In QuotedData’s morning briefing 23 August 2022:
- Axiom European Financial Debt (AXI) has published its interim results for the six months ended 30 June 2022. During the period, AXI provided NAV and share price total returns of -7.27% and -6.28% respectively. Its chairman, William Scott, says that “the Company’s returns in the first half of the year were in line with what one would expect at this point in the interest cycle, that is when interest rates begin to rise. We believe that a total NAV return per share of -7.27% was a creditable performance that was much in line with sector averages”. The portfolio’s running yield was at a record high of 9.49% at the period end and, having declared two quarterly dividends at 1.5p per share during the first half, AXI expects to be able to continue to pay the quarterly dividend at 1.5p per share. AXI says that rising interest rates and a well-capitalised sector mean the asset class remains attractive. The board has recently announced that it has been reviewing options for the funds’ future in light of its persistent discount and the limited liquidity in its shares (click here to see our coverage of this). It says that it is working on proposals to offer shareholders the choice between a cash exit at NAV (less costs, including any portfolio realisation expenses) for some or all of their shareholding or to continue some or all of their investment in an open-ended vehicle managed by Axiom Alternative Investment SARL. The strategy of the proposed open-ended vehicle would be similar to the current strategy employed by AXI. The board is aiming for the proposals to be put to shareholders early in 2023.
- Life Science REIT (LABS) has completed a second drawdown from its existing £150m debt facility with HSBC totalling £37.2m. The drawdown is secured against three of the company’s assets (Herbrand Street in London, Lumen House near Oxford and the Merrifield Centre in Cambridge). The current debt facility was initially announced on 30 March 2022 and comprises a £75m three-year term loan and a £75m revolving credit facility. The company has secured additional protection against potential future interest rate rises through capping the SONIA rate at 2.0% until 31 March 2025 on the full amount of the term loan. In total, £48.7m remains available in the revolving credit facility. The proceeds from the drawdown will be used to progress the development and repositioning of assets within the existing portfolio as flagship life science properties. The anticipated works include the fitout of laboratory space at Cambourne Business Park near Cambridge and at Rolling Stock Yard in London’s Knowledge Quarter.