Releasing its annual results for the year to February 2015, Atlantic Leaf said its returns were impacted by the "cash drag" associated with holding lower-yielding cash reserves for longer than anticipated while waiting for the property deals to complete.
No dividend was declared. But the company said: "It is planned that in 2016 financial year dividends will be declared as this is part of our stated objective."
"We are pleased with these results given the challenges of an early stage company. In a 'normalised' year, in which capital is more fully deployed in property assets over the period, it is expected that returns could be higher," Atlantic Leaf said.
The company has managed to conclude the acquisition of two significant property portfolios, resulting in Atlantic Leaf's gross underlying assets exceeding GBP50 million as at the date of this announcement.
Both portfolio acquisitions were secured with long-term leases in place and at income yields of 8.3% and 7.3% respectively.
"Our first acquisition, being the 30% share of the Booker portfolio, held in a wholly owned subsidiary Seahawk Investments Limited ('Seahawk'), has performed in line with expectations. All income has been collected and we believe there is a key opportunity to restructure the related debt on far more favourable terms when this debt comes up for renewal in October 2015. This will enhance future performance on this key asset," Atlantic Leaf said.
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