Duet Real Estate Finance Limited NAV,Portfolio Update, Invest Performance & Outlook (1729Q)

TIDMDREF

RNS Number : 1729Q

Duet Real Estate Finance Limited

25 November 2016

25 November 2016

Duet Real Estate Finance Limited

("DREF" or the "Company")

NAV, Portfolio Update, Investment Performance and Outlook

NAV

As announced previously, at 30 June 2016, the unaudited net asset value ('NAV') of the Company was 14.60 pence per Ordinary Share. During the quarter to 30 September 2016, the Company returned an equivalent of 7.67 pence per Ordinary Share in the form of an issue and redemption of B shares. We are now pleased to advise that at 30 September 2016, the unaudited NAV was 6.92 pence per Ordinary Share.

Portfolio Update

The portfolio of the Master Fund as at 30 September 2016 consisted of 4 assets totalling GBP14.1m 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 59.0% (including payment-in-kind interest accrued where applicable), along with blended cash pay and payment-in-kind coupons of 6.16% and 2.47% 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            68%       UK                32% 
 Healthcare         32%       Netherlands       18% 
                              Belgium           50% 
 
 
 
 Portfolio      Asset         Country       Balance       Description 
  Investment     Type                       (including 
                                            accrued 
                                            interest) 
 Loan 5         Healthcare    United        GBP0.0m(1)    mezzanine and senior 
                               Kingdom                     loan secured by 
                                                           a portfolio of 
                                                           care homes 
 Loan 10        Offices       Netherlands   EUR3.3m       senior loan backed 
                                                           by an office and 
                                                           warehouse portfolio 
                                                           of 13 assets 
 Loan 11        Offices       Belgium       EUR8.5m       mezzanine loan 
                                                           secured by an office 
 CMBS 1         Healthcare    United        GBP4.5m       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 GBP66.5m. The total value to paid-in ratio (based on capital raised) of the Company at 30 September 2016 was 1.193.

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 87.4% 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, if any after the Company's expenses, by way of dividend.

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. We remain hopeful that the Master Fund will be fully realised within the coming months, and therefore that the Company will have distributed the majority of its remaining assets and income shortly thereafter.

For further information, please contact:

   DRC Capital LLP                        [phone] 

Dale Lattanzio

Cyrus Korat

   Stifel Nicolaus Europe Limited                 [phone] 

Neil Winward

Mark Bloomfield

Tunga Chigovanyika

This information is provided by RNS

The company news service from the London Stock Exchange

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November 25, 2016 03:44 ET (08:44 GMT)