City Overview: Regional REIT; Supreme; Kape Technologies

Real estate company Regional REIT today announced better interim revenue and earnings for the six months ending June 30, 2022.

The company, which has offices at Old Trafford overseeing properties across the North West, had net rental and property income of £28.944m, up from £25.369m in 2021. Pre-tax profits were £28.252m, down from £18.013m. Last year.

Total rents collected for the period amount to 98.7% of rents due, higher than 96.4% of rents collected for the equivalent period in 2021. Rent register was £72m, compared to £72.1 M£ as of December 31.

The first half dividend is recommended at 3.3p per share, compared to 3.2p the previous year. Regional REIT is targeting an annual dividend of 6.6p per share.

The company disposed of three properties located in Reading, Lincoln and Colchester which had completed their individual business plans for £7.2 million, as assessed on June 30, 2022.

Since July 1, 2022, the group has traded on 20 new leases, totaling 46,871 square feet. When fully occupied, these leases will provide £0.7m a year of rental income.

Stephen Inglis, CEO of London and Scottish Property Investment Management, the asset manager, said: “Regional REIT again delivered strong operational and financial performance despite the turmoil in the UK economy, and as the pandemic measures were raised across the country, we continued to benefit from serious investigations and growing occupation across the entire field.

“Across the portfolio, approximately 98.7% of all our tenants are now back in occupancy in some form, whether full-time or hybrid, the 14 tenants who have not returned to date, indicating that they intend to return shortly.

The easing of pandemic-related restrictions saw the normalization of rental collections with 98.7% collected for the six months to June 30, 2022, supporting our strong dividend payments.

He added: “During the period, capital continues to be recycled from non-core assets and properties where asset management plans have been completed, to ensure a net improvement in the initial yield of approximately 290 basis points between sales and acquisitions The high-quality properties acquired also present additional attractive asset management opportunities to further enhance shareholder value over the medium term.

“While inflation, the energy crisis and political shifts cast a shadow over the economy, our historical and ongoing focus on mitigating risk where possible has resulted in the group’s debt profile being fixed, hedged or capped at 100% Therefore, if interest rates rise even further as many are predicting, the weighted average cost of current borrowing will not exceed 3.5%.

“With the experience and expertise across the platform, underpinned by our defensive positioning across the portfolio, I am confident that I can tackle the broader macro challenges facing the economy.”

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Sandy Chadha, CEO, Supreme

Supreme, the Stretford-based manufacturer, supplier and brand owner of fast-moving consumer goods, led by CEO Sandy Chadha, delivered a strong performance for the year to March 31, 2022, shareholders will hear at the annual general meeting this morning.

Chairman, Paul McDonald, will tell shareholders: “Supreme delivered a strong performance in the fiscal year ended March 31, 2022, supported by organic growth in our key divisions, as well as the acquisition of highly complementary businesses. .

“We have continued to develop a large network of loyal customers across the retail space, and we are delighted with the progress we have made in increasing our retail penetration, as well as the positive impact of recent brand and product launches.

“Trading for the current year remains in line with market expectations, with the business well positioned to deliver on our strategic aspirations, supported by the recent acquisitions of vaping business Liberty Flights Limited and the purchase of the business and assets of Cuts Ice Limited and Flavor Limited Core.

“Our fast-growing Vaping category continues to support group growth. Along with the continued strong performance of our 88vape brand, including winning new customers in grocery and convenience retail, we remain committed to evolving our Vaping segment, as evidenced by the acquisitions of Liberty Flights in June. 2022, and Cuts Ice and Flavor Core in August 2022.

“Highly complementary and immediately profit-generating, the two transactions will add scale to the group and should generate additional cross-selling opportunities, while the integration of Cuts Ice will allow us to focus on expanding our European footprint, a integral component of our overall growth strategy.

“The rest of the group continues to operate in line with expectations and overheads continue to be closely managed.

“As the UK government and global health experts continue to endorse vaping as an effective tool to quit smoking, Supreme recognizes the important role the group will play in supporting a tobacco-free UK by continuing to offer credible and safer alternatives to nicotine consumption. By delivering great value, high quality products to market through our extensive distribution network, we remain well positioned to help mitigate the impact of the cost of living crisis on consumers.

“Looking ahead, we continue to explore further M&A opportunities to complement the group’s organic growth, and the Board remains confident in Supreme’s strategic ambitions, underpinned by the exciting prospects within Vaping.”

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Ido Erlichman

Isle of Man-based digital security and privacy software company Kape Technologies has raised $240.5m (£190.14m), through a placement of shares and a offering to the public, launched earlier this week.

The board said it was pleased with the very strong response to the fundraising from new and existing institutional shareholders, including a number of blue-chip institutional investors from the UK, Europe and Israel, and through PrimaryBid’s retail offering. The fundraising was heavily oversubscribed.

The net proceeds from the fundraising are intended to be used to accelerate the group’s growth through acquisitions, with Kape’s board believing that global market conditions have given rise to a number of opportunities attractive acquisition potential at attractive valuations.

Chief Executive Ido Erlichman said, “We are delighted to have received such endorsement of our business and our growth strategy from new and existing shareholders. We’ve worked extremely hard to create the world’s largest pure-play digital privacy software provider, but we believe we have a lot more we can achieve.

“This new capital injection will help us accelerate our organic growth plans while capitalizing on potential acquisition opportunities.

“I look forward to updating all of our key stakeholders on our continued progress as we seek to fully leverage our market-leading position, from which we provide our seven million customers with privacy and security solutions. state-of-the-art digital security.

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