In QuotedData’s morning briefing 30 March 2023:
- RTW Venture Fund (RTW) was part of a consortium of funds managed by the same manager that participated in a $125m funding for Milestone Pharmaceuticals. Milestone is a publicly traded biopharmaceutical company, which is shepherding etripamil, its lead investigational product, through Phase 3 clinical trials for paroxysmal supraventricular tachycardia (PSVT). Etripamil is a novel calcium channel blocker designed as a self-administered nasal spray for a rapid response therapy in episodic cardiovascular conditions, which may allow patients with PSVT to treat themselves at home rather than make a trip to A&E.
- International Public Partnerships (INPP) has announced that it is targeting full-year dividends of 7.93p and 8.13p for 2023 and 2024, respectively. That represents annual increases of about 2.5% per annum this year and next [which seems somewhat unambitious given the prevailing inflation rate].
- UIL Limited (UTL) has sold its stakes in AssetCo and BNK Banking Corporation to Somers (the financial services investment platform that UIL owns a substantial stake in). The net proceeds of £5.8m will used to pay down its facility with the Bank of Nova Scotia, London Branch which reduces to £37.5m from £50.0m on 30 March 2023.
- Highbridge Tactical Credit Fund (HTCF) will return £2,712,911.99 (equivalent to £2.6368 per share) on 17 April 2023 by way of a compulsory partial redemption. This will shrink investors’ shareholdings by about 95%. We discussed what might happen to the rump on 16 March.
- BlackRock Latin (BRLA) says that over the year ended 31 December 2022, its NAV rose by 6.6% over the year in US dollar terms (lagging its benchmark by 2.3 percentage points). The share price rose by 4.7% in dollars (but 18.0% in sterling). The underperformance against the benchmark was largely driven by stock selection in Brazil where the portfolio was biased to growth stocks. Higher interest rates in Brazil were unhelpful, triggering selling by domestic investors “forcing prices down in a somewhat indiscriminate manner“.
- Regional REIT’s (RGL’s) manager, London and Scottish Property Investment Management, is in late-stage discussions to be acquired by a large multi-national asset manager. The board says that it believes that should the transaction complete there will be no disruption to the services provided to Regional REIT. It adds that it believes the transaction will enhance the overall strength and capabilities of the asset manager to the benefit of the company’s long-term strategy and that the asset manager’s staff will remain unchanged, including chief executive Stephen Inglis.
- Supermarket Income REIT (SUPR) posted a 20% drop in NAV to 92p in the six months to 31 December 2022, due to the impact of higher interest rates on values. Its portfolio of supermarkets fell in value by 13.3% on a like-for-like basis, and is now worth £1.63bn. The portfolio net initial yield moved out 90 basis points (0.9%) to 5.5%. The chairman said “While property valuations have decreased as a function of broader interest rate policy changes, our balance sheet remains strong. We have sold assets, shortly after the period end, worth about 40% of our market capitalisation which brings net proceeds of at least £430m over the course of the next few months. The board commits to utilise these funds in the most accretive way for shareholders.” [Based on the new NAV, the shares are on just a 6.1% discount, buybacks may not be on the agenda.]
We also have a lot of annual results announcements today including: BBGI, International Public Partnerships, India Capital Growth and Pershing Square, plus a new manager for The Investment Company, and acquisitions by Warehouse REIT and Foresight Sustainable Forestry. There is also a statement from AVI, manager of AVI Global and AVI Japan Opportunity, on changes needed to takeover practices in Japan