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QuotedData’s morning briefing 17 November 2021

Biotech overweight hurts Worldwide Healthcare

In QuotedData’s morning briefing 17 November 2021:

  • Caledonia (CLDN) has agreed terms to divest its investment in BioAgilytix, a leading provider of bioanalytical testing for large molecule research and development, as private equity firm Cinven, becomes the new lead investor. The transaction is subject to US anti-trust approvals and is expected to complete in December 2021. Cinven’s investment involves a sale of Caledonia’s interest in BioAgilytix to Cinven with gross proceeds expected to be around $183m, net of fees, which will be confirmed upon completion. Proceeds will be held for future investment. Caledonia’s shareholding in BioAgilytix was valued by Caledonia at £51m as at 30 September 2021.
  • Worldwide Healthcare (WWH) has posted its half-year results for the six months to 30 September 2021. During the period its NAV delivered 0.4% while its share price was down 1.5%. This compares with its MSCI World Healthcare Index return of 13%. The chair says the principal reasons for this underperformance were the significant overweight positions in poorly performing Emerging Biotechnology and China. These sectors were subject to significant volatility as investors rotated to larger stocks in more developed markets, which is why they were the largest contributors to the reported relative underperformance. In addition, absolute performance was affected by the political uncertainty arising from the incoming new presidential administration in the US. The revenue return for the period was £9m, an increase of £4m on last year due to a rise in portfolio income. The board has declared an increased interim dividend of 7p per share, for the year to 31 March 2022.
  • Chelverton Growth (CGW) has posted its full year results for the year to 31 August 2021. During the 12 months, the trust’s NAV increased by 41.9% while its share price soared by 98.3%. This compares with a 37.5% rise from its benchmark, the MSCI Small Cap UK Index. Despite the good performance, the company has now been reduced to a size that makes it unviable in the longer term to continue with the current structure and the board is in the process of reviewing how to return funds to shareholders in the most effective way.
  • KKV Secured Loan (KKVL) has posted its annual report for the year to 30June 2021. During the period under review its NAV increased by 1.4% while its share price fell by 33.2%. Meanwhile, the trust’s C-shares saw a 14% NAV return but its share price plummeted by 41.4%. As the company is in managed wind down, the business model changed from holding the assets to maturity to actively realising assets in line with the updated investment policy.
  • British Land (BLND) has posted a 5.1% uplift in EPRA Net Tangible Assets (NTA) to 681p in half year results to 30 September, helped by a 2.9% rise in the value of its portfolio to £9,840m.
  • Grainger (GRI) has acquired two sites for direct development build-to-rent opportunities, totalling a potential 480 new PRS homes. Exmouth Junction in Exeter benefits from having planning consent for 230 homes. Brook Place 2 in Sheffield could deliver up to 250 PRS homes, subject to amendments to the existing planning consent.
  • AEW UK REIT (AEWU) has reported half year results to 30 September, in which its NAV increased 11.0% to 110.01p per share. EPRA Earnings Per Share for the period was 3.45p, while it paid dividends of 4p per share.

In other news, Life Sciences REIT has successfully raised £350m at IPO, Tritax EuroBox has secure a green lease in Belgium and Workspace has made an acquisition.

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