Capital Access

This morning we have initiated coverage 🔍 📖 of Supermarket Income REIT (LSE: SUPR). #SUPR is a specialist property fund that seeks to achieve attractive levels of defensive, long-dated income from a portfolio of grocery stores, mainly in the UK although a recent move into France has provided diversification. While supermarket operators’ margins have been squeezed in the recent period of higher inflation, market growth remains solid, and consumers are beginning to trade back up to more premium products as they see their wages rise and price increases moderate. The REIT owns 74 supermarkets (57 of which are in the UK), with a strategic focus on ‘omnichannel’ assets offering a combination of in-person shopping, click-and-collect and online order fulfilment. #SUPR’s managers target strongly performing stores, usually among the top 25% of an operator’s trading locations. More than three-quarters of the portfolio by value is let to Tesco and Sainsbury’s, the UK’s two largest grocery players by market share, whose status as large, listed companies provides greater transparency over their trading performance, which remains strong in the evidence of recent results statements. Sarah Godfrey writes that investors could be 'bagging a bargain' as recent acquisitions prove the value opportunity in the grocery sector. To learn more about or arrange a meeting with #SUPR, please get in touch with our team. You can also find the note on Bloomberg, Refinitiv, FactSet, AlphaSense and Research Tree. The Association of Investment Companies (AIC) Alex MacEwen #investmenttrusts #REITs #realestate #equities #LSE #research #supermarkets

Read our latest update on Duke Capital Limited after H1 25 results were published this morning. #DUKE is on track to meet our FY25 forecasts with recurring cash revenue of £12.7m, up 4% YoY. The group deployed over £15m in new capital to its capital partners during the half. Post period end, Duke successfully completed an oversubscribed £23.5m equity raise, materially strengthening its balance sheet and intends future capital funding to be generated by way of a third-party capital model. Duke is trading at a c25% discount to book despite generating returns above its cost of capital with multiple further investment opportunities and the potential for larger equity returns as its portfolio matures. We recently published an initiation on Duke which is available here: https://lnkd.in/e6XdAugq #Research #Equities #UKEquities #SMEs #AIM #investmentresearch

Well worth a read of the note, or if you’re strapped for time, a watch of Sarah Godfrey’s video discussing why AEW’s AEW UK REIT PLC presents such a compelling opportunity.

Read our latest research after Seplat Energy Plc published the prospectus for its reverse takeover of MPNU, with the deal expected to close on Thursday, 12th December. This has been a long time coming and is transformational for the company, more than doubling production to 120kboed and nearly doubling 2P reserves to 0.9bnboe. The final payment on completion is $672m for a total payment of $800m including the deposit already paid. Funding is from Seplat’s existing cash and revolving credit facility, together with a new $300m three-year Advanced Payment Facility provided by the vendor, ExxonMobil. From a financial perspective, the deal trebles adj. EBITDA although the impact on cash flow is more muted, reflecting the high cash tax rate paid by MPNU as a result of limited investment over the last years. That represents part of the opportunity #SEPL now has to unlock value from this deal. #UKequities #equities #equityresearch #investmentresearch #resources #oil #gas #Nigeria #acquisition

Following a positive interim results announcement this morning from TheraCryf, we have published an updated research note highlighting the milestones from the first half including the Chronos acquisition and £0.9m equity raise. Read the full note below, or wherever you get your research. We recently published an initiation on #TCF which sets out the full investment thesis which you can read here: https://lnkd.in/er2EcA64. #UKequities #equities #equityresearch #AIM #healthcare #biotech

For any shareholders, potential shareholders , Colleagues or anyone else interested in learning more about Informa, Nick’s podcast is well worth a listen. It is a detailed and accurate analysis of the business and a fantastic summary of the journey we have been on over the last ten years and the many opportunities that lie ahead. Thanks to Nick Shenton for taking the time to talk about our Company and share his thoughts as an investor. And big thanks for being such a supportive shareholder!

We have just published our latest thematic research 📔 piece examining how investors can invest confidently in a time of such political uncertainty. With more than half the world’s population going to the polls in elections in 50 countries from Algeria to Venezuela, we have brought together a group of investment trust managers of both broad and specialist strategies to discuss what investors can expect in a changing global political landscape. Trusts included in are: BlackRock's UK Smaller Companies Trust (#BRSC), J.P. Morgan's US Smaller Companies Trust (#JUSC), F&C Investment Trust (#FCIT), International Biotechnology Trust Plc (#IBT), and BlackRock's Energy and Resources Income Trust (#BERI) Read the full note via our portal https://lnkd.in/e6RJPd3R or via the Research Tree platform. We are hosting these trusts - with Roland Arnold, Katie Magee, CFA, Paul Niven, Marek Poszepczynski, and Thomas Holl, - at the London Stock Exchange tomorrow, hosted by our very own investment trust head honcho; Alex MacEwen Thank you Sarah Godfrey for your insights! #UKSmallerCompanies #USSmallerCompanies #Commodities #NaturalResources #Biotechnology #investmenttrusts #equities #LSE #research

Read Sarah Godfrey's latest research note 🔍 📖 on AEW UK REIT PLC. #AEWU is a value-orientated UK REIT with a focus on acquiring mispriced assets and maximising income and capital upside through asset management initiatives. Since our last update, a profitable disposal, new lettings, rental uplifts and lease renegotiations have helped to drive an NAV total return of 10.1% and bring EPRA (European Public Real Estate Association) EPS back to fully covering the 2p quarterly dividend, which has been maintained for 36 consecutive quarters since launch in 2015 and represents a dividend yield of 8.5% on the current share price. Managers Laura Elkin and Henry Butt, supported by the resources of AEW, invest in smaller properties, almost wholly (95%) outside London, in strong commercial locations but with low capital values versus peers. The result is a higher-than-average income (net initial yield of 8.09%), with capital growth potential through active asset management and the exploration of alternative use values. There are currently 32 properties in the portfolio, let to a total of 131 tenants. In recent months, AEWU has extended its record of successful exits, with the disposal of Oak Park in Droitwich bringing the total properties sold since launch to 19, at an average premium of 36% to their purchase price. The REIT has a five-year annualised property total return of 9.6% as at 30 June 2024. There have been no new purchases in the past six months, but asset management activity has driven new lettings, including a 25-year lease to a bowling alley and entertainment operator in Dewsbury at a c 70% premium to the vacant ERV per square foot. This suggests there is further upside potential to the portfolio’s 30 September reversionary yield of 8.64%. AEWU’s successful record is reflected in multiple award wins, including being named Citywire’s best UK property fund (based on 3-year NAV total returns) for five years in a row (2020-24), as well as recognition in similar awards from Investment Week (in both 2023 and 2024), Shares Magazine (2022) and the MSCI UK Property Investment Awards (winning in the listed property funds category for 2023). AEWU’s current c 13% discount to NAV – although narrower than a few months ago – remains substantially wider than its historical average (it began 2024 in the low single digits), suggesting a potentially favourable entry point for longterm investors given its consistent record of superior total returns versus peers. To learn more about #AEWU, please get in touch with our team. You can also find the note on Bloomberg, Refinitiv, FactSet, AlphaSense and Research Tree. Doceo Group The Association of Investment Companies (AIC) Alex MacEwen #investmenttrusts #REITs #realestate #equities #LSE #research

This morning our Head of Research Colin Smith initiated coverage 📓 of Polarean (LSE: POLX). Despite initial FDA approval and grant of the requisite reimbursement codes, investor confidence in #POLX is low, as reflected in the current share price. However, revenue growth is already accelerating and is set to go hyperbolic as Polarean’s Xenon MRI platform meets a large unmet clinical need that cannot be satisfied by other methods. Crossing the bridge to profitability will require additional funding but there is a cash runway through 1Q26. Polarean has potential upside many times its current market cap, we calculate, based on observable deal metrics and our NPV analysis, while the valuation is so low, it could attract take-over interest, we believe. The purpose of AIM-listed Polarean is to revolutionise pulmonary medicine through direct visualisation of lung function, thereby radically improving patient care. You can read the full note below or on our portal: https://lnkd.in/e6BWF_iM #Research #Equities #UKEquities #AIM #investmentresearch #healthcare #LungMRI #PulmonaryImaging #XenonMRI #AdvancedDiagnostics

This week we hosted our annual Investor Pub Quiz, now in its 14th year, at the Old Doctor Butler’s Head in Moorgate. We were joined by buy-side managers to try and solve quizmaster Russell Taylor’s devious questions, the answers to which all ended in -ing. Could you work out what -ing is a space probe and an area of Radio Four’s shipping forecast? Congratulations to Grilled Fiske Plc for regaining their title with a nailbiting 1-point lead! Thank you also to all of the attendees for a very enjoyable evening. Alexander Valentine Colin Smith Faezeh Chizari Irina Gugoasa James Hartgill James Wood Maria Kacmarova Munkhtuul Gantumur Ollie Harris-st John Richard Feigen