QuotedData’s morning briefing 22 February 2024 – API, EBOX, ASLI

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In QuotedData’s morning briefing 22 February 2024:

  • Both abrdn Property Income Trust (API) and Custodian Property Income REIT (CREI) have adjourned their shareholder meetings to vote on the merger offer from CREI due to this week’s indicative offer for API by Urban Logistics REIT (SHED). API’s board said that it was assessing the possible offer in the context of the CREI merger and has adjourned the meeting to allow SHED the time to make a binding proposal. The board will updated on its assessment in due course.
  • Tritax EuroBox (EBOX) announced that Fitch Ratings has revised the company’s outlook to Stable from Negative. Fitch has also affirmed the company’s long-term issuer default rating at ‘BBB-‘, and affirmed its senior unsecured debt rating at ‘BBB’.
  • abrdn European Logistics Income (ASLI) has reported a 6.4% drop in NAV to 93.4 euro cents per share (GBP – 81.2p) in the quarter to 31 December 2023. This resulted in a NAV total return for the year of 2023 of -17.1%. The portfolio value fell 3.9% in the quarter to  €633.81m, with its Spanish assets recording the strongest decline. Electric vehicle manufacturer Arrival, which has gone into administration, has not paid its rent on the units it occupies in Madrid. The company is pursuing legal proceedings to recoup monies owed. It said that it was advancing discussions for the cancellation of the lease agreement with Arrival to let the units to another occupier. The company is also close to selling its vacant French asset (targeting completion towards the end of March) at a price representing a modest discount to the 30 September 2023 independent valuation. As mentioned previously, the board is currently undertaking a strategic review into its future, with advisers “actively engaging with a select number of parties to satisfy their due diligence requirements”.
  • VH Global Sustainable Energy Opportunities (GSEO) has increased its share buyback programme by £10m, in light of the trust’s ongoing discount. This will bring the total share buyback programme to £20m, and will be carried out under the existing authorisation.
  • Harmony Energy Income Trust (HEIT) has announced a successful refinancing of its existing debt arrangements, as well as announcing the results of the recent T-1 Capacity Market auction. HEIT has amalgamated its two previous credit facilities into a single £130m facility, with its maturity extended to February 2031. The cost of this debt has been reduced to 275bps over SONIA for the first two years, rising over time to a maximum of 350 bps in the final year. The covenants on the debt have also been renegotiated to be more favourable. Six of the HEIT’s battery energy storage assets successfully bid for T-1 Capacity Market contracts for delivery from 1 October 2024 through to end September 2025. The auction cleared at £35.79/kw/yr, lower than last year but higher than expectations. This increases HEIT’s contracted revenue for this period to £3.2 million, with £1.7m yet to be accounted for in its cashflows.
  • Fidelity Emerging Markets (FEML) has announced that it will proceed with making a tender offer for up to 14.99% of its issued share capital (initially announced on 27 November 2023). The price per share acquired will be a 2% discount to the NAV. Shareholders will be entitled to tender shares they hold as at the 6.00 p.m. on 21 March 2024.

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