QuotedData’s morning briefing 10 June 2024 – DORE, SOHO, CLI

In QuotedData’s morning briefing 10 June 2024:

• Downing Renewables & Infrastructure Trust (DORE) has provided a Q1 NAV update for the three months ending 31 March 2024. DORE reported a NAV of £212.3m or 119.2p per share, a 1.3% increase from its 31 December 2023 value. Its NAV was primarily driven by positive FX movements, portfolio performance (with operating profits 19% higher than budget), and life exemption projects. Falling long-term power prices were a detractor. DORE paid a Q1 dividend of 1.45p per share, with a target dividend of 5.8p per share for the 2024 financial year. DORE’s managers commented “The modernisation and operational improvements continue apace in the Company’s hydropower portfolio and we are particularly pleased to see the significant value uplift in the wind portfolio as a result of the efforts of our asset management team.”
• Triple Point Social Housing REIT (SOHO) has announced that heads of terms have been agreed on the sale of a portfolio of assets for more than £20m. The company was light on detail, but said the portfolio was representative of its wider portfolio and contained a range of both new build and adapted properties as well as self-contained and shared homes, with EPC ratings between B to D. The company did not say how the sales price compared to book value of the assets, but expects the portfolio sale to complete prior to the publication of interim results in September. The company also revealed that rent collection increased to 93.3% (Dec 23: 90.2%). Of the two tenant companies responsible for the rent arrears, the investment manager has commenced a process of transferring all of the group’s properties currently leased to Parasol to Westmoreland, representing 9.6% of rent roll, and noted that My Space, representing 8.1%, had beefed up its board and management team. The company added that if an acceptable long-term position could not be reached then it would move the leases to one or more alternative registered providers. The company continues to report portfolio rental growth. As at 30 April, 61.6% of the group’s leases had put through their 2024 annual rent increase at a weighted average uplift of 6.1%.
• CLS Holdings (CLI) has sold or unconditionally exchanged on the sale of two properties for a total of £10.7m, at an average discount of 5.0% below 31 December 2023 valuations. The sale of Aqueous II, Aston Cross Business Park, Birmingham, completed on 5 June, while the sale of Hansastrasse, in Dortmund, unconditionally exchanged on 29 May with completion targeted for early July. As previously announced, the sale of Quatuor in Paris for €11.1m, 2.8% ahead of the June 2023 valuation, completed on 14 May; and the sale of Westminster Tower in London for £40.8m, in-line with its 31 December 2023 valuation, completed on 7 June with half of the sale proceeds received and the remainder deferred for three months. The company says that the sales process for Spring Mews Student (its purpose built student accommodation scheme) has generated significant interest and first stage bids have been received from several parties.