Alternative Income REIT PLC on Monday reported a lower net asset value, citing headwinds in the UK and wider global economies due to living costs and high interest rates.

The London-based real estate investment company focused on inflation-linked income return said NAV as at December 31 fell 13% to 84.34 pence each from 96.40p at June 30. NAV total return over the six months was negative 15% compared to positive 5.8% a year prior. The company cited interest rate increases in the UK and a squeeze on disposal income due to living costs.

Alternative Income declared an interim dividend of 2.75 pence per share, up 5.8% from 2.60p a year prior. The company said it is on track to deliver its previously announced target annual dividend of 5.7p per share for financial year 2023 ending June 30, up 3.6% from 5.5p.

Looking ahead, the company said: ‘The significant increase in energy prices as a consequence of the Ukraine war and the emergence of the global economy from the Covid pandemic is now reversing with petrol prices approximately 25% lower than at their peak and average household bills predicted by both The Resolution Foundation and Cornwall Insight to fall below the government’s £2,500 per year price cap by the summer.’ Further, it noted that households in aggregate are now less indebted than during the peak of the global financial crisis in around 2007.

Alternative Income REIT shares were 0.3% lower at 66.40 pence each on Monday afternoon.

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