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QuotedData’s morning briefing 1 November 2022

In QuotedData’s morning briefing 1 November 2022:

  • 3i Infrastructure (3IN) has completed its €394m investment in ground support equipment rental company TCR, buying the stake owned by funds managed by DWS. 3i Infrastructure now has about a 96% stake in the business, the balance is held by TCR’s management.
  • Momentum Multi-Asset Value (MAVT) has renewed its £10m revolving credit facility with The Royal Bank of Scotland International Limited, London Branch for a further two years. The facility bears interest at 1.35% over SONIA.
  • UIL Finance Limited says its 2022 ZDP shares have been redeemed on 31 October 2022. The capital repayment amount for the 2022 ZDP Shares is 146.99p per share.
  • Independent’s (IIT) shareholders have approved the scheme in connection with its merger with Monks.
  • Dunedin Enterprise (DNE) will return £41m to shareholders via a tender offer for 7,632,536 shares (58.1% of the company) at 537.174p.
  • LondonMetric Property (LMP) has sold two assets for £28.2m at a blended net initial yield (NIY) of 4.6%. It has disposed of a 61,000 sq ft retail park in Tonbridge, for £22.0m, reflecting a NIY of 5.25% and a 30,000 sq ft urban warehouse in Digbeth, Birmingham, for £6.2m. The sales price was 1% below the group’s 31 March 2022 book value and crystallise an ungeared IRR of 14%. Proceeds will be used in the short term to pay down some of the company’s revolving credit facility.
  • In a trading update, Home REIT (HOME) says that it has carried out 711 index linked rent reviews since 31 August 2021 with an average annualised rental growth rate of 3.5% on the rents reviewed, taking total annual rent to £53.9m as of 31 August 2022. It also says that despite the wider economic backdrop, the company’s independent valuer has confirmed that it has not observed any transactional activity that would imply a material change in the investment yields used to value the company’s assets as at 31 August 2022. The group’s debt comprises two fully drawn secured term loan facilities of £120m and £130m, maturing in 2032 and 2036 respectively, 100% fixed to maturity with a weighted average all in cost of 2.3%. One of the group’s tenants, Circle Housing – which represents less than 3% of the annual rent, was placed into voluntary administration in July 2022. Rent continues to be paid by the administrator whilst HOME reassigns the leases to an existing portfolio tenant. Annual results for the year ended 31 August 2022 will be released on 28 November 2022.
  • Both Shaftesbury (SHB) and Capital & Counties (CAPC), which are in the process of merging and awaiting CMA approval, announced trading updates. The first summer of trading unaffected by Covid restrictions since 2019, resulted in strong domestic footfall and a rebound in international visitor numbers. SHB says its occupiers are reporting trading revenues, on average, above 2019 levels and occupancy across its portfolio has returned to pre-Covid levels. Its portfolio valuation at 30 September 2022 shows a like-for-like decrease of 3.6% since 31 March 2022 due to an outward shift in valuation yields, due to the impact on investment market sentiment of globally-rising finance rates and the deterioration in the macroeconomic outlook. Covent Garden landlord CAPC reports a decline in portfolio valuation of 2.0% in the three months to 30 September 2022 driven by a 12 basis point outward movement in the equivalent yield to 3.94% and offset by a 1.5% increase in the portfolio estimated rental value (ERV). A total of 35 new leases and renewals were signed at 6.2% ahead of 30 June 2022 ERV.
  • Alternative Income REIT (AIRE) has reported a slight increase in NAV over the quarter to 30 September 2022 of 0.6% to 96.97p per share. With dividends, this amounted to a 2.3% NAV total return for the period. The group’s long-dated inflation-linked rental income saw valuations hold up against the economic backdrop affecting the property sector. The company says “valuers have and are expected to continue to have confidence in future rental growth from those properties with rent reviews later in 2022 and 2023, and so they have held or improved values for certain of the portfolio’s properties this quarter”. However, some of the group’s industrial and retail warehouse property valuations have seen valuations fall by between 3% and 5% over the quarter.
  • Greencoat Renewables (GRP) says that it generated 25% less than it had budgested for over Q3 2022 as wind speeds were lower than expected.
  • EJF Investments says that redemption proceeds will be paid to holders of its zero dividend preference shares on 30 November 2022. Applications have been made to the London Stock Exchangefor a halt in trading in the 2022 ZDP Shares on the LSE with effect from 8:00am on Monday 28 November 2022 and for the 2022 ZDP Shares to be cancelled from trading on the Specialist Fund Segment of the LSE with effect from 8.00am on Thursday 1 December 2022.

We also have news of a planned wind up of Starwood European Real Estate Finance, plus results from Asia Dragon, CQS Natural Resources Growth and Income and International Biotechnology. In addition, Atrato Onsite Energy has published an update, slashing its NAV.

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