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QuotedData’s morning briefing 5 August 2020

In QuotedData’s morning briefing 5 August 2020:

  • SEGRO (SGRO), the £11.5bn market cap REIT focused on modern warehouses and light industrial property, announced results covering the interim period to 30 June 2020. Adjusted pre-tax profit of £140.4m, represented an increase of 6.5% year-on-year. Adjusted NAV per share increased by 2.6% over the six-month period, helped by an increase in the value of the portfolio. SGRO noted the following in their outlook statement: “It remains to be seen how long these immediate effects will last but it is clear that the structural trends that have been contributing to occupier demand for our space over recent years have strengthened as a result of the pandemic. This is already starting to show in elevated take-up levels: for example, UK logistics take-up hit record highs in the first six months of the year, 44 per cent higher than in the same period last year according to data recently published by CBRE. E-commerce penetration has accelerated markedly across all our markets, there is a renewed focus on the efficiency and resilience of supply chains, and the demand for data centre space is increasing as a result of the need for additional data storage to support remote working and video streaming services. These themes should drive both occupier and investor demand for high-quality warehousing in core logistics and urban locations.” We also note that over July, SGRO announced both debt redemption and new debt finance, which you can read more on by clicking here.
  • Regional REIT (RGL) issued a positive trading update, noting that as of 30 June 2020, the overall valuation of its portfolio was £742.3m. This was only (3.7%) lower than 31 December 2019. On the rentals front, RGL said that as at 31 July 2020 Q1 rent collection increased to c. 98%. This comprises of 96% of Q1 rent paid and agreed collections with occupiers amounting to 2%,
  • Premier Global Infrastructure (PGIT) reported interim results to 30 June 2020. The NAV declined by (8.1%) in total return terms, amplified by the trust’s geared capital structure. Chair, Gillian Nott OBE, noted the following in her outlook statement: “The infrastructure sector is fortunately likely to be rather less affected by the economic fall-out from COVID-19 than many other sectors such as travel and hospitality. Nevertheless, we should be mindful of the risks ahead as the economy struggles to regain momentum. Whilst Brexit has been somewhat displaced from the headlines, with an extension to the transition period now off the table, a disorderly Brexit will be a key second-half area of risk for markets, and in particular, currencies. Finally, the current issue of ZDP Shares reaches maturity at the end of November. Subject to appropriate market conditions at the time, we anticipate re-financing the ZDP Shares with a further ZDP issue, with maturity in 2025.”
  • Target Healthcare REIT (THRL) reported a NAV total return of 1.6% for the quarter-ending 30 June 2020. A fourth interim dividend of 1.67 pence per share was declared for the year ended 30 June 2020, representing an increase of 1.5% on the FY 2019 quarterly dividends. With respect to COVID-19, THRL said the following: “Confirmed or suspected cases of COVID-19 are currently affecting residents occupying less than 0.3% of the portfolio’s beds, a significant reduction from the peak of 3.2% in mid-April. Whilst portfolio occupancy has fallen as a result of the Group’s tenants imposing strict restrictions on admissions prior to and during the lockdown period, admission activity is now picking-up with tenants reporting an encouraging number of enquiries.”
  • The private equity sector company, FastForward Innovations (FFWD), which is focused primarily on disruptive high growth life sciences and technology businesses, announced that investee company, Leap Gaming, was issued a game supply license by the Malta Gaming Authority. FFWD has a 43% stake in Leap Gaming.

We also have news of another deal from Hipgnosis Songs.

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