Maitland/AMO Morning Monitor – Monday 11 February 2019

11th February 2019

Market Information

The FTSE 100, French CAC and German DAX are all set to open up this morning.

In Asia, Chinese shares whipsawed on Monday after they resumed trading following a week-long Lunar New Year holiday. MSCI's broadest-index of Asia-Pacific shares, excluding Japan, was around 0.1% lower.

In the news

  • Theresa May offers concessions as she seeks Labour support to break the Brexit impasse
  • Official figures expected to show UK quarterly growth rate has halved
  • Italy draws up plans for a bilateral trade agreement with the UK in the event of a no-deal Brexit

Top Financial Announcements

* Maitland Client

Tritax Big Box REIT PLC* Results of the Issue
  • The Board of Directors announce that the Company has successfully raised approximately £250m (before expenses) through the Issue of 192,291,313 New Ordinary Shares at the Issue Price of 130 pence per share.
  • The net proceeds of the Issue will be used by the Company to fund the acquisition of an 87% economic interest in db Symmetry and further investments in accordance with its Investment Policy.  The Acquisition is expected to complete on 19 February 2019.
  • Sir Richard Jewson KCVO, JP, Non-executive Chairman, said: “The Board is pleased with the response from the Company’s Shareholders and the strength of their support to complete this fund raising successfully.  It enables the Company to move forward with the Acquisition of db Symmetry which represents a significant opportunity for the future further growth of the Company, investing in assets on attractive terms and helping to ensure we maintain the high quality nature of our portfolio. The Acquisition is expected to contribute materially to the Company’s ability to continue to deliver strong earnings growth and a progressive dividend policy as well as significant valuation gains as these assets move through development to become income producing. On behalf of the Board and the Manager, I would like to thank Shareholders for their support.”
  • Colin Godfrey, Partner of Tritax, said: “The Acquisition provides the Company with access to a large portfolio of attractive and high quality development opportunities over the longer term that we, along with the Board, believe can be delivered at a yield on cost significantly higher than is currently available in the investment market from acquisitions of built and let or pre-let forward funded assets. This means that we expect to continue to deliver new, high quality assets which have the potential to attract the highest quality institutional-grade tenants over the short and longer term.”
Round Hill Capital* Successful refinancing of its Nordic Logistics and Industrial Real Estate Portfolio with new loan facility from a leading global insurance institution
  • Round Hill Capital together with StepStone Group Real Estate LP today announce that they have completed the multi-currency refinancing of the acquisition debt secured against their Nordic logistics and industrial real estate portfolio, which comprises 327,649 sqm across 13 assets in Sweden, Norway and Denmark.
  • The new senior loan, with a leading global insurance institution, is for a five year term and the facility also covers financing for all currently identified capital expenditure projects, which are highly value accretive.
  • Michael Bickford, founder and CEO of Round Hill Capital, said: “We are pleased to have secured this very attractive debt refinancing, which saw strong appetite from institutional debt investors and offers Round Hill Capital funding diversification on highly competitive terms as well as substantial operational flexibility. We welcome this leading global insurance institution as a supportive partner to Round Hill and we look forward to continue working with them over the long term. After only two years of ownership, we are very pleased to be ahead of our original expectations on the Portfolio, which provides both stable rental income and higher performing repositioning and development opportunities which are expected to add further value. We continue to look to make further investments in logistics property in the Nordic region and across Europe in line with our existing growth strategy.”
Polymetal International PLC Feasibility Study results and construction approval for POX-2
  • The Board of Polymetal International plc approved the POX-2 project on the basis of the recently completed Feasibility Study (FS) and authorised the immediate start of construction.
  • Polymetal envisages the end of commissioning and first production during Q3 2023 and full ramp-up by end of Q4 2023.
  • Vitaly Nesis, Group CEO, said: “POX-2 leverages our core technical capabilities and creates substantial value. It also fully de-risks our business model by eliminating dependence on concentrate off-take markets. Emerging trends in the global gold mining industry make POX-2 a crucial element of the Company’s long-term strategy”.
Primary Health Properties PLC Portfolio Update
  • Primary Health Properties PLC announces that it has acquired the entire issued share capital of Chapeloak Investments Limited for a total consideration of £5.425m.
  • In addition, a wholly owned subsidiary of PHP has contracted to provide development funding for the construction of a purpose-built medical centre in Langwith, Derbyshire for a total cost of £1.8m which will be transferred to PHP upon its completion.
  • Harry Hyman, Managing Director, said: These transactions further grow the portfolio, generating shareholder value by adding to the Group’s rent roll and extending its WAULT.  They will also benefit not only our shareholders but also our other stakeholders in delivering modern fit for purpose facilities for the provisions of local healthcare services that are easily adapted to meet changing healthcare needs.  We have a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio and to support the healthcare systems in these markets through the provision of modern, primary care infrastructure.”
Acacia Mining PLC Full Year 2018 Results
  • Revenue decreased 12% to $663.789m (2017: $751.515).
  • Gross profit decreased to $219.415m (2017: $293.068).
  • Peter Geleta, Interim CEO, said: “I am pleased to report that during 2018 we successfully stabilised the business with our focus on operational performance across all three mines. We achieved gold production of 521,980 ounces for the year, substantially ahead of our initial 2018 production guidance of 435,000 to 475,000 ounces, and we maintained a strong cost discipline achieving an all-in sustaining cost of US$905 per ounce sold, well below the full year guidance range of US$935 to US$985 per ounce.”