In QuotedData’s morning briefing 25 February 2021:
- Following its recent good news, KKV Secured Loan Fund will hand back 5p per share (£17.8m) to ordinary shareholders and 12p per share (£16.7m) to C shareholders. The ex date for these distributions will be 5 March 2021 and payment should arrive within the next couple of weeks after that. Separately, the board has agreed to reduce the management fee to:
- 0.96% of the ordinary share NAV for the period from 1 January 2021 to 31 December 2021;
- 0.92% of the ordinary share NAV for the period from 1 January 2022 to 31 December 2022; and
- 0.80% of the ordinary share NAV per annum for the period from 1 January 2023 onwards. Reminding us that the realisation process for the rest of the portfolio may take some time.
- Yew Grove REIT has agreed a new lease for the Gateway Three building, East Wall Road, Dublin to the Electricity Supply Board, which is 95% owned by the Irish government. The 43,220 sq ft of offices and 30 car parking spaces is now subject to a lease extension from 1 January 2021 for a further term of five years with an option of an additional one year extension at an initial headline rate of €29 per sq. ft. (in line with Yew Grove’s view on ERV). Since the start of the new year, the company has also agreed three rent reviews at Millennium Park Naas, Block A Waterford and Blackwater House Mallow, which add a further €80,000 (0.7%) to the annual rent roll. With an additional €390,000 from the Gateway Three lease, together with the new lease at Cork Airport and combined with four separate break notices that expired so far in 2021 (in Ashtown Gate, Millennium Park & Gateway One), has increased Yew Grove’s weighted average unexpired lease term to expiry 7.7 years from 7.1 years.
- Tiny (£5.5m NAV at end December) Athelney Trust says that, for the year to 31 December 2020, its NAV total return was -0.2%, outperforming the UK market. Revenue fell by 35% to 5.9p but the dividend was upped by 1% to 9.4p, dipping into reserves to maintain an 18-year record of increasing dividends. Ongoing charges fell from 4.30% to 2.45% as the board focused on cost cutting, including shedding a director. A handful of stocks performed exceptionally well, including Games Workshop, Jarvis Securities and Treatt.
- Acorn Income is maintaining its first quarterly dividend payment at 5.75p, but warns that “it is likely that a return to a sustainable and covered dividend will necessitate a lower dividend payment in future years.” The company is due to hold a discontinuation vote at the AGM in August this year, and its zero dividend preference shares mature in early 2022. Taking this into account, the board plans to report to shareholders ahead of the AGM with an updated view on future dividend policy.
- DP Aircraft I Limited says that the lenders against the two planes (two Boeing 787-8 aircraft, LN-LNA and LN-LNB) it had leased to Norwegian Air Shuttle have now declared an event of default under their loan agreements with the ring-fenced special purpose vehicles that own the planes. The lenders can now seize control of the assets. If that happens and the planes are sold off to repay the debt, DP Aircraft would be entitled to whatever is left over, but if the sale proceeds didn’t cover the debt, DP Aircraft would not need to put up any more money. Separately, the company is still finalising a new set of lease arrangements with Thai Airways and associated lending banks for those planes.