In QuotedData’s morning briefing 29 March 2022
- Pershing Square (PSH) is to start paying an enhanced dividend; beginning with the second quarter dividend and for the remainder of the calendar year 2022, the company will increase its quarterly dividend by 25% to $0.125 per share. The intended policy in future years will be to pay quarterly dividends based on multiplying the average NAV of all trading days in December of the prior year by 0.25%, subject to a cap whereby the total dividends paid for the year is not to exceed 125% of the average of the total dividends paid in each of the previous three years. Once the dividend is set for a specific year, the board will not cut it from that level even in the event that NAV falls. The chairman Anne Farlow said “Pershing Square Holdings’ goal is to maximize its long-term compound annual rate of growth in Net Asset Value per share. Our new dividend policy will allow shareholders to receive quarterly distributions that will increase over time as we achieve this objective”.
- The merger of Scottish Investment Trust (SIT) and JPMorgan Global Growth and Income (JGGI) looks to be delayed. Scottish Investment Trust has completed the buy-in of the benefits under its pension scheme with a third party insurer; and it also expects the sale of its property at 6 Albyn Place, Edinburgh to be agreed in the near future having received a number of competitive bids in line with its own valuation of the property. The debt workstreams are however progressing at a slower pace than anticipated, and it is for this reason that the scheme is now expected to complete around the end of the second quarter of 2022, rather than by the end of the first quarter of 2022 as originally expected.
- Foresight Solar Fund (FSFL) has arranged a €28.0m senior debt facility for the 98.5MW Lorca portfolio in Granada, Spain. The facility will be provided by BayernLB. The interest rate is fixed at a “competitive rate”. Following this transaction, the total outstanding debt is £538.0m, approximately 45.9% of Gross Asset Value, within the 50% limit on total gearing. Project Lorca is currently under construction and is on track to be grid connected and exporting electricity by June 2022. In late 2021, the project entered into a ten-year fixed price power purchase agreement with Norway-based Statkraft, Europe’s largest producer of renewable energy. The PPA provides the portfolio with a long-term hedge for approximately 70% of its annual production.
- McKay Securities (MCKS) has received an approach from Slate Asset Management L.P. with respect to a possible offer for McKay. This follows a bid for the company by Workspace Group (WKP) earlier this month valuing it at £272m, which has been recommended by the board of McKay. Slate has until 20 April to either announce a firm intention to make an offer or announce that it does not intend to make an offer. McKay published the scheme circular in relation to the Workspace offer today, including a notice of the shareholder meetings to approve the Workspace offer on 27 April.
- Picton Property (PCTN) has increased and extended one of its long-term debt facilities that improves its debt maturity profile and reduces the overall cost of fixed rate debt. Picton has restructured an £80m facility that matured in 2027 with a fixed rate of 4.1%, and secured an extra £49m of new borrowings, increasing it to £129m. The new borrowings are fixed at a rate of 3.25% and the existing £80 million tranche has had the interest rate reduced by 20% to this same level. In addition, the maturity date of the existing loan has been extended from July 2027 to July 2031, to coincide with the new additional borrowings. The proceeds will be used to substantially repay a £31m revolving credit facility, which was recently drawn to fund property acquisitions. The remaining proceeds will be used to fund identified acquisitions and capital projects within the portfolio. Overall group borrowings have increased from £196m to £219m, resulting in a proforma LTV of 22%. Picton has £65m available for investment.
We also have news of a fundraise by Gore Street Energy, results from Schiehallion, Regional REIT and Impact Healthcare REIT and an important upcoming IPO for Fondul