In QuotedData’s morning briefing 29 September 2023:
- Syncona (SYNC) has announced that it is launching a share buyback programme of up to $40.0m. SYNC’s board believes that the current share price materially undervalues its portfolio and its prospects and that the shares represent a compelling and unique investment opportunity. SYNC currently trades on a (42.3%) discount.
- 3i Infrastructure (3IN) has provided a pre-close update for the period between 1 April 2023 to 28 September 2023. Its managers are confident that 3IN’s portfolio will continue to deliver strong earnings growth and attractive reinvestment opportunities across the majority of assets. These factors are likely once again to drive performance ahead of 3IN’s target return. The biggest driving factor will likely be the sale of Attero, which saw a 31% uplift in its valuation.
- abrdn Property Income Trust (API) reported a 1.2% NAV total return for the six months to the end of June 2023. Share price total return was -20.8% over the period, with the company’s share price discount to NAV widening to 43.1%. The board said that the level of discount was of great concern and it would “explore ways that will reduce it in the longer term”. The company’s loan to value crept up to 28.1% (still quite conservative), but the increased cost of debt weighed on earnings – 1.6p per share for the period (leaving the 2.0p dividend uncovered). The company said that it would make selective sales to pay down part of its revolving credit facility.
- Home REIT (HOME) has sold another batch of properties at auction at a huge discount to the price it paid for them. It has sold 137 properties (5.6% of the portfolio by number) for £22.845m. The properties were “in poor condition, largely vacant and requiring significant capital expenditure in order to be brought up to specification”, the company said. Of the properties exchanged for sale, 100 properties were subject to leases with tenants in liquidation which will be surrendered prior to completion. The sales price represented an average of 32% of their purchase price. Sales proceeds will be used to reduce borrowings and provide working capital as part of AEW’s strategy to stabilise the property portfolio.