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QuotedData’s morning briefing 30 September 2021

In QuotedData’s morning briefing 30 September 2021:

  • International Public Partnerships (INPP) says its £40m investment in the Rampion OFTO project looks likely to complete in November after Ofgem approved it on Tuesday. The project relates to the transmission cable connection to the Rampion offshore wind farm located 13km off the Sussex coast. The wind farm consists of 116 x 3.45MW wind turbine generators with an installed capacity of 400MW.
  • Edinburgh Investment Trust (EDIN) has agreed to issue £120m of long-term, fixed rate, senior, unsecured privately placed notes:
    • £35m 2.26% Notes maturing in 2037 settling on 29 September 2022
    • £35m 2.49% Notes maturing in 2047 settling on 29 September 2022
    • £20m 2.53% Notes maturing in 2051 settling on 7 October 2021
    • £30m 2.53% Notes maturing in 2057 settling on 29 September 2022

The three tranches, totalling £100m, settling on 29th September 2022 will be used to repay the existing £100m 7.75% debenture, which matures on 30 September 2022. A fourth tranche of £20m is new debt. The weighted average cost of the notes from 1 October 2022 will be 2.44%. The company also has a £25m bank revolving credit facility which is currently undrawn. [Edinburgh Investment Trust achieves a significant interest saving with this deal which will help boost its income account.]

  • Round Hill Music (RHM) says that at the end of June its NAV was 97 cents per share but it also calculates what it calls an economic NAV of 107 cents. This assumes that its catalogues are revalued to what its independent valuer believes is fair value, and reverses out the amortisation of the existing portfolio and royalty income accruals. The share price is trading closer to the economic NAV.
  • Tufton Oceanic Assets (SHIP) has agreed to acquire two Handysize Bulkers for a total consideration of $41.2 m. The vessels are being acquired at below depreciated replacement cost and are fuel efficient versus their peer group. The vessels have fixed rate time charters for approximately one year producing an annual net yield (after fees and capex accrual) of 25%. They will be drydocked upon completion of these charters, and will then be fitted with energy saving devices. Tufton expects that their fuel efficiency will increase by approximately 10% and that the investment in the devices will produce net annualised returns of over 15%. These devices will increasingly be fitted on the company’s vessels in 2022. The vessels are being acquired with the proceeds of the sale of the Containership Citra announced in late July and cash on hand. Following these acquisitions, the company is fully invested [and likely to come looking for more money we think].
  • Gore Street Energy Storage (GSF) raised £73,6m from an oversubscribed equity issue. Applications had to be scaled back.
  • Tritax Big Box REIT (BBOX) raised £300m in a placing of shares. A total of 147,058,823 new ordinary shares will be issued at a price of 204 pence, which represents a discount of 5.3% to the closing price on 29 September 2021 of 215.40 pence.
  • PRS REIT (PRSR) raised £55.6m in a placing – well short of the £75m it proposed. A total of 53,974,164 ordinary shares will be issued at a price of 103 pence.
  • Supermarket Income REIT (SUPR) is looking to raise £100m through a placing of new shares. The issue price of 115 pence is a 4.2% discount to its closing price of 120 pence on 29 September and a 6.5% premium to its last reported EPRA NTA of 108 pence per share. The group’s investment manager has an acquisition pipeline of four assets worth £180m (it is in exclusive terms on three and advanced due diligence on the other). It has a further pipeline of seven assets worth £420m.
  • CLS Holdings (CLI) has secured two office lettings in Germany totalling 68,975 sq ft. The City of Hamburg has taken 45,025 sq ft of space at Nagelsweg 37-39 on a 15-year lease, while the second letting is for 23,950 sq ft for a five-year lease at Lochhamer Schlag 1 in Gräfelfing, near Munich, with FUTRUE. Both lettings are above estimated rental value (ERV).
  • Custodian REIT (CREI) has sold seven industrial properties (in Gateshead, Stockton-on-Tees, Warrington, Stone and Christchurch – which were announced in July – and in Aberdeen and Bedford) for £32.6m, at a net initial yield of 5.9%. The agreed sales price is 10% of the portfolio’s 30 June 2021 valuation.
  • BMO Commercial Property Trust (BCPT) sold an Asda supermarket and adjacent retail warehouse let to Currys/PC World in Rochdale for £35.0m at an initial yield of 4.75%. The sale price reflects a premium of 9% over the last external valuation at 30 June 2021. The disposal follows the successful re-gearing of the Asda lease and extension of the term expiry date out to December 2038. The Currys lease expiry is March 2022.
  • BCPT also reported interim results for the six months to 30 June 2021, in which it posted a NAV total return (NAV growth plus dividends) of 8.0%.
  • Aberdeen Standard European Logistics Income (ASLI) announced a 3.3% increase in NAV in the six month period to June 2021 to €1.24. This equates to a 5.2% NAV total return (with dividends of 2.82 euro cents included) in the period. The portfolio valuation rose 3.4% in the six months to €492m. The company announced yesterday that it had raised £125m in a substantially oversubscribed equity raise, as it looks to grow the portfolio.
  • Palace Capital (PCA) has sold its entire shareholding in Circle Property (CRC). 1,592,500 shares were sold at a price of 200p per share. It said the investment has delivered a total return of 8.6% but it would now recycle the capital into higher growth opportunities as part of its acquisition programme.
  • Regional REIT’s (RGL’s) asset manager London & Scottish Property Investment Manager has acquired 1,136,363 shares in the company for £1m. It said the purchase confirmed the asset manager’s support and conviction in the company’s strategy to invest in regional offices across the UK, outside of the M25.
  • Asset Value Investors, managers of AVI Global Trust, have written a third letter to the board of Third Point Investors urging them to put AVI’s proposals to a vote. The Third Point board says it is not obliged to as the vote is non-binding. AVI says that their lawyer says the board is mistaken.

We also have results from JPMorgan Emerging Markets, Ashoka India, Strategic Equity Capital and Alternative Income REIT.

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