GCP Infrastructure (GCP) has repaid its revolving credit facility on which it had drawn £24m at 30 June following the £40m debt refinancing of its ground-mounted solar photovoltaic projects and £13m from the sale of an anaerobic digestion plant in Northern Island and two onshore wind assets at Winscales Moor and Burton Wold.
James Carthew, head of investment company research at QuotedData, said: “The shift to a net cash position and disposals at a premium to NAV represent more encouraging news from GCP, which has seen fairly steady share price rises over the past few months. I still think that the 8.4% yield is attractive and we should see the discount come in further from its current 17% level.”
Home REIT (HOME) has exchanged on the sale of its last property companies enabling its four holding companies to enter voluntary liquidation. This means it can start to finalise plans for a return of capital to shareholders, although it reiterated that its ability to make distributions was constrained by potential litigation from investors. It has also left the REIT (real estate investment trust) regime, leaving the company liable to pay tax although the current level of expenses should “shield any income from corporation tax”.
Chrysalis Investments (CHRY) saw net asset value per share slip 2.1% or 2.85p to 131.09p in the three months to 30 June as a decrease in listed rivals weighed on the valuation of Starling bank, its biggest holding at 56% of the growth capital portfolio, despite the challenger bank resuming growth. In their last comment as fund managers, Richard Watts and Nick Williamson of Chrysalis Investment Partners said: “Profit growth at Starling over the year-to-date has exceeded expectations and we are excited regarding the forecast trajectory of profit development over the coming years, which should become the key determinant of future valuation.” Chair Andrew Haining, who served notice on the pair earlier this year in preparation for a three-year wind-down, thanked them for their support. ‘The board remains focused on maximising value for shareholders through the realisation of the portfolio over the next three years and has now put in place the structures to self-manage the portfolio,” he said.
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