In QuotedData’s morning briefing 25 September 2024:
- North Atlantic Smaller Companies Investment Trust (NAS) reported its interim results for the six month period to 31 July 2024. The NAV total return was 8.3% compared to 12.9% in the benchmark index. Performance was adversely impacted by the trust’s large cash holdings and the underperformance of the private equity portfolio. During the period, the trust purchased approximately 178,237 shares for cancellation at a discount to NAV of approximately 30%. This policy which is ongoing increased the NAV for all long term shareholders and helped to modestly reduce the discount compared to the end of January 2024, which stood at 29% at the time of publishing.
- NB Private Equity Partners (NBPE) announced its interim report for the six months to 30 June 2024. The company delivered a NAV total return of 1% while shares fell 1.8%, trailing the benchmark index return of 12%. The company’s performance was driven by a 4.3% increase in private company valuations (ex-FX), which have been partially offset by continued volatility in quoted holdings and foreign exchange headwinds. The portfolio has continued to deliver positive operating performance with 11% aggregate weighted average LTM revenue growth and 16% aggregate LTM EBITDA growth from its private companies. During the period, the company invested $72m in new and follow-on investments.
- LondonMetric (LMP) has acquired six single-let urban logistics properties for £78.0m from a “FTSE 100 pension fund”. The purchase price reflects a blended net initial yield of 5.8% which rises to 6.9% over the next two years. The portfolio totals 526,000 sq ft, and is located in Stafford, Banbury, Romford, Southampton, Bristol and Aberdeen. It is leased to strong tenants including General Electric, Thales, EVRI, Macarthys Laboratories and KCA Deutag, with a WAULT of 10 years. The portfolio generates annual income of £4.8m, equating to an average rent of £9.20 per sq ft, which is expected to rise to £5.8m (£11.10 per sq ft) over the next two years. Separately, LMP has sold an office asset in Edinburgh for £6.0m. It is let to HSBC for a further five years and was acquired through the CTPT takeover. LMP has now sold 14 of the 16 non-core CTPT assets at an average of 18% above original underwrite values.
- Impact Healthcare REIT (IHR) has completed the transfer of four care homes located in Scotland to a new tenant, Fulcrum Care, on long-term leases. The homes had been operated by Melrose Holdings following their transfer from the Silverline Group as part of a recovery plan first announced by the group in June 2023. Since acquiring Silverline’s tenant companies, Melrose has stabilised the operations of the homes. With this transfer, all seven of the former Silverline homes have now been transitioned to long-term operators. IHR said that Fulcrum is experienced at managing complex care home turnaround strategies and brings a wealth of operational experience. The leases extend to 35 years and rent payments will start on 1 November 2024. IHR has granted a lease incentive of £0.3m and a short-term working capital facility of £0.45m to fund any short-term liquidity requirements. The working capital facility will attract a coupon of 10% per annum. The working capital facility is repayable and the lease incentive is expected to be fully recovered over the life of the leases. IHR said that it anticipates investing a further £0.5m of capex across the four homes, which it said would be rentalised and accretive to shareholder value.