Positive property news with results from Unite and Shaftesbury Capital and an office disposal by Derwent London, while Schroder British Opportunities details its plan to focus on private equity.
Shaftesbury Capital (SHC), the real estate investment trust focused on London’s West End, has entered the second half of the year with “strong momentum” after a first half in which underlying earnings grew 16% to 2.2p per share and the interim dividend rose to 1.9p from 1.7p per share. Net tangible equity gained 3.3% to 206.8p per share.
Derwent London (DLN), the largest London office real estate investment trust, reports strengthening investor demand as it sells Francis House, a refurbished former Army & Navy store, for £54.2m before costs to a local government pension scheme. The sale price was in line with the December 2024 book value and reflects a 4.9% net initial yield for the purchaser. The disposal is expected to be slightly accretive to earnings as the proceeds are reinvested in higher-yielding assets.
Student accommodation provider Unite (UTG) reports a strong first half with adjusted earnings in six months to 30 June rising 15% to £144.2m from a year ago with adjusted earnings per share up 3% to 29.5p. “Universities continue to attract school leavers in record numbers and improving recruitment of international students reflects the UK’s attractiveness as a study destination,” said chief executive Joe Lister.
Schroder British Opportunities (SBO) is sending a circular to shareholders asking them to vote in support of resolutions to focus the £55m growth capital entirely on private equity and to bring forward the company’s continuation vote from early 2028 to early 2027. Annual results for year to 31 March show net asset value per share rose just 0.5% following a 2.5% rise in the previous year and 11.2% since launch in December 2020. The managers have identified a “robust pipeline” of private equity opportunities but with the shares trailing on a 33% discount to asset value its long-term future is far from secure.
Literacy Capital (BOOK) publishes its second quarter update following yesterday’s news of a partial sale and reinvestment in Velociti Solutions at a 52% premium to the previous valuation. Net asset value per share rose 1.6% to 519.5p from 511.5p in the three months to 30 June, valuing the UK private equity portoflio at £312.6m. Two new investments in Red Sky and Trinitatum that completed earlier this yeaer also contributed positively. Fund manager Richard Pindar said the difficult macroeconomic and political backdrop of the past 18 months appeared to be receding. “However, there are signs that deal volumes and confidence are improving, which would be positive for NAV growth and share price performance.”
Apax Partners says it has received another 3.56% in irrevocable commitments to support last week’s cash offer for Apax Global Alpha (APAX), lifting the total to 38.43%.
Bellevue Healthcare (BBH) has published a circular for another general meeting following this month’s AGM which will be held on 12 August. The board is seeking approval to continue share purchases under the zero discount policy launched in April. Since then the company has bought back 83.6m shares with the discount narrowing to an average of 1.2%. Activist Saba Capital is a shareholder.
Schroders has emerged with a 5.7% holding in Cordiant Digital Infrastructure (CORD), a £733m investment company on a 25% discount.
Raymond James Wealth Management has been disclosed as holding 5% in Schroder Oriental Income (SOI), the £694m 4%-yielding Asia Pacific trust standing on a 4.6% discount.
UBS bank and wealth manager has 5.8% in Abrdn Property Income (API), whose market value has reduced to £20.8m in a wind-down and disposal programme launched last year. The shares stand on a 31% discount.
