QuotedData’s daily briefing 17 June 2024 – BHMG, SEQI, PCTN, CLI

In QuotedData’s daily briefing 17 June 2024:

• BH Macro (BHMG) has announced an increased annual buyback allowance. Under the new agreement, the allowance for 2024 (which would have previously been capped at 5% of issuance for each currency of shares) has been increased by an amount equal to its unused allowance for the sterling shares for the year 2023. During the remainder of 2024, BHMG may repurchase a further 16,308,970 sterling shares (equal to approximately 4.56% of issuance, excluding shares held in treasury) without incurring the additional fees ordinarily payable to the manager under the management agreement. This is in addition to the already approved 5% of issued US dollar shares that BHMG may repurchase for the remainder of the year.
• Sequoia Economic Infrastructure Income Fund (SEQI) provided a monthly NAV and portfolio update, for the month of May. Over the period its NAV per share increased from 92.46p to 94.30p, driven by both interest income and increased asset valuations. A major factor in this was the marginal reduction in risk free rates and a sustained reduction in benchmark spreads for certain instruments, predominantly in the utility and power/energy sectors, which increased the value of most of its fixed rate instruments (which make up 59% of its portfolio). There were four noteworthy portfolio developments over the period: a restructuring of Active Care Group’s balance sheet, with SEQI providing an addition £34.8m in funding; the purchase of Brightline East HoldCo bonds for $50m; a full repayment of Brightline Trains Florida bonds for $20m; and an additional senior loan for $5.0 million to Westinghouse.
• Picton Property (PCTN) has completed a series of lettings with a combined rental of £0.8m per annum, 4% above the 31 March 2024 estimated rental value (ERV). These include 31,500 sq ft of industrial lettings in Bracknell and Warrington and a 13,000 sq ft office letting at Tower Wharf in Bristol, where an existing occupier will be relocated within the building, taking 140% more floorspace. Following these lettings and the previously announced post year end disposal of Angel Gate, London EC1, the proforma occupancy of the portfolio has increased to 93% (31 March 2024: 91%). The company also announced progress with repositioning office space within its portfolio. At Charlotte Terrace, in London, it has has secured planning permission to create six residential units in void office space. At Longcross, in Cardiff – in accordance with the sale contract, the purchaser has now submitted a planning application to convert the substantially void office building to student accommodation, comprising 706 units. Upon receipt of planning permission, this number of units will trigger an additional overage payment to Picton on completion. As such the sale price is expected to be 20% ahead of the 31 March 2024 valuation.
• CLS Holdings (CLI) has announced that it will convert its office property Debussy, Boulevard de la Republique, La Garenne-Colombes, in Paris into serviced apartments. It will invest in the region of €12m over a two-year period to convert the existing office building into 57 serviced apartments, which will be operated by Edgar Suites, an aparthotels operator, on a 12-year lease with a base rent and a turnover element. Nexity, a leading French developer, has been appointed under a fixed price contract for the construction works which will commence in early 2025 with expected completion at the end of 2026.