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QuotedData’s morning briefing 29 July 2020

Primary Health Properties buys medical centres portfolio for £47.1m

In QuotedData’s morning briefing 29 July 2020:

  • Primary Health Properties (PHP) reported interim results to 30 June 2020, with performance highlights that include:
    • Adjusted EPRA earnings per share increased by 7.1%;
    • Average uplift of 2.2% per annum on rent reviews completed in the period (FY 2019: 1.9%; FY 2018: 1.4%);
    • Additional annualised rental income on a like-for-like basis of £0.9 million or 0.7%; and
    • PHP’s managing director, Harry Hyman, noted: “The COVID-19 pandemic has highlighted the demands on health systems around the world, not least the NHS in the UK and HSE in Ireland, where the underlying demand for healthcare is increasingly driven by growing and ageing populations. As a result of the COVID-19 pandemic, we see strong demand for extra space to help alleviate the backlog of consultations that has arisen as a result of the coronavirus, while facilitating the movement of activity out of hospitals and the continued care of patients that have suffered from COVID-19. The successful equity placing on 9 July raised £140m of proceeds and was upsized from £120m due to strong investor demand. The funds raised will help further accelerate our growth by funding near-term portfolio expansion, forward funded developments and asset management projects.”
  • Artemis Alpha (ATS) released annual results, to 30 April 2020. Total return NAV fell by (11.3%) over the year, which was less than the (16.7%) fall in the FTSE all-share index. ATS noted: “We have substantial exposure to liquid and resilient companies to that have limited (or even negative) correlation to the economic cycle such as Plus500 (financial software), Delivery Hero (food delivery), and Tesco (grocery). This is balanced against exposures that have positive correlations to the economy and market, but where we think valuation opportunities are greatest such as Frasers Group (retail), IWG (serviced offices) and EasyJet (airlines). In the long term, if our fundamental judgements are right we expect both segments to appreciate in value. In the short term, we expect large changes in relative valuations as investors flock to safety or become optimistic about a recovery, which we can take advantage of by switching exposure in the opposing direction to market sentiment. In our view, liquidity is paramount to navigating uncertainty and capitalising on the opportunity.”
  • Smithson (SSON) reported interim results to 30 June 2020, with total return NAV per share increasing by 15.3%, compared to the benchmark MSCI World SMID Index’s (4.7%) decline. SSON’s shares delivered a 13.3% total return. SSON noted that the board intends to continue to issue new shares, to enable the manager to continue to seek attractive investment opportunities.
  • In an update, Riverstone Credit Opportunities (RCOI) noted the following: “The market for energy continues to be difficult, and valuations across public markets have been impacted significantly by the coronavirus pandemic. The RCOI portfolio has been resilient on a relative basis and remains profitable despite challenges in the broader market.”
  • Global sector company, Brunner (BUT), delivered a total NAV return of (5.9%), over the six months to 31 May 2020. Over the same period, the fund’s benchmark (70% FTSE world index ex UK and 30% FTSE all-share index) fell by (5.4%).
  • Fidelity Japan (FJV) has appointed David Barron as a non-executive director with effect from 20 October 2020. He will also serve as a member of the management engagement, nomination and audit committees of the board.

We also have news of a merger agreement between Perpetual Income and Growth and Murray Income, Hipgnosis Songs signing up Rodney Jerkins, the name of the company behind Merian Chrysalis‘s earlier partial realisation reveal, and an update from Electra Private Equity.

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