13th Feb 2015 14:01
13 February 2015
Duet Real Estate Finance Limited
("DREF" or the "Company")
Dividend, NAV, Investment Performance, Outlook and Buyback Programme
Dividend and NAV
The board of the Company is pleased to announce a dividend of 1.25 pence per Ordinary Share in respect of the quarter to 31 December 2014, payable on 20 March 2015 to those Shareholders on the register as at 27 February 2015. Dividends to date, (including this distribution), on shares issued at the time of the Company's Initial Public Offering, total 24.45 pence per share.
As at 30 September 2014, the unaudited net asset value ('NAV') of the Company was 64.78 pence per share. During the quarter to 31 December 2014, the Company returned an equivalent of 14.34 pence in the form of an issue and redemption of B shares, in addition to paying a dividend of 1.00 pence. At 31 December 2014, the unaudited NAV was 51.29 pence per Ordinary Share. The Company returned a further 14.15 pence per share in the form of an issue and redemption of B shares in January 2015. Adjusting for the January return of capital and March dividend on a pro forma basis, but not adjusting for any movements in the period from 31 December 2014, NAV per share would have been 35.89 pence.
Portfolio Update
The portfolio of the Master Fund as at 31 December 2014 consisted of 8 assets totalling £99.3m 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 65.6% (including payment-in-kind interest accrued where applicable), along with blended cash pay and payment-in-kind coupons of 7.99% and 3.49% 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: |
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Offices | 33% | UK | 33% |
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Hotels | 35% | Germany | 54% |
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Retail | 20% | Netherlands | 6% |
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Healthcare | 5% | Belgium | 7% |
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Mixed | 7% |
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Portfolio Investment | Asset Type | Country | Balance (including accrued interest) | Description | ||||
Loan 2 | Offices | United Kingdom | £20.3m | mezzanine loan secured by an office | ||||
Loan 5 | Healthcare | United Kingdom | £0.0m(1) | mezzanine and senior loan secured by a portfolio of care homes | ||||
Loan 7 | Retail | Germany | €22.9m | mezzanine loan secured by a portfolio of 45 retail properties | ||||
Loan 9 | Mixed | United Kingdom | £7.4m | senior loan secured by a business park | ||||
Loan 10 | Offices | Netherlands | €7.8m | senior loan backed by an office and warehouse portfolio of 23 assets | ||||
Loan 11 | Offices | Belgium | €7.8m | mezzanine loan secured by an office | ||||
Loan 12 | Hotels | Germany | €40.7m | mezzanine loan backed by a portfolio of 20 hotels | ||||
CMBS 1 | Healthcare | United Kingdom | £4.7m | securitisation backed by a portfolio of private hospitals | ||||
(1) after impairment.
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 £76.0m and has, including the dividend payable on 20 March 2015, paid dividends totalling £18.1m and returned capital totalling approximately £42.9m. The total value to paid-in ratio (based on capital raised) of the Company at 31 December 2014 was 1.150.
The board anticipates that the Company remains on track to provide Shareholders with distributions which, taken over the course of a twelve month period, will be in excess of 7 per cent per annum, based on the issue price as adjusted for returns of capital and impairments.
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.
Buyback Programme
The Company renewed on 20 November 2014 the authority given to Oriel 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 to continue during the Company's close period leading up to the announcement of its annual results for the year ended 31 December 2014 as permitted by UKLA Listing Rule 12.2.1(2). The maximum price for the 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, 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.
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
Oriel Securities Limited +44 (0)20 7710 7600
Neil Winward
Mark Bloomfield
Tunga Chigovanyika
Related Shares:
DREF.L