In QuotedData’s morning briefing 9 September 2021:
- BlackRock Throgmorton is asking investors to allow it to issue more shares. The permission given by investors at the last AGM is starting to run out as the success of the trust attracts new investors. Growing the trust adds to the NAV, because all new shares are issued at a premium. It also increases the liquidity in the trust’s shares and helps to lower the ongoing charges ratio.
- Target Healthcare REIT is upping the size of its current issue of shares to £125m to reflect demand from investors.
- Unite Group is borrowing £450m by way of a £450m sustainability-linked unsecured revolving credit facility from HSBC, NatWest and Royal Bank of Canada. The facility has an initial term of three and a half years, which may be extended by a maximum of a further two years at Unite’s request, subject to lender consent. Unite’s performance against a range of sustainability performance targets will be verified by an independent external reviewer and published in the annual report. Dependent on performance against the targets, there will be a 2.5bps (0.025%) premium or reduction to the base margin. Unite will seek to allocate any margin savings to social initiatives which benefit young people and the communities in which it operates.
- BMO Commercial Property Trust has sold Cassini House, a prime multi-let freehold office building in St. James’, London. The property was the second largest holding in the portfolio. It has been sold for £145.5m, 11% more than the last external valuation of 30 June 2021 and 19% over the year-end valuation of 31 December 2020. The disposal represents the culmination of a long-term business plan which involved a complete refurbishment, introduction of new tenants and re-gearing of leases.
- Tufton Oceanic results for the year ended 30 June 2021 show an NAV return of 33%. Encouraged by this and the increased charter coverage, in January 2021 the company raised its target annual dividend to 7.5 cents from 7.0 cents and, from the third quarter of 2021, to 8.0 cents. The manager’s forecast dividend cover over the next 12-18 months will average c.1.7x despite not being fully invested following the divestment of the containership Kale. Four vessels were sold and nine acquired during the period. The overall return from the agreed sales greatly exceed the company’s targets. Of the nine agreed acquisitions, seven vessels were delivered during the financial year and two after the end of the year. In July 2021 the company agreed to sell the containership Citra, generating a net IRR of 47%, and agreed to acquire the bulker Idaho at below depreciated replacement cost. As at 30 June 2021, all delivered vessels except Candy and Golding were employed on fixed rate charters. Candy is on a floating rate time charter, subject to a floor and a ceiling. Golding is employed in a chemical tanker pool. As at 30 June 2021, the average expected charter length (EBITDA weighted) was c.2.3 years. The fleet had no unplanned commercial idle time (voids) during the financial year.
- Capital & Regional has signed an exclusivity agreement with a subsidiary of Far East Consortium International, a leading international real estate developer specialising in high quality residential, hotel and mixed-use developments in the UK, Asia and Australia. The agreement will see the two groups work together over the next 18 months to identify and bring forward the development of new residential opportunities across the group’s shopping centre portfolio.
We also have news of investments made by Round Hill Music, RTW Venture, Seraphim Space and VH Global Sustainable Energy