Baker Steel Resources Trust (BSRT) enjoyed a highly “positive” first half against the challenging backdrop of the US attack on Iraq with shares in the mining fund soaring 65.2% in the six months to 30 June, well ahead of the 15.4% growth in the net asset value (NAV) of its investments. These beat the 10.2% rise in the MSCI World Metals and Mining index, with NAV continuing to advance since the half-year-end. The company said the results reflected a more favourable investor view towards junior mining projects with portfolio companies Tungsten West, Blue Moon and Silver X all receiving “crucial” financing packages that helped them contribute strongly to performance. Chair Fiona Perrott-Humphrey said NAV had grown by 135% over three years but the shares continued to trade at a disappointingly wide but reduced discount of 22%. The company would continue its new policy of share buybacks and has declared its first ever dividend of 2p per share under a new policy of paying out 3% of net assets a year.
Richard Williams, senior analyst at QuotedData, said: “BSRT’s strategy of backing development-stage mining assets is bearing fruit, with progress at Tungsten West and Blue Moon helping NAV rise 15.4%, ahead of the wider mining sector. Subsequent government-backed funding for both projects removes important development risks. Encouragingly, the board is also becoming more proactive about translating portfolio success into shareholder returns. Alongside buybacks and the new 3%-of-NAV dividend policy, its commitment to consider returning at least 50% of net proceeds from significant realisations should provide a clearer route for closing the persistent gap between BSRT’s strong NAV performance and its share price.”
Half-year results from Living REIT (LIVE) showed the former Social Housing REIT in solid shape ahead of its £108.3m acquisition of the retirement home portfolio of Residential Secure Income announced in June which led to the rebrand and broadening in its mandate. In the first half of the year net rental income rose by 2.3% to £20.2m from £19.8m, driven by inflation-linked rent reviews and the actions of asset manager Atrato.
Richard Williams said: “The underlying half-year numbers show steady progress, with earnings up 2.2%, the dividend increased by 3% and cover remaining strong at 1.2x. However, the more important story is LIVE’s transformation since the period end. The RESI acquisition has increased scale, diversified the portfolio beyond specialised supported housing and is expected to deliver high-single-digit earnings accretion. Pro-forma loan to value (LTV) has risen to around 45%, so delivering the expected earnings benefits while bringing gearing back towards the 40% target is now the key test.”
India Capital Growth (IGC), the £114m mid-cap equities fund now overseen by Liontrust after its acquisition of River Global, has declared its first ever dividend of 2p per share under a new policy of paying 2% of net assets that shareholders approved in March. Chair Elisabeth Scott said the declaration showed the board’s confidence in the long-term prospects for India and the investment company under fund manager Gaurav Narain. Half-year results showed net asset value rose 3.1% in rupee terms in the six months to 30 June, although in sterling terms this was offset by a 3.4% fall in the rupee against the pound. The shares rose 1.8% with their discount to NAV widening slightly from 9.2% to 10.4%. Scott said this might look “meagre” but compared well to the MSCI India SMID Cap index which rose by 0.9%. She said it was an improvement on a “torrid” 2025 when the shares fell 11.7%.
