Duet Real Estate Finance Limited Dividend, NAV, Portfolio Update, Return of Capital (5348O)
May 28 2015 - 8:57AM
UK Regulatory
TIDMDREF
RNS Number : 5348O
Duet Real Estate Finance Limited
28 May 2015
28 May 2015
Duet Real Estate Finance Limited
(the "Company")
Dividend, NAV, Portfolio Update, Return of Capital, Investment
Performance, Outlook and Buyback Programme
Dividend and NAV
The board of the Company is pleased to announce a dividend of
1.00 pence per Ordinary Share in respect of the quarter to 31 March
2015, payable on 26 June 2015 to those Shareholders on the register
as at 5 June 2015. Dividends to date, including this distribution,
paid on shares issued at the time of the Company's Initial Public
Offering, total 25.45 pence per share.
As at 31 December 2014, the audited net asset value ('NAV') of
the Company was 51.29 pence per share. During the quarter to 31
March 2015, the Company returned an equivalent of 14.15 pence in
the form of an issue and redemption of B shares, in addition to
paying a dividend of 1.25 pence. At 31 March 2015, the unaudited
NAV was 36.92 pence per Ordinary Share.
Portfolio Update
The portfolio of the Master Fund as at 31 March 2015 consisted
of 8 assets totalling GBP99.0m of principal and accrued interest,
after impairments, together with the value of foreign exchange
hedging derivatives. The portfolio had a blended loan to value
ratio of 65.9% (including payment-in-kind interest accrued where
applicable), along with blended cash pay and payment-in-kind
coupons of 7.93% and 3.54% respectively. The portfolio provides the
income and total return as targeted in the Company's prospectus,
whilst maintaining a resilient risk profile, and is detailed in the
tables below.
Asset Types: Region:
Offices 33% UK 33%
Hotels 35% Germany 54%
Retail 20% Netherlands 6%
Healthcare 5% Belgium 7%
Mixed 7%
Portfolio Asset Type Country Balance (including Description
Investment accrued interest)
Loan 2 Offices United Kingdom GBP20.7m mezzanine loan secured
by an office
Loan 5 Healthcare United Kingdom GBP0.0m(1) mezzanine and senior
loan secured by a portfolio
of care homes
Loan 7 Retail Germany EUR23.6m mezzanine loan secured
by a portfolio of 45
retail properties (now
realised)
Loan 9 Mixed United Kingdom GBP7.4m senior loan secured
by a business park
Loan 10 Offices Netherlands EUR7.7m senior loan backed by
an office and warehouse
portfolio of 23 assets
Loan 11 Offices Belgium EUR7.9m mezzanine loan secured
by an office
Loan 12 Hotels Germany EUR41.0m mezzanine loan backed
by a portfolio of 20
hotels
CMBS 1 Healthcare United Kingdom GBP4.8m securitisation backed
by a portfolio of private
hospitals
(1) after impairment.
Return of Capital
As previously announced on 24 April 2015, full repayment of all
principal and accrued interest has been received on the Master
Fund's German Retail loan (Loan 7), earning returns in-line with
its investment criteria. The Company's share of proceeds from Loan
7 realised by the Master Fund totals GBP4.4 million, equivalent to
5.98 pence per share. Furthermore, the Company has received notice
from the General Partner of the Master Fund that it has cancelled
GBP0.7 million of uncalled commitment reflecting the reduced
residual value of the investment portfolio as a consequence of
recent realisations and distributions.
The Company intends to distribute its share of the realised
proceeds pertaining to capital received from the Master Fund,
including the cash held by the Company no longer required to fund
the uncalled commitment referred to above, after the deduction of
costs and expenses of this distribution along with amounts to be
withheld for working capital and for any continuing purchases of
the Company's own shares under the Buyback Programme, as a return
of capital via an issue of redeemable B shares to existing
shareholders and subsequent redemption of those shares pro rata to
their holding at the time of the relevant issue.
Investment Performance and Outlook
Whilst no longer required to release Interim Management
Statements, the board intends to continue to update Shareholders on
the Company's investment performance and outlook alongside each NAV
update.
The Company raised GBP76.0m and has, including the dividend
payable on 26 June 2015, paid dividends totalling GBP18.8m and
returned capital totalling approximately GBP42.9m. The total value
to paid-in ratio (based on capital raised) of the Company at 31
March 2015 was 1.160.
The Investment Adviser anticipates the current trend of earlier
repayments to continue as increased liquidity in the financing
markets, the ongoing deleveraging through amortisation of most
transactions and the generally rising trend in asset values
encourage borrowers to refinance or sell the assets that back the
remaining loans in the Master Fund.
Having returned 56.4% of the original capital raised, the board
anticipates that the forward-looking income distribution profile of
the Company may be subject to some irregularity driven by the
timing of the realisations of the remaining loans in the Master
Fund. Buyback Programme
The Company renewed on 18 May 2015 the authority given to Stifel
Nicolaus Europe Securities Limited irrevocably to continue to
buy-back shares in the Company on its behalf but independently of,
and uninfluenced by, the Company. This enables the Buyback
Programme to continue during the Company's close period leading up
to the announcement of its results for the interim period ending 30
June 2015 as permitted by UKLA Listing Rule 12.2.1(2). The maximum
price for a buyback is set at no more than the higher of: (i) 105
per cent. of the average of the middle market quotations, taken
from the London Stock Exchange Daily Official List, until the
Company's Annual General Meeting to be held on 10 June 2015 and
subsequently from an appropriate market-recognised source, for the
five business days immediately preceding the day on which the
shares are purchased and (ii) the amount stipulated by Article 5(1)
of the Buy-back and Stabilisation Regulation 2003. No shares will
be bought back unless they are at a discount to the assumed NAV per
share at the relevant time.
Any shares acquired pursuant to the Buyback Programme will be
cancelled or held in treasury and the acquisition will be notified
to a Regulatory Information Service in accordance with LR
12.4.6.
For further information, please contact:
DRC Capital LLP +44 (0)20 7042 0600
Dale Lattanzio
Cyrus Korat
Stifel Nicolaus EuropeLimited +44 (0)20 7710 7600
Neil Winward
Mark Bloomfield
Tunga Chigovanyika
This information is provided by RNS
The company news service from the London Stock Exchange
END
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