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QuotedData morning briefing 27 March 2023

230124 morning

In QuotedData’s morning briefing for 27 March 2023:

  • The Renewables Infrastructure Group (TRIG)  has entered into a corporate Power Purchase Agreement with BT Group for Blary Hill onshore wind farm. Pricing has been agreed for the duration of the 10-year PPA on pay-as-produced terms. Located in Scotland, the windfarm has a 35MW capacity, consists of 14 Nordex 2.5MW turbines and was fully funded from re-investment proceeds.
  • Target Healthcare REIT (THRL) posted an 8.3% drop in EPRA net tangible assets to 103.0 pence in the six months to 31 December 2022. Portfolio market value decreased by 4.8% to £867.7m (June 2022: £911.6m), reflecting the outward shift in yields. EPRA Earnings per share was 3.89 pence (2021: 3.08 pence). The company has re-based its annual dividend to 5.60 pence per share (from 6.76 pence) due to the impact of higher interest rates on its income. Weighted average cost of drawn debt was 3.8% (June 2022: 3.3%), with interest rate hedged on 96% of drawn debt. The average term to maturity is 6.7 years. Net LTV increased to 25.1% (June 2022: 22.0%). Separately, Target Healthcare completed the £22m disposal of four care homes in Northern Ireland on 24 March 2023. The disposal price was ahead of carrying value at both 30 June 2022 (the group’s last financial year-end) and 31 December 2022, and results in an annualised IRR in excess of 10% over the period of ownership.
  • AEW UK REIT (AEWU) has completed the purchase of a retail warehousing unit in Bamber Bridge, Preston for £6.45m, reflecting a net initial yield of 9.5%. The 58,696 sq ft unit is single-let to Matalan Retail Limited and has another 9.2 years left on the lease. The company said the store was a top 10 performer for Matalan, and was its first ever store in the UK. The lease benefits from a 2027 rent review to the higher of open market value, or 2.5% per annum compounded, resulting in a minimum reversionary yield of 10.7%. The site totals 4.39 acres, providing a low site cover of 30%. The company added that there was the potential to repurpose the unit for trade counter or industrial use, and to extend the accommodation, subject to planning, if required in future.
  • Atrato Onsite Energy (ROOF) has invested £29m in a ready to build 28MW ground-mounted solar project in Wellingborough, Northamptonshire, and a 1MW new rooftop solar project in Preston, Lancashire. The Wellingborough project was acquired from Heliofidem UK Ltd, with energisation expected in Q4 2023. Heads of terms and an exclusivity agreement have been signed with a large multinational food and beverage company for the sale and purchase of electricity generation from this project. The Preston project has a 16-year PPA with Huntapac Produce Limited, one of the largest vegetable producers in the UK. Energisation is expected in Q4 2023.
  • Rights and Issues (RIII) has withdrawn the proposed sub-division of its existing ordinary shares of 25 pence each into 10 new ordinary shares of 2.5 pence each. [This was supposed to take effect on 23 March 2023. We cannot fathom why it isn’t happening. At the current share price, regular savings and dividend reinvestments are difficult/impossible for many investors.]

We also have annual results from Life Science REIT and US Solar Fund

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