Register Log-in Investor Type

News

QuotedData’s morning briefing 3 August 2022

In QuotedData’s morning briefing 3 August 2022:

  • European Assets (EAT) has posted its half-year results for the six months to 30 June 2022. During the period, its NAV fell by 31.4% while its share price fell by 31.8%. The chair said the trust has been hit by the aggressive market sell-off exacerbated by the war in Ukraine and falling sentiment. The 2022 dividend of 8.8p per share, which represents an increase of 10.0% from the 2021 dividend of 8.0p per share, is payable in four equal instalments of 2.2p. Dividends of 2.2p have been paid on 31 January, 29 April and 29 July. A further instalment of 2.2p will be paid on 31 October 2022. This year, EAT celebrates its 50th anniversary.
  • Fidelity Japan (FJV) has posted its half-year results for the six months to 30 June 2022. During the period, its NAV fell by 31.7% in sterling terms, underperforming the index, which was down 10%. FJV’s share price return was -34.9% over the same period, which reflected a widening of the discount from 4.9% to 9.4% as at 30th June. The 6% fall in the value of the yen against the pound since the end of last year weighed on the sterling-based returns of the company’s NAV, its share price and the index. The manager said this stems largely from the widening policy divergence between the Bank of Japan, which maintains an accommodative monetary stance, and the Bank of England, which is raising interest rates.
  • Mobius (MMIT) has published its results for the six months to 31 May 2022, during which time its NAV decreased by 11.7%. The team has been very mindful about macro developments and the tightening cycle and has ensured the portfolio is well positioned in this environment, with no debts and strong pricing power. The chair said the outlook for the next year remains challenging, with the greatest risk being a deep and lasting recession in the US, which would impact corporate earnings globally. A mild recession scenario is however what she thinks is more likely as it seems consumers are still spending. The biggest risk MMIT sees is in “sovereign” governance where inflation and job losses may influence the rise of populism.
  • Pantheon International (PIN) has agreed a new £500m multi-tranche, multi-currency revolving credit facility agreement, which replaces the existing £300m credit facility agreement that was due to expire in May 2024. The new facility, which is secured by certain assets of the company, is due to expire in July 2027 with an ongoing option to extend, by agreement, the maturity date by another year at a time. It has been arranged by three lenders comprising a new partner in the lending syndicate, Credit Suisse AG, London Branch, and two existing lenders, Lloyds Bank Corporate Markets and State Street Bank International. PIN will pay a blended commitment fee of 95 basis points per annum on the wholly undrawn facility. PIN expects to continue to finance its new investments and meet its unfunded commitments, amounting to £761m as at 30 June 2022 (at prevailing exchange rates), principally from cash generated from its portfolio.
  • CLS Holdings (CLS) has completed on the sale of two UK properties, Great West House, Brentford and 62 London Road, Staines and one French property, 96 Rue Nationale, Lille for a total of £39.8m. The three properties sold for an average 3.7% above the 31 December 2021 valuations.
  • Alpha Real Trust (ARTL) has acquired a 55-room hotel in Wadebridge, Cornwall, for £4.25m. The property is let to Travelodge Hotels, the UK’s largest independent hotel brand with more than 590 hotels. The hotel has an 20-year unexpired lease term. Under the lease, the tenant is responsible for building maintenance and the passing rent of £0.25m per annum has inflation linked adjustments, reflecting a yield of 6.1%.
  • Custodian REIT (CREI) has sold an industrial unit in Milton Keynes for £8.5m at a 73% premium to its 31 March 2022 valuation. Custodian REIT acquired the 44,187 sq ft warehouse and distribution unit in January 2015 for £2.1m and subsequently invested a further £0.9m to fully refurbish the property, which included re-cladding the exterior, replacing the roof, restoring the yard and renovating the interior. The property was let to Saint Gobain Building Distribution for six years before a tenant break option was exercised in June 2022. Custodian REIT has sold the unit to a special purchaser with vacant possession.
  • Alternative Income REIT (AIRE) has posted a 3.3% increase in NAV for the quarter to 30 June 2022 to 96.4p, following a 2.2% uplift in the value of its property portfolio to £117.9m. With its quarterly dividend of 1.6p, NAV total return for the period was 5.2%. Share price total return for the three months was 7.5%, however the trust still traded on a 14.8% at 30 June 2022. EPRA earnings was down slightly in the quarter to 1.48p per share, giving dividend coverage of 85%. However, over the year to 30 June 2022, the group delivered on its 5.5p dividend target, which was fully covered by earnings.

We also have a portfolio update from NextEnergy Solar.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…