Home REIT (HOME), the suspended former homeless accommodation provider, says “due diligence is progressing” on the non-binding offers it received for the portfolio in February and anticipates the sale process will conclude by the end of the year although it cautions that timing and outcome are uncertain. Meanwhile fund manager AEW continues to prepare properties for sale, interim results for 2024 and 2025 are expected to be published in this quarter, although these have been repeatedly delayed, and work on the annual report for the year to 31 August has begun. That should be published in the first quarter of 2026 and enable the shares to resume trading three years after they were suspended over an over-valuation scandal. The portfolio has 853 properties valued at £155.7m at 31 August (of which 70% were valued on a vacant possession basis), down from £169m at 28 February.
Greencoat Renewables (GRP), a £688m, European-focused fund, has posted better third quarter figures than sister fund Greencoat UK Wind (UKW) did yesterday. The 9.6%-yielder standing on a 31% discount saw net asset value per share rise 0.5% or €0.5 cents to €101.5 cents in the three months to 30 September. This was largely the result of a one-off tax benefit in Germany that lifted cash generation to €23.2m from €21.1m in the previous quarter and from €3.1m a year earlier. This boosted cover for the dividend to 1.2 times from 1.1 with gross cover for the full year expected to rise to 1.6 from 1.5 times. On a net basis after debt repayments, dividend cover is forecast to rise from 1.3 to 1.5 times. The €156m sale of Irish assets in the quarter at a 4% premium to carrying value helped reduce debt from €1,351m at 30 June to €1,209m with gearing moving further from the 60% ceiling, down from 54.6% to 51.7% of gross assets.
Montanaro European Smaller Companies (MTE), the £257m growth fund under pressure from 15% shareholder Saba Capital, returned 13.7% in the half year to 30 September, lagging its benchmark’s 15.4% return. Portfolio turnover increased to 33% as fund managers George Cooke and Stefan Fischerfeier trimmed positions to provide cash for the share buybacks, which in March the company promised to step up in bid to keep the share price discount below 10%. It also pledged to hold two tender offers a year, allowing shareholders to sell their shares at 5% below asset value. The first of these takes place next month with a circular sent to shareholders earlier this month.
Picton Property Income (PCTN), the £409m generalist UK commercial property investment company, says the tenant of its 315,000 sq ft Rushden 300 logistics asset in Northamptonshire has exercised a lease break and paid £2.5m, including a £800,000 penalty and £1.7m for dilapidations. The property generated £1.6m in annual rent, around 3.4% of Picton’s total in March, and represents its largest reversionary opportunity with estimated rental value over 50% higher than the current rent. The independent valuation already accounted for the break, meaning no negative valuation impact was recorded.
CQS Natural Resources Growth and Income (CYN), the £93m mining and commodities fund and stablemate to Golden Prospect Precious Metals (GPM), has updated its share buyback policy in response to the derating of its shares this month as the gold price has fallen from record highs. It says it will buy back shares with the aim of keeping its discount to net asset value (NAV) to single digits, ie below 10%. The shares hit a 4% premium over NAV last month after a 45% summer rally before falling to a 12% discount below NAV. This has narrowed to 6% after the shares rose following good annual results this week.
RTW Biotech Opportunities (RTW) says Savara, a US Nasdaq-listed drug developer awaiting FDA approval for Molbreevi, a treatment for a rare lung disease, has entered into a $75m royalty funding agreement with its fund manager RTW Investments. RTW Bio will participate in this investment through the RTW-managed 4010 Royalty Fund which accounts for around 3% of assets. Rod Wong, CIO of RTW Investments, said: “The pivotal clinical trial demonstrated the potential of Molbreevi to treat autoimmune PAP and this investment reflects our confidence in Savara and the strong commercial potential of the therapy.”
Tetragon Financial Group (TFG), the £1.6bn hedge fund and alternative assets platform, last month saw net asset value rise 7.1%, or $339.2m, to £3.9bn with NAV per share of $42.19 at 30 September. The increase widens the discount to the $19.05 share price to nearly 55%. The gain was mainly driven by blockchain provider Ripple Labs, which was marked up 87%, and Hawke’s Point funds benefiting from a gain in one of their Australian gold miners.
Doric Nimrod Air Three (DNA3) has received £33.07m from the sale of its Airbus A380-861 aircraft to Emirates. It will make a further announcement on how the money will be distributed to shareholders. Its remaining aircraft, Airbus A380-861 (MSN 134), will be held until its lease-end date.
GCP Infrastructure (GCP) declares a 1.75p dividend for 1 July to 30 September in line with its annual dividend target of 7p per share. It will be paid on 9 December to shareholders registered on 14 November.
