On 5 January Duet Real Estate Finance announced that a loan it had made against some German hotels (loan 12) had been repaid early, resulting in a cash inflow for the fund and an uplift in NAV thanks to early repayment penalties.
The Company’s share of proceeds realised totalled £11m, equivalent to 15.29 pence per share. This represents a premium received by the Company of £2.1m in excess of NAV as at 30 September 2015, equivalent to 2.91 pence per share, relating specifically to loan 12. The last reported NAV as at 30 September 2015 was 27.52 pence per share; any future updated NAV of the Company will also take into account numerous other factors and updated information.
Duet’s Board announced on Friday that it has resolved to return an amount of 14.93 pence per share, based on the current number of shares in issue (£10.7m), after retaining a reserve of £6,200 for the costs of this distribution along with amounts to be withheld for working capital and for any continuing purchases of the Company’s own shares under the Buyback Programme. This return of capital will be done via an issue of redeemable B shares to existing shareholders and subsequent redemption of those shares pro rata to their holding at the time of the relevant issue. The return of capital will be paid to shareholders on the register at the close of business on 22 January 2016.
Following the return of capital, the NAV per share will be reduced by the amount of the return of capital and the costs of the redemption. Following the return of capital of 14.93 pence per share, on a pro forma basis but not adjusting for any other movements in the period from 30 September 2015, the NAV per share would be 12.59 pence.
DREF : Duet announces cash return after loan repayment