19th Nov 2013 13:04
LONDON (Alliance News) - Duet Real Estate Finance Limited Tuesday said its net asset value increased to 99.8 pence per share on September 30, compared to 98.2 pence on June 30.
However, a UK healthcare business which borrowed GBP17.5 million from Duet has not met the expectations set out in its business plan, said the firm.
"It is the investment adviser's current expectation that such a reserve may amount to between 60-70% of the current value of the investment of GBP17.5m for the Master Fund, which would lead to a future reduction in the company's NAV from that as at September 30, 2013 of between 3.4 and 4.1 pence per ordinary share," Duet said in a statement.
The company also said it will pay a dividend of 5 pence per share for the third quarter, which ended on September 30.
The dividend consists of 2.2 pence received in connection with the ordinary course of business of the Master Fund. The remaining 2.8 pence was received as income following the receipt of cash proceeds from the realisation of the Master Fund's CMBS 2 investment in October 2013.
"The board anticipates that the company is on track to provide shareholders with dividends which, taken over the course of a twelve month period, will be in excess of 7% per annum based on the issue price, as adjusted for returns of capital," Duet said in a statement.
Duet shares were Tuesday quoted at 98.00 pence, down 0.3%.
By Samuel Agini; [email protected]; @samuelagini
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