QuotedData’s morning briefing 15 February 2021

In QuotedData’s morning briefing 15 February 2021:

  • Tritax EuroBox (EBOX) has sold its asset in Lodz, Poland for €65.5 million, 15% above its most recent valuation at 30 September 2020 and, based on the company’s target gearing of 45%, delivering an attractive geared IRR of 16.5% to shareholders. They bought this is April 2019 and completed a pre-let development to expand the existing site by a further 52,000sqm shortly thereafter. The disposal price is equivalent to a 4.95% gross initial yield, which compares to a gross initial yield on purchase of 5.8%. [It is always nice to see transaction-based evidence that rising valuations are justified and this deal delivers that, perhaps even indicating that the NAV is conservative.]
  • CIP Merchant Capital (CIP) has reiterated its rejection of the possible offer for the company by funds/vehicles managed or advised by Corporation Financière Européenne S.A. They highlight that the proposed 50p offer price is below the current share price as well as the NAV (78.5p). [We have to agree with CIP’s board that the bid looks opportunistic but the company’s poor returns since launch and the failure of the company to invest all of its IPO proceeds three years after launch (38% of the NAV is in cash) suggest to us that some action beyond business as usual is merited.]
  • Home REIT (HOME) has declared its first dividend. 0.83p will be paid on 19 March to shareholders on the register on 26 February. The company is targeting a minimum total dividend of 2.5p for the financial period ending 31 August 2021 and an annual dividend of 5.5p, payable quarterly, thereafter, with the potential to grow through inflation-protected long-term lease agreements.
  • On Friday, Civitas Social Housing (CSH) noted that Hilldale Housing Association, which accounts for just under 1% of Civitas’s rent roll, had been served a grading under review notice by the Regulator for Social Housing. The Regulator is gradually working its way through all of the larger housing associations. Civitas notes that all Hilldale’s rent is paid up in accordance with agreed terms in respect of all leases. It is expected that all rents will be fully paid in the future.
  • Syncona (SYNC) says that Gyroscope Therapeutics Limited, which is aiming to use gene therapy to treat diseases of the eye, announced positive interim safety, protein expression and biomarker data from its ongoing Phase I/II FOCUS clinical trial, where it is testing GT005, a treatment for patients with geographic atrophy secondary to age-related macular degeneration.
  • Greencoat Renewables (GRP) has agreed to buy Kokkoneva wind farm in Siikalatva, Finland from Abo wind, a global renewable energy project developer, for approximately €60m. The 43.2MW asset is currently under construction with commercial operations expected to start in the second quarter of 2022. The transaction will only complete once Kokkoneva is fully operational. Kokkoneva is a subsidy-free wind farm and has entered a 10-year fixed-price power purchase agreement with Gasum, Finland’s state-owned gas utility for the majority of the electricity generated.

In addition, St Peter Port Capital proposes auctioning off its remaining assets, NextEnergy Renewables has published its prospectusCordiant Digital’s IPO was successful and Grit Real Estate published interim results.

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