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QuotedData’s morning briefing 10 May 2023

230117 morning

In QuotedData’s morning briefing 10 May 2023:

  • UK Commercial Property REIT (UKCM) posted a 1.1% uplift in NAV to 80.6p for the quarter to 31 March 2023. With dividends of 0.85p, the group’s NAV total return for the quarter was 2.2%. Valuations within its portfolio grew slightly by 0.9% to £1.32bn, further evidence of value stabilisation in the real estate sector following a dramatic fall in the second half of 2022. The group’s industrial and logistics assets (which make up 59.7% of the portfolio by value) was up 2.1%, while retail assets (13.9%) were also up by 1.9%. Offices, however, were down in value by 2.4%. EPRA earnings per share were steady at 0.81p (31 December 2022: 0.82p) for the quarter, giving a dividend cover of 95%. The company has a relatively low and prudent gearing at 20.0% group loan to value and a current blended interest cost of 3.93% per annum, of which 68% is at a fixed rate.
  • Harworth Group (HWG) has sold Towngate Business Park, Widnes and Four Oaks Business Park in Walton Summit, Preston, for a combined £35.8m, reflecting a blended net initial yield of 4.7%, and at prices in line with December 2022 valuations. Towngate Business Park was sold for £11.2m, and the disposals at Four Oaks Business Park comprised a multi-let unit sold for £12.3m and a single unit sold for £12.3m. Following these transactions, Harworth has now sold £48.4m of assets so far this year, at prices in line with December 2022 valuations. They form part of the group’s strategic objective of transitioning its investment portfolio to 100% modern Grade A by 2027, by largely retaining the assets that it develops while disposing of those where value has been maximised through the completion of asset management initiatives. The sale proceeds will be used to increase its direct development of industrial & logistics space.
  • Custodian Property Income REIT (CREI) reported a slight fall in its NAV to 99.3p per share in the quarter to 31 March 2023 (Dec 22: 99.8p). With dividends of 1.375p for the quarter, NAV total return was 0.9%. The group’s portfolio valuation fell by 0.7% in the quarter to £613.6m. EPRA earnings per share of 1.4p for the quarter. Estimated rental value (ERV) in the portfolio has increased 1.4% since 31 December 2022 and now exceeds passing rent by 16%. EPRA occupancy improved to 90.3% (2from  89.9%) primarily due to letting a vacant leisure unit in Milton Keynes on a 25 year lease at an annual rent of £320,000 during the quarter, which had been vacant since 2019. Net gearing remains low at 27.4% loan-to-value as of 31 March 2023 (31 December 2022: 27.1%), with an aggregate weighted average cost of 3.8%, of which 81% is at a fixed rate of interest.
  • The Unbound Group (UBG) (formerly Electra Private Equity) provided a trading update for Q1 2023.  The company reported that the trading environment has remained challenging over Q1 with conditions deteriorating more than expected. This has resulted in revenues being lower than the board previously anticipated. The company has been able to offset this with a successful implementation of its cost-cutting programme, and as such, anticipates that profitability for Q1 is expected to be broadly in line with its previous expectations. Management also announced that they have withdrawn a proposal from Marwyn Investment Management to provide a £10 million investment via an equity placing.
  • Vietnam Enterprise Investments Limited (VEIL) provided an update for Q1 2023. VEIL’s NAV increased 5.5% over the previous quarter against a rise of 6.7% for its reference index, the Vietnam Index, both in total return US dollar terms. The company’s NAV per share was US$8.28 as of 31 March and its total NAV was US$1.7bn. In USD terms, the company’s share price increased 1.4% for the quarter and -28.4% over one year. VEIL’s one year NAV per share performance in US dollar terms is -32.5% compared to -29.4% for the benchmark index.

We also have an annual report from 3i Infrastructure. and an update from Oakley Capital Investments

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