- Disposal of stake in shopping centre
- 41 per cent discount to book value
Alpha Real Trust (ARTL:122.5p), a company that invests in high-yielding property and asset-backed debt and equity investments, is selling its 30 per cent stake in the H2O shopping centre in Madrid for net cash proceeds of €14.5mn (£12.4mn).
Although it reduces proforma net asset value (NAV) by 2 per cent to 209p per share, Alpha’s holdings of cash, gilts and money market deposits will swell to £47.1mn (79.3p), a sum that backs up 64 per cent of its market capitalisation of £72.7mn. It means that all of Alpha’s other investments are in the price for £25.6mn, a 66 per cent discount to their combined carrying valuations.
Bearing this in mind, Alpha has received £11.2mn of repayments on its secured mezzanine loan portfolio and granted £7.4mn of new loans since the start of 2024. The loan book currently accounts for £50.7mn (85.4p) of NAV. In addition, Alpha owns three unencumbered Travelodge hotels worth £11.1mn (18.6p), £0.6mn of high yielding UK residential property, £7.5mn (12.6p a share) of equity in an inflation-linked freehold industrial facility in Germany, and investments worth £4.2mn (7p) in three listed equity funds: GCP Infrastructure Investments (GCP), GCP Asset Backed Income Fund (GABI) and Sequoia Economic Infrastructure Income (SEQI).
So, having suggested buying Alpha's shares slightly below the current price in my 2024 Bargain Share Portfolio, it remains a buy.
■ Special offer. Simon Thompson's books Successful Stock Picking Strategies and Stock Picking for Profit can be purchased online at www.ypdbooks.com at the special discounted price of £5 per book plus UK P&P of £4.95, or £10 for both books plus UK P&P of £5.75, subject to stock availability.
They include case studies of his market beating Bargain Share Portfolio companies outlining the characteristics that made them successful investments. Simon also highlights other investment approaches and stock screens he uses to identify small-cap companies with investment potential. Full details of the books’ content can be viewed on www.ypdbooks.com
