Alternative Income REIT, formerly known as AEW UK Long Lease REIT, has reported that it collected 82% of rent due in March.
The REIT said that some of its tenants were being affected by the outbreak of Covid-19, which was disrupting cash flows, and that it was in discussions with those tenants over converting to monthly payments or payments in arrears or deferral and stage repayments over defined periods. These tenants represent 39% of its rental income.
In addition, the business, which owns 19 properties across the UK worth £108.9m at the end of March, reported in an update that it had fully drawn down its £41m loan facility from Canada Life Investments.
Even so, Alternative Income REIT said it had headroom with its LTV standing at 37.7% at the end of March and valuation on 17 of its properties secured to Canada Life would need to fall by 32% and 31% respectively before testing the loan covenants.
The weighted average interest cost of the REIT’s facility is 3.19% and is not repayable until October 2025.
Alternative Income REIT’s portfolio value slipped 3.73% in value to £108.9m over the first quarter of 2020 and yield at the end of March stood at 5.75%.
Net asset value was just under £70.9m or 88.024p per share at the end of the period and it had £4.35m of cash.
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