Industrial Multi Property Trust has published an update on its position as at 31 March 2015 and been speculating about its future.
They last refinanced the company at the end of December 2013. At that time occupancy within the portfolio stood at 84.6%. They have made modest improvements to this level since then and occupancy was 87.3% on 31 March 2015. 109 new lettings and 54 lease renewals were concluded over the fifteen month period. the NAV has risen from 207p to 227p over that period.
Their current finance arrangements (from Europa Mezzanine Finance Sarl and Alpha Real Trust Limited) run for three years and have penalties built in for early repayment. The Board thinks though that, when they can refinance the company’s debt at the end of 2016, they’ll be able to do it at much more attractive rates (providing nothing materially changes in the debt market between then and now). They are also saying that a refinancing at current rates would permit the resumption of dividend payments.
basically this announcement is no more than a heads up that there is a good chance that they’ll refinance and start paying dividends at the end of 2016. they say though that if they can’t achieve a refinancing on attractive terms, they’ll think about winding the company up by gradually selling off the portfolio.
The shares, which had been trading on a 75% discount, were up 16.7% following this news.
IMPT : Industrial Multi Property shares soar on talk of refinancing