In QuotedData’s morning briefing 9 September 2024:

• Starwood European Real Estate Finance (SWEF) has published its interim results for the six months ended 30 June 2024. SWEF says that it has made positive realisation progress during the half year with a total of £102.1m, 38.9 per cent of the Group’s 31 December 2023 total funded loan portfolio, repaid across five investments. This included the full settlement of four loans (totalling £101.2m or 38.5 per cent of the Group’s 31 December 2023 total funded loan portfolio). The proceeds of these realisations, along with available cash, were used to fund the return of capital to shareholders of £125.0m paid in 2024 so far. It says that one Stage 2 asset was fully repaid, leaving three assets categorised as Stage 2. This categorisation indicates a change in credit risk of these loans since origination but no impairments anticipated. The only asset categorised as Stage 3 as at 31 December 2023 was settled in full and €0.2m of a €4.0m impairment provision which had been accounted for against this loan was released. The average remaining loan term of the portfolio is 1.5 years and, with strong cash generation, the portfolio continues to support annual dividend payments of 5.5 pence per ordinary share, paid quarterly, and generates an annual dividend yield of 5.9 per cent on the share price as at 30 June 2024. SWEF says that 85% per cent of the portfolio is contracted at floating interest rates (with floors). It adds that the loan book is performing broadly in line with expectations with its defensive qualities reflected in the Group’s continued NAV stability. The weighted average Loan to Value for the portfolio as at 30 June 2024 is 58 per cent.
• Gresham House Energy Storage (GRID) has provided a valuation and trading update for the first half of 2024 in which it says that contracted revenues and upcoming construction completion provide confidence in a strong earnings recovery in 2025, adding that a three-year plan will be announced at Capital Markets Day in November 2024. During the first half of 2024, GRID’s NAV per share declined to 109.16p, down 19.91p since 31 December 2023 with third party revenue forecasts contributing to 19.47p of this decline, principally due to the introduction of a new, more conservative curve provider. Existing merchant and Capacity Market discount rates were unchanged over the period, although a new discount rate was introduced to value the tolling agreement related cashflows at 8.5% over the life of the tolling arrangements. GRID’s operational portfolio generated net revenues of £17.9mn (H1 23: £20.5mn) and EBITDA of £10.4mn (H1 23: £13.8mn), down 14.5% and 24.6%, respectively. GRID says that lower revenues were driven by an especially weak first quarter, following which revenues recovered and stabilised albeit at a lower level than expected over the longer term. Construction of projects and site augmentations continued to progress it adds, as at 30 June 2024 the operational portfolio increased to 790MW (up 14.5% since 31 December 2023) / 931MWh (up 18.1%). The period also included the signing of a ‘landmark tolling agreement’ with Octopus Energy fixing revenues at above recent merchant revenue levels for two years on 568MW; over 50% of the target portfolio of 1072MW. GRID amended its debt facility to provide additional operational flexibility to build the remainder of the target portfolio. Total debt drawn at the end of the period was £120mn; the total size of debt facility reduced from £335mn to £225mn. GRID says that it had cash on hand of £26.8mn as of 30 June 2024.
• Picton Property (PCTN) has updated on the sales of an office asset, having received planning permission to convert it to student accommodation. In October 2023, PCTN exchanged contracts to sell the partially vacant office building to a student accommodation developer, conditional on gaining planning permission for the change of use. A resolution to grant planning permission has been secured and the development will deliver 706 beds across 488 units. Completion of the disposal is expected before the end of the year. The sale price is dependent on the number of beds secured, with the 706 beds meaning the price will be the maximum of the agreed range. As such, the transaction will be accretive to PCTN’s June 2024 NAV.
• Assura (AGR) has poached Supermarket Income REIT’s (SUPR’s) Steven Noble to the newly created role of chief investment officer. Noble will be responsible for implementing AGR’s investment strategy across all healthcare markets, including delivery of capital recycling initiatives. He was with SUPR from IPO, where he negotiated and executed over £2bn of property transactions. Prior roles include nine years at Lloyds in origination and risk management with a focus on commercial real estate and KPMG where he qualified as a chartered accountant.

We also have:

• Annual results from Mid Wynd International
• Plans from JPMorgan EMEA Securities if its Russian depositary becomes insolvent
• Ecofin US Renewables Infrastructure proposes managed wind down