QuotedData’s morning briefing 12 March 2024 – RGL, THRL, LAND

In QuotedData’s morning briefing 12 March 2024:

• Regional Real Estate Investment Trust " class="glossary_term">REIT (RGL) says that it is exploring a possible equity capital raise of around £75m through a rights issue that would be at a material discount to the current share price. The company adds that the rights issue is one of a range of refinancing options it is exploring, including the issuance of new debt, the proceeds of which would be used to service an existing £50m retail bond that matures in August 2024. Significant preparatory work has been undertaken to date in respect of both the debt and equity options, which remain under active consideration – it says.
• Target Healthcare REIT (THRL) has posted a 2.1% uplift in REIT sector as well as Pubic commercial property in general. It sets standards for the calculation of important measures in the property sector such as EPRA NAV.

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  " class="glossary_term">EPRA net tangible assets (NTA) per share to 106.7p in the six months to 31 December 2023. With dividends, the Net Asset Value

  See also Net Asset Value per share

  " class="glossary_term">NAV net asset value including dividends or income.

  When dividends are not included in the performance calculation, it is known as Capital Return

  " class="glossary_term">total return for the period was 4.9% (2022: -5.4%). Adjusted EPRA earnings per share increased 1.3% to 3.05p (2022: 3.01p), fully covering a investment companies try to pay dividends from income but they are now allowed to pay dividends from capital. " class="glossary_term">dividend for the period of 2.856p. assets of a fund such as an investment company, investment trust or OEIC. " class="glossary_term">Portfolio market valuation increased by 4.9% to £911.1m (June 2023: £868.7m), primarily driven by a 1.4% like-for-like valuation increase (comprising 2.0% from inflation-linked rental uplifts, offset by 0.6% due to outward yield movements) and acquisitions and capital expenditure of 3.5%. Net loan-to-value (loan to value " class="glossary_term">LTV) was 25.8% (June 2023: 24.7%), with a weighted average cost of drawn debt at 4.0% (June 2023: 3.7%), an average term to maturity of 5.7 years (June 2023: 6.2 years) and An interest rate can also apply to the amount earned at a bank or credit union from a savings account or certificate of deposit (CD). Annual percentage yield (APY) refers to the interest earned on these deposit accounts. " class="glossary_term">interest rate hedged on 91% of drawn debt until expiry.
• Land Securities (LAND) has launched and priced a £300m bond with a maturity of 7.5 years, paying a coupon of 4.75% and representing a spread of 103 basis points over the reference gilt rate. This follows the maturity of two

  Bonds are characterised as paying a fixed rate of interest (coupon) for a set period of time and then returning the initial loan amount.

  Bonds appear all along the risk spectrum from government bonds issued by developed economies to large highly rated companies, emerging markets governments and companies through to high yielding lowly rated companies. It is not correct to see all bonds as "low risk".

  " class="glossary_term">bonds in February 2024, totaling £417m. The bond will extend the group’s weighted average debt maturity to 9.4 years. The company says that the bond was multiple times over-subscribed.
• Gore Street Energy Storage (GSF) says its NAV at end Decemnber 2023 was 111p, 1.7% lower than at end September. In contrast to competing battery storage funds, it continues to pay dividends – the next 2p quarterly dividend will be paid on 12 April. It is in a better state than the others as it has much lower exposure to the UK. Its 200MW asset in California is still on track for energisation this year.