In QuotedData’s morning briefing 8 November 2022:
- Triple Point Energy Transition (TENT) has made its first energy efficient lighting investment. TENT has provided funding of £1m to a lighting solutions provider, which has installed efficient lighting and controls at a large retail logistics specialist. TENT will receive a contractual income from the logistics specialist over a five year period. The logistics company is part of a broader group with an investment grade credit rating.
- NB Distressed Debt will make an $18.9m (23.55 cents per share) capital distribution to its Extended Life (NBDX) share class and a £6.8m distribution (16.58p) to the Global (NBDG) class. About 25.36% of the NBDX issued share capital and 24.55% of NBDG will be redeemed and payment should be around 2 December.
- 3i Infrastructure (3IN) has announced six-monthly results to end September 2022 which are notable for a significant increase in its NAV – up to 325.8p from 303.3p at end March 2022 – and this statement about discount rates “The weighted average discount rate increased to 11.3% (from 10.9% in March 2022) primarily due to the evolution of the portfolio mix following the realisation of the European projects portfolio and the completion of the GCX acquisition. Given the significant risk premium included in our long-term discount rates and the continued appetite for high-quality infrastructure businesses, rising risk-free rates did not impact the discount rates used to value our portfolio companies at 30 September 2022.”
- Warehouse REIT (WHR) posted an 11.8% drop in EPRA net tangible assets (NTA) to 153.3p per share in the six months to 30 September 2022. This was primarily driven by a 6.9% like-for-like decline (excluding acquisitions and disposals) in the value of its portfolio to £1,006.1m (March 2022: £1,012.0m). EPRA earnings per share was down 16.1% to 2.6p – mainly due to increase interest rate costs that were £2.3m higher than the corresponding period last year. Dividends totalling 3.2p per share was paid or declared in the period, in line with the full-year target of at least 6.4p per share. It said dividends will be covered by cash inflows from earnings and from realised gains on the disposal of assets The group has £336.0m of debt and cash balances of £11.2m, resulting in a loan to value (LTV) ratio of 32.3% (March 2022: 25.1%), with the increase reflecting debt funded asset acquisitions in the period and a decrease in portfolio valuation. In the period the company secured two interest rate caps of £100.0m each for three and five years respectively, capping the SONIA rate in the debt facilities at 1.5% and together with two existing caps of £30.0m each, results in 75.0% of debt being hedged against interest rate volatility. Weighted average cost of debt was 3.6%, with no refinancing event until 2025 and an option to extend this until 2027. The group said its short-term strategy was to reduce gearing through the disposal of non-income earning, non-core properties.
- Custodian REIT (CREI) has sold an industrial unit in Kilmarnock at auction for £1.4m at a 12% premium to its 30 June 2022 valuation. The company said that the environmental credentials of the 18,424 sq ft warehouse and distribution unit no longer fit with its ESG objectives and it was not considered practical to mitigate these risks. Having recently increased the lease term by 10 years it was considered the right time to crystallise a valuation uplift.
- CLS Holdings (CLI) has signed three new office leases in Germany, amounting to 3,566 sqm (38,384 sq ft). At “Flexion”, Kaiserin-Augusta-Allee 112-113, located in Berlin-Mitte, CLS has secured two new major corporate tenants. Hologic Deutschland GmbH, a leading US medical equipment manufacturer, has signed a seven-year lease for 1,016 sqm (10,936 sq ft) and Tower Productions, a German television producer, has signed a five-year lease for 1,797 sqm (19,343 sq ft) of space. CLS purchased the 8,712 sqm (93,775 sq ft) property in Berlin-Mitte in early 2021 with around 30% occupancy. Now it is around 80% let. The third lease is for 753 sqm (8,105 sq ft) on a five-year term with property manager Ecowo at Office Connect, Wilhelm-Jacob-von-der-Wettern-Strasse 27, Cologne. The multi-let property is located in the Cologne Airport Business Park and has a total of 13,000 sqm (139,931 sq ft) of lettable space spread over 11 floors. The property is now 96% let. On a combined basis, the three leases were completed at 4.9% above estimated rental value (ERV).
We also have results from AVI Global and a planned fundraise by ThomasLloyd Energy Impact