In QuotedData’s morning briefing 19 May 2022:
- Interim results released today for Ecofin Global Utilities and Infrastructure (EGL) show that the trust is off to a great start in this financial year. For the six months ended 31 March 2022, it returned 14.1% in share price terms and 13.7% in NAV terms, both well-ahead of the 4.9% return on the MSCI World Index over the period. £4.9m worth of shares have been issued since 1 October 2021 and quarterly dividends are on track to pay a total of 7.4p for the full year. The manager says that every North American holding contributed positively to the NAV, led by Exelon, American Electric Power, NextEra Energy, Williams Companies and Dominion Energy. The European part of the portfolio performed significantly better than the sector index due to a material exposure to renewables developers and companies benefitting from higher power prices (Drax, RWE, Acciona Energias, Greencoat UK Wind).
- ThomasLloyd Energy Impact (TLEI) says that it expects to issue about 28m shares in exchange for its 43% stake in Solar Arise. The deal has taken longer to finalise than anticipated, the value of the deal is expected to still be around $34.6m (although it might be slightly lower), the trust is trading at a premium, and the sellers have agreed to base the consideration on the higher of: (i) $1.00 per share (the IPO price) and (ii) the average closing market price of the company’s shares on the 10 dealing days preceding the deal.
- LondonMetric Property (LMP) has exchanged on the sale of its DHL-let distribution warehouse in Reading to EQT Exeter for £60.6m. The 229,000 sq ft warehouse was acquired in 2015 with 10 years on the lease for £29.1m. Since acquisition, LondonMetric settled the 2020 open market rent review at 28% above previous passing. The sale is 20% above the 30 September 2021 book value and will crystallise an ungeared IRR of 15%. Completion of the transaction will take place in November 2022.
- Supermarket Income REIT (SUPR) has appointed Frances Davies as a non-executive director of the company with effect from 1 June 2022. Frances has over 30 years’ experience across corporate finance and asset management. Since 2007, she has been a partner at Opus Corporate Finance, and has previously held directorships at SG Warburg, Morgan Grenfell Asset Management, Gartmore and Dalton Strategic Partnership. Frances currently holds board positions for HICL Infrastructure plc, JPMorgan UK Smaller Companies plc, Aegon UK plc and Federated Hermes’ Property Unit Trust. She also sits on Aviva’s With-Profits Committee.
- Syncona (SYNC) has invested $54m of a total $56m raised by SwanBio in its series B funding round. The money will primarily be used to support SwanBio’s ongoing clinical development of its lead candidate, SBT101, used to treat a rare, inherited neurodegenerative disease affecting the spine called adrenomyeloneuropathy. Syncona now owns an 80% stake in SwanBio. There are currently no approved treatments for adrenomyeloneuropathy, which emerges in adulthood and is characterised by a loss of mobility, incontinence, pain and sexual dysfunction. In the US and Europe, between 8,000 and 10,000 men are living with this disease and their only option is managing its progressive and debilitating symptoms. SwanBio’s gene therapy is looking to target the underlying cause – mutations of the ABCD1 gene – which lead to disrupted function of spinal cord cells and other tissues.
- ICG Longbow (LBOW) will hand back 6p per share (£7.3m) by way of an issue of redeemable B shares to existing shareholders. This will bring total returns of capital to 32p per share and the remaining NAV should be about 66.35p.
In addition, AVI has submitted proposals to SK Kaken, HICL has made an acquisition, and we have results from Scottish Mortgage and Great Portland Estates.