In QuotedData’s morning briefing 21 March 2022:
- Further to the announcement on 8 February 2022 in relation to the proposed merger of TwentyFour Income Fund Limited (TFIF) and UK Mortgages Limited (UKML), the board of UKML has announced that the special resolutions proposed at its EGM last week were approved and that liquidators have been appointed. The transaction is expected to complete, with new TFIF shares being issued during the week commencing 28 March. Trading in the UKML shares was suspended at 7.30am on 18 March.
- Tufton Oceanic Assets (SHIP) has posted its interim results for the six months to 31 December. During this time, its NAV per share increased from US$1.158 as at 30 June 2021 to US$1.376 as at 31 December 2021. The NAV total return for the financial period was 22.3%. By the end of the year, the forecasted dividend cover through mid-2023 was c.1.7x despite SHIP not being fully invested. When the company is fully invested, the dividend cover is expected to be ≥ 1.8x. Meanwhile, SHIP has also announced that it has agreed to acquire a Handysize Bulker for $25.5m. It is being acquired slightly above DRC but the team says the strong cash flows from its charter will significantly de-risk the investment. The vessel has a fixed rate time charter of nine to twelve months producing a net yield of 25%. It is in the top quartile of fuel efficiency in its market segment. Nonetheless it will be evaluated for further improvement, including the retrofit of energy saving devices.
- VietNam Holding (VNH) has published its interim results for the six months to 31 December 2021. During the period, its NAV per share rose by 14.1% in US dollar terms and the share price rose by 31.7% in Great Britain pounds terms. The performance of portfolio companies diverged during the reporting period as the Delta variant caused major disruptions. Mid and small-cap companies performed better, domestic retail investors became increasingly more dominant, and the capital outflow in large-cap stocks rose. VNH tactically reduced some large caps – mainly in banking stocks and steel-maker Hoa Phat Group – to allocate into selective smaller-cap names particularly in the more thriving brokerage and real estate sectors. The manager expects the wider property market in Vietnam to continue to perform well in 2022 as government-supported investment in infrastructure accelerates.
- Third Point Investors Limited (TPIL) has announced the results of its 2022 exchange facility whereby eligible investors had the opportunity to elect to convert ordinary shares of TPIL into shares of Third Point’s flagship Cayman Fund at a 2% discount to NAV per TPIL Share. The company has received valid exchange requests in respect of 6,136,895 TPIL Shares, worth in aggregate approximately $170m using the estimate of NAV as at 16 March 2022. As set out in the announcement made on 11 January 2022, the exchange facility will be available for TPIL shares worth $75m in aggregate and all valid exchange requests will, therefore, only be met in part. Based on the current estimated NAV of both the Master Fund and TPIL, it is expected that approximately 44% of TPIL shares subject to valid exchange requests will be exchanged into Master Fund shares. Any TPIL shares which are not being exchanged pursuant to the exchange facility due to the pro-rata allocation will be released from escrow following implementation of the redemption of TPIL shares and issue of Master Fund shares.
- Pantheon Infrastructure (PINT) has agreed to invest €43m (£36m at current exchange rates) in a European transport and logistics company through Pomodoro Holdings Limited, a company controlled by funds managed by affiliates of Apollo Global Management. This is PINT’s first investment since it launched in November 2021. The investee company is a specialist market leader in cold chain warehousing, transport and supply-chain management that provides essential export and import operations of fruits and vegetables. It has a pan-European presence and benefits from a number of strategic partnerships and established, long-term client relationships across the continent. Importantly, it also has a dedicated Research and Development and ESG team focused on several sustainability initiatives, including working towards a 2030 net zero emissions strategy.
- Phoenix Spree Deutschland (PSDL) has exchanged contracts to purchase and forward fund a new development of 34 semi-detached houses for €18.5m, representing an estimated prospective gross yield of 3.5% based on current market rents with significant rental growth anticipated prior to completion. The development of the homes is expected to complete by the end of 2024. The homes are located in Erkner (Brandenburg), a location in the Berlin Beltway, adjacent to the new Tesla Giga factory. The acquisition is being funded entirely through the new debt facility agreed with Natixis (announced on 25 January 2022).
- Warehouse REIT (WHR) has exchanged contracts to acquire, via a forward funding agreement, a 170,000 sq ft multi-let industrial development in Thame, Oxfordshire, for £35m. The scheme has secured detailed planning permission and is scheduled to practically complete in December 2022. A 12-month rent guarantee has been agreed with the vendor and represents a running yield of 4.6% based on the fixed total price of £35m. Comprising 14 units ranging in size from 3,000 sq ft to 50,000 sq ft, the development will be delivered to high sustainability specifications, achieving an EPC rating of A and a BREEAM Excellent certification.
- JZ Capital Partners Limited (JZCP) announces that allegations of fraudulent conduct potentially affecting JZCP’s European micro-cap investments have been made. The allegations concern two individuals who were members of the management team that manages JZCP’s investments in European micro-cap companies. A claim has been made in respect thereof in the New York State Supreme Court. The claimants are a fund in which JZCP has only an approximate 1% interest carried at approximately US$0.75m and also a fund in which JZCP has no interest. No allegations of fraudulent conduct were made against employees of the investment adviser, Jordan/Zalaznick Advisers, Inc. Whilst an investigation into the allegations is ongoing and therefore the information available to the board at this time remains limited, the company has no reason to believe that the alleged conduct will have a material adverse effect on the its investments in its European micro-cap portfolio. The board will however make further announcements as and when appropriate once further information concerning the investigation and any potential impact on the company becomes available.
We also have final results from VH Global Sustainable Energy Opportunities, India Capital Growth and JPMorgan US Smaller Companies, Greencoat Renewables has launched a placing and Rockwood Realisation‘s future is up in the air again.