23rd Nov 2015 11:53
23 November 2015
Duet Real Estate Finance Limited
("DREF" or the "Company")
Dividend, NAV, Investment Performance and Outlook
Dividend and NAV
The board of the Company is pleased to announce a dividend of 0.30 pence per Ordinary Share in respect of the quarter to 30 September 2015, payable on 24 December 2015 to those Shareholders on the register as at 4 December 2015. Dividends to date (including this distribution) on shares issued at the time of the Company's Initial Public Offering total 26.05 pence per share.
At 30 September 2015, the unaudited NAV was 27.52 pence per Ordinary Share. (30 June 2015: 27.36 pence per share).
Portfolio Update
The portfolio of the Master Fund as at 30 September 2015 consisted of 6 assets totalling £74.7m 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 70.9% (including payment-in-kind interest accrued where applicable), along with blended cash pay and payment-in-kind coupons of 7.24% and 4.29% 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 | 45% | UK | 35% |
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Hotels | 48% | Germany | 48% |
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Healthcare | 7% | Netherlands | 8% |
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Belgium | 9% |
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Portfolio Investment | Asset Type | Country | Balance (including accrued interest) | Description | ||||
Loan 2 | Offices | United Kingdom | £21.1m | 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 10 | Offices | Netherlands | €7.7m | senior loan backed by an office and warehouse portfolio of 23 assets | ||||
Loan 11 | Offices | Belgium | €8.1m | mezzanine loan secured by an office | ||||
Loan 12 | Hotels | Germany | €41.9m | mezzanine loan backed by a portfolio of 20 hotels | ||||
CMBS 1 | Healthcare | United Kingdom | £4.8m | 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 24 December 2015, paid dividends totalling £19.3m and returned capital totalling approximately £49.9m. The total value to paid-in ratio (based on capital raised) of the Company at 30 September 2015 was 1.171.
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.
Having returned 66.1% of the original capital raised, the board anticipates that the forward-looking income distribution profile of the Company may fluctuate driven by the timing of the realisations of the remaining loans in the Master Fund.
With regard to the profile of the remaining investments, and as expected, the General Partner of the Master Fund has elected to extend the life of the Fund by one year and one month to 22 January 2017 (the second of two extensions available to the General Partner at its discretion).
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