In QuotedData’s morning briefing 5 August 2021:
- JPEL Private Equity is returning $85m to investors – using cash it had on its balance sheet and the proceeds of its sale of Swania International. Effectively, this will mean the compulsory redemption of about 42.5m JPEL shares, about 51.5% of the company. The redemption price is based on the end June NAV of $2. Shareholders should get their cash on or around 19 August. This will bring the total amount returned to shareholders to $499.2m – 4% more than the company’s total NAV at 31 October 2016 when the process of selling off investments and handing back cash began.
- Octopus Renewables (ORIT) says it has amended its investment policy to allow investments in “Development Renewable Energy Assets (as defined in the Investment Policy) which have some limited exposure to geographies outside Europe and Australia, where such exposure (i) is restricted to less than 1% of Gross Asset Value and (ii) represents a minority of the assets within the relevant developer, portfolio or pipeline into which the investment is being made, by both number and value.” This is such a small change to the policy that it doesn’t need shareholder approval. We guess that they have an investment in mind.
- Marble Point Loan Financing (MPLF) has invested $13.9m into Marble Point CLO XXII. The CLO has total assets of $400m but Marble Point Loan Fund will end up owning 45.1% of the equity tranche. The effective yield on this investment is forecast to be between 14.0% and 16.0%. Marble Point CLO XXII has, approximately, a five-year reinvestment period, a two-year non-call period and 13-year maturity. Its weighted average cost of debt is LIBOR + 184 basis points (1.84%).
- KKV Secured Loan (KKVL) says that a loan in the C share class portfolio has been refinanced with another provider. KKV gets back £16.82m (the total amount outstanding) plus an early repayment premium of an estimated £0.7 to £0.8m. This is about where the loan was valued. In addition, a loan (borrower 16 in the accounts) in the ordinary share class portfolio has been sold for $1.0m. As at 31 December 2020, the loan had a carrying value of zero. The board is considering handing back more cash to investors.
- Hammerson (HMSO) reports valuation decline on retail property portfolio of 6.4% in the six months to 30 June 2021 to £5.5bn, contributing to a 16% fall in EPRA net tangible assets to 69p per share. The group kept its loan to value (LTV) in check – 47% (June 2020: 46%) – having sold its retail park portfolio in the period for £403m. It says that it has no significant unsecured refinancing requirements until 2025, after it refinanced near term debt maturities with the issuance of a €700m bond. On an operational front, footfall across its assets was averaging 80% of 2019 levels, while rent collection for full year 2020 was now at 90% and in the first half of 2021 was at 71%. Occupancy stands at 93% (Dec 20: 94%) and the estimated rental value on the portfolio was down 4.1% on a like-for-like basis. Chief executive Rita-Rose Gagne says the group will continue to “de-lever the balance sheet through disposals of non-core assets” before embarking on a development and repurposing drive.
- Tritax Big Box REIT (BBOX) continues its impressive performance with excellent first half results, in which the value of its portfolio of big box logistics assets rose 10.9% to £4.89bn and EPRA net tangible assets increased 10.6% to 194.22p per share. Adjusted earnings was up 23.6% to 4.03p per share while it paid out a dividend in the period of 3.2p (up 2.4%). The increase in earnings was primarily down to development completions, rental growth and an increase in development management income. The group says development activity will accelerate in the second half of 2021, with the potential to add a further £19.1m to the rent roll. It is targeting the delivery of 2 to 3m sq ft of new space per year at a yield on cost of between 6% and 8% (which compares to investment yields in the sector of sub-4%).
We also have results from Pantheon International and a valuation update for the Apax funds