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QuotedData’s morning briefing 22 September 2022

QuotedData Morning briefing

In QuotedData’s morning briefing 22 September 2022:

  • Pantheon Infrastructure’s (PINT) first set of figures, covering the period from launch to 30 June 2022, show that £98m was invested at that date, but as of today £344m or 88% of the £400m IPO proceeds have been deployed. As we know, the subscription share exercise raised a further £80.8m and a new £250m C share fundraise has been launched. A 1p interim dividend has been declared (the target is 2p in the current financial year and 4p the year after). The NAV per share at 30 June was 97.9p, down 0.14p – largely the impact of having operating expenses and lots of uninvested cash – that should change.
  • The Apax IX Fund is selling Authority Brands, a leading US franchisor of residential services such as cleaning, pool maintenance and plumbing. However, it is also the leading member of the consortium which is buying its stake. The purchase price was established by an independent third-party valuation set by British Columbia Investment Management Corporation, another [the only other?] member of the consortium. Apax Global Alpha’s (APAX) share of the proceeds is about €47m (3% above the end June valuation), but its share of the consortium’s purchase price is about €49m. [We are struggling a bit with the logic behind this, but the NAV impact is only about 1 cent.]
  • Life Science REIT (LABS) published its maiden interim results in which NAV was up 2% in the six months to June 2022 to 102.1p per share, following a like-for-like valuation uplift on its portfolio of life science properties (including labs and offices) of 7.4% to £413.4m. The company declared its first interim dividend of 1.0p per share for the period from admission to AIM (in November 2021) to 30 June 2022.
  • LXI REIT (LXI) has now exchanged contracts to acquire from Sainsbury’s, on a sale and leaseback basis, a portfolio of 18 prime grocery store assets predominantly located in Southern England (as reported yesterday). The purchase price of £500m equates to a net initial acquisition yield of 5.0%. New 15-year leases, with five yearly upward only CPI inflation-linked rent reviews (capped at 4% per annum compounded) have been signed with Sainsbury’s on low and sustainable rents (averaging £17.25 per sq ft). Completion of the acquisition is conditional upon the company raising the necessary equity funding, for which the company is currently in discussions with investors. The balance of the purchase price will be funded via a debt facility, which is anticipated to be drawn at an accretive and attractive, low all-in maximum rate of 1.5% per annum.
  • Witan (WTAN) has looked into the mini shareholder revolt where the resolution to re-elect Suzy Neubert was passed at the AGM on 5 May 2022, but 39% of the votes cast (by 8.7% of shareholders) were cast against the resolution. The board understands that the reason for the result was that some shareholders deemed Ms Neubert not to be independent due to her length of service (10 years) on the board. The board says that it “shares the widely accepted view that length of service does not of itself impair a director’s ability to act independently (any more than a recent appointment guarantees it); rather, a longer-serving director’s perspective can add value to the deliberations of a well-balanced investment trust company board. Independence stems from the willingness to make decisions that are for the benefit of the company, even if they may conflict with the interests of management; this is a function of confidence, integrity, and judgement. The board considers that Ms Neubert demonstrates such qualities, and that it is therefore justified in deeming her to be independent, along with the other non-executive directors.” Suzy will retire at the 2023 AGM, as was flagged ahead of the vote.

We also have results from UIL, Murray Income, and European Opportunities

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