SDCL Efficiency Income sells a small US asset at a big premium, hoping that impresses shareholders given the wide share price discount, but investors in Abrdn European Logistics have to stomach a loss on its disposal of a portfolio in Spain.
SDCL Efficiency Income Trust (SEIT) has sold its convertible loan in ON Energy to the company for $7.6m, at an 18.8% premium to the $6.4m holding value after feedback from shareholders on its strategic options stressed the need for continued portfolio performance, sufficient cash generation to cover the 11%-yielding dividend while achieving successful asset disposals to reduce debts and the return cash to shareholders in the £608m fund. QuotedData’s James Carthew says: “This disposal by SDCL isn’t huge, but achieving a valuation ahead of NAV when the trust is trading on a 39% discount, and doing so by selling a US battery storage business in a market that is decidedly anti-renewables is good news. Hopefully, this will provide further support to the share price.”
Abrdn European Logistics Income (ASLI) has sold a portfolio of nine assets in Gavilanes, Madrid, as part of its managed wind-down by fund management group Aberdeen, to a leading European logistics investor. Net proceeds of €146m are below the €168.6m valuation at 31 March sending the shares down 6.8% to 48.5p. QuotedData’s Richard Williams comments: “Today marks the culmination of a poor investment. The company bought the portfolio at the height of the market in 2021 for €227m at a staggeringly low yield of 3.4%. Properties on the keenest yields were hardest hit as the sector re-rated to reflect higher interest rates, and throw in distress among some of the tenants in the portfolio and shareholders are left stomaching an almost 36% loss on the investment over a three-and-a-half year period.”
Hammerson (HMSO) real estate investment trust suspends share buybacks as it launches an institutional share placing to raise funds for the £319m acquisition of 50% of Birmingham’s Bullring shopping centre from its joint venture partner. Half-year results show earnings per share steady at 9.9p but with the dividend increased to 7.94p to demonstrate confidence in growth prospects.
Henderson Smaller Companies (HSL), whose long-standing fund manager Neil Hermon is retiring next month, says his successors have made small refinements to their growth stock picking style after net asset value fell 5.1% in the year to 31 May, underperforming the 5% gain in its benchmark.
Segro (SGRO), the pan-European logistics fund, reports its first net asset value rise in three years. Adjusted NAV per share edged 3p higher to 910p in the six months to 30 June. Like for like net rental income from its £18.5bn portfolio grew 7.8% in the first half.
Residential Secure Income (RESI) reports progress in its managed wind-down with several potential bidders doing due diligence on its shared ownership portfolio. A 1.03p per share interim dividend has been declared, covered by earnings of 1.52p per share. In the third quarter to 30 June net tangible assets rose 2.1% to 66.4p.
Palace Capital (PCA) real estate investment trust is returning another £20.8m to shareholders via a tender offer at 240p per share, a 9.6% premium to yesterday’s closing price.
Murray Income (MUT) declares a fourth interim dividend of 11.5p per share for the year to 30 June taking the total to 40p per share, a 3.9% increase, and the 52nd consecutive year of dividend growth.
Aberforth Geared Value & Income (AGVI) publishes its first annual report since launch last year as the rollover vehicle for its predecessor Aberforth Split Level Income. From 1 July 2024 to 30 June net asset value grew 3.3% but the shares declined 14.8%. Nevertheless, the managers say prospects for the UK smaller companies trust are “compelling”.
Premier Miton Global Renewables (PMGR) reports a first half recovery with a 13.4% investment return after the 14% decline last year. This beat the 5.8% return of its benchmark, the S&P Global Clean Energy index.
Octopus Titan (OTV2) expects to give shareholders a detailed update of its strategic review begun last September when the venture capital trust issues its 30 June net asset valuation this September.
Tetragon Financial Group (TFG) has released its June factsheet showing the hedge fund and alternative asset management platform made an 8.1% return last month.
