In QuotedData’s morning briefing 3 March 2023:
- Pacific Horizon has released its interim results for the six months to 31 January 2023. During the period, PHI’s NAV increased by 0.3%, while the share price increased by 4.1%, compared to the comparative index which rose 4.0% (all figures in sterling total return terms). The weakest performing companies over the period were internet related. PHI says that the most significant was Delhivery in India (India’s largest private logistics company, with a core focus on e-commerce logistics). Delhivery was previously held as an unquoted company until listing in May 2022 and due to strong share price performance the company was a 5.5% holding at the start of the period. However, Delhivery’s latest quarterly results were weak. M&A integration challenges and a slowdown in broader e-commerce growth in India led the share price down 52% and took 310bp off PHI’s performance (the manager hopes that its issues are short term and continues to have faith in the company). Other detractors in the internet space came from the large internet platforms in China which appreciated in value. PHI’s underweight positions in some of the largest platforms, including Tencent and Alibaba Group, detracted around 1.1% from performance. More positively, the portfolio’s significant exposure to more cyclical sectors, which has been increased significantly over the past few years, helped offset some of the weakness. Materials were the largest positive contributor, led by several of PHI’s copper companies including Zijin Mining Group and Merdeka Copper Gold, that performed strongly on China’s reopening (the longer-term driver remains copper’s role in the green transition). Consumer discretionary was the second largest contributor, mainly due to the strong performance of PHI’s China holdings as the reopening theme took hold. Dada Nexus (e-commerce logistics) was the standout performer adding 1.1% to performance and was the single largest stock contributor. PHI’s increased exposure to China over the period resulted in China and Hong Kong being the most significant contributors to performance. This was followed by Indonesia, driven by the trust’s commodity holdings. India was the weakest market in the portfolio due to the performance of Delhivery and Dailyhunt (Social media). PHI’s shares ended the period at a 1% premium to the NAV per share, having been at a 2.7% discount six months earlier. Over the six months to 31 January 2023, PHI issued 25,000 shares from treasury and bought back in total 686,593 shares for treasury. At the end of January 2023, PHI was promoted to the FTSE 250 Index and since period end PHI has issued a further 175,000 shares from treasury at a premium to NAV.
- Life Science REIT (LABS) has refinanced its existing £35.9m asset level development debt facility, which was acquired with the company’s purchase of the Oxford Technology Park asset. The facility carried a high interest rate and had an expiry date of June 2023. The company has refinanced this facility by drawing down £26.3m from its existing £150m HSBC facilities as well as utilising existing cash resources. The HSBC facilities include a £75m fully drawn term loan capped at a maximum cost of 4.25% per annum until March 2025, and a £75m RCF facility with a cost of SONIA plus 2.25%. Following this refinancing £48.7m remains available in the revolving credit facility for future use and the company’s look forward and blended interest cost is expected to reduce by around 100 basis points (1.0%). The additional drawdown is secured against the company’s acquisitions at Herbrand Street in London, Lumen House near Oxford and the Merrifield Centre in Cambridge. Oxford Technology Park is now unsecured and available for alternative use in the company’s future debt management strategy. The pro-forma Gross Loan to Value after the refinancing, based on the last reported property portfolio valuation at 30 June 2022, is 24.5%.
We also have:
- Octopus Renewables Infrastructure’s new PPA with Iceland Foods
- Annual results from Triple Point Social Housing REIT
- Annual results from Murray International
- Annual results from Blackrock World Mining