QuotedData’s morning briefing 12 March 2024 – RGL, THRL, LAND, GSF

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In QuotedData’s morning briefing 12 March 2024:

  • Regional REIT (RGL) says that it is exploring a possible equity capital raise of around £75m through a rights issue that would be at a material discount to the current share price. The company adds that the rights issue is one of a range of refinancing options it is exploring, including the issuance of new debt, the proceeds of which would be used to service an existing £50m retail bond that matures in August 2024. Significant preparatory work has been undertaken to date in respect of both the debt and equity options, which remain under active consideration – it says.
  • Target Healthcare REIT (THRL) has posted a 2.1% uplift in EPRA net tangible assets (NTA) per share to 106.7p in the six months to 31 December 2023. With dividends, the NAV total return for the period was 4.9% (2022: -5.4%). Adjusted EPRA earnings per share increased 1.3% to 3.05p (2022: 3.01p), fully covering a dividend for the period of 2.856p. Portfolio market valuation increased by 4.9% to £911.1m (June 2023: £868.7m), primarily driven by a 1.4% like-for-like valuation increase (comprising 2.0% from inflation-linked rental uplifts, offset by 0.6% due to outward yield movements) and acquisitions and capital expenditure of 3.5%. Net loan-to-value (LTV) was 25.8% (June 2023: 24.7%), with a weighted average cost of drawn debt at 4.0% (June 2023: 3.7%), an average term to maturity of 5.7 years (June 2023: 6.2 years) and interest rate hedged on 91% of drawn debt until expiry.
  • Land Securities (LAND) has launched and priced a £300m bond with a maturity of 7.5 years, paying a coupon of 4.75% and representing a spread of 103 basis points over the reference gilt rate. This follows the maturity of two bonds in February 2024, totaling £417m. The bond will extend the group’s weighted average debt maturity to 9.4 years. The company says that the bond was multiple times over-subscribed.
  • Gore Street Energy Storage (GSF) says its NAV at end Decemnber 2023 was 111p, 1.7% lower than at end September. In contrast to competing battery storage funds, it continues to pay dividends – the next 2p quarterly dividend will be paid on 12 April. It is in a better state than the others as it has much lower exposure to the UK. Its 200MW asset in California is still on track for energisation this year.

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