June could well be a busy month in the stock market on this front. But investors looking for shares to consider buying need to tread carefully here. 

Takeovers

Shares in Tate & Lyle jumped 36.62% in May on news of a takeover bid from Ingredion. Under UK takeover rules, the US firm has until June 11 to make a firm bid.

Gamma Communications also announced acquisition talks with a number of potential buyers. And the stock also climbed significantly on the news.

The third name that caught my eye, however, is a different one. Real estate investment trusts (REITs) have been targets recently and Alternative Income REIT (LSE:AIRE) is now one.

Unlike the others, however, Alternative Income REIT’s share price fell just over 7% in May. That’s unusual when there are rumours of a takeover. 

A couple of months ago, there was also interest from AEW UK REIT. So should investors consider buying the stock before others get there?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

What’s the situation?

High dividend yields have been making UK REITs attractive acquisition targets for some time. And Alternative Income REIT is a relatively small operation.

The current interest is from Glenstone REIT, which owns 24% of the company. And in some ways, it’s more of an activist campaign than a takeover.

Alternative Income REIT’s shares are trading 19% below the firm’s reported net asset value. So Glenstone wants to realise some of this discount by selling off properties.

One way to do this is through Glenstone buying the remaining shares. Another is via Alternative Income REIT selling its assets and returning the cash to shareholders.

Glenstone hasn’t yet named a price and the deadline for this is 12 June. So should investors look to get in ahead of a potential opportunity?

Be careful

Companies getting taken over can involve big returns for investors. But this is a risky business and one to approach with extreme caution. 

Glenstone really wants Alternative Income REIT to move to a smaller exchange and wind down from there. But that could be an issue for shareholders.

Most retail brokers don’t offer access to these exchanges. That would mean investors lose the ability to sell their shares in an open market. 

They still stand to get their returns from the company’s property sales, but the stock would become illiquid. And that’s not ideal for a number of investors.

That’s why Alternative Income REIT shares have been falling as a result of the takeover news. It’s also why investors need to tread carefully in this area.

Being a good investor

Takeovers can be lucrative for investors. But there are lots of reasons why an expected acquisition bid isn’t a good enough reason to buy a stock.

The situation with Alternative Investment REIT is an unusual one. It is, however, a very real issue for investors who might be seeing a potential opportunity.

In general, the best thing for investors to do is make decisions based on the underlying business. How much money is it going to make in the future?

Should you invest £5,000 in Alternative Income REIT Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Alternative Income REIT Plc made the list?

Stephen Wright owns shares in Gamma Communications.

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Needless to say, it’s critical that investors do proper detailed research to separate the duds from the true investment opportunities. But there’s another important thing to consider: buying penny shares that are trading ‘on the cheap.’

Underpriced companies can avoid the price volatility that’s a common problem for small-cap companies. What’s more, a low valuation can stop a penny stock from plummeting if news on the company, industry, or the broader economy rattles investor nerves.

With this in mind, here are two dirt-cheap penny stocks I’m thinking about buying this month.

Getting back on Topp

The risks facing Topps Tiles (LSE:TPT) have risen since the start of the Iran war. Rising inflation and its potential effects on interest rates could prompt a fresh housing market downturn. It’s a combination that could also dent sales to cash-strapped DIY enthusiasts.

In this climate, demand for its tiles and other product lines might come under pressure. But is this baked into the firm’s low valuation? With a forward price-to-earnings (P/E) ratio of just 7.2 times, I think it could be.

The long-term potential at Topps Tiles is considerable in my view. Britain’s fast-growing population should lead to increased newbuild rates over the next decade. In addition, the UK’s existing housing stock is extremely old, which I’m expecting to support demand from the repair, maintenance, and improvement (RMI) sector.

Encouragingly, Topps is investing heavily in its digital capabilities and product ranges to capitalise on these opportunities.

Big dividends

Penny stocks aren’t renowned for their high dividend yields. Typically, these small-cap shares are growth-focused companies that plough any extra cash into their operations. Real estate investment trust Alternative Income REIT (LSE:AIRE) is one brilliant exception to this rule.

As its name suggests, it’s designed to deliver dividends to its shareholders. In exchange for tax breaks, REITs like this must distribute at least 90% of their rental earnings to shareholders each year.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

This doesn’t guarantee a healthy dividend each year, mind. What if Alternative Income struggles to collect rents, or its properties become empty? Fortunately the trust’s diversified portfolio helps reduce this danger. It has 20 properties on its books, ranging from care homes to power stations, and retail parks to gyms.

The REIT also has tenants locked down on long-term contracts. This gives it the strength and the confidence to pay market-beating dividends year after year. As of December, its weighted average unexpired lease term (WAULT) to expiry was a robust 17.1 years.

For this financial year (to June 2026), Alternative Income REIT sports an enormous 7.6% dividend yield. Its shares also trade at a 13% discount to the trust’s net asset value (NAV) per share. For value investors seeking top penny stocks, I think these numbers are hard to ignore.

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Low valuations can mean high dividend yields. Especially in parts of the stock market where other investors aren’t looking.

Under-the-radar

One name that often goes under investors’ radars is Alternative Income REIT (LSE:AIRE). That’s partly because it’s not a big company.

It’s a real estate investment trust (REIT) with a really interesting portfolio. It includes industrial estates, care homes, and a power station.

The firm doesn’t own as many assets as some larger REITs. And that naturally means a more concentrated tenant base. This can be a risk – its largest tenant accounts for 10% of its rent. That matters for a couple of reasons. 

One is that it means a default would be a big deal. But it also means potential risk when leases expire. 

Investing always involves risk – and that’s the big one with Alternative Income REIT. But there’s also a lot to like. 

Why this stock?

The first point to note is that a mixed asset base offers investors instant diversification. And that can be valuable. It limits the overall impact of a downturn in any given industry. As an example, consider retail warehouses.

The industry has seen a lot of growth recently. But this has led to a lot of building, which creates a risk of oversupply.

For a more specialist operation, that might be a big issue. With Alternative Income REIT, however, the risk is more limited.

The firm’s size also means it can be selective about its portfolio. And this results in terrific occupancy and rent collection metrics. 

The company itself might be small. But for ordinary investors, the income opportunity could be big. 

A 7.64% dividend yield

Shares in Alternative Income REIT currently come with a 7.64% dividend yield. And that can be big for income investors. 

The annual contribution limit in a Stocks and Shares ISA is £20,000. But a lot of investors – like me – put £4,000 into a Lifetime ISA.

That leaves £16,000. And a 7.65% dividend yield is enough to turn that into a £1,224 annual second income. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

This isn’t to say investors should go all-in on the stock. Even with the inbuilt diversification, that’s a risky strategy. 

Looking to earn a strong return across a number of investments, however, can be a great idea. And Alternative Income is one to consider.

A high dividend yield is a sign that investors are wary of something. But sometimes, the potential rewards are worth the risks.

Final thoughts

Sometimes the best opportunities are to be found where others aren’t looking. And that might be the case here. A £60m company doesn’t necessarily stand out in a billion-pound world. But it doesn’t need to for most investors. 

The market cap might be small, but the dividend yield is big. And I think it’s well worth considering at today’s prices.

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Investors don’t need to actually buy shares to beat that deadline. Just depositing cash before 6 April is enough to secure this tax year’s allocation. But is there any reason to wait before buying dividend shares? Probably not, in my view, as the London stock market’s packed with high-yield shares and brilliant dividend growers right now.

What’s more, a lot of these income stocks currently trade at rock-bottom prices. Want to see two of my favourites?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Growth and yield

I don’t have any spare cash to invest right now. But when I do, I’ll consider adding TBC Bank Group (LSE:TBCG) shares to my own portfolio.

Dividends have soared in the post-pandemic period, and in 2025 the bank lifted the total dividend 10% year on year. City analysts expect them to keep growing over the medium term, leaving a brilliant 6.2% dividend yield for 2026.

Dividends are never guaranteed, but I’m confident the Georgian bank can keep delivering enormous and rising cash rewards. It has gigantic capital reserves — its CET1 ratio clocked in at 18.9% as of December. What’s more, this year’s predicted dividend is covered 2.7 times by anticipated earnings.

This provides a margin of error if, say, economic conditions worsen and customer loans decline. This may affect TBC’s share price, but I’d still expect dividends to keep growing strongly. And over the long term, I expect earnings to surge as Georgia’s economy rapidly expands, driving the domestic financial services industry. Pre-tax profit jumped 21.7% last year.

At £43.85, TBC shares trade on a forward price-to-earnings (P/E) ratio of just 5.9 times.

8%+ dividend yield

Alternative Income REIT (LSE:AIRE) is another high-yield hero that I think deserves attention from value investors. Its dividend yield for 2026 sits at 8.3 times, and its dividend yield at 8.2%.

Like other property stocks, this real estate investment trust (REIT) has sunk in recent weeks. It’s fallen as soaring oil prices have raised inflationary expectations, and reduced hopes of interest rate cuts. Higher central bank borrowing rates can put considerable strain on asset values.

A prolonged Middle East conflict could cause further share price weakness. But will this impact Alternative Income’s dividends? I’m confident it won’t. Under REIT rules, at least 90% of the trust’s annual rental profits must be paid out to shareholders. That’s in exchange for juicy tax breaks.

Dividends could still suffer, though, if higher interest rates hit economic growth. However, this REIT’s diversified portfolio greatly reduces the danger of rent collection and occupancy issues that could hammer dividends — its properties include hospitals, petrol stations, care homes, and retail parks.

Tenants are also tied to long contracts, providing added earnings (and thus dividend) visibility. This is another great dividend share to consider for the long term.

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Under REIT rules, companies must pay at least 90% of annual rental earnings out in dividends. This still leaves payouts sensitive to profits performance, but it also provides a higher level of income visibility for investors than most other stocks.

What’s more, with diversified tenant bases and clients locked onto long-term contracts, these businesses enjoy relatively stable cash flows they can use to pay dividends.

So what are the hottest REITs to buy right now. In my opinion, three of the hottest to consider are:

• Schroder European Real Estate Investment Trust
• Alternative Income REIT
• Regional REIT (LSE:RGL)

Each of these property powerhouses offers a forward dividend yield of at least 10%. Want to know what makes them true dividend heroes?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Euro giant

Schroder European Real Estate Investment Trust holds a top-class portfolio of properties in continental hotspots. We’re talking about highly desirable cities with strong economies and infrastructure. Think Paris, Berlin, and Hamburg, to name a few of its locations.

It’s a winning strategy that leads to reliable rent collection and strong occupancy (portfolio occupancy was 97%, latest financials show). The trust’s exposure to different sectors like logistics, office, retail, and data centres also gives it strength.

The forward dividend yield here is 8.1%. I think it’s a top trust to consider, even though adverse currency movements could take a bite out of earnings.

Another diversified REIT

Like the Schroder trust, Alternative Income REIT takes a diversified approach to the property market. If anything, things are even more wild and wonderful — they range from hospitals and petrol stations, through to hotels, gyms, and thermal power plants.

Its rent collection is even higher, at 100%. And its tenants are locked down on ultra-long contracts, providing protection from (if not totally eliminating) cyclical pressures on rent collection. The weighted average unexpired lease term for its 23 tenants sits at 17 years.

With more than 92% of rental income linked to inflation, too, Alternative Income is in great shape to grow shareholder payouts. For 2026, the dividend yield is a brilliant 8.5%.

Double-digit yield

At 10%, Regional REIT is today the highest-yielding property trust on the London stock market. It carries greater risk than the other contenders we’ve looked at, reflecting its narrow exposure to the UK and broader weakness in the office market in which it specialises.

This has caused its share price to slump over the past year (down 10%). But is the bad news now baked into the trust’s share price? I think it might be. As well as having that enormous yield, Regional REIT trades at a 51% discount to its net asset value (NAV).

To my mind, it’s a top recovery share to consider. The REIT retains a high-quality portfolio, and is selling non-core assets to boost occupancy and repair the balance sheet. As for dividends, this year’s predicted payout is covered more than twice over by expected earnings, providing a wide margin of error.

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To emphasise the need for caution, a once-popular UK penny share spiked up to 3p a few years ago, exciting investors about how much further it might go. But it’s lost 99% since then. And that tends to suggest a useful rule of thumb: don’t buy a stock just because of a low share price. So what should we look for?

What are penny shares?

In the UK, a market cap less then £100m and a share price under £1 generally denotes a penny share. So we don’t have to look for rock-bottom share prices and valuations. No, the definition can cover some very respectable, if relatively small, companies.

There’s another key thing to remember. Companies tend not to come to market by launching at a penny-share price. So it almost always signals that something has gone wrong to push the price down.

So look for companies whose share prices have been unfairly punished, and which have strong recovery prospects, right? I’ve seen some big profits made with that strategy.

One to consider

My Motley Fool colleague Royston Wild recently highlighted Alternative Income REIT (LSE: AIRE). The real estate investment trust has a portfolio of diversified commercial properties. It says it “seeks to deliver an attractive, secure, diversified and inflation-linked income return, whilst at least maintaining capital values in real terms.”

And straight away, it ticks a few of the right boxes for me.

At full-year results time the company said it’s targeting a dividend of at least 5.6p per share. Though lower than the 6.2p paid for 2025, it would still mean a 7.4% dividend yield. And that’s from a company with a trailing price-to-earnings (P/E) ratio of a modest 8.5.

Even though commercial property has been out of favour with investors, we’re still looking at a price-to-book ratio (P/B) of only around 0.9. And the latest net asset value (NAV) per share of 83.6p puts the shares on a 9.8% discount.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Volatility risk

On the valuation front, Alternative Income looks attractive to me. But it’s very small, with only 20 property assets. And that could make the share price a fair bit more volatile than larger REITs.

The expected dividend dip for the current year is also a concern, which the company puts down to higher financing costs. It brings potential for further uncertainty.

But overall, this exemplifies the kind of things I look for in a penny share, and I rate it as definitely one to consider. I want a solid underlying business, ideally with a strong asset base. And a valuation that looks low relative to that. It’s actually got nothing to do with the share price itself.

The post How can we aim for a penny share fortune in 2026? appeared first on The Twelfth Magpie.

With a market value of just over £50m and shares priced at 73.9p, this is a penny stock. But it could well be worth considering for anyone looking for steady passive income.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Long-term passive income

Alternative Income REIT owns a portfolio of around 20 properties. These include a retail park in the Midlands, a block of flats in Salford, and a power station near where I grew up.

Most REITs tend to specialise in a particular industry or property type. But having a mix of assets provides some protection against cyclical ups and downs in any given sector.

What they have in common though, is long tenancies. The average time to first break in its leases is 15 years, which should mean a decade and a half of steady rental income.

Leases tend to have inflation-linked increases built in, so there’s protection on that front as well. So the obvious question is what could stop investors getting a stress-free 8% dividend?

Risks

One thing to note is that the Alternative Income REIT’s average debt maturity is around five years. That means it’s much shorter than the average lease expiry. 

This creates a duration risk – the firm will almost certainly have to refinance its borrowings well before its leases are up for renewal. And the danger is that interest rates might be higher. In that situation, the company will end up paying more on its debts. But it won’t be able to renegotiate its leases to offset the higher costs for another 10 years or so.

That’s a common risk with REITs in general, but it’s particularly significant in Alternative Income REIT’s case. The longer leases mean the gap’s wider than with most companies.

Valuation

The big question for investors is whether or not the risks are adequately reflected in the share price. And there’s a decent case for thinking they are. The stock currently trades 12% below its net asset value. That arguably means investors are getting a discount in exchange for the potential refinancing risk that comes with the company. 

Obviously, that depends on the firm’s assets being valued accurately in the calculation of their value. But with long-term income that looks relatively predictable, this should be the case.

In other words, investors might see an increase in interest payments (or they might not). With an 8% yield though, they should still be set for a very good return even if debt costs go up.

Diversification

I think Alternative Income REIT’s a worthy candidate for dividend investors to consider. Its long leases mean the risk of vacant properties is lower than it is elsewhere in the industry.

That should give it an advantage when it comes to stability, especially in an economic downturn. Anyone seeking to collect an 8% dividend for the next 15 years should take a closer look.

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I wouldn’t call any small-cap stock a ‘no brainer’ due to the higher risks involved. Their share prices can be volatile, and they can be less financially equipped to deal with company, sector, or economic crises.

Yet I think the standout growth potential of these penny shares still makes them impossible to ignore: Logistics Development Group (LSE:LDG), Alternative Income REIT (LSE:AIRE), and Ultimate Products (LSE:ULTP).

Want to know why? Read on.

Cheap as chips

As I say, purchasing penny stocks comes with an added layer of danger. However, investors can protect themselves by purchasing ones that are going cheap.

The reason is simple: shares with rock-bottom valuations enjoy a cushion that can limit (or even prevent) price drops.

This is the case with Logistics Development Group, and indeed with all of the shares here. This particular UK share trades on a forward price-to-earnings (P/E) ratio of just 3.1 times.

The company formerly known as Eddie Stobart primarily invests in — you guessed it — logistics assets. We’re talking about medicines distributors (Alliance Pharma), delivery companies (APC), and e-commerce specialists (SQLI). It also holds a large stake in Finsbury Food, a large bakery business.

Logistics Development’s cyclical nature leaves it exposed to downturns, though its diversification across sectors helps reduce this risk. In my view, themes like the rise of online shopping and a rapidly ageing population give the company excellent growth potential.

Growth and dividends

Penny shares aren’t renowned for their ability to pay dividends. Any surplus cash these businesses have tends to be reinvested for growth rather than distributed to shareholders.

Alternative Income REIT is an anomaly in this regard. Under real estate investment trust (REIT) rules, it must pay 90% of annual rental profits in dividends.

This means it currently has an 8.7% prospective dividend yield. Combined with a forward P/E ratio of 7.9 times, it offers excellent all-round value.

Alternative Income invests in a range of property classes, including retail outlets, hospitals, power stations, and apartments. While it’s exposed to interest rate risk, this diversified approach provides a stable long-term return and reduces volatility during tough economic periods.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

A top turnaround stock?

Ultimate Products is the final cheap share we’re looking at here. It trades on a forward P/E ratio of 8.9 times.

What makes this such an attractive growth share? To be honest, things have been pretty dire here of late as consumer spending has fallen. The company makes household products under brands like Salter and Russell Hobbs.

Yet I think it could be a great recovery stock to consider at today’s prices. Its much-loved brands put it in good shape to ride the economic upturn when it arrives. European expansion and work to improve its sales functions could also boost growth.

A final bonus: this penny stock offers a 10.1% forward dividend yield.

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Alternative Income REIT (LSE:AIRE) is one such stock. It invests in UK properties in alternative and specialist sectors – including hotels, health clubs, hotels, and car showrooms – with a view to providing “secure and predictable income returns”.

As a real estate investment trust (REIT), it’s required to return at least 90% of its property rental profit to shareholders by way of dividends each year. Generally speaking, this makes REITs good for income. However, 90% of nothing isn’t worth anything so there are no guarantees that high yields can be maintained.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

For the year ended 30 June 2025 (FY25), the trust paid dividends of 6.2p. In cash terms, this is a 20.6% improvement on FY21. A near-9% yield puts the stock comfortably in the top 10% of UK-listed companies.

And to help provide some assurance that its future income stream is going to be reliable, it has a weighted average unexpired lease term of 15.6 years. In addition, 95.8% of its contracts contain provisions for inflation-linked upwards-only rent reviews.

That’s not all

But there’s more. At 30 June, its net assets per share was 83.6p. This represents a 15.1% discount to its current (24 October) share price of 71p.

However, although this suggests the stock’s undervalued, I wouldn’t pay too much attention to this. Most REITs that I’ve come across are in a similar position. To expand, their business models usually involve borrowing to buy more properties. This makes them less attractive during periods of high interest rates. But this is a sector-wide problem rather than anything specific to Alternative Income REIT.  

The rules of the trust specify that it can only borrow up to a maximum of 40% of the gross asset value (GAV) of its portfolio. At 30 June, its loan to GAV was 36.9%.

However, as positive as its yield and valuation might be, there are risks.

The UK commercial property market can be volatile. A downturn in the domestic economy could result in tenants experiencing financial difficulties. If a company goes bust, the length of its lease and whether it provides for inflationary rent increases is inconsequential. And as a penny stock – its current share price is less than £1 and its market cap is below £100m – it doesn’t have the financial firepower to withstand a sustained slump. Also, it only owns 20 assets, so one failure could have a significant impact.

In common with other REITs, the business model of Alternative Income means it’s unlikely to experience rapid share price growth. Although it’s increased 33% since October 2020, the baseline for comparison was when the pandemic was still a thing. Of more relevance, the stock’s currently trading 16% lower than it was in September 2022.

But the whole point of a REIT is that it should be good for dividends. In my opinion, capital growth should be viewed as the icing on the cake. And with a yield of 8.7%, Alternative Income has lots going for it. That’s why I think it’s a stock for passive income investors to consider.

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Yet, despite these robust gains, many penny shares still look brilliantly cheap at current prices. Here are three I think demand particularly serious consideration today.

Alternative Income REIT

Alternative Income REIT (LSE:AIRE) is an outlier in the broader penny stock complex. Rather than growth, its focus is on delivering strong and sustainable passive income to investors.

Its exceptional value still warrants a close look from small-cap investors, though. The real estate investment trust (REIT) trades at a 15% discount to its net asset value (NAV) per share.

Continuing the dividend income theme, the trust’s forward dividend yield is an enormous 8.6%.

Alternative Income’s share price has flatlined in 2025 due to growing pessimism over future interest rate cuts. Higher rates create more pressure given the REIT’s high debt levels.

Yet, I think this is more than baked into the trust’s low valuation. I like its diversification across sectors including retail, residential, and healthcare helps reduce risk. It also has tenants tied down on long contracts, further insulating it against tough economic conditions.

As of June, the REIT’s leases had an average remaining term of 15.6 years to the earliest break and expiry date.

Everyman Media Group

Cinema operator Everyman Media Group (LSE:EMAN) has dropped 22% in value in the year to date. This reflects concerns over UK consumer spending power, combined with particular uncertainty over the cinema industry as viewing habits change.

These worries merit serious attention, but so does the showstopping value that Everyman shares now offer. The leisure giant trades on an enterprise value (EV) to revenues ratio of just 0.4. Meanwhile, its EV to EBITDA ratio is a modest 2.8 times.

I think this penny share’s well placed to weather sector problems and grow long-term profits. It offers more than the bog-standard multiplex cinema, with its sites also incorporating bars and restaurants to encourage people from their sofas. This gives it added scope to grow revenues and sustain itself in the streaming age.

Agronomics

Agronomics (LSE:ANIC) has been one of the best-performing penny shares in the year to date. The company invests in more than 20 early-stage businesses that make food and clothing from animal and plant cells.

It’s risen almost two-thirds in value so far in 2025. And yet it still trades at a 57% discount to its NAV per share.

Investing in smaller companies allows Agronomics to seize early mover opportunities. Major holdings here include lab-grown chicken manufacturer SuperMeat and plant-based meat producer LiveKindly.

On the downside, this also increases risk. Acquisitions can throw up nasty surprises that erode shareholder value. However, I think the potential long-term rewards of its strategy may outweigh these dangers. Agronomics reckons its market could be worth more than £200bn by 2040 as phenomena like climate change and ethical awareness drive growth.

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