt servicing,allowing for some temporary agreed extensions,interest and debt repayments hav

40、e been received in accordance with the loan agreements.Where it is considered appropriate,on a case-by-case basis,underlying loan terms may be extended or varied with a view to maximising ARTs risk adjusted returns and collateral security position.The Companys loan portfolio and new loan targets con

41、tinue to be closely reviewed to consider the potential impact on construction timelines,building cost inflation and sales periods.The underlying assets in the loan portfolio as at 31March 2023 had geographic diversification with a London and Southeast focus.The South East of England(including London

42、)accounted for 49%,of which London accounted for 24%,of the committed capital within the loan investment portfolio.H2O,MadridART has a 30%stake in a joint venture with CBRE Investment Management in the H2O shopping centre in Madrid.H2O occupancy,by area,as at 31March 2023 was 92%.The centres visitor

43、 numbers remain below pre-Covid highs;however,a recovery is evident.In the three months to 31March 2023,visitor numbers were approximately 9.4%below those in 2019(pre-Covid)and 10.0%above 2022.Tenant sales volumes are ahead of pre-Covid levels,with total comparable sales being approximately 12%above

44、 2019 and 2022 levels.During the period,a lease with anchor retailer Primark was signed for a new 3,000 square metre store.The new store will involve a reconfiguration of a mall area which is under commercialised with the unit combining a number of existing vacant units along with space currently us

45、ed as communal mall area.The store is expected to be delivered during 2024.Other investmentsInvestment in listed and authorised fundsThe Company invested a total of 6.0million(value as at 31March 2023:4.3million)across three investments that offered potential to generate attractive risk adjusted ret

46、urns.Current market volatility and rises in interest rates have impacted the capital value of these investments.The investment yield offers a potentially accretive return to holding cash while the Company deploys capital in opportunities in line with its investment strategy.These funds invest in ung

47、eared long-dated leased real estate,debt and infrastructure.During the year,the Company fully divested 5.3million from a further investment,delivering an 8.1%capital return over the holding period.Investment in UK Treasury Bonds and Treasury BillsIn February 2023,the Company invested 7.0million in U

48、K Treasury Bills with maturity 7August 2023 and an annualised yield to maturity of 4.2%(value as at 31March 2023:7.0million)and 7.0million in UK Treasury Bonds earning a 2.25%annual coupon with maturity 7September 2023 and an annualised yield to maturity of 4.0%(value as at 31March 2023:7.0million).

49、Post year end,on 8June 2023,the Company invested a further 6.0million in short dated Treasury Bonds.These government backed short term investments offer the Company enhanced returns over cash balances.Chairmans statement(continued)H2O,MadridAlpha Real Trust Limited:Annual report 20236Chairmans state

50、ment(continued)Results and dividendsResultsBasic earnings for the year ended 31March 2023 are 0.6million(1.1 pence per ordinary share,see note 9 of the financialstatements).Adjusted earnings,which the Board believes is a more appropriate assessment of the operational income accruing to the Groups ac

51、tivities,for the year ended 31March 2023 are 4.5million(7.7 pence per ordinary share,see note 9 of the financial statements).This compares with adjusted earnings of 2.4million(4.0 pence per ordinary share)in the same period last year.Earnings have improved predominantly due to a stronger performance

52、 from the Companys loan portfolio.The net asset value per ordinary share at 31March 2023 is 216.8 pence per share(31March 2022:216.0 pence per ordinary share)(see note 10 of the financial statements).The net positive movement over the period reflects a combination of improved adjusted earnings(less

53、dividends)with positive foreign exchange movements mitigating to a certain extent the fair value movements in investments.DividendsThe Board announces a dividend of 1.0 pence per ordinary share which is expected to be paid on 28July 2023(ex-dividend date 6July 2023 and record date 7July 2023).The di

54、vidends paid and declared in respect of the year ended 31March 2023 totalled 4.0 pence per ordinary share representing an annual dividend yield of 2.9%p.a.by reference to the average closing share price over the year ended 31March2023.During the period,dividends of 355,776 were paid in cash and 2,02

55、3,584 settled by scrip issue of shares.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 to time.The number of ordinary shares that an Ordinary Shareholder will recei

56、ve 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 first quoted“ex”the relevantdividend.The Board has elected to offer the scrip div

57、idend alternative to Shareholders for the dividend for the quarter ended 31March 2023.Shareholders who returned the Scrip Mandate Form and elected to receive the scrip dividend alternative will receive shares in lieu of the next dividend.Shareholders who have not previously elected to receive scrip

58、may complete a Scrip Mandate Form(this can be obtained from the registrar:contact Computershare(details below),which must be returned by 13July 2023 to benefit from the scrip dividend alternative for the next dividend.FinancingAs at 31March 2023 the Group has one direct bank loan of 9.5million(8.4mi

59、llion),with no financial covenant tests,to a subsidiary used to finance the acquisition of the Hamburg property.The loan is secured over the Hamburg property and has no recourse to the other assets of the Group.Further details of individual asset financing can be found under the individual investmen

60、t review sections later in this report.Share buybacksUnder the general authority,approved by Shareholders on 6August 2021,the Company announced a tender offer on 29June 2022 for up to 6,428,353 ordinary shares at a price(before expenses)of 175.0 pence per share.In July 2022,a total of 5,419,016 ordi

61、nary shares were validly tendered under the tender offer.All purchased ordinary shares are held in treasury.During the year,the Company additionally purchased 46,500 shares in the market at an average price of 1.51 per share:these shares are held in treasury.Post period end,the Company made no share

62、 buybacks.As at the date of this announcement,the ordinary share capital of the Company is 65,820,175(including 7,717,581 ordinary shares held in treasury)and the total voting rights in the Company is58,102,594.Secured lending:North LondonAlpha Real Trust Limited:Annual report 20237Chairmans stateme

63、nt(continued)Foreign currencyThe Company monitors foreign exchange exposures and considers hedging where appropriate.Foreign currency balances have been translated at the period end rates of 1:1.137 or 1:INR101.554,as appropriate.Russian invasion of Ukraine and going concernAs previously stated,ART

64、has no investments in Ukraine or Russia,nor exposure to any companies that have investments in,or links to,Ukraine or Russia.ART has no arrangements with any person currently on(or potentially on)any sanctions list,or links to Ukraine or Russia.The Board continues to monitor the global political and

65、 economic situation regularly assessing impacts arising from inflation and interest rates changes for a potential material impact on ARTs portfolio.The Company has adopted a prudent short-term strategy to move to cash conservation and a cautious approach to commitments to new investments over this u

66、ncertain time.Alert to the impact of potentially reducing income returns,this approach has supported a robust balance sheet position.The Company continues to adopt this cautious approach to new investment and is conserving cash because of the uncertainty that has characterised the past few months;th

67、is ensures the Company retains a robust financial footing,making it well positioned to take advantage of new investment opportunities.As noted above,the Company held approximately(as at 31March 2023)13.8%of its assets(excluding sundry net assets)in cash and 11.2%in highly liquid UK Treasury Bonds an

68、d Bills with limited 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 special purpose vehicles are compliant with their banking covenants.See the investment review sect

69、ion for more details 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 to continue in oper

70、ational existence for the foreseeable future.For this reason,they continue to adopt the going concern basis in preparing the financial statements.Strategy and outlookARTs investment portfolio benefits from diversification across geographies,sectors,and asset types.As inflationary pressures increasin

71、gly dominate the economic backdrop in which the Company operates,ART remains on a robust financial footing and is well placed to capitalise on new investment opportunities.ART remains committed to growing its diversified investment portfolio.In recent years the Company focused on reducing exposure t

72、o direct development risk and recycling capital into cashflow driven investments.The Company is currently focussed on its loan portfolio and also on its wider investment strategy which targets investments offering inflation protection via index linked income adjustments and investments that have pot

73、ential for capital gains.William Simpson Chairman 22 June 2023Secured lending:London FieldsAlpha Real Trust Limited:Annual report 20238Investment reviewPortfolio overview 31 March 2023InvestmentCarrying valueIncome return p.a.Investment locationProperty type/underlyingsecurityInvestment notes%of por

74、tfolio 1Note*High return debt(44.5%)Secured senior financeSenior secured loans(excluding committed but undrawn facilities of 12.9million)38.8m 27.0%3 UKDiversified loan portfolio focussed on real estate investments and developments Senior secured debt31.2%16Secured mezzanine financeSecond charge mez

75、zanine loans16.6m 216.4%3 UKDiversified loan portfolio focussed on real estate investments and developments Secured mezzanine debt and subordinated debt13.3%16High return equity in property investments(26.5%)H2O shopping centreIndirect property17.7m(20.1m)6.3%4SpainDominant Madrid shopping centre an

76、d separate development site30%shareholding;moderately geared bank finance facility 14.2%12Long leased industrial facility,HamburgDirect property8.7m 5(9.9m)6.1%4GermanyLong leased industrial complex in major European industrial and logistics hub with RPI linked rentLong term moderately geared bank f

77、inance facility7.0%13Long leased hotel,WadebridgeDirect property3.8m5.3%6UKLong leased hotel to Travelodge,a large UK hotel group with CPI linked rentNo external gearing3.1%13Long leased hotel,LowestoftDirect property2.8m5.2%6UKLong leased hotel to Travelodge,a large UK hotel group with RPI linked r

78、entNo external gearing2.2%13Other investments(15.2%)Listed and authorised fund investments 4.3m6.0%4UK&Channel Islands Commercial real estate,infrastructure and debt funds Short to medium term investment in listed and authorised funds3.5%15Affordable housing Residential Investment0.6mn/aUKHigh-yield

79、 residential UKportfolio100%shareholding;no external gearing 0.5%13UK Treasury Bonds and BillsUK Treasury Bonds 7.0m2.25%8 4.0%9 UKUK government bonds-5.6%15UK Treasury Bills7.0m4.2%9 UKUK government bonds-5.6%15Cash and short-term investments(13.8%)Cash 717.2m1.7%10UKOn call and current accounts-13

80、.8%*See notes to the financial statements for more details 1 Percentage share shown based on NAV excluding the companys sundry assets/liabilities2 Including accrued interest/coupon at the balance sheet date3 The income returns for high return debt are the annualised actual finance income return over

81、 the period shown as a percentage of the average committed capital over the period4 Yield on equity over 12 months to 31 March 2023 5 Property value including sundry assets/liabilities,net of associated debt6 Annualised monthly return7 Group cash of 18.4m excluding cash held with the Hamburg holding

82、 company of 1.2m8 Fixed annual coupon9 Annualised yield to maturity10 Weighted average interest earned on call accountsAlpha Real Trust Limited:Annual report 20239High return debtART has a portfolio of secured loan investments which contribute a diversified return to the Companys earnings position.T

83、he portfolio comprises high return senior(first charge)loans and mezzanine(second charge)loans secured on real estate investment assets and developments.ART loan underwriting is supported by the Investment Managers asset-backed lending experience,developer and investor relationships and knowledge of

84、 the underlying 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:Temple Fortune,London Total commitment11,731,000Loan typeSenior development loanLoan term2

85、4 months LTV63.00%Underlying securityDevelopment of eleven new build apartmentsAlpha Real Trust Limited:Annual report 202310St.Lawrence,Jersey Senior development loanAlpha Real Trust Limited:Annual report 202311Investment review(continued)Secured finance InvestmentInvestment typeCarrying valueIncome

86、 return p.a.Property type/underlying securityInvestment notesSecured senior financeFirst charge secured loans38.8m*7.0%*Diversified loan portfolio focussed on real estate investments and developmentsSecured debt Secured mezzanine financeSecond charge secured loans16.6m*16.4%*Diversified loan portfol

87、io focussed on real estate investments and developmentsSecond charge secured debt and secured 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 period shown as a percentage of

88、 the average committed capital over the period ARTs portfolio of secured senior and mezzanine loan investments have increased in scale and diversity over the past year.These loans are typically secured on real estate investment and development assets with attractive risk-adjusted income returns from

89、 either current or capitalised interest or coupons.As at 31March 2023,ART had invested a total amount of 55.4million across nineteen loans.Over the past twelve months the loan portfolio has increased by 52.2%.During the year,six loans totalling 10.7million(including accrued interest and exit fees)we

90、re fully repaid and a further 5.2million(including accrued interest)was received as part repayments.Post year end,no new loans were drawn but additional drawdowns of 3.3million were made on existing loans,one loan was fully repaid for 1.5million(including accrued interest and exit fees)and part paym

91、ents for other loans were received amounting to 2.3million(including accrued interest).Each loan will typically have a term of up to two years(one loan has a term of four years),a maximum 75%loan to gross development value ratio and be targeted to generate attractive risk-adjusted income returns.As

92、at 31March 2023,the portfolio had an average LTV of 63.5%(with average approved LTV between 48.8%and 78.6%for mezzanine facilities while the highest approved LTV for senior loans is 72.9%).Three loans in the portfolio,with a total balance at year end of 6.8million,have entered receivership:ART is cl

93、osely working with stakeholders to maximise capital recovery.The Company has considered the security on these loans(which are a combination of a first charge and a second charge over the respective assets and personal guarantees)and have calculated an Expected Credit Loss(ECL)on these three loans of

94、 approximately 2.9million;the Group has also provided for an ECL on the remainder of the loans portfolio for an additional 0.8million:in total,the Group has provided for an ECL of 3.7million in its consolidated accounts.As at 31March 2023,ART had invested a total amount of 55.4million across ninetee

95、n loans.Over the past twelve months the loan portfolio has increased by 52.2%.Total commitment8,600,000Loan typeSenior development loanLoan term19 monthsLTV63.00%Underlying securityDevelopment of eight new build housesAlpha Real Trust Limited:Annual report 202312Temple Fortune,London Senior developm

96、ent loanAlpha Real Trust Limited:Annual report 202313Investment review(continued)Current loan investment examples:LocationTotal commitmentLoan typeLoan termCurrent LTVUnderlying securityFleet,Hampshire1,704,000Senior Development Loan1563.94%Development of nine new build apartmentsSt.Lawrence,Jersey1

97、1,731,000Senior Development Loan2463.00%Development of eleven new build apartments Temple Fortune,London8,600,000Senior Development Loan1963.00%Development of eight new build housesThroughout the UK12,000,000Mezzanine Investment Loan36 61.31%Refinance of a portfolio of six care homesARTs portfolio o

98、f secured senior and mezzanine loan investments have increased in scale and diversity over the past year.These loans are typically secured on real estate investment and development assets with attractive riskadjusted income returns from either current or capitalised interest or coupons.Loan portfoli

99、o by geography4%24%19%22%6%25%Regional-South EastLondonRegional-MultipleRegional-JerseyRegional-North EastRegional-South West Loan portfolio by asset class(%of commitment)72%0%6%22%Care homeMixedResidentialCommercialSectorRetailAssetShopping centreTenants includeNike,Zara,Pull&Bear,Bershka,Stradivar

100、ous,Mango,Cortefiel,H&M,C&A and JD Sports Area54,896 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,has a total catchment of 2.2million pe

101、ople.The weighted average lease length as at 31 March 2023 is 2.5years to next break and 7.6 years to expiry.Alpha Real Trust Limited:Annual report 202314H2O Madrid-SpainTop ten tenants(31 March 2023)14%11%11%11%10%9%7%7%5%15%n n Inditex Groupn n Grupo Zena Alsean n Mercadonan n C&An n Yelmo n n Cor

102、tefiel Groupn n Niken n H&Mn n Sfera-Sportownn n OzoneAlpha Real Trust Limited:Annual report 202315Investment review(continued)High return equity in property investmentsART continues to remain focused on investments that offer the potential to deliver attractive risk-adjusted returns by way of value

103、 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 typeCarrying valueIncome returnProperty type/u

104、nderlying securityInvestment notesH2OIndirect property17.7m (20.1m)6.3%*High-yield,dominant Madrid shopping centre and separate development site30%shareholding;moderately geared bank finance facility*Yield on equity over twelve months to 31 March 2023 ART has a 30%stake in joint venture with CBRE In

105、vestment Management in the H2O shopping centre in Madrid.H2O was opened in 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 54,896 square metres comprising 1

106、19 retail units.In addition to a multiplex cinema,supermarket(let to leading 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,JDSports,Cortefiel,H&M and C&A.In line with ot

107、her shopping centres in Spain,H2Os visitor numbers remain below the pre-Covid highs however a recovery versus 2022 is evident,a year in which Covid restriction had been largely relaxed.In the three months to 31March 2023,visitor numbers were approximately 9.4%below those in 2019(pre-Covid)and 10.0%a

108、bove 2022.Tenant sales volumes are ahead of pre-Covid levels,with total comparable sales being approximately 12%above 2019 and 2022 levels.During the period,a lease with anchor retailer Primark was signed for a new 3,000 square metre store.The new store will involve a reconfiguration of a mall area

109、which is under commercialised with the unit combining a number of existing vacant units along with space currently used as communal mall area.The store is expected to be delivered during 2024.The asset management highlights are as follows:Valuation:31 March 2023:119.3million(104.9million)(31March 20

110、22:121.0million(102.1million).Centre occupancy:92.1%by area as at 31 March 2023.Weighted average lease length to next break:2.5 years and 7.6 years to expiry as at 31 March 2023.SectorIndustrial Underlying assetsIndustrial facility in Hamburg GermanyTenantVeolia Umweltservice Nord GmbH,part of the V

111、eolia groupDescriptionLong leased investment with moderately geared,long term,bank finance facility.Alpha Real Trust Limited:Annual report 202316Long leased industrial facility HamburgAlpha Real Trust Limited:Annual report 202317Long leased industrial facility,Hamburg InvestmentInvestment typeCarryi

112、ng valueIncome returnProperty type/underlying securityInvestment notesIndustrial facility,Werner-Siemens-Strae Hamburg,Germany Direct property 8.7m*(9.9m)6.1%*High return industrial facility in Hamburg GermanyLong leased investment with moderately geared,long term,bankfinancefacility*Property value

113、including sundry assets/liabilities and cash,net of associated debt*Yield on equity over twelve months to 31 March 2023 ART has an investment of 9.9million(8.7million)in an industrial facility leased to a leading international group.The property is held freehold and occupies a site of 11.8 acres in

114、Billbrook,a well-established and well-connected industrial area located approximately 8 kilometres south-east of Hamburg 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 in

115、dustrial specialist in water,waste and energy management,with a 19-year unexpired lease term.Under the operating lease,the tenant is responsible for building maintenance and the rent has periodic inflation linked adjustments.The Hamburg asset is funded by way of a 9.5million(8.4million)non-recourse,

116、fixed rate,bank debt facility which matures on 31July 2028.The facility carries no financial covenant tests.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 income returns.In

117、addition,the investment offers the potential for associated capital growth from an industrial location in a major German logistics and infrastructure hub.Long leased hotel,Wadebridge,Cornwall InvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesHotel,W

118、adebridge Cornwall,UK Direct property 3.8m5.3%*Long leased hotel to Travelodge,a large UK hotel group with RPI linked rentNo external gearing*Annualised monthly return In July 2022,ART acquired a hotel in Wadebridge(UK)for 4.3million,including acquisition costs.As at 31 March 2023,the property was v

119、alued at 3.8million.The hotel is a 55-bedroom property,which is held freehold and is situated on the outskirts of Wadebridge in the county of Cornwall.The hotel is in a well-connected location in close proximity to the A39.The property is leased to Travelodge Hotels Limited on a 20 year unexpired le

120、ase term(including landlord extension option).Under the lease,the tenant is responsible for buildingmaintenance.The passing rent of 0.3million p.a.has inflation linked adjustments.Investment review(continued)Alpha Real Trust Limited:Annual report 202318Long leased hotel,LowestoftInvestmentInvestment

121、 typeCarrying valueIncome returnProperty type/underlying securityInvestment notesHotel,Lowestoft,UK Direct property 2.8m5.2%*Long leased hotel to Travelodge,a large UK hotel group with RPI linked rentNo external gearing*Annualised monthly return In June 2022,ART acquired a hotel in Lowestoft(UK)for

122、3.1million,including acquisition costs.As at 31March 2023,the property was valued at 2.8million.The hotel is a 47-bedroom property,which is held freehold and occupies a site of 1.08 acres in Lowestoft,a well-established and well connected area located in close proximity to the A47 which runs to Norw

123、ich.The property is leased to Travelodge Hotels Limited on an 18year unexpired lease term(including landlord extension option).Under the lease,the tenant is responsible for building maintenance.The passing rent of 0.2million p.a.has inflation linked adjustments.Other investmentsListed and authorised

124、 fund investmentsInvestmentInvestment typeCarrying valueIncome return*Property type/underlying securityInvestment notesSequoia Economic Infrastructure Income Fund LimitedListed equity2.2m5.7%Listed investment fundFTSE 250 infrastructure debt fundGCP Infrastructure Investments Limited Listed equity1.

125、1m6.7%Listed investment fundFTSE 250 infrastructure fundGCP Asset Backed Income Fund Limited Listed equity1.0m6.1%Listed investment fundDiversified asset back debt fundTotal4.3m6.0%*Yield on equity based on 12 months to 31 March 2023The Company invested a total of 6.0million(value as at 31March 2023

126、:4.3million)across three investments that offered potential to generate attractive risk adjusted returns.Current market volatility and rise in interest rates has impacted the capital value of these investments.The investment yield offers a potentially accretive return to holding cash while the Compa

127、ny deploys capital in opportunities in line with its investment strategy.These funds invest in ungeared long-dated leased real estate,debt and infrastructure.During the year,the Company fully divested 5.3million from a further investment,delivering an 8.1%capital return over the holding period.Affor

128、dable housingThe Companys wholly owned investment,RealHousingCo Limited(“RHC”)has obtained successful registration with the Regulator of Social Housing as a For Profit Registered Provider of affordable homes.This status provides RHC with a platform to undertake future investment in the affordable ho

129、using sector which offers scope to generate long term,inflation-linked returns while addressing the chronic undersupply of affordable homes in the UK.RHC owns a residential property located in Liverpool(UK),which is comprised of seven units,all of which are occupied by private individuals,each with

130、a six month term contract.The fair value of the Liverpool property as at 31March 2023 was 0.6million.Investment review(continued)Alpha Real Trust Limited:Annual report 202319Investment review(continued)UK Treasury Bonds and BillsIn February 2023,the Company invested 7.0million in UK Treasury Bills w

131、ith maturity 7August 2023 and an annualised yield to maturity of 4.2%(value as at 31March 2023:7.0million)and 7.0million in UK Treasury Bonds earning a 2.25%annual coupon with maturity 7September 2023 and an annualised yield to maturity of 4.0%(value as at 31March 2023:7.0million).Post period end,on

132、 8June 2023,the Company invested a further 6.0million in short dated Treasury Bonds.These government backed short term investments offer the Company enhanced returns over cash balances.Cash balancesInvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesC

133、ash and cash on escrowbalance*Cash17.2m1.7%*On call and currentaccountsn/a*Group cash of 18.4m excluding cash held with the Hamburg holding company of 1.2m*weighted average interest earned on call accountsAs at 31March 2023,the Group had cash balances of 17.2million,excluding cash held with the Hamb

134、urg holding company of 1.2million.The Groups cash is held with established banks with strong credit ratings.SummaryART has a diversified portfolio focussed on asset-backed lending and property investments in Western Europe.The Company is currently focussed on selectively increasing its loan portfoli

135、o and extending its wider investment strategy to opportunistically target investments offering inflation protection via index linked income adjustments and investments that have potential for capital gains.Brad Bauman and Gordon Smith For and on behalf of the Investment Manager 22 June 2023Alpha Rea

136、l Trust Limited:Annual report 202320William Simpson Chairman Aged 67William 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 s

137、tudied law at 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 Willia

138、m became an independent consultant and remains a director of a number of Guernsey based financial services companies.William is a member of the English and Guernsey Bars.Phillip Rose Director Aged 63Phillip Rose is a Fellow of the Securities Institute and holds a Master of Law degree.He has over 40

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

140、property developer and 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-Exec

141、utive Director of Great Portland Estates plc.Jeff Chowdhry Director Aged 62 Jeff is currently General Partner at Concept Ventures,an early stage,software focused,VC fund.It is currently the largest dedicated pre-seed fund in the UK.He has an investment career which spans over 40 years having held se

142、nior positions at F&C,as head of emerging markets and BMO Asset Management where he was responsible for AUM of over$5billion.He has specific expertise in ESG related matters.He is an active Angel investor having backed over 30 start-up companies and has several board advisory positions within these

143、rapidly growing businesses.Mel TorodeDirector Aged 43 Mel Torode has 20years experience in the fund administration industry specifically including private equity,property and mezzanine debt and is an Independent Non-Executive Director.Prior to founding Morgan Sharpe in April 2008(a fund administrati

144、on company sold to Estera,subsequently Ocorian,in 2017),Mel was the Company Secretary of Assura Administration,overseeing the administration of listed property funds.During the period from 2017 to 2021,Mel held the roles of Operations Director,Managing Director and subsequently Non-Executive of Ocor

145、ian Guernsey.Mel began her career at Guernsey International Fund Managers(now Northern Trust),working on large private 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 li

146、sted property funds.Peter Griffin Director Aged 64Peter Griffin has over 30 years experience in financial services and is a qualified chartered accountant.He is currently a director of Handelsbanken Alternatives Fund Limited,an investment company listed on The International StockExchange.Peter previ

147、ously had various senior roles in the trust services industry in the Channel Islands and Isle of Man.DirectorsAlpha Real Trust Limited:Annual report 202321The Directors present their report and financial statements of the Group for the year ended 31 March 2023.Principal activities and statusDuring t

148、he 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 opportunities in real estate,real estate operating companies and securities,real estate services,infrastruct

149、ure,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 Exchange(“LSE”).Business review,results and dividendA review of the business during the year is contained in

150、 the Chairmans Statement on pages 4 to 7.The results for the year to 31March 2023 are set out in the financial statements.On 24February 2023,the Company declared a dividend of 1.0p per share,which was paid to shareholders on 6April 2023.The intention of the Company is to pay a dividend quarterly.Sha

151、re buybacksUnder the general authority,approved by Shareholders on 6August 2021,the Company announced a tender offer on 29June 2022 for up to 6,428,353 ordinary shares at a price(before expenses)of 175.0 pence per share.In July 2022,a total of 5,419,016 ordinary shares were validly tendered under th

152、e tender offer.All purchased ordinary shares are held in treasury.During the year,the Company additionally purchased 46,500 shares in the market at an average price of 1.51 per share:these shares are held in treasury.Post period end,the Company made no share buybacks.As at the date of this announcem

153、ent,the ordinary share capital of the Company is 65,820,175(including 7,717,581 ordinary shares held in treasury)and the total voting rights in the Company is 58,102,594.Scrip dividend alternativeIn the circular published on 18December 2018,the Company sought shareholders approval to enable a scrip

154、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 the extraordinary general meeting on 8January 2019.

155、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 the day on which the ordinary shares are first quoted

156、“ex”the relevant dividend.The Board elected to offer the scrip dividend alternative to shareholders for the dividend for the quarter ended 31December 2022:for this period,scrip dividend alternative elections were received in respect of 52,402,023 shares of the Company,which has resulted in the issue

157、 of 401,545 new ordinary shares in April 2023.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 Corporate Governance Code(“UK Code”).However,as a company au

158、thorised 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 1January 2012(amended in February 2016 and November 2021)(“Guernsey Code”).Compliance w

159、ith 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 compliant with the Guernsey Code.The Guernsey Code is available for consultatio

160、n on the GFSC website:www.gfsc.gg.The BoardBiographies of the Directors are set out on page 20.The Directors interests in the shares of the Company as at 31March 2023 are set out below:Number of ordinaryshares 31March 2023Number of ordinaryshares 31March 2022Phillip Rose978,999953,872Jeff Chowdhry5,

161、0005,000Melanie Torode-William Simpson30,00018,000Peter Griffin-Post year end,Phillip Rose increased his shareholding in ART to 985,696 ordinary shares.Non-executive directors are not appointed for specified terms;appointments of Board members can be terminated at any time without penalty and the Co

162、mpanys Articles of Association(“Articles”)require each Director to retire and 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.Directors and corporate governance reportAlpha Real Trust Limi

163、ted:Annual report 202322Directors and corporate governance report(continued)The Annual General Meeting of the Company will take place on 7 September 2023.At this meeting,Jeff Chowdhry will retire and submit himself for re-election.The remainder of the Board recommend his re-appointment.Individual Di

164、rectors 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 matters which it considers are of strategic importance to the Company:1)Review the overall

165、 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 conditions3)Review the capital structure of the Company including consideration of a

166、ny 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 providers and monitor their effectiveness through regular reports and meetings5)Review

167、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 associated with implementing the Companys strategy are delegated either to the Invest

168、ment 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 enough to be of strategic importance and are therefore reserved solely for the Boar

169、d(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 specific issues reserved for decision by the Board,as noted above.At the Boards quarte

170、rly 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 and Europe including recommendations for any changes in strategy that the Investment Ma

171、nager 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 future The Groups financial position including relationships with bankers,borrowers and le

172、nders.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 they should be properly managed.The Companys service providers issue reports on their own i

173、nternal controls and these reports are considered by the Boardperiodically.In between its regular quarterly meetings,the Board has also met on a number of occasions during the year to approve specific transactions and for other matters.Board and Directors appraisalsThe Board carries out an annual re

174、view 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 whether it has an appropriate mix of knowledge,skills and experience),the relationships bet

175、ween 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 shows the attendance at Board meetings during the year to 31 March 2023:DirectorNo of meetings

176、attendedPhillip Rose4Jeff Chowdhry12Melanie Torode14William Simpson16Peter Griffin17No.of meetings during the year17Directors and officers insuranceAn appropriate level of Directors and officers insurance is maintained whereby Directors are indemnified against liabilities to third parties to the ext

177、ent permitted by Guernsey companylaw.Board CommitteesThe Board has established three standing committees,all of which operate under detailed terms of reference,copies of which are available on request from the Company Secretary.Alpha Real Trust Limited:Annual report 202323Directors and corporate gov

178、ernance report(continued)Audit and Risk CommitteeThe Audit and Risk Committee consists of Peter Griffin(Chairman),Jeff Chowdhry and William Simpson.The Board is satisfied that Peter Griffin continues to have the requisite recent and relevant financial experience to fulfil his role as Chairman of the

179、 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 Groups external auditor To monitor and review the independence,objectivity and effectiveness

180、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 statements comply with all legal requirements To review the Groups financial reporting and internal c

181、ontrol 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 the Groups financial statements,including its annual and half-year reports and announcements

182、 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 challenge where necessary the financial results of the Group before submission to the Board.The A

183、udit 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 Committee may also,from time to time,meet with the Groups independent property valuers to di

184、scuss the scope and conclusions of their work.Committee meeting attendanceDirectorNo of meetings attendedWilliam Simpson4Jeff Chowdhry3Peter Griffin4No.of meetings during the year4Policy for non-audit servicesThe Committee has adopted a policy for the provision of non-audit services by the Companys

185、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 than audit-related ones,were carried out by BDO Limited during the year.Internal auditThe Boa

186、rd 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 comfort.Therefore,the Board continues to believe that there is no need for an internal audit f

187、unction,although the Audit and Risk Committee considers this annually,reporting its findings to the Board.Nomination Committee and attendanceThe Nomination Committee consists of William Simpson(Chairman),Phillip Rose and Melanie Torode.The Committees principal task is to review the structure,size an

188、d 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 all Committee members were present.Remuneration Committee and attendanceThe Remuneration Comm

189、ittee consists of Melanie Torode(Chairman),Jeff Chowdhry and William Simpson.The Board has approved formal terms of reference for the Committee and a copy of these is available on request from the Company Secretary.As the Company comprises only non-executive directors,the Committees main role is to

190、determine their remuneration within the cap set out in the Companys Articles.No meeting was held during the year.Remuneration reportThe aggregate fees payable to the Directors are limited to 200,000 per annum under the Companys Articles.The annual fees payable to each Director,which were last review

191、ed in 2019,have been increased by 10%with effect from 1 April 2022.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.

192、Under their respective appointment letters,each Director is entitled to an annual fee together with a provision for reimbursement for any reasonable out of pocket expenses.Alpha Real Trust Limited:Annual report 202324Directors and corporate governance report(continued)During the year the Directors r

193、eceived the following emoluments in the form of fees from Group companies:Year ended 31March 2023 Year ended 31March 2022 David Jeffreys*-18,000Phillip Rose27,50025,000Jeff Chowdhry27,50025,000William Simpson39,50025,000Peter Griffin*27,50012,500Melanie Torode*52,63355,476Total174,633160,976*retired

194、 on 30 September 2021*appointed on 30 September 2021*This comprises 27,500 for the ARTs directorship plus fees for directorships of ARTs subsidiaries and joint ventures Internal control and risk managementThe Board understands its responsibility for ensuring that there are sufficient,appropriate and

195、 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 managed rather than eliminated in order to permit the Company to meet

196、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 by the Board and upon which it reports to the Board on a quarterl

197、y 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 basis.The Company maintains a risk management framework which consi

198、ders 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 out the Investment Managers key responsibilities,which include pro

199、posing 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 relating to property asset management.Substantial shareholdingSharehold

200、ers with holdings of more than 3percent of the voting rights of the Company as at 25May 2023 were as follows:Name of investorNo.of voting rights%heldAlpha Global Property Securities Fund Pte.Ltd25,068,41743.15%Rockmount Ventures Ltd24,487,03042.14%Shareholder relationsThe Board places high importanc

201、e 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.Reporting of these meetings and market commentary is received by the Board on a quarterly basis to ensure that s

202、hareholder 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 answer any questions that shareholders attending may wish to raise.Directors Responsibilities StatementThe Di

203、rectors 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 financial statements for each financial year,which give a true and fair view of the state of affairs of the Group a

204、t 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 apply them consistently;2)make judgements and estimates that are reasonable and prudent;3)state whether appl

205、icable accounting standards have been followed,subject to any material departures disclosed and explained in the financial statements;and4)prepare the 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

206、 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 taken as Directors to make themselves aware of any relevant information and to establish that the Groups auditor is aware of that information.Alpha Real Tr

207、ust Limited:Annual report 202325The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and which enable them to ensure that the financial statements comply with the Companies(Guernsey)Law,2008.They a

208、re 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 they have complied with the above requirements in preparing the financial statements.Principal risks and un

209、certaintiesThe principal risks and uncertainties facing the Group can be outlined as follows:Rental income,fair value of investment properties(directly or indirectly held)and fair value of the Groups equity investments are affected,together with other factors,by general economic conditions and/or by

210、 the political and economic climate of the jurisdictions in which the Groups investments and investment properties are located.The Groups loan investments are exposed to credit risk which arise by the potential failure of the Groups counter parties to discharge their obligations when falling due;thi

211、s could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date;the Group receives regular updates from the relevant investment manager as to the performance of the underlying investments and assesses their credit risk as a result.Russian invasion of Ukraine

212、and going concernAs previously stated,ART has no investments in Ukraine or Russia,nor exposure to any companies that have investments in,or links to,Ukraine or Russia.ART has no arrangements with any person currently on(or potentially on)any sanctions list,or links to Ukraine or Russia.The Board con

213、tinues to monitor the global political and economic situation regularly assessing impacts arising from inflation and interest rates changes for a potential material impact on ARTs portfolio.The Company has adopted a prudent short-term strategy to move to cash conservation and a cautious approach to

214、commitments to new investments over this uncertain time.Alert to the impact of potentially reducing income returns,this approach has supported a robust balance sheet position.The Company continues to adopt this cautious approach to new investment and is conserving cash because of the uncertainty tha

215、t has characterised the past few months;this ensures the Company retains a robust financial footing,making it well positioned to take advantage of new investment opportunities.As noted above,the Company held approximately(as at 31March 2023)13.8%of its assets(excluding sundry net assets)in cash and

216、11.2%in highly liquid UK Treasury Bonds and Bills with limited 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 special purpose vehicles are compliant with their bankin

217、g covenants.See the investment review section for more details 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

218、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 will be held in Guernsey at 9.00 am on 7September 2023 at Floor 2,T

219、rafalgar Court,Les Banques,St Peter 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 determine the auditors remuneration.Independent AuditorBDO Limited

220、has expressed its willingness to continue in office as auditor.By order of the Board,William Simpson DirectorPeter Griffin Director 22 June 2023Directors and corporate governance report(continued)Alpha Real Trust Limited:Annual report 202326Each of the Directors,whose names and functions are listed

221、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,liabilities,financial position and profit of the Group,and The Chairm

222、ans statement and the investment review include a fair review of the development and performance of the business and the position of the Group and page 25 provides a description of the principal risks and uncertainties that the Group faces.By order of the Board,William Simpson DirectorPeter Griffin

223、Director22 June 2023Directors statement pursuant to the Disclosure and Transparency RulesAlpha Real Trust Limited:Annual report 202327Opinion on the financial statementsIn our opinion,the financial statements of Alpha Real Trust Limited(“the Parent Company”)and its subsidiaries(the“Group”):give a tr

224、ue and fair view of the state of the Groups affairs as at 31March 2023 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 r

225、equirements of the Companies(Guernsey)Law,2008.We have audited the financial statements of the Group for the year ended 31March 2023 which comprise the Consolidated Statement of Comprehensive Income,Consolidated Balance Sheet,Consolidated Cash Flow Statement,Consolidated Statement of Changes in Equi

226、ty and notes to the financial statements,including a summary of significant accountingpolicies.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 Internati

227、onal Standards on Auditing(UK)(ISAs(UK)and applicable law.Our responsibilities 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 appropriat

228、e to provide a basis for our opinion.Our audit opinion is consistent with the additional report to the auditcommittee.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

229、,including the FRCs Ethical Standard as applied to listed entities,and we have fulfilled our other ethical responsibilities in accordance with these requirements.Conclusions relating to going concernIn auditing the financial statements,we have concluded that the Directors use of the going concern ba

230、sis of accounting in the preparation of the financial statements is appropriate.Our evaluation of the Directors assessment of the Group ability to continue to adopt the going concern basis of accounting included:Obtaining those charged with governance and directors assessment in respect of going con

231、cern and challenging this,based on our knowledge of the Group,with both those charged with governance and management;Challenging the directors cash flow forecasts for the twelve months from the approval of these financial statements by stress testing future income and expenditure and the impact on t

232、he going concern assessment;Consideration of the cash available together with the expected annual running expenses of the Group and determining whether these assumptions were reasonable based on our knowledge of the Group;and Reviewing the minutes of meetings of those charged with governance,the RNS

233、 announcements and the compliance reports for indication of any events or conditions which may impact on going concern.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 o

234、n the Groups ability to continue as a going concern for a period of at least twelve months from when the financial 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.Ov

235、erview Key audit matters(2023 and 2022)Property Valuations Loans advanced and IFRS 9 Financial InstrumentsMaterialityGroup financial statements asawhole2,023,000(2022:2,136,000)based on 1.5%(2022:1.5%)of total assetsIndependent auditors reportTo the Members of Alpha Real Trust LimitedAlpha Real Trus

236、t Limited:Annual report 202328Independent auditors report(continued)An overview of the scope of our auditOur Group audit was scoped by 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 f

237、inancial statements.We also addressed the risk of management override of internal controls,including assessing whether there was evidence 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

238、 investments,involvement of the Investment Manager,the accounting and reporting environment and the industry in which the Group operates.The Group consists of the Parent Company,numerous subsidiaries and a joint venture entity.We concluded that the most effective audit approach to the Group due to t

239、he same accounting processes and control environment,with the exception of the joint venture structure,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 based on the consolid

240、ated financial information(see Materiality section below).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 who is part of the BD

241、O Network.Our involvement with component auditorsFor the work performed by component auditors,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

242、a whole.Our involvement with component auditors included the following:We issued group instructions to the component auditor of the H20 joint venture and reviewed the key risk areas of their work.In addition to the work performed by the component auditor,we have also performed our own audit procedur

243、es on the property valuation and other significant balances.Key audit mattersKey audit matters are those matters that,in our professional judgement,were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material mis

244、statement(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 directing the efforts of the engagement team.These matters were addressed in the context of our audit of the financial sta

245、tements as a whole,and in forming our opinion thereon,and we do not provide a separate opinion on these matters.Key audit matterProperty valuations (notes 2.(b)(a),12,13,26)The Group holds several investment properties within its subsidiaries and the joint venture structure.The directors have valued

246、 all properties based on independent RICS valuations performed by independent valuers.Such property valuations are a highly subjective area as the valuers make judgements as to property yields,quality of tenants,development costs and other variables to arrive at the current open market value of the

247、property.Any input inaccuracies or unreasonable 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,and we theref

248、ore determined this to be a key auditmatter.How the scope of our audit addressed the key auditmatterIndependent valuationsFor all independent property valuations,we evaluated the competence of the external valuers,which included consideration of their qualifications and expertise.We discuss their te

249、rms of engagement with the valuers to determine whether there were any matters that might have affected their objectivity or may have imposed scope limitations upon theirwork.We read the valuation reports for the properties and discussed the basis of the property valuations with the valuers to under

250、stand the process undertaken by them and confirmed that the valuations were prepared in accordance with professional valuation standards and applicable accounting standards.We have considered the reasonableness,and where appropriate agreed through to supporting documentation(for example,on a sample

251、basis,rental income)of the inputs used by the valuers in the valuations,such as the terms of void periods,rent free periods and other assumptions that impact the value.Key observationsBased on the procedures performed,we consider that the judgements made in the property valuations are reasonable.Alp

252、ha Real Trust Limited:Annual report 202329Independent auditors report(continued)Key audit matterLoans advanced and IFRS 9 FinancialInstruments (notes 2.(b)(b),16)The Groups activities include advancing senior loans and mezzanine loans secured over real estate assets.The amounts advanced represent a

253、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 events.As a result,the Groups IFRS 9 methodology incorporates a number of estimates to determine the expected credit l

254、oss provisions,and we therefore considered this to be a key auditmatter.How the scope of our audit addressed the key auditmatterThrough challenge,discussion and review of example scenarios,we gained a detailed understanding of,and evaluated,the expected credit loss methodology applied by management.

255、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:reviewing the methodology,including key assumptions and parameters,to check it is

256、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 two being classified as stage 3 due to the repayable on demand feature.obtaining and challenging,through discussion,the upd

257、ates made to the existing methodology to appropriately reflect the changes in the economy.obtaining underlying supporting documentation,on a sample basis,we tested the inputs that drive the economic scenario applied to the loans.obtaining third party confirmation on a sample of loans to confirm the

258、year end balance.undertaking procedures to check that the expected credit loss model applied by management was mathematicallyaccurate;challenging managements expected credit loss on three individual loans which had entered into true default and the manual adjustments made over the mechanical model.T

259、his included obtaining and considering support for expected returns,expenses payable and any security in place over the underlying assets the loans are secured on.Key observationsBased on the procedures performed,we consider the estimates used in the determination of the expected credit losses were

260、reasonable.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 economic decisions of reason

261、able 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.Importantly,misstatements b

262、elow 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 professional judgement,we determin

263、ed materiality for the financial statements as a whole and performance materiality as follows:Group financial statements20232022Materiality2,023,0002,136,000Basis for determining materiality1.5%of total assetsRationale for the benchmark appliedDue to it being an investment fund with the objective of

264、 long-term capital growth with investment values being a key focus of users of the financial statements.Performance materiality1,517,2501,602,000Basis for determining performance materiality75%of materialityThis was determined using our professional judgement and took into account the complexity of

265、the group and our long-standing knowledge of the engagement together with a history of minimal misstatements.Alpha Real Trust Limited:Annual report 202330Independent auditors report(continued)Specific materialityWe also determined that for sensitive fees including:management fees,performance fees,le

266、gal fees,directors fees and audit fees,a misstatement 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%(2022:10%)of materiality being 202,300(2022:21

267、3,000).We further applied a performance materiality level of 75%(2022:75%)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 a percentage of 9

268、0%(2022:90%)of Group materiality dependent on the size and our assessment of the risk of material misstatement of that component.Component materiality was set at 1,820,700(2022:1,922,400).In the audit of that component,we further applied a performance materiality level of 75%(2022:75%)of the compone

269、nt materiality to our testing to ensure that the risk of errors exceeding component materiality was appropriately mitigated.Reporting thresholdWe agreed with the Audit Committee that we would report to them all individual audit differences in excess of 60,690(2022:64,000).We also agreed to report di

270、fferences below this threshold that,in our view,warranted reporting on qualitative grounds.Other informationThe directors are responsible for the other information.The other information comprises the information included in the Annual Report and Financial Statements,other than the financial statemen

271、ts and our auditors report thereon.Our opinion on the financial statements does not cover the other information and,except to the extent 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 doi

272、ng so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit,or otherwise appears to be materially misstated.If we identify such material inconsistencies or apparent material misstatements,we are required t

273、o determine whether this gives rise to a material misstatement in the financial statements themselves.If,based on the work we have performed,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.Other

274、Companies(Guernsey)Law,2008 reportingWe have nothing 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 Parent Company;or the financial statements are not in agreement

275、with the accounting records;or we have 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

276、 and Corporate Governance Report,the Directors 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

277、free from material misstatement,whether due to fraud or error.In preparing the financial statements,the Directors are responsible for assessing the Groups ability to continue as a going concern,disclosing,as applicable,matters related to going concern and using the going concern basis of accounting

278、unless the Directors either intend to liquidate the Group or to cease operations,or have no realistic alternative but to do so.Auditors responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are fr

279、ee from material misstatement,whether 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.

280、Misstatements can arise from fraud 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 irregularitie

281、s,including fraudIrregularities,including 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

282、 of detecting irregularities,including fraud is detailed below:Alpha Real Trust Limited:Annual report 202331Independent auditors report(continued)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 regul

283、ations related to its investment activities,and we considered the extent to which non-compliance might have a material effect on the Groups financialstatements.We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and have a direct impact on the prepara

284、tion of the financial statements.We determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework such as IFRS as adopted by the EU and the Companies(Guernsey)Law,2008.We evaluated manag

285、ements incentives and opportunities for fraudulent manipulation of the financial statements(including the risk of management override of controls),and determined that the principal risks were related to revenue recognition in relation to the rental income from properties held,revenue recognition in

286、relation to loan interest from loans advanced and management bias and judgement involved in accounting estimates,specifically in relation 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

287、 identified laws and regulations and potential fraud risks to all engagement team members and the component auditor,and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.Audit procedures performed by the engagement team to respond to the risk

288、s identified included:Discussion with and enquiry of 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;

289、Reading minutes of meetings of those charged with governance,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 f

290、raud;Recalculating loan interest income based on the underlying loan agreements;and Recalculating the rental income based on the lease agreements and required accounting by IFRS as adopted by the EU and comparing to that of management.Our audit procedures were designed to respond to risks of materia

291、l misstatement in the financial statements,recognising 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.Ther

292、e are inherent limitations in the audit procedures 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 aware ofit.A further description of our responsibilities is availab

293、le on the Financial Reporting Councils website 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 Simon HodgsonUse of our reportThis report is made solely to the P

294、arent Companys members,as a body,in accordance 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 ext

295、ent permitted by law,we do not accept or assume 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.Simon Hodgson For and on behalf of BDO Limited Chartered Accountants and Recognised A

296、uditor Place du Pr,Rue du Pr,St Peter Port,Guernsey22June 2023Alpha Real Trust Limited:Annual report 202332For the year ended 31March 2023For the year ended 31March 2022 NotesRevenue000Capital000Total000Revenue 000Capital 000Total000IncomeRevenue36,653-6,6535,456-5,456Change in the revaluation of in

297、vestment property13-(548)(548)-1,1951,195Gains/(losses)on financial assets and liabilities held at fair value through profit or loss25528(1,597)(1,069)601(214)387Total income7,181(2,145)5,0366,0579817,038ExpensesExpected credit losses16(232)(881)(1,113)(1,262)(1,310)(2,572)Property operating expense

298、s3(87)-(87)(64)-(64)Investment Managers fee24(2,354)-(2,354)(2,270)-(2,270)Other administration costs 4(943)-(943)(962)-(962)Total operating expenses(3,616)(881)(4,497)(4,558)(1,310)(5,868)Operating profit3,565(3,026)5391,499(329)1,170Share of profit/(loss)of joint ventures and associates121,012(569

299、)4431,2155001,715Gain on joint venture in arbitration14-5,8685,868Finance income5255-2554-4Finance costs 6(201)(201)(402)(198)(52)(250)Profit/(loss)before taxation4,631(3,796)8352,5205,9878,507Taxation7(130)(74)(204)(82)(265)(347)Profit/(loss)for the year4,501(3,870)6312,4385,7228,160Other comprehen

300、sive income/(expense)for the yearItems that may be classified to profit and loss in subsequent periodsExchange differences arising on translation of foreignoperations-1,2531,253-(124)(124)Other comprehensive expense for the year-1,2531,253-(124)(124)Total comprehensive income/(expense)for the year4,

301、501(2,617)1,8842,4385,5988,036Earnings per ordinary share(basic&diluted)91.1p13.3pAdjusted earnings per ordinary share (basic&diluted)97.7p4.0pThe total column of this statement represents the Groups statement of comprehensive income,prepared in accordance with IFRS.The revenue and capital columns a

302、re supplied as supplementary information permitted under IFRS(see page 37).All items in the above statement derive from continuing operations.The accompanying notes on pages 36 to 63 form an integral part of the financial statements.Consolidated statement of comprehensive incomeAlpha Real Trust Limi

303、ted:Annual report 202333Notes31March 202300031March 2022000Non-current assetsInvestment property1323,49615,984Investment in joint ventures and associates1217,65417,193Loans advanced1616,05113,09357,20146,270Current assetsJoint venture in arbitration14-5,868Investments held at fair value1518,31010,99

304、0Derivatives held at fair value through profit or loss25-88Loans advanced1639,38523,341Collateral deposit171,143936Trade and other receivables1841413,711Cash and cash equivalents18,45541,25077,70796,184Total assets134,908142,454Current liabilitiesTrade and other payables19(986)(971)Corporation tax7(

305、34)(12)Bank borrowings20(30)(29)Derivatives held at fair value through profit or loss25(171)-(1,221)(1,012)Total assets less current liabilities133,687141,442Non-current liabilitiesBank borrowings20(8,271)(7,921)Deferred tax7(349)(265)(8,620)(8,186)Total liabilities(9,841)(9,198)Net assets125,067133

306、,256EquityShare capital21-Special reserve2260,55068,243Translation reserve22452(801)Capital reserve2240,14744,017Revenue reserve 2223,91821,797Total equity125,067133,256Net asset value per ordinary share10216.8p216.0p The financial statements were approved by the Board of Directors and authorised fo

307、r issue on 22 June 2023.They were signed on its behalf by William Simpson and Peter Griffin.The accompanying notes on pages 36 to 63 form an integral part of the financial statements.Consolidated balance sheetWilliam Simpson DirectorPeter Griffin DirectorAlpha Real Trust Limited:Annual report 202334

308、For the year ended 31March 2023000For the year ended 31March 2022000Operating activities Profit for the year after taxation6318,160Adjustments for:Change in revaluation of investment property548(1,195)Net losses/(gains)on financial assets and liabilities held at fair value through profit or loss1,06

309、9(387)Taxation204347Share of profit of joint ventures and associates(443)(1,715)Gain on joint venture in arbitration-(5,868)Interest receivable on loans to third parties(5,328)(4,528)Expected credit losses1,1132,572Finance income(255)(4)Finance costs402250Operating cash flows before movements in wor

310、king capital(2,059)(2,368)Movements in working capital:Movement in trade and other receivables(381)8Movement in trade and other payables8219Cash flows used in operations(2,432)(2,141)Loan interest received1,8112,717Loans granted to third parties(18,832)(24,722)Cash returned from/(paid in)escrow for

311、loans to be granted post year end1,928(13,683)Loans repaid by third parties14,09720,406Interest received2554Interest paid(186)(183)Tax paid(96)(113)Cash flows used in operating activities(3,455)(17,715)Investing activitiesAcquisition of investments-(10,998)Redemption of investments5,290-Investment i

312、n UK Treasury Bonds and Bills(13,948)-Acquisition of investment property(7,407)-Investment in joint ventures-(84)Dividend income from joint ventures700959Dividend income from investments419267Capital return from joint venture in arbitration5,868-Capital return from joint venture-1,263Collateral depo

313、sit(increase)/decrease(207)170Cash flows used in investing activities(9,285)(8,423)Financing activitiesShare buyback(9,553)(339)Share buyback costs(49)(2)Share issue costs(115)(63)Cash(paid)/received on maturity of foreign exchange forward(47)72Ordinary dividends paid(356)(452)Cash flows used in fin

314、ancing activities(10,120)(784)Net decrease in cash and cash equivalents(22,860)(26,922)Cash and cash equivalents at beginning of year41,25068,213Exchange translation movement65(41)Cash and cash equivalents at end of year18,45541,250The accompanying notes on pages 36 to 63 form an integral part of th

315、e financial statements.Consolidated cash flow statementAlpha Real Trust Limited:Annual report 202335For the year ended 31March 2022Special reserve 000Translation reserve000Capital reserve000Revenue reserve000Total equity000At 1 April 202166,655(677)38,29521,803126,076Total comprehensive income for t

316、he yearProfit for the year-5,7222,4388,160Other comprehensive expense for the year-(124)-(124)Total comprehensive(expense)/income for the year-(124)5,7222,4388,036Transactions with ownersCash dividends-(452)(452)Scrip dividends1,992-(1,992)-Share issue costs(63)-(63)Share buyback(339)-(339)Share buy

317、back costs(2)-(2)Total transactions with owners1,588-(2,444)(856)At 31 March 202268,243(801)44,01721,797133,256Notes 21,22 For the year ended 31March 2023Special reserve 000Translation reserve000Capital reserve000Revenue reserve000Total equity000At 1 April 202268,243(801)44,01721,797133,256Total com

318、prehensive income for the year(Loss)/profit for the year-(3,870)4,501631Other comprehensive income for the year-1,253-1,253Total comprehensive(expense)/income for the year-1,253(3,870)4,5011,884Transactions with ownersCash dividends-(356)(356)Scrip dividends2,024-(2,024)-Share issue costs(115)-(115)

319、Share buyback(9,553)-(9,553)Share buyback costs(49)-(49)Total transactions with owners(7,693)-(2,380)(10,073)At 31 March 202360,55045240,14723,918125,067Notes 21,22The accompanying notes on pages 36 to 63 form an integral part of the financial statements.Consolidated statement of changes in equityAl

320、pha Real Trust Limited:Annual report 2023361.General informationThe Company is a limited liability,closed-ended investment company incorporated in Guernsey.The address of the registered office is given on page 64.The nature of the Groups operations and its principal activities are set out in the Cha

321、irmans Statement on pages 4 to 7.The financial statements were approved and authorised for issue on 22June 2023 and signed by William Simpson and Peter Griffin on behalf of the Board.2.(a)Significant accounting policiesA summary of the principal accounting policies is set out below.The policies have

322、 been consistently applied for all periods presented unless otherwise stated.The preparation of financial statements in conformity with IFRS,as adopted by the EU,requires the use of certain critical accounting estimates.It also requires management to exercise its judgement in the process of applying

323、 the accounting policies.The areas involving a high degree of judgement or complexity,or areas where the assumptions and estimates are significant to the financial statements are disclosed in this note.Basis of preparationThese financial statements have been prepared in accordance with IFRS,which co

324、mprise standards and interpretations approved by the International Accounting Standards Board(“IASB”),and International Accounting Standards and Standards Interpretations Committees interpretations approved by the International Accounting Standards Committee(“IASC”)that remain in effect,and to the e

325、xtent that they have been adopted by the European Union.Russian invasion of Ukraine and going concernAs previously stated,ART has no investments in Ukraine or Russia,nor exposure to any companies that have investments in,or links to,Ukraine or Russia.ART has no arrangements with any person currently

326、 on(or potentially on)any sanctions list,or links to Ukraine or Russia.The Board continues to monitor the global political and economic situation regularly assessing impacts arising from inflation and interest rates changes for a potential material impact on ARTs portfolio.The Company has adopted a

327、prudent short-term strategy to move to cash conservation and a cautious approach to commitments to new investments over this uncertain time.Alert to the impact of potentially reducing income returns,this approach has supported a robust balance sheet position.The Company continues to adopt this cauti

328、ous approach to new investment and is conserving cash because of the uncertainty that has characterised the past few months;this ensures the Company retains a robust financial footing,making it well positioned to take advantage of new investment opportunities.As noted above,the Company held approxim

329、ately(as at 31March 2023)13.8%of its assets(excluding sundry net assets)in cash and 11.2%in highly liquid UK Treasury Bonds and Bills with limited current contractual capital commitments.While there is external financing in the Groups investment interests,this is limited and non-recourse to the Comp

330、any;the borrowings in these special purpose vehicles are compliant with their banking covenants.See the investment review section for more details 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

331、 next twelve months 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.(a)Adoption of new and revis

332、ed StandardsA few amendments and interpretations of existing standards apply to the Groups financial year but these did not have a significant impact on the financial statements of the Company.(b)Standards and Interpretations in issue and not yet effectiveAt the date of authorisation of these financ

333、ial statements,there are a number of standards and interpretations,which have not been applied in these financial statements that were in issue but not yet effective.The Directors anticipate that the adoption of these standards and interpretations will not have a material impact on the financial statements of the Group.Basis of consolidation(a)SubsidiariesThe consolidated financial statements inco