Alpha Real Trust Limited (ARTL) 2024年年度報告「LSE」.pdf

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1、Annual reportFor the year ended 31 March 202420241 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 statements63 Directors and Company information64 Shareholder information64 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 20241 Robust financial position:ART remains on a robust financial footing and is well positioned to take advantage of new investment opportunities.Investment targets:the Company is currently focussed on selectively increasing its loan portfolio and opportunistic

5、ally extending its wider investment strategy to target investments offering inflation protection via index linked income adjustments and investments that have potential for capital gains.H2O Madrid:sale of the shopping centre investment completed post year end.Diversified portfolio of secured senior

6、 and secured mezzanine loan investments:as at 31March 2024,the size of ARTs drawn secured loan portfolio was 46.4million,representing 39.1%of the investment portfolio.The senior portfolio has an average Loan to Value(LTV)*of 62.5%based on loan commitments(with mezzanine loans having an LTV range of

7、between 49.8%and 68.0%whilst the highest approved senior loan LTV is 64.1%).Loan 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 1.0million.Cash management:during the year the Compa

8、ny invested 19.5million in short term UK Treasury Bonds(Gilts)and 10.0million in the Morgan Stanley Sterling Liquidity Fund to enhance returns on its liquid holdings.Post year end,ART invested a further 16.5million in Gilts and short term UK Treasury Bills.*See page 4 for more details NAV per ordina

9、ry share 207.3p as at 31March 2024(31March 2023:216.8p).Basic losses for the year ended 31March 2024 of(1.6)p per ordinary share (31March 2023:earnings of 1.1p per ordinary share).Adjusted earnings for the year ended 31March 2024 of 10.3p per ordinary share(31March 2023:7.7p per ordinary share)*.Dec

10、laration of a quarterly dividend of 1.0p per ordinaryshare expected to be paid on 26July 2024.*The basis of the adjusted earnings per share is provided in note 9HighlightsAlpha Real Trust Limited:Annual report 20242Companys summary and objectiveStrategyART targets investment,development,financing an

11、d 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 businesses that offer attractive risk-adjusted totalreturns.ART currently selectively focu

12、sses on asset-backed lending,debt investments and high return property investments in Western Europe that are capable of delivering strong risk adjusted returns.The portfolio mix at 31March 2024,excluding sundry assets/liabilities,was as follows:31March 202431March 2023High return debt:39.2%44.5%Hig

13、h return equity in property investments:26.1%26.5%Other investments:20.6%15.2%Cash:14.1%13.8%The Company is currently focussed on selectively increasing its loan portfolio and opportunistically extending its wider investment strategy to target high return property investments offering inflation prot

14、ection via index linked income adjustments and investments that have potential for capital gains.DividendsThe 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 Segm

15、ent(“SFS”)of the London Stock Exchange(“LSE”),ticker ARTL:LSE.ManagementThe Companys Investment Manager is Alpha Real Capital LLP(“ARC”),whose team of investment and asset management professionals focus on the potential to enhance earnings in addition to adding value to the underlying assets,and als

16、o focus on the risk profile of each investment within the capital structure to best deliver attractive risk adjusted returns.Control of the Company rests with the non-executive Guernsey based Board of Directors.4.0p Dividend per ordinary share paidduring the period10.3pAdjusted earnings per ordinary

17、 share of 10.3p207.3p NAV per ordinary share 207.3pAlpha Real Trust Limited:Annual report 20243Companys summary and objective(continued)Financial highlights12 months ended 31March 20246 months ended 30 September 202312 months ended 31March 2023Net asset value(000)123,106125,354125,067Net asset value

18、 per ordinary share207.3p214.3p216.8pLosses/(earnings)per ordinary share(basic and diluted)(1.6)p1.5p1.1pEarnings per ordinary share(basic and diluted)(adjusted)*10.3p4.6p7.7pDividend per ordinary share(paid during the period)4.0p2.0p4.0p*The adjusted earnings per share includes adjustments for the

19、effect of the fair value revaluation of investment property and indirect property investments,capital element on Investment Managers fees,the fair value movements on financial assets and deferred tax provisions:full analysis is provided in note 9 to the accounts.High return investmentsequity in prop

20、erty High return debt OtherCashSecured mezzanine debt 19.0%Secured senior debt 20.2%Cash 14.1%Listed&authorisedfund investments3.6%Treasury bonds16.5%Affordable housing0.5%Hamburg 6.2%Hotel,Lowestoft 2.3%Hotel,Yardley 4.1%Hotel,Wadebridge 2.8%H2O 10.7%26.1%20.6%14.1%39.2%Companys asset allocation by

21、 sector and investment(by percentage of Groups NAV,based on the balance sheet carrying values,excluding the Companys sundry assets/(liabilities)as at 31 March 2024(see page 8 for further details).Alpha Real Trust Limited:Annual report 20244I am pleased to present the Companys annual report and accou

22、nts for the year ended 31March 2024.ARTs investment portfolio benefits from diversification across geographies,sectors and asset types and the Company remains on a robust financial footing and is well placed to capitalise on new investment opportunities.The impact from higher interest rates,and spec

23、ulation regarding the timing of a reduction,continues to dominate the economic backdrop in which the Company operates and clouds the outlook for the real estate market.The uncertain market offers potential opportunities in the medium term for ART to grow its diversified investment portfolio.The Comp

24、any is currently focussed on risk managing and selectively growing its loan portfolio and opportunistically extending its wider investment strategy to target mezzanine opportunities as companies seek to refinance and recapitalise.The Company is also seeking to invest further in assets offering infla

25、tion protection via index linked income adjustments and investments that have potential for capital appreciation.ART continues to take a cautious approach to new investment,including new lending,as we observe ongoing pressures in the economy.Recently the Company has again focused on recycling capita

26、l into more conservative asset backed lending while reducing exposure to development risk.In this time of heightened uncertainty,the Company is benefiting from that strategy and it has placed the Company on a robust financialfooting.ART continues to adhere to its disciplined strategy and investment

27、underwriting principles which seek to manage risk through a combination of operational controls,diversification and an analysis of the underlying asset security.Long leased assetsThe Companys portfolio of long leased properties,comprising three hotels leased to Travelodge in the UK and an industrial

28、 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 adjustments which offer the potential to benefit from a long term,predictable,inflation linked income stream and the potential fo

29、r associated capital growth.Diversified secured lending investment The Company invests in a diversified portfolio of secured senior and mezzanine loan investments.The loans are typically secured on predominately residential real estate investment and development assets with attractive risk adjusted

30、income returns.As at 31March 2024,ART had committed 53.4million across thirteen loans,of which 46.4million(excluding a 6.0million provision for Expected Credit Loss discussed below)was drawn.The Companys debt portfolio comprises predominately floating rate loans.Borrowing rates are typically set at

31、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 Base Rate.During the year,two new loans were drawn for 7.8million,eight loans totalling 30.8million(including accrued interest a

32、nd exit fees)were fully repaid and a further 2.7million(including accrued interest)was received as part repayments.Post year end,no new loans were drawn but additional drawdowns of 0.9million were made on existing loans and part loan repayments were received amounting to 0.7million(including accrued

33、 interest).As at 31March 2024,51.7%of the Companys loan investments were senior loans and 48.3%were mezzanine loans.The senior portfolio has an average LTV of 62.5%based on loan commitments(with mezzanine loans having an LTV range of between 49.8%and 68.0%whilst the highest approved senior loan LTV

34、is 64.1%).Portfolio loans are underwritten against value for investment loans or gross development value for development loans as relevant and collectively referred to as LTV in this report.The largest individual loan in the portfolio as at 31March 2024 is a senior loan of 12.3million which represen

35、ts 23.0%of committed loan capital and 10.0%of the Companys NAV.William Simpson ChairmanChairmans statementAlpha Real Trust Limited:Annual report 20245Four loans in the portfolio have entered receivership:ART is closely working with stakeholders to maximise capital recovery.The Company has considered

36、 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 impaired one loan,which is accounted for at fair value,by 0.3million;the Group also calculated an Expected Credit Loss(ECL)on the other three loans o

37、f approximately 4.1million;the Group have also provided for an ECL on the remainder of the loans portfolio for an additional 1.6million:in total,the Group have provided for an ECL of 5.7million(31March 2023:3.7million)in its consolidated accounts.Aside from the isolated cases of receivership,illustr

38、ated 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 have been received in accordance with the loan agreements.Wher

39、e 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 continue to be closely reviewed to consider the potential impa

40、ct on construction timelines,building cost inflation and sales periods.The underlying assets in the loan portfolio as at 31March 2024 had diversification throughout the UK and channel islands with the majority of assets held located in London,accounting for 34.0%of the total loan investment portfoli

41、o.H2O,Madrid ART held a 30%stake in a joint venture,CBRE H2O Rivas Holding NV(CBRE H2O)with CBRE Investment Management that owned the shopping centre.Post year end,on 03April 2024,ART completed on the sale of its investment in the H2O shopping centre in Madrid.CBRE H2O disposed of its Spanish subsid

42、iaries for 48.4million(41.4million):the price was based on the 31December 2023 accounts of the Spanish subsidiaries and will be adjusted for the 3April 2024 accounts(the adjustment is estimated to be immaterial for CBRE H2O).In April 2024,ART received 14.7million as dividend and capital return from

43、CBREH2O.Under Alpha Real Trusts ownership the shopping centre had benefited from a near 50%increase in annual visitor numbers.The centres permitted leasable area was also extended,which enabled a new standalone retail park unit and two drive thru restaurant units to be created.In addition it has fac

44、ilitated the creation of a new 3,000 square metre unit which was pre-leased to Primark.Further anchor tenants,including a number of Inditex group brands,have recently extended and upgraded their stores.Operational and physical improvements to the property have resulted in a BREEAM certification bein

45、gawarded.Other investments Investment in listed and authorised fundsThe Company invested a total of 6.0million(value as at 31March 2024:4.2million)across three investments that offered potential to generate attractive risk adjusted returns.The prevailing higher interest rate environment continues to

46、 have an impact on 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 ungeared long-dated leased real estate,debt and infrastru

47、cture.Cash management The Company adopts an active approach to enhance returns on its cash balances.As at 31March 2024,the Company had invested a total of 19.5million in three short dated UK Treasury Bonds(Gilts)(annualised yield to maturity ranging from 4.7%to 4.9%with maturities in September 2024,

48、March 2025 and October 2025).These government backed short term investments offer the Company enhanced returns over cash balances.Post year end,the Company invested 6.5million in a short dated UK Treasury Bill with an annualised yield to maturity of 5.2%with maturity in October 2024 and 10.0million

49、in Gilts with maturity 30January 2026 and an annualised yield to maturity of 4.3%.During the year,the Company also invested 10.0million in the Morgan Stanley GBP Liquidity Fund,which invests in high quality short-term money market instruments denominated in sterling,offers same day liquidity and ear

50、ns an annualised return,net of Morgan Stanleys fees,of 5.2%.Chairmans statement(continued)Secured lending:Derby BridgeAlpha Real Trust Limited:Annual report 20246Chairmans statement(continued)Results and dividendsResultsBasic losses for the year ended 31March 2024 are 0.7million(1.1)pence per ordina

51、ry share,see note 9 of the financial statements).Adjusted earnings,which the Board believes is a more appropriate assessment of the operational income accruing to the Groups activities,for the year ended 31March 2024 are 6.0million(10.3 pence per ordinary share,see note 9 of the financial statements

52、).This compares with adjusted earnings of 4.5million(7.7 pence per ordinary share)in the same period last year.Earnings have improved predominantly due to a stronger performance from the Companys loan portfolio and revenue from Gilts and UK Treasury Bills investments.The net asset value per ordinary

53、 share at 31March 2024 is 207.3 pence per share(31March 2023:216.8 pence per ordinary share)(see note 10 of the financial statements).The decrease in value over the period mainly reflects the reduction in fair value of investment properties and of the H2O joint venture investment,which was sold afte

54、r the year end,on 3April 2024.DividendsThe Board announces a dividend of 1.0 pence per ordinary share which is expected to be paid on 26July 2024(ex-dividend date 4July 2024 and record date 5July 2024).The dividends paid and declared in respect of the year ended 31March 2024 totalled 4.0 pence per o

55、rdinary share representing an annual dividend yield of 3.1%p.a.by reference to the average closing share price over the year ended 31March 2024.During the period,dividends of 205,762 were paid in cash and 2,126,498 settled by scrip issue of shares.Scrip dividend alternativeShareholders of the Compan

56、y 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 receive under the Scrip Dividend Alternative will be calculated using the average of the closing

57、 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 dividend alternative to Shareholders for the dividend for the quarter ended 31March 2024.Share

58、holders 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 may complete a Scrip Mandate Form(this can be obtained from the registrar:contact Computers

59、hare(details below),which must be returned by 11July 2024 to benefit from the scrip dividend alternative for the next dividend.FinancingAs at 31March 2024 the Group has one direct bank loan of 9.5million(8.1million),with no financial covenant tests,to a subsidiary used to finance the acquisition of

60、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 investment review sections later in this report.Share buybacksFollowing the Annual General Meeting h

61、eld on 7September 2023 the Company has the authority to buy back 14.99%of its share capital(assessed on 29June 2023)for a total of 8,709,579 shares.No shares have been yet bought back under this authority.During the period and post period end,the Company did not purchase any shares in the market.As

62、at the date of this announcement,the ordinary share capital of the Company is 67,536,128(including 7,717,581 ordinary shares held in treasury)and the total voting rights in the Company is 59,818,547.Secured lending:North LondonAlpha Real Trust Limited:Annual report 20247Chairmans statement(continued

63、)Foreign currencyThe Company monitors foreign exchange exposures and considers hedging where appropriate.Foreign currency balances have been translated at the period end rates of 1:1.170 as appropriate.Going concernThe Company has adopted a prudent short-term strategy to move to cash conservation an

64、d 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 cautious approach to new investment and is conserving cash becau

65、se 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 approximately(as at 31March 2024)14.1%of its assets(excluding sundr

66、y net assets)in cash(including the investment in the Morgan Stanley GBP Liquidity Fund)and 16.5%in highly liquid UK Treasury Bonds 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

67、;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 ne

68、xt 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.ART has no arrangements with an

69、y person currently on(or potentially on)any sanctions list.The Board continues to monitor the global political and economic situation regularly assessing impacts arising from inflation and interest rate changes for a potential material impact on ARTs portfolio.Strategy and outlookARTs investment por

70、tfolio benefits from diversification across geographies,sectors,and asset types.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 investmentopportunities.ART remains co

71、mmitted to growing its diversified investment portfolio.In recent years the Company focused on reducing exposure to 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 t

72、argets investments offering inflation protection via index linked income adjustments and investments that have potential for capital gains.William Simpson Chairman 20 June 2024 Secured lending:London FieldsAlpha Real Trust Limited:Annual report 20248Investment reviewPortfolio overview 31 March 2024I

73、nvestmentCarrying valueIncome return p.a.Investment locationProperty type/underlyingsecurityInvestment notes%of portfolio 1Note*High return debt(39.2%)Secured senior financeSenior secured loans(excluding committed but undrawn facilities of 1.0million)24.0m 210.3%3 UKDiversified loan portfolio focuss

74、ed on real estate investments and developments Senior secured debt 20.2%13Secured mezzanine financeSecond charge mezzanine loans22.4m 217.3%3 UKDiversified loan portfolio focussed on real estate investments and developments Secured mezzanine debt and subordinated debt 19.0%13High return equity in pr

75、operty investments(26.1%)H2O shopping centreIndirect property12.6m(14.8m)4.1%4SpainDominant Madrid shopping centre and separate development siteSold post year end 10.7%12Long leased industrial facility,HamburgDirect property7.3m 5(8.6m)8.9%4GermanyLong leased industrial complex in major European ind

76、ustrial and logistics hub with RPI linked rentMedium term moderately geared bank finance facility6.2%10Long leased hotel,WadebridgeDirect property3.3m5.3%6UKLong leased hotel to Travelodge,a large UK hotel group with CPI linked rentNo external gearing2.8%10Long leased hotel,LowestoftDirect property2

77、.7m5.2%6UKLong leased hotel to Travelodge,a large UK hotel group with RPI linked rentNo external gearing2.3%10Long leased hotel,YardleyDirect property4.8m7.7%6UKLong leased hotel to Travelodge,a large UK hotel group with RPI linked rentNo external gearing4.1%10Other investments(20.6%)Listed and auth

78、orised fund investments 4.2m8.9%4UK&Channel Islands Commercial real estate,infrastructure and debt funds Short to medium term investment in listed and authorised funds3.6%11Affordable housing Residential Investment0.6mn/aUKHigh-yield residential UK portfolio100%shareholding;no external gearing 0.5%1

79、0UK Treasury Bonds 19.5m4.7%-4.9%7 2.8%-5.0%8 UKUK government bonds-16.5%11Cash and short-term investments(14.1%)Cash 96.8m2.6%10UKOn call and current accounts-5.7%-Sterling Liquidity Fund10.0m5.2%11 UKMoney market fund,daily liquidity-8.4%16*Return from underlying investments excluding Fund fees*Se

80、e notes to the financial statements 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 the period shown as a

81、percentage of the average committed capital over the period4 Yield on equity over 12 months to 31 March 2024 5 Property value including sundry assets/liabilities,net of associated debt6 Annualised monthly return7 Range of annualised yields to maturity8 Range of fixed annual coupons9 Group cash of 7.

82、2m excluding cash held with the Hamburg holding company of 0.4m10 Weighted average interest earned on call accounts11 Annualised daily returnAlpha Real Trust Limited:Annual report 20249High return debtART has a portfolio of secured loan investments which contribute a diversified return to the Compan

83、ys earnings position.The 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 relation

84、ships and knowledge of 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:Derby BridgeTotal commitment8,737,000 Loan typeMezzanine investment

85、loanLoan term60 months LTV49.77%Underlying securityRefinance of hotel Alpha Real Trust Limited:Annual report 202410Central London hotel Mezzanine investment loan Alpha Real Trust Limited:Annual report 202411Investment review(continued)Secured finance InvestmentInvestment typeCarrying valueIncome ret

86、urn p.a.Property type/underlying securityInvestment notesSecured senior financeFirst charge secured loans24.0m*10.3%*Diversified loan portfolio focussed on real estate investments and developmentsSecured debt Secured mezzanine financeSecond charge secured loans22.4m*17.3%*Diversified loan portfolio

87、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 th

88、e 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 ei

89、ther current or capitalised interest or coupons.As at 31March 2024,ART had invested a total amount of 46.4million across thirteen loans.Over the past twelve months the loan portfolio has decreased by 16.2%.During the year,two new loans were drawn for 7.8million,eight loans totalling 30.8million(incl

90、uding accrued interest and exit fees)were fully repaid and a further 2.7million(including accrued interest)was received as part repayments.Post year end,no new loans were drawn but additional drawdowns of 0.9million were made on existing loans and part loan repayments were received amounting to 0.7m

91、illion(including accrued interest).Each loan will typically have a term of up to two years(oneloan 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 at 31March 2024,the portfolio had an average LTV of 6

92、2.5%(with average approved LTV between 49.8%and 68.0%for mezzanine facilities while the highest approved LTV for senior loans is64.1%).Four loans in the portfolio have entered receivership:ART is closely working with stakeholders to maximise capital recovery.The Company has considered the security o

93、n these loans(which are a combination of a first charge and a second charge over the respective assets and personal guarantees)and have impaired one loan,which is accounted for at fair value,by 0.3million;the Group also calculated an ECL on the other three loans of approximately 4.1million;the Group

94、 have also provided for an ECL on the remainder of the loans portfolio for an additional 1.6million:in total,the Group have provided for an ECL of 5.7million(31March 2023:3.7million)in its consolidated accounts.As at 31March 2024,ART had invested a total amount of 46.4million across thirteen loans.T

95、hese loans are typically secured on real estate investment and development assets with attractive riskadjusted income returns from either current or capitalised interest or coupons.Total commitment1,400,000Loan typeMezzanine development loanLoan term18 months LTV59.56%Underlying securityDevelopment

96、of eight new build apartmentsAlpha Real Trust Limited:Annual report 202412North London Mezzanine development loan Alpha Real Trust Limited:Annual report 202413Investment review(continued)Current loan investment examples:LocationTotal commitmentLoan typeLoan term(months)Current LTVUnderlying security

97、Derby850,000Mezzanine bridging loan1857.08%Development of 64apartmentsThroughout the UK 12,000,000 Senior investment loan 36 60.32%Refinance of a portfolio of six care homesNorth London1,400,000Mezzanine development loan1859.56%Development of eight new build apartmentsCentral London 8,737,000 Mezzan

98、ine investment loan 60 49.77%Refinance of hotel As at 31 March 2024,the portfolio had an average LTV of 62.5%(withaverage approved LTV between 49.8%and 68.0%for mezzanine facilities while the highest approved LTV for senior loans is 64.1%).Loan portfolio by geography27%8%25%4%4%32%Greater LondonSout

99、h WestThroughout the UKSouth EastEast MidlandsJerseyLoan portfolio by asset class(%of commitment)27%56%2%15%HotelRetirement livingCare homeResidentialAlpha Real Trust Limited:Annual report 202414Investment review(continued)High return equity in property investmentsART continues to remain focused on

100、investments that offer the potential to deliver attractive risk-adjusted returns by way of value enhancement through active asset management,improvement of income,selective deployment of capital expenditure and the ability to undertake strategic sales when the achievable price is accretive to return

101、s.H2O Shopping Centre,Madrid InvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesH2OIndirect property12.6m (14.8m)4.1%*High-yield,dominant Madrid shopping centre and separate development siteSold post year end*Yield on equity over twelve months to 31

102、March 2024,excluding Fund fees ART held a 30%stake in a joint venture with CBRE Investment Management that owns the shopping centre.Post year end,on 03April 2024,ART completed on the sale of its investment in the H2O shopping centre in Madrid.CBRE H2O disposed of its Spanish subsidiaries for 48.4mil

103、lion(41.4million):the price was based on the 31December 2023 accounts of the Spanish subsidiaries and will be adjusted for the 3April 2024 accounts(the adjustment is estimated to be immaterial for CBRE H2O).In April 2024,ART received 14.7million as dividend and capital return from CBREH2O.Under Alph

104、a Real Trusts ownership the shopping centre has benefited from a near 50%increase in annual visitor numbers.Alpha Real Capital,the Companys Investment Manager has actively managed the asset and through the addition of top tier brands and targeted capital expenditure has successfully repositioned the

105、 centre.The shopping centres leasable area has been extended,partly enabled by the transfer of building rights from a nearby separate vacant site,strategically acquired for that purpose.This has permitted a new retail box and two drive thru restaurant units to be created on the shopping centres surf

106、ace car park.More recently it has facilitated a major reconfiguration and upgrade of a mall area to create a new 3,000 square metre anchor tenant unit pre-leased to Primark.Further anchor tenants,including a number of Inditex groups brands,have recently extended and upgraded their stores.Upgrades to

107、 the property have resulted in a BREEAM certification being awarded and the centre receiving a two notch uplift in its energy rating,resulting in a Green Loan certificate being granted from the lending bank.Alpha Real Trust Limited:Annual report 202415Long leased hotel,Wadebridge,Cornwall Investment

108、Investment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesHotel,Wadebridge Cornwall,UK Direct property 3.3m5.3%*Long leased hotel to Travelodge,a large UK hotel group with RPI linked rentNo external gearing*Annualised monthly return,excluding Fund fees ART has an inv

109、estment of 3.3million(property valuation as at 31March 2024)in 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 Lim

110、ited on a 20year unexpired lease term.Under the lease,the tenant is responsible for building maintenance.The passing rent of 0.3million p.a.has inflation linked adjustments.Long leased hotel,Yardley,BirminghamInvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvest

111、ment notesHotel,Yardley,UK Direct property 4.8m7.7%*Long leased hotel to Travelodge,a large UK hotel group with RPI linked rentNo external gearing*Annualised monthly return,excluding Fund feesART has an investment of 4.8million(property valuation as at 31March 2024)in a 64-bedroom property,which is

112、held freehold and occupies a site of 1.42 acres and has 116 car parking spaces in Yardley.The hotel is situated to the east of Birmingham City Centre off the A45.The hotel is in a well-connected location equidistant between Birmingham City Centre to the west and Birmingham Airport to the east.The pr

113、operty was purchased in August 2023 and subsequently independently valued as at 31March 2024.The property is leased to Travelodge Hotels Limited until November 2060 with a tenant only break option in 2035.Under the lease,the tenant is responsible for building maintenance.The passing rent of 0.4milli

114、on p.a.has inflation linked adjustments.Investment review(continued)SectorIndustrial Underlying assetsIndustrial facility in Hamburg GermanyTenantVeolia Umweltservice Nord GmbH,part of the Veolia groupDescriptionLong leased investment with moderately geared,long term,bank finance facility.Alpha Real

115、 Trust Limited:Annual report 202416Long leased industrial facility HamburgAlpha Real Trust Limited:Annual report 202417Long leased hotel,LowestoftInvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesHotel,Lowestoft,UK Direct property 2.7m5.2%*Long leas

116、ed hotel to Travelodge,a large UK hotel group with RPI linked rentNo external gearing*Annualised monthly return,excluding Fund feesART has an investment of 2.7million(property valuation as at 31March 2024)in a 47-bedroom property,which is held freehold and occupies a site of 1.08 acres in Lowestoft,

117、a well established and well connected area located in close proximity to the A47 which runs to Norwich.The property is leased to Travelodge Hotels Limited on an 18year unexpired lease term.Under the lease,the tenant is responsible for building maintenance.The passing rent of 0.2million p.a.has infla

118、tion linked adjustments.Long leased industrial facility,Hamburg InvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesIndustrial facility,Werner-Siemens-Strae Hamburg,Germany Direct property 7.3m*(8.6m)8.9%*High return industrial facility in Hamburg Ger

119、manyLong leased investment with moderately geared,medium term,bank finance facility*Property value including sundry assets/liabilities and cash,net of associated debt*Yield on equity over twelve months to 31 March 2024,excluding Fund fees ART has an investment of 8.6million(7.3million)in an industri

120、al facility leased to a leading international group.The property is held freehold and occupies a site of 11.8 acres in Billbrook,a well-established and well-connected industrial area located approximately 8 kilometres south-east of Hamburg centre.Hamburg is one of the main industrial and logistics m

121、arkets in Germany.The property is leased to Veolia Umweltservice Nord GmbH,part of the Veolia group,an international industrial specialist in water,waste and energy management,with a 19-year unexpired lease term.Under the operating lease,the tenant is responsible for building maintenance and the ren

122、t has periodic inflation linked adjustments.The Hamburg asset is funded by way of a 9.5million(8.1million)non-recourse,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 a

123、nd predictable inflation-linked income stream which is forecast to generate stable high single digit income returns.In addition,the investment offers the potential for associated capital growth from an industrial location in a major German logistics and infrastructure hub.Investment review(continued

124、)Alpha Real Trust Limited:Annual report 202418Investment review(continued)Other investmentsListed and authorised fund investmentsInvestmentInvestment typeCarrying valueIncome return*Property type/underlying securityInvestment notesSequoia Economic Infrastructure Income Fund LimitedListed equity2.3m6

125、.1%Listed investment fundFTSE 250 infrastructure debt fundGCP Infrastructure Investments Limited Listed equity0.9m6.7%Listed investment fundFTSE 250 infrastructure fundGCP Asset Backed Income Fund Limited Listed equity1.0m6.1%Listed investment fundDiversified asset back debt fundTotal4.2m6.2%*Yield

126、on equity based on 12 months to 31 March 2024The Company invested a total of 6.0million(value as at 31March 2024:4.2million)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

127、 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 ungeared long-dated leased real estate,debt and infrastructure.Affordable housingThe Companys

128、 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 housing sector which offers

129、 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 a six month term contract

130、.The fair value of the Liverpool property as at 31March 2024 was 0.6million.UK Treasury Bonds(Gilts)and BillsInvestmentInvestment typeCarrying valueIncome returnProperty type/underlying securityInvestment notesGiltsUK Treasury Bonds19.5m4.7%-4.9%Liquid Government securityShort dated(maturity in Sept

131、ember 2024)Total19.5m4.8%*Annualised yield to maturity*Weighted averageThese government backed short term investments offer the Company enhanced returns over cash balances.As at 31March 2024,the Company had invested a total of 19.5million in three short dated UK Treasury Bonds(Gilts)(annualised yiel

132、d to maturity ranging from 4.7%to 4.9%with maturities in September 2024,March 2025 and October 2025).These government backed short term investments offer the Company enhanced returns over cash balances.Post year end,the Company invested 6.5million in a short dated UK Treasury Bill with an annualised

133、 yield to maturity of 5.2%with maturity in October 2024 and 10.0million in Gilts with maturity 30January 2026 and an annualised yield to maturity of 4.3%.Alpha Real Trust Limited:Annual report 202419Investment review(continued)Cash balancesInvestmentInvestment typeCarrying valueIncome returnProperty

134、 type/underlying securityInvestment notesCash balance*Cash6.8m2.6%*On call and current accountsn/aMorgan Stanley Sterling Liquidity FundShort-term investment10.0m5.2%Money market fund,daily liquidityn/a*Group cash of 7.2m excluding cash held with the Hamburg holding company of 0.4m*Weighted average

135、interest earned on call accountsAs at 31March 2024,the Group had cash balances of 6.8million,excluding cash held with the Hamburg holding company of 0.4million.The Groups cash is held with established banks with strong credit ratings.SummaryART has a diversified portfolio focussed on asset-backed le

136、nding and property investments in Western Europe.The Company is currently focussed on selectively increasing its loan portfolio and extending its wider investment strategy to opportunistically target investments offering inflation protection via index linked income adjustments and investments that h

137、ave potential for capital gains.Brad Bauman and Gordon Smith For and on behalf of the Investment Manager 20 June 2024Alpha Real Trust Limited:Annual report 202420William Simpson Chairman Aged 68William Simpson has over 30years experience as a lawyer in financial services.His focus has been on regula

138、ted and unregulated investment vehicles,encompassing banking,finance,corporate,investment,trust and regulatory work.William studied 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

139、 Mourant,and then managing partner of Ogier Guernsey,during which time he also served on the Ogier Group board.In 2017 William 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.Phill

140、ip Rose Director Aged 64Phillip Rose is a Fellow of the Securities Institute and holds a Master of Law degree.He has over 40years 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 Operat

141、ing Officer of European shopping centre investor and developer TrizecHahn Europe,Managing Director of retail and commercial 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

142、has been a member of the Management Committee for Hermes Property Unit Trust and its Audit Committee,and has been a Non-Executive Director of Great Portland Estates plc.Jeff Chowdhry Director Aged 63 Jeff is currently General Partner at Concept Ventures,an early stage,software focused,VC fund.It is

143、currently the largest dedicated pre-seed fund in the UK.He has an investment career which spans over 40years having held senior positions at F&C,as head of emerging markets and BMO Asset Management where he was responsible for AUM of over$5billion.He has specific expertise in ESG related matters.He

144、is an active Angel investor having backed over 30 start-up companies and has several board advisory positions within these rapidly growing businesses.Mel TorodeDirector Aged 44 Mel Torode has 20years experience in the fund administration industry specifically including private equity,property and me

145、zzanine debt and is an Independent Non-Executive Director.Prior to founding Morgan Sharpe in April 2008(a fund administration 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

146、period from 2017 to 2021,Mel held the roles of Operations Director,Managing Director and subsequently Non-Executive of OcorianGuernsey.Mel began her career at Guernsey International Fund Managers(now Northern Trust),working on large private equity funds and European holding companies,moving to Moura

147、nt International Finance Administration(now State Street)where she spent more than two years concentrating primarily on listed property funds.Peter Griffin Director Aged 65Peter Griffin has over 30years experience in financial services andis a qualified chartered accountant.He is currently a directo

148、r of Handelsbanken Alternatives Fund Limited,an investment company listed on The International StockExchange.Peter previously had various senior roles in the trust services industry in the Channel Islands and Isle of Man.DirectorsAlpha Real Trust Limited:Annual report 202421The Directors present the

149、ir report and financial statements of the Group for the year ended 31March 2024.Principal activities and statusDuring the year,the Company,an authorised closed-ended Guernsey registered investment company,carried on business as an investment company,investing in direct property,development,financing

150、 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 businesses.The Companys shares are traded on the Specialist Fund Segment(“SFS”)of the L

151、ondon Stock Exchange(“LSE”).Business review,results and dividendA review of the business during the year is contained in the Chairmans Statement on pages 4 to 7.The results for the year to 31March 2024 are set out in the financial statements.On 1March 2024,the Company declared a dividend of 1.0p per

152、 share,which was paid to shareholders on 12April 2024.The intention of the Company is to pay a dividendquarterly.Share buybacksFollowing the Annual General Meeting held on 7September 2023 the Company has the authority to buy back 14.99%of its share capital(assessed on 29June 2023)for a total of 8,70

153、9,579 shares.No shares have been yet bought back under this authority.During the period and post period end,the Company did not purchase any shares in the market.As at the date of this announcement,the ordinary share capital of the Company is 67,536,128(including 7,717,581 ordinary shares held in tr

154、easury)and the total voting rights in the Company is 59,818,547.Scrip dividend alternativeIn the circular published on 18December 2018,the Company sought shareholders approval to enable a scrip dividend alternative to be offered to ordinary shareholders whereby they could elect to receive additional

155、 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.The number of ordinary shares that an ordinary shareholder will receive under the scrip dividend alternati

156、ve 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 elected to offer the scrip dividend alternative to shareholders for the

157、 dividend for the quarter ended 31December 2023:for this period,scrip dividend alternative elections were received in respect of 54,457,721 shares of the Company,which has resulted in the issue of 437,407 new ordinary shares in April 2024.Further details on dividends are given in note 8 of the finan

158、cial 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 authorised by the Guernsey Financial Services Commission(“GFSC”),it is required to follow the principles and

159、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 with the Guernsey Code and general principles of good corporate governance are reviewed by the Board at leas

160、t 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 consultation on the GFSC website:www.gfsc.gg.The BoardBiographies of the Directors are set out on page 20.The Director

161、s interests in the shares of the Company as at 31March 2024 are set out below:Number of ordinaryshares 31March 2024Number of ordinaryshares 31March 2023Phillip Rose1,031,935978,999Jeff Chowdhry5,0005,000Melanie Torode-William Simpson40,34730,000Peter Griffin-Post year end,Phillip Rose and William Si

162、mpson increased their shareholding in ART to 1,039,179 and 50,671 ordinary shares,respectively.Non-executive directors are not appointed for specified terms;appointments of Board members can be terminated at any time without penalty and the Companys Articles of Association(“Articles”)require each Di

163、rector 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 Limited:Annual report 202422Directors and corporate governanc

164、e report(continued)The Annual General Meeting of the Company will take place on 5September 2024.At this meeting,Melanie Torode and Phillip Rose will retire and submit themselves for re-election.The remainder of the Board recommend their re-appointment.Individual Directors may seek independent legal

165、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 objectives for the Company and set

166、 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 any appropriate use of gearing both

167、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 key elements of the Companys perfor

168、mance 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 Investment Manager or the Administrator.S

169、uch 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 Board(e.g.all acquisitions,all disposal

170、s,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 quarterly meetings,it considers papers ci

171、rculated 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 Manager considers may be appropriate

172、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 lenders.These reports enable the Boar

173、d 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 internal controls and these reports

174、are considered by the Board periodically.In between its regular quarterly meetings,the Board has also met on a number of occasions during the year to approve specific transactions and for other matters.Board and Directors appraisalsThe Board carries out an annual review of its composition and perfor

175、mance(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 between the Board and the Investment

176、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 31March 2024:DirectorNo of meetings attendedPhillip Rose5Jeff Chowdhry5

177、Melanie Torode10William Simpson12Peter Griffin11No.of meetings during the year12Directors and officers insuranceAn appropriate level of Directors and officers insurance is maintained whereby Directors are indemnified against liabilities to third parties to the extent permitted by Guernsey companylaw

178、.Alpha Real Trust Limited:Annual report 202423Directors and corporate governance report(continued)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.Audit and R

179、isk 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 Audit and Risk Committee.Role of th

180、e 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 of the external auditor To develop a

181、nd 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 control policies and to ensure that t

182、he 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 relating to its financial performan

183、ce,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 Audit and Risk Committee makes recomm

184、endations 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 discuss the scope and conclusions of t

185、heir 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 external auditor,BDO Limited,and rev

186、iews 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 Board relies upon the systems and proce

187、dures 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 function,although the Audit and Risk

188、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 and composition of the Board in relati

189、on 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 Committee consists of Melanie Torode(Cha

190、irman),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 determine their remuneration within

191、the cap set out in the Companys Articles and it meets at least annually.It met once during the year with Melanie Torode and William Simpson present.Alpha Real Trust Limited:Annual report 202424Directors and corporate governance report(continued)Remuneration reportThe aggregate fees payable to the Di

192、rectors are limited to 200,000 per annum under the Companys Articles.The annual fees payable to each Director,which were last reviewed in 2019,have been increased by 10%with effect from 1April 2022.The fees payable to the Directors are expected to reflect their expertise,responsibilities and time sp

193、ent on the business of the Group,taking into account market equivalents,the activities,the size of the Group and market conditions.Under their respective appointment letters,each Director is entitled to an annual fee together with a provision for reimbursement for any reasonable out of pocket expens

194、es.During the year the Directors received the following emoluments in the form of fees from Group companies:Year ended 31March 2024 Year ended 31March 2023 Phillip Rose27,50027,500Jeff Chowdhry27,50027,500William Simpson39,50039,500Peter Griffin27,50027,500Melanie Torode*48,00052,633Total170,000174,

195、633*This comprises 20,500 for the ARTs directorship plus fees for directorships of ARTs subsidiaries and joint venturesInternal control and risk managementThe Board understands its responsibility for ensuring that there are sufficient,appropriate and effective systems,procedures,policies and process

196、es 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 its financial and otherobjectives.The Board review

197、s 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 quarterly basis.These matters include quarterly management

198、 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 considers the non-financial as well as financial risks

199、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 proposing a property investment strategy to the Board

200、,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 shareholdingShareholders with holdings of more than 3percent of the vot

201、ing rights of the Company as at 24May 2024 were asfollows:Name of investorNo.of voting rights%heldAlpha Global Property Securities Fund Pte.Ltd26,194,33543.79%Rockmount Ventures Ltd25,278,98242.26%Shareholder relationsThe Board places high importance on its relationship with its shareholders,with me

202、mbers 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 shareholder communication fulfils the needs of being

203、 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 Directors are responsible for preparing the annual re

204、port 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 at the end of the year and of the profit or loss of

205、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 andprudent;3)state whether applicable accounting standards have been followed,subje

206、ct to any material departures disclosed and explained in the financial statements;andAlpha Real Trust Limited:Annual report 2024254)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 Direct

207、ors 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.The Directors are re

208、sponsible 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 are also responsible for safeguarding the assets of t

209、he 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 uncertaintiesThe principal risks and uncertainties fac

210、ing 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 the political and economic climate of the jurisdict

211、ions 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;this could reduce the amount of future cash inflows fro

212、m 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.Going concernThe Company has adopted a prudent short-term strategy to move to ca

213、sh 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 cautious approach to new investment and is con

214、serving 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 approximately(as at 31March 2024)14.1%of its asse

215、ts(excluding sundry net assets)in cash(including the investment in the Morgan Stanley GBP Liquidity Fund)and 16.5%in highly liquid UK Treasury Bonds with limited current contractual capital commitments.While there is external financing in the Groups investment interests,this is limited and non-recou

216、rse to the Company;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 fo

217、recasts for the 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.ART has no ar

218、rangements with any person currently on(or potentially on)any sanctions list.The Board continues to monitor the global political and economic situation regularly assessing impacts arising from inflation and interest rate changes for a potential material impact on ARTs portfolio.Annual General Meetin

219、gThe AGM of the Company will be held in Guernsey at 9.00 am on 5September 2024 at Floor 2,Trafalgar 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 Dir

220、ectors be authorised to determine the auditors remuneration.Independent AuditorBDO Limited has expressed its willingness to continue in office as auditor.By order of the Board,William Simpson DirectorPeter Griffin Director 20 June 2024Directors and corporate governance report(continued)Alpha Real Tr

221、ust Limited:Annual report 202426Each of the Directors,whose names and functions are listed in the Directors and corporate governance report confirm that,to the best of each persons knowledge and belief:The financial statements,prepared in accordance with IFRSs as adopted by the EU,give a true and fa

222、ir view of the assets,liabilities,financial position and profit of the Group,and The Chairmans statement and the investment review include a fair review of the development and performance of the business and the position of the Group and page 25 provides a description of the principal risks and unce

223、rtainties that the Group faces.By order of the Board,William Simpson DirectorPeter Griffin Director20 June 2024Directors statement pursuant to the Disclosure and Transparency RulesAlpha Real Trust Limited:Annual report 202427Opinion on the financial statementsIn our opinion,the financial statements

224、of Alpha Real Trust Limited(“the Parent Company”)and its subsidiaries(the“Group”):give a true and fair view of the state of the Groups affairs as at 31March 2024 and of its loss for the year then ended;have been properly prepared in accordance with International Financial Reporting Standards(“IFRS”)

225、as adopted by the European Union;and have been properly prepared in accordance with the requirements of the Companies(Guernsey)Law,2008.We have audited the financial statements of the Group for the year ended 31March 2024 which comprise the Consolidated statement of comprehensive income,the Consolid

226、ated balance sheet,the Consolidated cash flow statement,the Consolidated statement of changes in equity,and notes to the financial statements,including a summary of significant accounting policies.The financial reporting framework that has been applied in their preparation is applicable law and IFRS

227、 as adopted by the European Union.Basis for opinionWe conducted our audit in accordance with International 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 statemen

228、ts section of our report.We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,including the FRCs Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requiremen

229、ts.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.Our audit opinion is consistent with the additional report to the audit committee.Conclusions relating to going concernIn auditing the financial statements,we have concluded that t

230、he Directors use of the going concern basis 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 dire

231、ctors assessment in respect of going concern 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 in

232、come and expenditure and the impact on the 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

233、of those charged with governance,the RNS 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 c

234、ollectively,may cast significant doubt on the Groups ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.Our responsibilities and the responsibilities of the Directors with respect to going concern are described in

235、 the relevant sections of this report.Independent auditors reportTo the Members of Alpha Real Trust LimitedAlpha Real Trust Limited:Annual report 202428Independent auditors report(continued)Overview Key audit matters(2024 and 2023)Property Valuations Loans advanced and IFRS 9 Financial InstrumentsMa

236、terialityGroup financial statements asawhole1,990,000(2023:2,023,000)based on 1.5%(2023:1.5%)of total assetsAn 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

237、 risks of material misstatement in the financial 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 taki

238、ng into account the nature of the Groups investments,involvement of the Investment Manager,the accounting and reporting environment and the industry in which the Group operates.The Group consists of the Parent Company,numerous subsidiaries and a joint venture entity.We concluded that the most effect

239、ive audit approach to the Group,due to the same accounting processes and control environment 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 consolidated finan

240、cial information(see Materiality section below).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 misstatement(wh

241、ether 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 statements as a

242、 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 all propert

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

244、y.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 therefore det

245、ermined 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 terms of

246、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 understand t

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

248、s 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.Alpha Real Trust Limited:Annual report 202429Independen

249、t 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 material balance in the financial statements and IFR

250、S 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 loss provisions,and we therefore considered this to b

251、e 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.This was undertaken with reference to accounting sta

252、ndards 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 in line with IFRS 9 and appropriate,given our unders

253、tanding of the loans advanced;obtaining and reviewing all loan agreements to confirm the appropriateness of all loans except 1 being classified as stage 3 due to the repayable on demand feature;obtaining and challenging,through discussion,the updates made to the existing methodology to appropriately

254、 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 year end balance;undertaking procedures to check that

255、the expected credit loss model applied by management was mathematically accurate;and challenging managements expected credit loss on four individual loans which had entered into true default and the manual adjustments made over the mechanical model.This included obtaining and considering support for

256、 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 reasonable.Our application of materialityWe apply

257、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 reasonable users that are taken on the basis of the fina

258、ncial 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 below these levels will not necessarily be evaluate

259、d 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 determined materiality for the financial statements as a w

260、hole and performance materiality as follows:Group financial statements20242023Materiality1,990,0002,023,000Basis for determining materiality1.5%of total assetsRationale for the benchmark appliedDue to it being an investment fund with the objective of long-term capital growth with investment values b

261、eing a key focus of users of the financial statements.Performance materiality1,492,5001,517,250Basis for determining performance materiality75%of materialityThis was determined using our professional judgement and took into account the complexity of the group and our long-standing knowledge of the e

262、ngagement together with a history of minimal,misstatements.Alpha Real Trust Limited:Annual report 202430Independent auditors report(continued)Specific materialityWe also determined that for sensitive fees including:management fees,performance fees,legal fees,directors fees and audit fees,a misstatem

263、ent 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%(2023:10%)of materiality being 199,000(2023:202,300).Wefurther applied a performance materiality

264、 level of 75%(2023:75%)of specific materiality to ensure that the risk of errors exceeding specific materiality was appropriately mitigated.Reporting threshold We agreed with the Audit Committee that we would report to them all individual audit differences in excess of 59,700(2023:61,230).We also ag

265、reed to report differences below this threshold that,in our view,warranted reporting on qualitativegrounds.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 fi

266、nancial statements 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 inform

267、ation and,in doing 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,w

268、e are required to 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 th

269、is regard.Other 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 n

270、ot in agreement 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 with

271、in the Directors 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 stat

272、ements that are 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 basi

273、s of accounting 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 a

274、s a whole are free 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

275、 when it exists.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.Alpha Real Trust Limited:Annual report 202431Ind

276、ependent auditors report(continued)Extent to which the audit was capable of detecting irregularities,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 missta

277、tements in respect of irregularities,including fraud.The extent to which our procedures are capable of detecting irregularities,including fraud is detailed below:Based on our understanding of the Group and the industry in which it operates,we identified that the principal risks of non-compliance wit

278、h laws and regulations 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 impac

279、t on the preparation 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

280、 evaluated managements 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

281、 recognition in 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 commu

282、nicated relevant 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 res

283、pond to the risks 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

284、 irregularities;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 r

285、egulations and fraud;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

286、risks of material 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 throug

287、h collusion.There 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 responsibil

288、ities is available at the Financial Reporting Councils website at:https:/www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditors report.The engagement audit director on the audit resulting in this independent auditors opinion is Simon Hodgson.Use of our reportThis report

289、is made solely to the Parent 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 pur

290、pose.To the fullest extent 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 Accou

291、ntants and Recognised Auditor Place du Pr,Rue du Pr,St Peter Port,Guernsey20 June 2024Alpha Real Trust Limited:Annual report 202432For the year ended 31March 2024For the year ended 31March 2023 NotesRevenue000Capital000Total000Revenue 000Capital 000Total000IncomeRevenue31,774-1,7741,325-1,325Interes

292、t revenue6,596-6,5965,328-5,328Change in the revaluation of investment property13-(1,419)(1,419)-(548)(548)Gains/(losses)on financial assets and liabilities held at fair value through profit or loss25125289414528(1,597)(1,069)Total income8,495(1,130)7,3657,181(2,145)5,036ExpensesExpected credit loss

293、es16(277)(1,711)(1,988)(232)(881)(1,113)Property operating expenses3(104)-(104)(87)-(87)Investment Managers fee24(2,326)-(2,326)(2,354)-(2,354)Other administration costs 4(1,083)-(1,083)(943)-(943)Total operating expenses(3,790)(1,711)(5,501)(3,616)(881)(4,497)Operating profit4,705(2,841)1,8643,565(

294、3,026)539Share of profit/(loss)of joint ventures12443(4,141)(3,698)1,012(569)443Finance income51,205-1,205255-255Finance costs 6(202)(24)(226)(201)(201)(402)Profit/(loss)before taxation6,151(7,006)(855)4,631(3,796)835Taxation7(110)36(74)(130)(74)(204)Profit/(loss)for the year6,041(6,970)(929)4,501(3

295、,870)631Other comprehensive income/(expense)for the yearItems that may be classified to profit and loss in subsequent periodsExchange differences arising on translation of foreignoperations-(752)(752)-1,2531,253Other comprehensive(expense)/income for the year-(752)(752)-1,2531,253Total comprehensive

296、 income/(expense)for the year6,041(7,722)(1,681)4,501(2,617)1,884Earnings per ordinary share(basic&diluted)9(1.6)p1.1pAdjusted earnings per ordinary share (basic&diluted)910.3p7.7pThe total column of this statement represents the Groups statement of comprehensive income,prepared in accordance with I

297、FRS.The revenue and capital columns are 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 62 form an integral part of the financial statements.Consolidated statement of comp

298、rehensive incomeAlpha Real Trust Limited:Annual report 202433Notes31March 202400031March 2023000Non-current assetsInvestment property1326,74023,496Investment in joint venture12-17,654Loans advanced1616,03916,05142,77957,201Current assetsInvestment in joint venture1212,630-Investments held at fair va

299、lue1523,67518,310Derivatives held at fair value through profit or loss25327-Loans advanced1630,40739,385Collateral deposit171,1561,143Trade and other receivables184,500414Cash and cash equivalents1417,22118,45589,91677,707Total assets132,695134,908Current liabilitiesTrade and other payables19(1,145)

300、(986)Corporation tax7(56)(34)Bank borrowings20(31)(30)Derivatives held at fair value through profit or loss25-(171)(1,232)(1,221)Total assets less current liabilities131,463133,687Non-current liabilitiesBank borrowings20(8,053)(8,271)Deferred tax7(304)(349)(8,357)(8,620)Total liabilities(9,589)(9,84

301、1)Net assets123,106125,067EquityShare capital21-Special reserve2262,60260,550Translation reserve22(300)452Capital reserve2233,17740,147Revenue reserve 2227,62723,918Total equity123,106125,067Net asset value per ordinary share10207.3p216.8p The financial statements were approved by the Board of Direc

302、tors and authorised for issue on 20 June 2024.They were signed on its behalf by William Simpson and Peter Griffin.The accompanying notes on pages 36 to 62 form an integral part of the financial statements.Consolidated balance sheetWilliam Simpson DirectorPeter Griffin DirectorAlpha Real Trust Limite

303、d:Annual report 202434For the year ended 31March 2024000For the year ended 31March 2023000Operating activities(Loss)/profit for the year after taxation(929)631Adjustments for:Change in revaluation of investment property1,419548Net(gains)/losses on financial assets and liabilities held at fair value

304、through profit or loss(414)1,069Taxation74204Share of loss/(profit)of joint ventures3,698(443)Interest receivable on loans to third parties(6,596)(5,328)Expected credit losses1,9881,113Finance income(1,205)(255)Finance costs226402Operating cash flows before movements in working capital(1,739)(2,059)

305、Movements in working capital:Movement in trade and other receivables(4,061)(381)Movement in trade and other payables1358Cash flows used in operations(5,665)(2,432)Loan interest received1,7811,811Loans granted to third parties(20,135)(18,832)Cash returned from escrow for loans to be granted post year

306、 end-1,928Loans repaid by third parties31,70414,097Interest received220255Interest paid(185)(186)Tax paid(86)(96)Cash flows from/(used in)operating activities 7,634(3,455)Investing activitiesRedemption of investments-5,290Investment in UK Treasury Bonds and Bills(26,413)(13,948)Proceeds received at

307、maturity from UK Treasury Bonds and Bills21,454-Acquisition of investment property(5,118)(7,407)Dividend income from joint ventures871700Dividend income from investments374419Dividend income from Morgan Stanley Sterling Liquidity Fund169-Coupon interest received from UK Treasury Bonds250-Capital ret

308、urn from joint venture in arbitration-5,868Collateral deposit increase(13)(207)Cash flows used in investing activities(8,426)(9,285)Financing activitiesShare buyback-(9,553)Share buyback costs-(49)Share issue costs(74)(115)Cash paid on maturity of foreign exchange forward(48)(47)Ordinary dividends p

309、aid(206)(356)Cash flows used in financing activities(328)(10,120)Net decrease in cash and cash equivalents(1,120)(22,860)Cash and cash equivalents at beginning of year18,45541,250Exchange translation movement(114)65Cash and cash equivalents at end of year17,22118,455The accompanying notes on pages 3

310、6 to 62 form an integral part of the financial statements.Consolidated cash flow statementAlpha Real Trust Limited:Annual report 202435For the year ended 31March 2023Special reserve 000Translation reserve000Capital reserve000Revenue reserve000Total equity000At 1 April 202268,243(801)44,01721,797133,

311、256Total comprehensive income for the year(Loss)/profit for the year-(3,870)4,501631Other comprehensive income for the year-1,253-1,253Total comprehensive income/(expense)for the year-1,253(3,870)4,5011,884Transactions with ownersCash dividends-(356)(356)Scrip dividends2,024-(2,024)-Share issue cost

312、s(115)-(115)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 21,22 For the year ended 31March 2024Special reserve 000Translation reserve000Capital reserve000Revenue reserve000Total equity000

313、At 1 April 202360,55045240,14723,918125,067Total comprehensive income for the year(Loss)/profit for the year-(6,970)6,041(929)Other comprehensive income for the year-(752)-(752)Total comprehensive(expense)/income for the year-(752)(6,970)6,041(1,681)Transactions with ownersCash dividends-(206)(206)S

314、crip dividends2,126-(2,126)-Share issue costs(74)-(74)Share buyback-Share buyback costs-Total transactions with owners2,052-(2,332)(280)At 31 March 202462,602(300)33,11727,627123,106Notes 21,22The accompanying notes on pages 36 to 62 form an integral part of the financial statements.Consolidated sta

315、tement of changes in equityAlpha Real Trust Limited:Annual report 2024361.General informationThe Company is a limited liability,closed-ended investment company incorporated in Guernsey.The address of the registered office is given on page 63.The nature of the Groups operations and its principal acti

316、vities are set out in the Chairmans Statement on pages 4 to 7.The financial statements were approved and authorised for issue on 20June 2024 and signed by William Simpson and Peter Griffin on behalf of the Board.2.(a)Material accounting policiesA summary of the principal accounting policies is set o

317、ut below.The policies have 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

318、in the process of applying 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 acc

319、ordance with IFRS,which comprise 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 rem

320、ain in effect,and to the extent that they have been adopted by the European Union.Going concernThe Company has adopted a 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 redu

321、cing 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;this ensures the Company retains a robust financial foo

322、ting,making it well positioned to take advantage of new investment opportunities.As noted above,the Company held approximately(as at 31March 2024)14.1%of its assets(excluding sundry net assets)in cash(including the investment in the Morgan Stanley GBP Liquidity Fund)and 16.5%in highly liquid UK Trea

323、sury Bonds 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 s

324、ection 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 o

325、perational existence for the foreseeable future.For this reason,they continue to adopt the going concern basis in preparing the financial statements.ART has no arrangements with any person currently on(or potentially on)any sanctions list.The Board continues to monitor the global political and econo

326、mic situation regularly assessing impacts arising from inflation and interest rate changes for a potential material impact on ARTs portfolio.New standards,interpretations and amendments from 1January 2023New standards,amendments to standards and interpretations were effective for the current period,

327、and with the exception of the Disclosure of Accounting Policies(Amendment to IAS 1)has not had a significant impact on the financial statements.The Disclosure of Accounting Policies amendment generated a review of and reduction in the accounting policy disclosures so that only the material accountin

328、g policy information is now provided.Accounting policy information is material if,when considered together with other information included in an entitys financial statements,it can reasonably be expected to influence decisions that the primary users of the financial statements make on the basis of t

329、hose financial statements.New standards,interpretations and amendments from 1January 2024The 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 fi

330、nancial statements incorporate the financial statements of the Company and the subsidiary undertakings controlled by the Company,made up to 31March each year.Control is achieved where the Company has power over the investee,exposure or rights,to variable returns from its involvement with the investe

331、e and the ability to use its power to affect the amount of the investors returns.The results of subsidiary undertakings acquired or disposed of during the year are included within profit or loss in the consolidated statement of comprehensive income from the effective date of acquisition or up to the

332、 effective date of disposal as appropriate.When necessary,adjustments are made to the financial statements of subsidiary undertakings to bring the accounting policies used into line with those used by the Group.Notes to the financial statementsFor the year ended 31 March 2024Alpha Real Trust Limited

333、:Annual report 202437Notes to the financial statements(continued)For the year ended 31 March 2024All intra-group transactions,balances,income and expenses are eliminated on consolidation.ART holds a number of direct property investments through subsidiary undertakings.The Group is actively involved in the management of these property investments and its investment plans do not include specified ex