In QuotedData’s morning briefing 20 September 2021:
- Ecofin US Renewables Infrastructure (RNEW) has completed its acquisition of Echo Solar Portfolio’s largest asset, which it signed an agreement to acquire in July. The portfolio includes 12 solar photovoltaic projects, which are at construction stage and are expected to be completed and to commence operations in phases beginning in the first quarter of 2022. The combined capacity of the projects is estimated at 69 megawatts (MW) and the aggregate asset value is approximately $95m. RNEW’s advanced near term pipeline of contracted solar and wind deals committed or under exclusivity totals approximately $100m, comprising a $38m incremental investment in the Echo Solar Portfolio through a reduction in project level gearing, $50m for an operating wind asset and $12m for a construction stage commercial solar asset, both under exclusivity. The broader near term pipeline continues to be in excess of $3bn including two wind assets and two solar assets. With £30m of uncommitted IPO funds remaining, the company has decided to pursue a non-recourse construction loan facility related to the Echo Solar portfolio and a company subsidiary senior secured revolving credit facility in parallel with its existing equity placing programme to ensure sufficient funds are available to absorb this expected investment growth in 2021.
- Martin Currie Global Portfolio (MNP) has posted its half-year report for the six months to 31 July 2021, during which time it delivered a NAV total return of 16.1% and a share price total return of 12.9%. Investment performance was driven largely by stock selection and at a stage in the economic cycle which might have provided a headwind to its approach to focus on growth, rather than ‘value’ investments. MNP paid a first interim dividend for the current financial year of 0.9p per share on 30 July 2021 and will pay a second interim dividend of 0.9p per share on 29 October 2021. Net revenue earnings for the half year were 1.0p per share. Gillian Watson, chair, said: ‘As the world gradually emerges from the Covid-19 pandemic, we expect our investments to continue to provide attractive returns. A number of factors support this view, including continuing economic recovery and the apparent desire of governments to offer ongoing support through low interest rates, fiscal support and expenditure on both physical and digital infrastructure. The possibility of higher inflation is, though, a cause for some concern. We will continue to focus on an approach that has served shareholders well, with a thoroughly researched and concentrated portfolio of attractive investments while continuing to maintain our market-leading approach to environmental, social and governance issues.’
- BlackRock Latin American (BRLA) has published its results for the six months to 30 June 2021. During the period under review, markets in Latin America rose by 8.9%, outperforming the MSCI Emerging Markets index (up by 7.4%). As for the trust, its NAV per share increased by 7.4%. The underperformance was largely driven by stock specific factors as the portfolio managers moved to reduce country risk in the portfolio as political unrest escalated. The share price rose by 4.9% in US Dollar terms (3.8% in Sterling terms). BRLA has declared dividends totalling 27.69 cents per share in respect of the twelve months to 30 June 2021 representing a yield of 4.9%. The dividends paid and declared over the past year have been funded from the trust’s current year revenue and brought forward revenue reserves. Dividends will be funded out of capital reserves to the extent that current year revenue and revenue reserves are fully utilised. The board believes that this removes pressure from the investment managers to seek a higher income yield from the underlying portfolio itself which could detract from total returns.
- US Solar (USF) has released its interim results for the six months to 30 June 2021, during which time its NAV fell by 2.8%. The company said this was due to lower US merchant electricity price forecasts, reflecting COVID uncertainty at the time. Since the period end, US merchant price forecasts have trended upwards again due to a reduction in COVID-related sentiment and an increasingly bullish outlook for carbon pricing to 2050. A total dividend of 2.5 cents per ordinary share was declared during the six months and USF remains on track to deliver its 2021 annual dividend target of 5.5 cents per ordinary share which is expected to be covered from operating cashflows. The trust also initiated a 12-month placing programme with an initial issue targeting $105m during the period, which cosed on 7 May, significantly oversubscribed, raising £132m. Approximately $92m of these proceeds have been used to pay down or refinance existing debt facilities associated with the Heelstone portfolio with the remainder available for acquisitions.
- Tritax EuroBox (EBOX) raised £213m (€250m) in a placing, far exceeding its £170m target. A total of 191,228,355 new ordinary shares will be issued at a price of 111.5 pence per share. The euro equivalent placing price has been fixed at 130.66 cents per share, based on the Relevant Euro Exchange rate of 1.1718. The proceeds of the raise will go on EBOX’s pipeline of investment assets that are at various stages of due diligence.
- Baillie Gifford US Growth (USA) has reduced its annual management fee. With effect from 1 September 2021, the annual management fee on net assets in excess of £1bn is charged at a lower marginal rate of 0.50%. The annual management fee is now as follows: 0.70% on the first £100m of net assets, 0.55% on the next £900m of net assets and 0.50% for net assets in excess of £1bn. The fee will continue to be calculated and paid on a quarterly basis.
We also have half-year results and portfolio updates from Gresham House Energy Storage and Gore Street Energy Storage and full-year results from CQS New City High Yield. Meanwhile, Supermarket Income REIT buys six stores.