QuotedData’s morning briefing 2 August 2023
- Alternative Income REIT (AIRE) has posted a 0.7% increase in NAV to 84.2p for the quarter to 30 June 2023, following a 0.3% rise in the value of its portfolio to £107.0m. EPRA earnings were up 8.2% to 1.7p per share, and the board declared a quarterly dividend of 1.92p, hitting its target dividend for the year of 5.7p (which was 106.3% covered by earnings over the year). In addition, the board has agreed to distribute to shareholders an extra 0.345p in respect of non-rental income that has been received in the year, following the successful settlement of a historical legal case. This brings the total annual dividend to 6.045p, an increase of 9.9% on the 5.50p annual dividend declared in the prior year.
- Two of Home REIT’s (HOME’s) tenants have entered into liquidation. Redemption Project CIC, a tenant of 152 properties in the company’s portfolio making up 11% of rent demanded in June, has entered into creditors’ voluntary liquidation, with Begbies Traynor Group appointed as liquidator. Serenity Support CIC, a tenant of 10 properties in the company’s portfolio making up 1% of rent demanded in June, has also entered into creditors’ voluntary liquidation, with Cornerstone Business Recovery appointed as liquidator. The company says that both tenants are non-performing, and the creditors’ voluntary liquidation unlocks the ability for the company to re-tenant the properties or to carry out other asset management initiatives as soon as possible.
- Palace Capital (PCA) has sold 22 Market Street, an office property in Maidenhead, to a client of Soor Capital for £9.6m. The sale price reflects a net initial yield of 7.3% and interestingly is 9.7% ahead of the 31 March 2023 book value. The company will use £3.5m of the proceeds to pay off bank debt – meaning gross debt has been lowered to £20.2m. Cash reserves are now £20.1m, resulting in a net debt position of £0.1m. The company continues to return cash to shareholders through a share buy back programme.
- Target Healthcare REIT (THRL) reported a 1.1% uplift in EPRA Net Tangible Assets (NTA) to 104.5p per share in the quarter to 30 June 2023, reflecting a 0.9% like-for-like portfolio valuation uplift to £868.7m driven by inflation-linked rent reviews. Adjusted EPRA EPS for the quarter was 1.5p per share, fully covering the dividend of 1.4p. NAV total return was 2.4% for the quarter. The group has a net loan to value of 24.7%, with a weighted average debt term of 6.2 years.
- Balanced Commercial Property Trust (BCPT) posted a 1.3% drop in NAV to 117.1p per share for the quarter to 30 June 2023. The value of the group’s portfolio fell 1.1% in the quarter to £1,088.9m, mainly driven by a 5.9% decline in the value of its office portfolio. Its largest asset, St Christopher’s Place in central London (which accounts for 16% of its asset value), was down 1.4% over the quarter.
We also have results from Invesco Select and Rights & Issue Investment Trust