9th Nov 2016 10:23
LONDON (Alliance News) - Pacific Industrial & Logistics REIT PLC on Wednesday published its first set of interim results since joining AIM, declared its first dividend, launched an equity raise and appointed two new board members including a new chairman.
The real estate investment trust, which focuses on smaller sized properties, listed on AIM on April 13 and raised GBP12.2 million from its initial public offering, with all of that invested immediately in a portfolio of smaller lot size industrial and logistics properties in the Midlands.
A GBP15.5 million credit facility from Santander was also part-used to complete the investments.
At the end of September, it had 11 properties on its books and the market value of that suite of properties stands at GBP29.9 million, which it said was 10.7% higher than the value at the IPO.
Operating profit between April 13 and the end of September was GBP3.1 million, with total comprehensive income of GBP2.6 million. Net earnings per share were 25.29 pence.
Adjusted EPS stood at 123.87 pence, up 24% from the IPO price of 100.0 pence.
"We are delighted to report that the company has performed well in the interim period to 30 September 2016, through upward-only rent reviews and active asset management in a sector that continues to benefit from strong fundamentals post-EU referendum," said Chief Executive Richard Moffitt.
Pacific Industrial said it has conditionally raised GBP11.1 million, as it also shuffled its board and declared its interim dividend payment.
The company said 11.1 million shares have been issued under a placing and subscription priced at 100.0 pence each. The funds are to be used for future acquisitions and to reduce gearing levels.
The shares are equal to 51.88% of the enlarged issued share capital.
Pacific Industrial shares were untraded on Wednesday, last trading at 107.0 pence, meaning the issue price is at a discount of about 6.5%.
Nigel Rich has been appointed as non-executive chairman of Pacific Industrial while Mark Johnson has been appointed as a non-executive director. Rich was the former chairman of property developer Segro PLC and Johnson was the chief executive and co-founder of Pacific Investments.
Both will take up their roles at the start of 2017.
Pacific Industrial also said it will pay an interim dividend of 3.0 pence per share, covering the period from incorporation to the end of September, it said.
At the time of the company's admission to AIM, it stated that it intended to declare dividends on a half-yearly basis in March and September, subject to certain conditions, but said it has the rght to withdraw the dividend if the placing and subscription is not approved by shareholders at a meeting on November 25.
Pacific Industrial only pays dividends if its loan-to-value is 50% or less, and therefore it may withdraw the dividend if the equity raise is not approved or if its loan-to-value exceeds 50% after it reduces its debt using some of the proceeds. It is aiming to get gearing down to 45%, it said, but did not reveal what gearing currently stands at.
"The company is currently engaged in various stages of negotiations on potential acquisitions that meet the investment objective and investing policy. The management team believe these assets are complementary to the existing portfolio of the company with low capital values in well positioned logistical locations. The company expects to have invested the net proceeds of the placing and the subscription by the first quarter of 2017," said the company.
By Joshua Warner; [email protected]; @JoshAlliance
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