QuotedData’s morning briefing 15 November 2023 – GCP, FP, INOV, WHR

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QuotedData’s morning briefing 15 November 2023:

  • GCP Infrastructure Investments (GCP) has released a quarterly update to 30 September 2023. NAV total return over the period was 1.4% while shares fell 11.6%, widening the fund’s discount which now sits at 36%. During the quarter, the company completed a refinancing of two existing loan notes secured against two waste-wood biomass projects, valued at c. £85 million as at 31 March 2023 and committed to a new £50 million loan note as part of a syndicated facility supporting the same, and one additional, biomass project.
  • Fondul Proprietatea (FP) provided an update for Q3 with the company’s NAV decreasing by 73.3% compared to the end of the second quarter, mainly as a result of the disposal of the fund’s entire holding in Hidroelectrica SA, followed by the distribution of the related proceeds totalling RON 9.2bn, as dividends. There were no significant valuation updates in Q3 2023 for the other holdings in the fund’s portfolio.
  • Schroders Capital Global Innovation Trust (INOV) announced it has made an investment of $2.0m (£1.7m) into an early leader in an emerging segment of artificial intelligence (AI) software. Tim Creed, lead portfolio manager, and Harry Raikes, co-portfolio manager commented: “Schroders Capital has been investing in venture capital for over 25 years. Over that time, our team has seen various waves of technological innovation and witnessed first-hand the ripple effect through different sectors and regions. Our belief is that AI, most recently focused in the field of generative AI that has been enabled by the advent of large language models, has the potential for innovation and disruption on a scale comparable to the introduction of email, the internet and the smartphone.”
  • Warehouse REIT (WHR) has seen valuations increase 1.0% on a like-for-like basis across its portfolio in the six months to 30 September 2023, which is now worth £811.3m. It said yields were broadly flat, while estimated rental values (ERVs) were up 2.8%. It expects ERV growth for the year to be between 5% and 6%. This contributed to a 0.9% uplift in EPRA net tangible assets (NTA) per share to 123.7p (31 March 2023: 122.6p). Adjusted earnings per share of 2.3p was down from 2.6p a year prior and did not cover the dividend in the period of 3.2p. The company said that it expects dividend cover to improve as ongoing asset management initiatives conclude. LTV was 34.0%, with £35.0m in cash and available facilities. 87.7% of debt hedged against interest rate volatility with no major refinancing until 2028.

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