In its year-end review for FY2021, SGX-listed Alset International says it continues to see a “silver lining” in its business despite the Covid-19 pandemic.
“The board of directors and management believes that the significant progress made in FY2021 has poised the group to enter the new year with promising outlooks pointing towards major growth in the coming years ahead,” reads the statement put out by the group on Jan 12.
Within its international property development business, Alset currently has real estate assets in communities across the US in Texas and Maryland.
Its Ballenger Run development in Maryland has continued to experience “strong sales” and is close to being fully sold.
During the year, Alset acquired 109 single-family homes for rent, which surpassed its targets for 100 homes in FY2021.
Within Alset’s pool of EHomes, 30 of them were seeded into a subsidiary, AHR. AHR is developed with the intention of owning and managing income-producing, high-yielding real estate in the US, with a focus on communities consisting of single-family homes.
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According to the group, AHR targets to acquire assets with a capitalisation rate of approximately 5% and intends to pay a quarterly dividend of up to an annualised rate of 6%.
Alset’s investment business, American Medical REIT (AMRE) says it plans to increase its portfolio to 15 medical properties in 2022. AMRE has so far acquired five medical properties in 2021. They are located near “substantial populations” in Connecticut, Texas, Pennsylvania and Florida.
AMRE is currently paying a quarterly dividend of 8% in annualised yield.
Under its digital assets-based exchange traded product (ETP), the group has deepened its position into the digital assets space as its joint venture, Credas Capital plans to launch its first digital assets-based ETP on the SIX Swiss Exchange in 2022.
In its information technology business, the group acquired an 18% stake in Value Exchange International Inc (VEII) for US$650,000 in FY2021.
VEII will provide a platform for Alset to expand in the e-commerce business.
In the 9MFY2021 ended Sept 30, 2021, VEII generated some US$7.5 million in revenue and US$0.6 million in net profits.
In the 4QFY2021, Alset acquired Killiney Kopitiam’s franchise license and has since began operations.
In FY2021, Alset also reinforced the company’s “cash war chest” with $115 million worth of capital through the exercise of around 2.5 billion of its warrants by the respective warrant holders.
Looking ahead, Alset says it will continue to focus on developing and sourcing land to build sustainable EHome communities to provide green energy, intelligent home systems and community facilities while extending its portfolio of rental homes in AHR.
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The group is also looking at opportunities in Puerto Rico due to its business-friendly tax laws and favourable rental yields.
“This year we have made great strides in securing the capital, arising from the exercise of warrants, required to execute our vision of becoming the most prominent sustainable healthy living home builder of the future. Even as the world gradually eases into recovery, we will continue to evolve our business to be resilient to unforeseen circumstances,” says Chan Tung Moe, Alset’s executive director and co-CEO.
“I am pleased with the direction Alset has taken and would like to thank the investors for supporting our group. I look forward to facing 2022 with the group’s new investments in tow and driving Alset to new heights through the coming year,” he adds.
Shares in Alset closed flat at 6.1 cents on Jan 12.
