Duet Real Estate Finance Limited NAV,Portfolio Update, Invest Performance & Outlook (3202D)
06 July 2016 - 1:17AM
UK Regulatory
TIDMDREF
RNS Number : 3202D
Duet Real Estate Finance Limited
05 July 2016
5 July 2016
Duet Real Estate Finance Limited
("DREF" or the "Company")
NAV, Portfolio Update, Investment Performance and Outlook
Dividend and NAV
As at 31 December 2015, the audited net asset value ('NAV') of
the Company was 29.25 pence per Ordinary Share. During the quarter
to 31 March 2016, the Company returned an equivalent of 14.93 pence
per Ordinary Share in the form of an issue and redemption of B
shares. At 31 March 2016, the unaudited NAV was 14.48 pence per
Ordinary Share.
Portfolio Update
The portfolio of the Master Fund as at 31 March 2016 consisted
of 5 assets totalling GBP38.9m 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 68.6% (including payment-in-kind interest accrued where
applicable), along with blended cash pay and payment-in-kind
coupons of 6.53% and 4.63% 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:
Offices 88% UK 67%
Healthcare 12% Netherlands 15%
Belgium 18%
Portfolio Asset Country Balance Description
Investment Type (including
accrued
interest)
Loan 2 Offices United GBP21.7m mezzanine loan
Kingdom secured by an office
Loan 5 Healthcare United GBP0.0m(1) mezzanine and senior
Kingdom loan secured by
a portfolio of
care homes
Loan 10 Offices Netherlands EUR7.6m senior loan backed
by an office and
warehouse portfolio
of 23 assets
Loan 11 Offices Belgium EUR8.2m mezzanine loan
secured by an office
CMBS 1 Healthcare United GBP4.8m securitisation
Kingdom 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 GBP76.0m and has paid dividends totalling
GBP19.3m and returned capital totalling approximately GBP61.0m. The
total value to paid-in ratio (based on capital raised) of the
Company at 31 March 2016 was 1.192.
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.
As the underlying portfolio of the Master Fund continues to be
realised, and with 80.2% of the original capital raised already
returned, your Board anticipates that the Company will continue to
make distributions of capital via B Share issues and redemptions,
together with payments of income by way of dividend.
The Master Fund seeks to ensure that all cash flows arising from
non-GBP investment positions are appropriately hedged, so
anticipated investment returns should not be unduly affected by FX
rate volatility. In addition, the underlying asset quality and
conservative debt metrics leave the Master Fund in a robust
position, with no current significant concern over the
credit-worthiness and recoverability of the portfolios'
investments.
In light of the recent UK EU Referendum result we remain hopeful
that the Master Fund will be fully realised within the next seven
months, and therefore the Company will have distributed the
majority of its remaining assets and income.
For further information, please contact:
DRC Capital LLP +44 (0)20 7042 0600
Dale Lattanzio
Cyrus Korat
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Neil Winward
Mark Bloomfield
Tunga Chigovanyika
This information is provided by RNS
The company news service from the London Stock Exchange
END
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