Maitland/AMO Morning Monitor – Monday 30 September 2019

30th September 2019

What really matters... COVID-19

The FTSE, CAC and DAX are all expected to open up this morning.

In Asia, Chinese stocks were mixed today amidst continued speculation over the White House preventing Chinese companies from listing shares in the US.

Stock market moves

In other news

  • Whistleblower at the centre of the White House impeachment investigation is expected to testify "very soon"
  • DUP leader Arlene Foster warns Boris Johnson she is not prepared to see new border checks in the Irish Sea
  • New Zealand dollar falls as business confidence slumps to a decade-low

Politics today

  • Conservative Party conference continues in Manchester
  • Jeremy Corbyn, Jo Swinson, the SNP's Ian Blackford and figures from Plaid and the Independent Group meet in Westminster to discuss plans to halt a no-deal Brexit

Corporate announcements

* Maitland Client

Royal Dutch Shell Shell enhances quarterly disclosures
  • Integrated gas production is expected to be between 930 and 960 thousand barrels of oil equivalent per day.
  • Upstream production is expected to be between 2,600 and 2,650 thousand barrels of oil equivalent per day.
  • Downstream refinery availability is expected to be between 90% and 92%.
  • Corporate earnings excluding identified items are expected to be a net charge between $700 – 850m, this excludes the impact of currency exchange rate effects.
3i Infrastructure PLC Pre-close update
  • Highlights include the completion of the c.€210m acquisition of c.95% of Ionisos, alongside management. Ionisos is a leading owner and operator of cold sterilisation facilities servicing the medical, pharmaceutical and cosmetic industries.
  • The portfolio overall continues to perform in line with expectations.
  • The group’s newest investment, Joulz, has performed ahead of expectations in the first few months since acquisition.
  • Total portfolio income and non-income cash was £57m in the period.
  • Richard Laing, Chair, said: “Building on a strong performance in recent years, the Company has made a good start to the year, delivering a total shareholder return for the period of 8%. We are on track to meet our target return and dividend target for the year.
Grit Real Estate Income Group* Results for year ended 30 June 2019
  • The Company achieved a total return of 12.4% from Portfolio Performance, which included impacts of EUR:USD exchange rate movements and negative impacts of valuation trends of retail assets in particular. 
  • Dividends per share declared for the year ended 30 June 2019 of US$12.20cps (2018: US$12.19cps), equating to an annual dividend yield of SEM: 8.84%, JSE: 9.55% and LSE:8.81%.
  • EPRA net asset value per share grew to US$1.471 (2018: US$1.457).
  • Profit from operations increased 57.3% as a result of strong portfolio performance and acquisitive growth over the period.
  • Bronwyn Corbett, CEO, said: “Our portfolio delivered in line with expectations and the Company’s targets despite currency headwinds and significant corporate activity, including a successful listing and capital raise on the London Stock Exchange on 31 July 2018. Country and sector diversification and our proactive asset management initiatives have helped the Company to manage effectively the challenges faced in the retail sector across the continent. The quality of the Group’s diversified portfolio and our strong multinational tenant base have once again helped us to deliver a strong set of results and our solid foundation leaves us confident of continuing to deliver attractive returns over the short and longer term. We are excited about the identified opportunities we have to add attractive, accretive assets to the portfolio at prices that create value for our shareholders and that will underpin our EPRA NAV growth and our progressive dividend policy over the medium term.”
Tritax EuroBox PLC* EUR125m incremental increase in bank facility
  • The Board of Tritax EuroBox plc, which invests in Continental European logistics real estate assets, is pleased to announce it has agreed a €125m increase to its existing €300m unsecured revolving credit facility.
  • Bank of China has agreed to provide a new €100m commitment to the enlarged facility and Banco Sabadell has agreed to provide a new €25m commitment, alongside existing lenders Bank of America Merrill Lynch, HSBC and BNP Paribas.
  • This increase is on the same terms as the existing facility, with an opening margin of 1.55% and a maturity date of October 2023 which can be extended, subject to lender support, by two further years.  €235.5m of the facility is currently drawn.
  • Mehdi Bourassi, Finance Director, said: “We are delighted that Bank of China and Banco Sabadell have joined our existing banking syndicate in supporting us through the next phase of our financing strategy. The increased commitment will provide additional flexible liquidity to pursue investment opportunities in our pipeline and grow our portfolio in line with the Company’s investment strategy. This incremental increase in our bank facility and these two additions to our relationship lender group underline the strength of support for the Company and our growth strategy as well as the robust fundamentals of the Continental European logistics real estate sector.”