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QuotedData’s morning briefing 24 November 2022

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In QuotedData’s morning briefing 24 November 2022:

  • Foresight Solar Fund (FSFL) says that the net impact of the new electricity generator levy on its NAV is to reduce it by 0.8p. As other funds did, it applied discounts to the blended power forecasts as at 30 September 2022. To reflect the uncertainty surrounding the likely form of Government intervention in the UK energy markets, these discounts reduced the forecasts for Foresight Solar’s financial years up to FY27. Reversing those discounts adds 7.8p to the NAV, but applying the effect of the levy reduces the September NAV by 8.6p.
  • Polar Capital Global Financials (PCFT) has added two new directors to its board, Susie Arnott and Angela Henderson. Susie started her career in fund management over 20 years ago. She was primarily focused on the financial sector; including periods focused on emerging markets investments and global financials portfolios. Susie also spent a number of years working in ‘Impact Investing’, combining her experience and passion for social investment and impact measurement. In her current role, she continues to focus on investment with a global impact incorporating ESG as a mainstream consideration. This will be Susie’s first non-executive director role. Angela qualified as a solicitor and initially focused her career on corporate law before moving into financial services where she spent time as an in-house lawyer and a director of global equities. She is currently a non-exec and chair of risk for Macquarie Capital (Europe) Limited, non-exec and chair of the Management and Service Provider Engagement Committee of Hargreave Hale AIM VCT plc and has various other private interests.
  • ICG Enterprise Trust (ICGT) is investing in AmeriLife, alongside other funds advised by the same manager. The trust’s share of the purchase price is about $11.2m. AmeriLife is described as a national leader in developing, marketing, distributing and administering life and health insurance products, annuities, and retirement planning solutions to senior citizens in the US. It services a national distribution network of over 300,000 insurance agents and advisors.
  • LXI REIT (LXI) has reported its first half-year results since its merger with Secure Income REIT, showing a half-year EPRA net tangible assets (NTA) decline of 2.0% to 139.7p per share. This was primarily driven by yield expansion of 40 basis points across its portfolio in response to wider economic conditions (resulting in a 1.4% like-for-like fall in the value of its portfolio to £3,656.6m) and the costs associated with the merger. NAV total return (including dividends of 3.15p) in the period was 0.1%. EPRA earnings per share was 3.6p (up from 2.8p). The company says that “implicit growth in the group’s income stream [through index linked leases] over the five years from October 2022, based on the RPI and CPI forward curves, means that on today’s values the portfolio would be yielding 5.6% in September 2027, or that the blended net initial yield of our properties could expand a further 70 basis points (all other things being equal) before having any impact on the value.” The company’s loan to value (LTV) is 33%.
  • NewRiver REIT (NRR) posted a fall in EPRA NTA per share of 1.5% to 132p in the six months to 30 September 2022 due to a 1.3% portfolio valuation decline. Underlying funds from operations (UFFO) was 4.4p per share, while dividends for the period was 3.5p. The group’s LTV is 33.8%, and its debt has a 5.2 year average maturity and a weighted average cost of debt of 3.5%. The company says that “we view our unsecured balance sheet with no refinancing and no exposure to rising interest rates until March 2028, as well as the gap we have between our portfolio net initial yield of 7.9% and cost of borrowing of 3.5%, as key strengths” and adds that the significant headroom between the portfolio’s yield and the10-year Government Gilt rate (as well as the large valuation decline already suffered in the retail sector over the past three years) should make it less impacted by increasing government borrowing rates.
  • Great Portland Estates (GPE) has secured the letting of a retail space at its 70/88 Oxford Street development to fashion retailer, Reserved. Reserved will occupy 19,645 sq ft over the ground and first floors and is set to open later in 2023. Alongside Boom: Battle Bar, this deal takes GPE’s retail lettings at the site to 96% let or under offer. There is just one remaining ground floor retail unit of 2,300 sq ft available at the scheme.

We also have news of a short seller attack on Home REIT, an update from International Public Partnerships and a new NAV from Downing Renewables and Infrastructure

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