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QuotedData’s morning briefing 22 November 2023 – HICL, RKW, AEWU, HLCL

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In QuotedData’s morning briefing 22 November 2023:

  • HICL Infrastructure (HICL) announced its interim results for the six months ended September 30 2023. NAV total return fell 3% over the period reflecting the increase of the portfolio’s weighted average discount rate from 7.2% to 8.0%. Transaction activity remained robust, totalling  £532m, while the company also reduced net gearing to around 10% through proceeds from disposals. Commenting on the results, chair, Mike Bane added; “The board is pleased with the active management of HICL’s portfolio and the solid operating result against a difficult market backdrop. Continued progress on strategic asset rotation has served to improve portfolio composition, while supporting the company’s NAV. This transaction activity, which has been across geographies, sectors and counterparties, gives the board a high level of confidence in HICL’s NAV and reinforces the belief that the company’s shares have been materially oversold by public markets.”
  • Rockwood Strategic (RKW) announced its interim results for the period ended September 30 2023. The company’s NAV Total Return was -5.5% which compares to a decline in the FTSE AIM All Share Index of -10.3% and an increase in the FTSE Small Cap (ex-ITs) Index of 2.9%. Total shareholder return for period was -2.5%. While negative, the outperformance of benchmark indices builds on the solid progress made over the past 12 months which has seen an NAV total return of 28% compared to the FTSE AIM All Share Index of -9.9% and the FTSE Small Cap (ex-ITs) of 8.8%. The total shareholder return in the same one year period was 25.4%.
  • AEW UK REIT (AEWU) posted 4.3% NAV total return for the six months to 30 September 2023. NAV was up 0.5% to 106.0p per share, while the group paid dividends of 4p. The portfolio was valued at £219.36m (March 2023: £213.83m). EPRA earnings were 3.58p per share (up from 2.58p for the same period in 2022). The company has drawn debt of £60m at a fixed interest rate of 2.959% and expiry in May 2027.
  • Helical (HLCL), the London office developer, reported a 17.0% fall in EPRA net tangible assets (NTA) to 409p per share in half-year results to 30 September 2023. The value of its portfolio dropped 11.8% to £745.6m, with its yield expanding 46 basis points (0.46%), offset by 1.8% growth in ERV. Loan to value was 33.5% (up from 27.5%), with net borrowings of £249.6m. The average cost of borrowings was 3.3% with 100% hedged against interest rate rises. The maturity of debt was 2.4 years.
  • Grainger (GRI) has agreed to enter a partnership with Network Rail and Bloc Group to deliver over 2,000 new purpose-built rental homes across sites in major cities across the UK. Grainger recently completed The Barnum, a 348-home build-to-rent scheme in Nottingham, with Bloc as developer and Grainger as investor, funding the development and operating it upon completion. In this new partnership, Network Rail will bring forward potential sites for build-to-rent from its extensive, well located property portfolio, with the Bloc as developer and Grainger forward funding the scheme and ultimately owning and operating the completed schemes.

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