Our Investment Criteria
This framework defines our asset selection standards, portfolio limits, and capital deployment strategy.
Overall Investment Strategy
Aligned Real Estate Investment Trust PLC pursues a disciplined strategy centered on acquiring and managing high-quality, income-generating real estate assets across Ghana. We target defensive properties with strong counterparty fundamentals, competitive occupancy levels, and clear potential for long-term capital appreciation.
Our portfolio is diversified across multi-tenant and single-tenant assets to mitigate concentration risk and protect net operating income across market cycles. Where commercially viable, we prioritize extended lease terms to lengthen our Weighted Average Lease Expiry (WALE) and maintain cash flow predictability. The REIT executes investments directly or via structured joint ventures, co-investments, and special-purpose vehicles (SPVs), maintaining strict alignment between operating partners, institutional investors, and shareholders.
Investment Objective
To deliver attractive, risk-adjusted, and dependable quarterly cash distributions, accompanied by long-term net asset value (NAV) capital appreciation, maximizing total shareholder return through disciplined fiduciary stewardship.
Asset Selection Framework
Every acquisition undergoes multi-disciplinary due diligence to ensure attractive entry valuations and actionable asset enhancement potential. We acquire freehold and long-leasehold assets satisfying the following criteria:
- Target Sectors: Residential rentals and purpose-built student accommodation (PBSA), educational facilities, primary healthcare, sustainable eco-hospitality, light industrial and last-mile logistics, and captive clean energy micro-utilities.
- Asset Vintage & Standard: High-specification properties (typically post-2000 construction) and newly completed third-party rental developments compliant with modern operational standards.
- Underwriting Fundamentals:
- High-credit tenant covenants with verifiable financial histories.
- Long-duration leases structured with contractual, inflation-indexed rental escalation mechanisms.
- Prime locations with strong supply-demand dynamics, connectivity, and superior site-level environmental performance.
- Geographic concentration in established commercial centers (including the Greater Accra Region) and high-growth regional growth corridors across Ghana.
Capital Structure & Gearing Policy
We maintain a conservative debt profile to achieve a low weighted average cost of capital while safeguarding financial flexibility. Portfolio gearing is capped at a conservative Loan-to-Value (LTV) target of 30% to 40% of Gross Asset Value (GAV).
Statutory & Portfolio Investment Limits
To ensure structural risk mitigation, the REIT enforces the following parameters at the point of capital deployment:
- Real Estate Allocation: A minimum of 75% of total investment assets is allocated directly to income-generating property.
- Counterparty & Asset Concentration: Exposure to any single tenant or individual property is capped at a maximum of 40% of aggregate gross rental revenue.
- Title & Tenure: At least 90% of total asset value is held in freehold title, registered long-term leaseholds, or legal equivalents.
- Core Sector Focus: A maximum of 20% of GAV may be held in non-core real estate outside our target sectors.
- Fund Exclusions: The REIT does not deploy capital into external closed-ended funds or non-transparent alternative investment vehicles.
Regulatory Compliance & REIT Governance
Aligned operates under the regulatory supervision of the Securities and Exchange Commission (SEC), Ghana. We strictly adhere to the Companies Act, 2019 (Act 992), the Securities Industry Act, 2016 (Act 929), the Securities Industry (Real Estate Investment Trusts) Guidelines, and applicable national tax regimes.
Our Risk Management Approach
An institutional governance framework designed to identify, assess, and mitigate risk across all operating levels.
Risk Governance Architecture
Managing institutional and third-party capital requires disciplined fiduciary governance. Risk management at Aligned is embedded across our strategic, tactical, and day-to-day asset operations. We operate a structured control environment to safeguard shareholder capital, optimize portfolio yield, and ensure regulatory compliance.
The Three Lines of Defence
Our enterprise risk model establishes clear organizational separation across oversight, monitoring, and execution:
- First Line (Operational Management & Asset Teams): Accountable for front-line asset operations, tenant risk screening, facilities maintenance, and primary compliance with underwriting mandates.
- Second Line (Risk Management & Regulatory Compliance): Designs internal policies, risk appetite limits, and monitoring systems. Oversees risk exposure, tracks statutory compliance, and reports directly to the Board of Directors.
- Third Line (Independent Internal Audit): Evaluates internal control efficacy across the first and second lines, delivering independent assurance and governance reviews to the Board Audit Committee.
Systematic Due Diligence & Acquisition Protocol
Prior to acquisition approval, every prospective asset passes through an integrated underwriting process:
- Commercial & Financial Due Diligence: Comprehensive review of historic tenant revenues, operating expenses, financial statements, and rental collection track records conducted alongside external audit partners.
- Technical & Environmental Review: Structural surveys, plant and engineering inspections, and environmental audits verifying IFC EDGE green certification feasibility.
- Legal, Title & Tax Structuring: Retained legal counsel verifies unencumbered title deeds, long-lease agreements, land commission registrations, planning approvals, and corporate tax structuring.