Alternative Income REIT nudges back into the black

Alternative Income REIT has returned to profitability. The group recorded a pretax profit of £600,000 in the year ended 31 December 2023, up from a £7.3m loss the previous year. The nudge back into the black came despite declines in NAV and recognised rent. The NAV decreased in aggregate by £2.1m to £65.7m, primarily due to a £1.9m reduction in the fair value of the REIT’s investment properties. The largest falls in value were in the residential, leisure and retail warehouse sectors, said the group. Recognised rent dropped from £3.9m to £3.5m, due to a mismatch in timing between the sale of a hotel in Glasgow and addition to the portfolio of a Virgin Active in Streatham, south London. Gross passing rent increased from £7.5m in 2022 to £7.7m in 2023. Non-executive chairman Simon Bennett said: “The group’s portfolio is relatively insulated from market fluctuations, benefiting from being 100% let and with 100% collection of rent due. “In addition, the group benefits from low fixed borrowing costs. Combining these factors provides a secure and growing rental income stream. He added: “The board remains confident that the company is well-positioned for the future, with a portfolio that continues to deliver secure, index-linked income and has the potential for capital growth as the property market recovers.”