In QuotedData’s morning briefing 9 November 2022:
- Picton Property Income (PCTN) has published its interim results for the six months ended 30 September 2020 in which its NAV fell 2.3% to 117p per share. This was mainly driven by a like-for-like portfolio valuation decrease of 1.9% to £852m. EPRA earnings were stable at £10.7m, or 2.0p per share, comfortably covering dividends paid of 1.75p. The group’s debt of £225.2m, which equates to a loan to value ratio of 24%, is 95% fixed with a weighted average interest rate of 3.7% and a weighted average debt maturity of 8.9 years. Chairman Lena Wilson, says “This has undoubtedly been a difficult period for the whole real estate sector. Our total return was -1.7%, with capital valuation movements driving a loss over the period of £10.4 million. Our total shareholder return over the period was -11.4% reflecting a weakening share price and in common with the sector, a widening discount to net asset value as instability in the financial markets increased. At a portfolio level we again outperformed the MSCI UK Quarterly Property Index over the six-month period. This continues our long-term track record of outperformance over one, three, five and 10 years and since inception. Whilst occupational activity within the portfolio was broadly positive, the impact of rising yields was the main driver of performance. Our lettings, rent reviews and lease renewals were on average 5% ahead of March 2022 estimated rental values, which underlines the continuing strength in the occupational markets. The portfolio valuation, which increased over the first three months of the period, saw a decline in the second quarter to September. Whilst movements have affected all sectors, very low yielding assets or assets with limited rental growth potential have seen a more pronounced write down. Liquidity in the direct property market has reduced, particularly from mid-September, leading to greater volatility in pricing. Occupancy reduced slightly over the period but was driven in part by the acquisition of assets with vacancy and positive rental value growth on void space as this was upgraded. We acquired two mixed-use assets over the period, where we believe there is medium-term upside potential through income growth and repositioning.”
- Civitas Social Housing (CSH) has posted a 2.6% uplift in NAV to 114.84p per share for the quarter to 30 September 2022, bucking the trend of falling valuations in the REIT sector. The group says that the NAV increase reflects the growth in rental income as a result of inflation indexation. It has declared a second quarterly dividend of 1.425p, which was in line with its increased full year target of at least 5.70p (2022: 5.55p). The group said it was making progress on hedging its loan book against interest rate increases and would update on this in interim results due in early December. In the quarter, the company continued its share buyback programme to address its discount to NAV by purchasing an additional 4,350,000 shares into treasury at an average price of 72.65p. Collectively, the share repurchases during the quarter enhanced the NAV per share by 0.28p.
- Custodian REIT (CREI) says its NAV fell 6.9% in the quarter to 30 September 2022 to 113.7p per share due to valuation declines of 5.4% on a like-for-like basis in its portfolio. NAV total return for the quarter was -5.8% when its dividend of 1.375p is taken into account. EPRA earnings per share was maintained at 1.4p for the quarter. The company signed five new leases at an aggregate 9% ahead of ERV adding £0.4m of annual rent and completed two rent reviews at an aggregate 22% rental increase. Following these lettings, EPRA occupancy increased to 89.3% (30 June 2022: 88.7%), with 54% of the vacancy being subject to refurbishment or redevelopment and a further 25% under offer for sale or lease. Since 30 September 2022, the company has signed five new leases, adding £0.6m of annual rental income. Loan to value at the end of the quarter was 25.4%, with a weighted cost of debt of 3.5% and weighted average term of 6.3 years. 79% of the £178m drawn debt was fixed. Since the period end, the LTV has reduced to 24.3% (from disposals) and the portion of debt that is fixed has increased to 84%.
- Princess Private Equity (PEY/PEYS) is providing investors with an update on 22 November 2022. The webinar will cover its most recent results (for Q3 2022) and will provide further background regarding the suspension of the second interim dividend for 2022. Details of how to register and access the webinar are available in the events section of our website – click here to view this event. The dividend suspension was also a topic of discussion in our weekly show on Friday 4 November – click here to see the playback.
- BlackRock Throgmorton (THRG) has issued a brief statement regarding Share Buybacks. It reads as follows:
“The Company does not have an absolute target discount level at which it will buy back shares but it has historically bought back some of its outstanding share capital when deemed appropriate. This is explained more thoroughly within the Annual Report and Financial Statements (https://www.blackrock.com/uk/literature/annual-report/blackrock-throgmorton-trust-plc-annual-report.pdf) and is not a change to our existing discount management policy. For example, during the period 29 April 2022 to 31 October 2022, the Company repurchased a total of 2,051,000 Ordinary shares at an average discount to prevailing cum income NAV of 8.55%.
“This does not preclude a more active approach; the Company may therefore consider a single purchase, or series of purchases, of its shares in larger volumes to enhance the NAV per share given the positive long-term prospects for the Company’s portfolio.”
We also have Pantheon Infrastructure’s investment in National Broadband Ireland.