In QuotedData’s morning briefing 28 September 2022:
- AVI Japan Opportunity (AJOT) has published its interim results for the six months ended 30 June 2022. During the period, AJOT provided NAV and share price total returns of -9.74% and -12.81% respectively, both underperforming the trust’s benchmark, the MSCI Japan Small Cap Total Return Index, which returned -8.22% (all figures in sterling terms). AJOT’s chairman, Norman Crighton, says that “During a difficult six months in global markets, [AJOT] performed significantly better than many would have expected, considering the economic and political turmoil around the world”. DTS, the IT system developer, was the largest contributor to returns with a 21% share price increase adding 109bps to performance. This compared favourably to DTS’ peers with an average share price fall of 3.5%. Fujitec, the elevator and escalator company, was the second-largest contributor over the quarter, adding 106 bps to performance as its share price increased 21%. The share price rise was driven by an increase in Fujitec’s EV/EBIT multiple from 8.6x to 13.0x. NC Holdings added 51bps to returns with a 21% share price increase. NC Holdings owns a disparate collection of businesses across conveyor belts, multistorey car parks and renewable energy. It is a relatively new position in the portfolio (AJOT first invested in June 2021) and the manager added to the position over the period, increasing its weight from 2.7% to 5.3%. Pasona was the largest detractor over the period, reducing returns by 299 bps, as its share price fell by 43%. Pasona is a staffing company providing dispatch workers and outsourced processing services throughout Japan. Driven by a decline in the share price of listed price comparison website Kakaku.com (-27%) coupled with a widening of the discount from 31% to 37%, Digital Garage was the second largest detractor, reducing returns by 170 bps. Teikoku Sen-I, the leading manufacturer and distributor of disaster prevention equipment in Japan (from fire hoses to airport firefighting trucks), detracted 111 bps from performance as its share price fell by 29%.
- Octopus Renewables Infrastructure Trust (ORIT) has published its interim results for the six months ended 30 June 2022. It has provided the following financial highlights of the results:
-
Growth in net assets of 8.6% (2021: 9.6%).
-
Total shareholder return and NAV total return in the period from IPO in December 2019 of 17.5% (2021: 17.7%) and 24.8% (2021: 12.1%) respectively.
-
Total shareholder return and NAV total return in the six months ended 30 June 2022 of -0.2% (6 months to June 2021: -6.1%) and 11.3% (6 months to June 2021: +1.4%), respectively.
-
Increased target dividend to 5.24p for FY 2022, representing an increase of 4.8% over FY 2021 and is in line with the increase to CPIH. Dividend expected to be fully covered.
-
During the period, a valuation increase of £4.2 million resulted from the progression of the construction assets.
-
- Edinburgh Investment Trust (EDIN) has announced that its £100m 7.75% debenture that is due to be repaid on 30 September 2022 will be fully redeemed at par together with any interest accrued. As such, the Debenture Stock ISIN will be disabled for settlement in CREST at 5pm on 29 September 2022 and all redeemed Debenture Stock will be cancelled along with its listing on the Official List of the UK Listing Authority. As previously announced by EDIN, £100m of refinancing has been arranged to replace the maturing debenture. This will entered on EDIN’s balance sheet on Thursday 29 September 2022. EDIN says that investors should note that the weighted average interest rate (which was negotiated in September 2021) on this new debt of 2.42% is significantly lower than the cost were the same borrowings to be arranged today. Consequently, this will have an impact on the fair value of this debt when it goes on to EDIN’s balance sheet. The lower fair value of the debt is, all other things being equal, likely to result in an uplift in the daily fair value Net Asset Value for 29 September 2022 and thereafter. As an example, had the debt been drawn and included in the NAV as at close of business on 26 September 2022, the NAV (debt at fair; cum-income) would have been circa 26p (or 4.3%) higher.
- Life Settlement Assets (LSAA) has published its interim results for the six months ended 30 June 2022. LSAA has provided the following highlights from its results:
-
Total maturities during the period were USD $16.3 million (H1 2021 USD $25.8 million)
-
Estimated AE ratio (“actual to expected ratio”) of HIV segment of 54%, and of non-HIV segment of 168%, aggregating to 127%
-
The Company’s Net Asset Value (“NAV”) as at 30 June 2022 was $USD 2.20 per share
-
Acquisition of small portfolios of 20 fractional policies with a face value of USD $1.6 million
-
Cost reductions continuing to be a strategic priority including making agreed changes to the Investment Manager’s remuneration
-
Ongoing litigation progressing satisfactorily albeit slower than hoped. Resolution expected during the first half of 2023.
-
- CT UK High Income Trust (CHI) has announced that it has entered into a three-year unsecured revolving credit facility (RCF) with The Royal Bank of Scotland International Limited for £15m. This replaces CHI’s existing £7.5m RCF with Scotiabank (Ireland) Designated Activity Company (which is currently undrawn) and its £7.5m unsecured term loan with Scotiabank Europe plc, both of which mature on 28 September 2022. £7.5 million will be drawn down on 28 September 2022 and used to repay the unsecured term loan with Scotiabank Europe plc.
- abrdn European Logistics Income (ASLI) has reported a NAV total return for the six months to 30 June 2022 of 3.6%. NAV increased by 1.4% to 130.9 cents (31 December 2021: 129.1 cents), while it paid dividends of 2.82 cents in the period. IFRS earnings per share was 4.82 cents (30 June 2021: 6.37 cents), impacted by an equity issuance. The group’s loan to value (LTV) was 21.7% at 30 June 2022, with an all in cost of debt of 1.66% and an average term to maturity of 4 years. A €40m, three-year debt facility agreed with ING Bank post period end, which is secured against Phases I to III of its Spanish Madrid portfolio and at an all-in interest rate of 2.57%, brings its LTV to 25.7%. Portfolio value increased 2.2% to €680.4m (31 December 2021: €660.8m), while annualised passing rent increased by 26% to €28.3m. During the period the company acquired two properties, in Bordeaux and Niort France, totalling €23m and is close to completing a third French acquisition. The portfolio’s weighted average unexpired lease term (WAULT) was 8.0 years (31 December 2021: 8.0 years).
We also have an update from Ceiba Investments