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QuotedData’s morning briefing 26 July 2021

F&C Investments FCIT

In QuotedData’s morning briefing 26 July 2021

  • F&C (FCIT) has released its interim report for the six months to 30 June 2021. During this time the NAV total return was 12.3%, ahead of the FTSE All-World index which returned 11.1%. However, the company’s share price total return was slightly behind, at 8.3% – which the board says reflects its widening discount. FCIT’s private equity exposure was a driver of returns for the period under review, having posted a gain of 14.2% alone. The first interim dividend or 2021 is 3p per share. Chair, Beatrice Hollond, said: “Our revenue reserves have enabled us to withstand both the Global Financial Crisis and recent pandemic-induced restrictions on dividend pay-outs. Increases in our dividend income can be expected in the years ahead as corporates recover from the pandemic. The Board is therefore committed to a further rise in our dividend this year, which will be the 51st consecutive rise in dividends for shareholders.” Meanwhile, manager Paul Niven, added:  “Beyond the near term, it seems likely that the balance of risks has shifted in favour of somewhat higher inflation. This will present challenges but modest rises in inflation, slightly higher interest rates, but still good rates of growth, present a favourable backdrop for our portfolio. In addition, while markets have been narrowly focused in terms of geographic, sectoral and stock leadership, the recovery should deliver more balanced performance.
  • Octopus Renewables (ORIT) has agreed to acquire a portfolio of five solar PV sites in Ireland from Statkraft, and which are expected to have an installed capacity of up to 250MW. These assets form part of the pipeline assets in exclusivity disclosed in ORIT’s recent prospectus. Completion is conditional upon four of the sites becoming fully operational, which is expected to occur in H2 2022. These four sites benefit from a Contract for Difference awarded as part of the Irish RESS-1 auction, providing fixed-price revenues until 2037. The fifth site, which is expected to have an installed capacity of up to 50MW, will be acquired on or after completion as a construction ready project, conditional on the site securing a RESS Contract for Difference in a future Irish auction. The acquisition is expected to be between €138m and €145m, for which the company will part finance with a recently secured debt facility of up to €88m. Chris Gaydon, investment director at Octopus Renewables, commented: Development of solar assets has picked up pace recently in Ireland, and the construction of these projects in Ireland will have a positive contribution to decreasing carbon emissions and helping Ireland on its path for a more renewable future. We are pleased to be working with Statkraft, the largest renewable energy producer in Europe, on this project.”
  • Taylor Maritime Investments (TMI) has raised its target gross proceeds of $75m through the issue of 65,217,392 new ordinary shares via its recently announced placing, to be rapidly deployed to acquire up to six Handysize vessels. The placing was oversubscribed and a scaling back exercise has been undertaken. The issue price per share was $1.15, with the sterling equivalent issue price fixed at 83.63p per share. Nicholas Lykiardopulo, chair of Taylor Maritime Investments, said: The executive team has assembled a high quality pipeline of Japanese-built Handysize vessels which are expected to be acquired at attractive prices and will deliver strong earnings in the current rate environment. The level of demand from new and existing investors during this fundraise reflects their confidence in our business model and approach and we appreciate and value their continued support.
  • Schroder European Real Estate (SERE) has cut the value of its 50% stake in the troubled Metromar Seville shopping centre to nil. Despite this, the group’s portfolio increased in value by 0.9% to €204.7m in the quarter to 30 June driven by rises in its Hamburg & Stuttgart offices. The group collected 94% of rent for the quarter.
  • BMO Real Estate Investments (BREI) reported a 3% increases in net asset value in the quarter to 30 June 2021 to 102.1p. Large exposure to industrial and logistics sector (47%) was behind portfolio valuation uplift and a 96.1% rent collection rate in past 15 months.

We also have news of NewRiver REIT selling its pub business.

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