BlackRock American Income Trust plc (formerly BlackRock Sustainable American Income Trust plc)
LEI: 549300WWOCXSC241W468
Annual Report and Financial Statements 31 October 2024
| Performance record | As at 31st October 2024 | As at 31st October 2023 |
| Net assets (£’000)1 | 155,067 | 154,789 |
| Net asset value per ordinary share (pence) | 216.24 | 193.51 |
| Ordinary share price (mid-market) (pence) | 190.00 | 174.00 |
| Discount to cum income net asset value2 | 12.1% | 10.1% |
| Russell 1000 Value Index – gross total return3 | 2143.06 | 1733.58 |
| Russell 1000 Value Index – net total return3 | 2533.77 | 2056.54 |
| Performance (with dividends reinvested) | For the year ended 31st October 2024 | For the year ended 31st October 2023 |
| Net asset value per share2 | 16.0% | -5.6% |
| Ordinary share price2 | 13.8% | -8.1% |
| Russell 1000 Value Index – gross total return3 | 23.6% | -5.0% |
| Russell 1000 Value Index – net total return3 | 23.2% | -5.3% |
| Performance since inception (with dividends reinvested) | ||
| Net asset value per share2 | 246.5% | 198.7% |
| Ordinary share price2 | 204.7% | 167.8% |
| Russell 1000 Value Index – gross total return3 | 333.6% | 250.7% |
| Russell 1000 Value Index – net total return3 | 315.1% | 236.9% |
Revenue | For the year ended 31st October 2024 | For the year ended 31st October 2023 | Change % |
| Net profit on ordinary activities after taxation (£’000) | 2,604 | 2,945 | -11.6 |
| Revenue earnings per ordinary share (pence) | 3.39 | 3.67 | -7.6 |
| Interim dividends (pence) | |||
| 1st interim | 2.00 | 2.00 | – |
| 2nd interim | 2.00 | 2.00 | – |
| 3rd interim | 2.00 | 2.00 | – |
| 4th interim | 2.00 | 2.00 | – |
| Total dividends payable/paid | 8.00 | 8.00 | – |
1 The change in net assets reflects portfolio movements, shares bought back into treasury and dividends paid during the year.
2 Alternative Performance Measures, see Glossary in the Company’s Annual Report for the year ended 31 October 2024.
3 The Company’s performance reference index (the Russell 1000 Value Index) may be calculated on either a gross or a net total return basis. Net total return (NR) indices calculate the reinvestment of dividends net of withholding taxes using the tax rates applicable to non-resident institutional investors, and hence give a lower total return than indices where calculations are on a gross total return basis. As the Company is subject to the same withholding tax rates for the countries in which it invests, the NR basis is felt to be the most accurate, appropriate, consistent and fair comparison for the Company.
4 Further details are given in the Glossary in the Company’s Annual Report for the year ended 31 October 2024.
Chair’s Statement
Market overview
The performance of markets over the year to October 2024 was supported by a more benign economic backdrop of falling inflation, a lower cost of borrowing, a resilient consumer and robust corporate earnings. Evidence suggests that US policymakers may have managed to bring inflation under control without causing a recession and, despite persistent concerns surrounding the durability of growth and interest rate policy, the US economy remains fundamentally strong.
Performance
Against this background and over the year to 31 October 2024, the Company’s net asset value per share (NAV) returned +16.0% and the share price returned +13.8%. This compares with a rise of +23.2% in the Russell 1000 Value Index – net total return1, the Company’s reference index (all figures are in Sterling terms with dividends reinvested net of withholding taxes). In the same period, and as a broader comparison, the S&P 500 Index was up by +30.2%.
More details on this and the significant contributors to and detractors from performance during the year are given in the Investment Manager’s Report. Since the financial year end and up to close of business on 25 February 2025, the Company’s NAV had increased by 4.8% (with dividends reinvested).
The Board is disappointed with the Company’s performance relative to the Russell 1000 Value Index. Following a review of a wide range of options over the last few months, the Board is proposing to shareholders a change of investment strategy that will offer a differentiated approach to investing in US value equities with an enhanced dividend policy but at a lower cost, as set out in detail in the section below.
Revenue earnings and dividends
Your Company’s revenue earnings per share, based on the weighted average number of shares in issue for the year, amounted to 3.39p (2023: 3.67p), a decrease of 7.6%. Four quarterly interim dividends of 2.00p per share were paid on 26 April 2024, 5 July 2024, 1 October 2024 and 2 January 2025. This is in line with the payments made in the previous financial year. The dividend paid represents a yield of 4.2% on the share price at the year end.
Your Board considers that it remains appropriate to continue with an enhanced dividend policy, supported through both revenue and other distributable reserves. The Board continues to believe that such a dividend policy provides an attractive option for investors who wish to achieve exposure to the US equity market, whilst at the same time receiving a competitive dividend.
Outlook
The story for the US economy remains positive having grown faster than other large economies and expected to continue doing so. The re-election of US President Trump and a Republican majority is predicted to result in new trade policies and higher tariffs, much lower immigration, fresh tax cuts and regulatory easing. The economic headwind from US trade policy is expected to be greater outside the US, weighing more on China and the Euro area but, overall, global economic growth is expected to be solid despite the potential for US tariffs.