• Full-year adjusted EPS up 10 per cent to 6.6p
• Stable net asset value (NAV) of £67.3mn (83.6p)
• 24 per cent discount to NAV
• 8.8 per cent prospective dividend yield
Alternative Income Reit (AIRE: 63.3p) has announced an important debt refinancing and new dividend target.
The company currently pays a weighted average interest rate of 3.19 per cent on its £41mn debt facilities. The interest rate was always going to increase when the loan matures in October 2025 due to the upward yield movement in debt markets since it was put in place when Alternative Income Reit listed on the London Stock Exchange in June 2017. Having considered multiple offers of long-term finance from several lenders, the board has opted for a five-year fixed-term loan (£31mn) and revolving credit facility (£10mn) with HSBC at 1.7 percentage points over Sonia (the average rate banks pay to lend from other banks).