BlackRock American Income (BRAI) is seeking shareholder approval to issue up to 30% more shares as investor demand continues to be strong following the adoption of a systematic stock-picking approach in April last year. The investment trust will ask shareholders to vote on three separate resolutions at a general meeting on 14 September, each approving an increase of up to 10% of BRAI’s share capital from shares previously bought back and held in treasury. This is designed to give shareholders the flexibility to approve an increase of 10%, 20% or 30%. Run by BlackRock fund managers Travis Cooke and Muzo Kayacan, the trust has returned 37% over one year, beating the 29% return from its benchmark, the Russell 1000 Value index. Share issuance and performance have lifted BRAI’s market value from £134m in February to £193m today.
James Carthew, head of investment company research at QuotedData, said: “It is great to see that the success of BlackRock American Income’s strategy revamp is feeding through into demand for its shares. After years of shrinkage, the company is on the verge of breaking back through the £200m market cap mark. Hopefully it is becoming increasingly attractive to wealth managers and other professional investors that might have previously been put off by a lack of liquidity. This re-expansion could accelerate. BRAI shareholders should back these proposals.”
Alternative Income (AIRE) real estate investment trust (REIT) said it was “deeply frustrated” by Glencore REIT’s refusal to support or engage with AEW UK REIT’s (AEWU) all-share bid approach, leading it yesterday to withdraw the offer it had been considering. Responding to AEWU’s announcement yesterday afternoon, AIRE said its decision did not address any of the shortcomings in the cash offer from Glenstone, its largest shareholder with a 25.4% stake. These included the 16% discount to AIRE’s net asset value, the fact that it was seeking control without paying a premium, the uncertainty over its proposed managed wind-down and that shareholders were not being given a “clean exit”. It recommended investors not accept Glenstone’s offer before its deadline on 4 September. Glenstone urged shareholders to do do so, saying its 70p per AIRE share cash offer provided a “fair exit” compared to an “uncertain future” in AIRE.
RM Funds, the Edinburgh-based activist holding around 4% of Gore Street Energy (GSF), has published an open letter confirming it will support the discontinuation vote requisitioned by Saba Capital, the US hedge fund that holds a 17% stake. Repeating its concerns over investment performance, dividend cover, management fees and last week’s sale of two assets in Ireland, RM Funds said that at the AGM on 16 September it would vote against the directors’ remuneration report and remuneration policy, the re-election of Angus Gordon Lennox as chair, Christine Higgins as senior independent director, Keith Pickard as chair of the audit committee and the approval of share issuance and disapplication of pre-emption rights.
TR Property (TRY) says non-executive director Sarah-Jane Curtis will retire at the end of the year. The chartered surveyor and former chief operating officer of Bicester Motion, the car and plane attraction centre, joined the board in January 2020.
