Alpha Real Trust's earnings take a hit despite increased net asset value

Investment trust Alpha Real reported a rise in net asset value per share for the six months ended 30 June but saw basic and adjusted earnings nosedive following an active period of "capital recycling".

Alpha's NAV per ordinary share was 205.3p, up from the 204.3p recorded a year earlier, while basic earnings for the period ended came to 0.3p per ordinary share - a considerable drop from the 33.1p per ordinary share seen in its last trading year.

Adjusted earnings came to 1.3p per ordinary share, also sharply lower than the 3.9p per ordinary and per share figure reported for the year ended 31 March 2019.

Throughout the half, the AIM-listed group increased its portfolio weighting towards secured loan investment as it looked to augment and diversify its portfolio of secured senior and secured mezzanine loan investments.

As of 30 June, the size of ART's secured loan portfolio was £39.1m, representing 29.1% of its total investment portfolio.

In terms of outlook, Alpha said it was actively repositioning its investments to deliver attractive income returns. For the medium-term, Alpha stated that the company's returns were "likely to see greater contributions from the growing senior debt and mezzanine loan portfolio" and less from capital gains.

As of 0955 BST, Alpha shares had dipped 1.95% to 172.07p.