Edison Investment Research

Regional REIT (RGL); acquires a portfolio of six office assets for £25.9m

The portfolio comprises six offices located in Birmingham, Bristol, Cardiff, Chester

Regional REIT has acquired a portfolio of six office assets for a total consideration of £25.9m. The assets total circa 172,442sq. ft. and are expected to provide a net income of about £2.36m p.a. from 27 tenants. This equates to a net initial yield of 8.87% and expected reversionary yield of 9.54%. The portfolio’s weighted average unexpired lease term is 4.9 years.

Brady (BRY); recurring revenue in line with expectations for 1H19

The company intends to announce its interim results for the six months to 30 June 2019

Brady announced in its trading update that over the course of the first half of 2019 it has had positive engagements with existing customers and the recurring revenue is in line with expectations.

Circle Property (CRC); average NAV growth above 20%

The company confirms that its focus on regional office assets

In its AGM today, Circle Property plans to announce that 2018 marked the third successive year of delivering average NAV growth in excess of 20% p.a. with a 12% increase in contracted rental income. The proposed full-year dividend for 2018 increased 12.5% to 6.3p per share.

Primary Health Properties (PHP); completes two developments

Primary Health Properties has reached practical completion on two developments from separate developers at Glynneath and Langwith at a cost of £4.6m and £1.8m, respectively. The properties are let on 20 year leases to the Abertawe Bro Morgannwg University Health Board and the Derbyshire Community Health Services NHS Foundation Trust. This represents a combined 87% government-backed income across both properties.

Acorn Income Fund (AIF); reports NAV total return of 12.4% for H1 2019

Dividend per ordinary share stood at 10.40p, a 5.05% increase

Acorn Income Fund announced its half-year results (unaudited) for the six months ended 30 June 2019. The NAV total return of 12.4% compares to the total return on the Numis Smaller Companies (Ex Investment Companies) Index of 10.49%. Revenue return per ordinary share grew 8.35% to 11.16p. Ordinary share price total return over the six months stood at 15.5%. Cash and cash equivalents for the period was £2,178,078.

Princess Private Equity (PEY); NAV total return at 9.6% for H1 2019

Princess Private Equity Holding announced its half-year report for 2019. NAV total return stood at 9.6%, closing the period at €11.64 per share. First interim dividend was €0.29 per share, while total amount of investment stood at €32.7m. The largest contributors to NAV growth over Q2 were the direct investments in Permotio International Learning, Action, GlobalLogic, Foncia and Vishal Mega Mart.

Trackwise Designs (TWD); announces collaboration agreement

Consensus estimates look for £4.5m revenues in FY19

Last week Trackwise Designs announced a collaboration agreement with GKN Aerospace for the industrialisation of an ice production system. The company listed on AIM to take advantage of the IHT opportunity, investing c£1.7m so far in expanding production capacity and improving the accuracy of the imaging process used to define printed circuitry. Management expects that the current facility will provide sufficient capacity until at least the end of 2020. Net cash at end FY18 totalled £2.3m.

Keywords Studios (KWS); announces the issuance of 254,529 new ordinary shares

The admission of the new shares to the LSE is expected to take place at 8:00am on 20 August 2019

Keywords Studios announced the issuance of 254,529 new ordinary shares to the vendors of Studio Gobo Ltd and Electric Square Ltd. This pertains to the non-contingent deferred share consideration due on the first anniversary of Gobo being acquired.

Staying focused on the facts – the risks remain in place

A familiar set of risks must not be allowed to breed contempt

Author: Alastair George

The recent modest relapse and rise in volatility in global equity markets since the beginning of August has highlighted yet again the headwinds of the US/China trade standoff, slowing global economic momentum and Brexit. The moves in bond markets over the same period have arguably been more significant, reflecting fears the US Fed in particular is lagging behind events. The US 2y/10y yield curve slope is once again close to zero, indicating bond investors sense a coming recession.

Duke Royalty Limited (DUKE); announces operational update

The company also reported improved terms on its debt refinancing

Duke Royalty Limited provided an operational update prior to its full-year results for FY2019. The board expects a significant boost in the results over the prior year with revenue and cashflow from operations in line with market expectations.