In QuotedData’s morning briefing 26 January 2022:
- Henderson Smaller Companies (HSL) has posted its interim results for the six months to 30 November 2021. During the period under review, the trust delivered a NAV total return of -2.1% and a share price return of -7.9%. This compares with a -2.8% return from its benchmark. Despite these figures, the board has maintained the interim dividend at 7.0p per ordinary share which will be paid to shareholders in March. Manager, Neil Hermon (pictured), said: “One of the major concerns facing the equity market is the threat of higher inflation and the need for central banks to start tightening monetary policy. There is much debate as to whether current indications of inflation, led by commodity, energy and logistic costs, are temporary or are of a more permanent nature. A sustained pick up in wage inflation will probably force monetary authorities to act more quickly. The recent increase in UK base interest rates and indications from the Federal Reserve of higher rates gives a good indication as to the likely direction of central bank policy in 2022.”
- Aberforth Split Level Income (ASIT) has published its half year report for the six months to 31 December 2021, during which time it achieved a share price return of -5.3% while its NAV remained flat. Its benchmark, the Numis Smaller Companies index (ex ICs), delivered a total return of 3.8% in the period. The chair said: “The board recognises that it has been a challenging experience for shareholders since the company’s inception, with the net asset value and share price frustratingly below the 100p issue price. Much of the challenge has come from the pandemic, which has been particularly problematic for a young and geared company. However, there does appear to be scope for a brighter outlook. The resilience of the investee companies is already evident in the rehabilitation of dividends. In due course, rising dividends ought to support the capital growth of a portfolio that is already attractively valued. Finally, the planned wind-up in two and a half years should address the share price discount by giving the opportunity to realise value at close to net asset value.”
- Derwent London (DLN) has exchanged contracts to sell its 70,700 sq ft freehold interest in New River Yard, London EC1, for £67.5m. New River Yard consists of four office buildings at 3-4 and 5-8 Hardwick Street and 151 and 161 Rosebery Avenue. The space is multi-let to 13 tenants with a total passing rent of £3.3m per annum with an average of 2.6 years to lease break/expiry. The disposal price represents a 4.5% net initial yield and a marginal discount to June 2021 book value.
- Grit Real Estate Income Group (GR1T) has sold the holding company of the Absa House office building in Mauritius for MUR 533m ($12.2m), which equates to a 7.75% yield. The anchor tenant is Absa Bank, occupying 86% of the lettable space, while the book value of the property at 31 December 2021 was MUR 541.2m ($12.4m). The net sale proceeds to Grit are expected to be $4.1m, which will be applied towards the company’s revolving credit facilities and further debt reduction.
We also have full results from Chrysalis and placing news from Digital 9 Infrastructure, Cordiant Digital Infrastructure and Polar Capital Global Financials.