The Board of Directors of the Company has declared an interim dividend of 1.34 pence per share for the three-month period to 30 September 2024. The dividend will be paid on 19 December 2024 to shareholders on the register as at 22 November 2024. The ex-dividend date is 21 November 2024.
As noted in the previous dividend announcement, the dividend in respect of this period is materially lower than the prior quarter. The 1.34 pence per share dividend represents 1.04 pence generated by the net revenue return earned for the three-month period to 30 September 2024 and 0.30 pence from existing revenue reserves.
In future periods, dividends will be no less than 85% of earned net revenues which, as previously noted, are likely to fall as the portfolio composition changes.
The Company has elected to designate all of the interim dividend for the three-month period to 30 September 2024 as an interest distribution to its shareholders, thereby “streaming” income from interest-bearing investments into dividends that will be taxed in the hands of shareholders as interest income. No income tax will therefore be deducted at source from this, or from future interest distributions.
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The dividend has been reduced and the yield will fall to around 10% and continue to fall. The payment was expected in January but will now be paid this year.
Regional REIT Limited (LSE: RGL), the regional property specialist, is pleased to announce a trading update for the three-month period from 1 July 2024 to 30 September 2024 and a dividend declaration for the third quarter of 2024. Additionally, the Group provides an update on its positive ESG progress, with a continued strengthening of its EPC and GRESB rating.
The Company is now on a much stronger financial footing, following the successful £110.5m equity fund raise, which was completed in Q3 2024 and strongly supported by shareholders. Proceeds were used for the repayment of the £50m retail bond, and of the remaining net proceeds: £26.3m is in the process of being used to reduce bank facilities; and £28.4m will be used in repositioning the portfolio to capture the accretive opportunities from capital expenditure, enhancing earnings in the near term and value in the mid to long-term, further underpinning dividend payments going forward.
Q3 2024 Trading Update
The Group traded well during the period under review and made good progress, completing a number of lease renewals during Q3 2024. Retention remained high with 77.7%* of rent roll up for renewal remaining let.
* Includes tenants that are currently holding over, lease renewals, and the acquisition of new replacement tenants.
Rental uplift of 9.3% against December 2023 ERVs has been achieved. Since 1 January 2024, the Group has exchanged on 55 leases to new tenants totalling 161,668 sq. ft. providing £2.6m per annum (“pa”) of rental income when fully occupied. Of this total, 11 leases have been exchanged since 30 June 2024, totalling 39,536 sq. ft. and will provide £0.5m pa of additional rental income.
Capital expenditure programme highlights
The deployment of the capital raise proceeds into capital accretive projects has commenced with eight projects in course for a total investment of £15.0m.
A full refurbishment of Ashby Park, Ashby De La Zouch has recently completed at a cost of £2.7m. These works have already led to a new 10-year lease with Ashfield Healthcare Ltd. and Q Collection (UK) Ltd. generating an aggregate £0.5m pa rental income.
Q3 2024 Dividend Declaration
As previously indicated, the Company is pleased to declare that it will pay a dividend of 2.20 pence per share (“pps”) for the period 1 July 2024 to 30 September 2024. The entire dividend will be paid as a REIT property income distribution (“PID”).
The key dates relating to this dividend are:
Ex-dividend date
21 November 2024
Record date
22 November 2024
Last day for DRIP election
17 December 2024
Payment date
10 January 2025
Prior to the capital raise and share consolidation** the Company declared a Q1 2024 dividend of 1.2pps. Post the capital raise and subsequent share consolidation the Company declared a Q2 2024 dividend of 2.2pps on 10 September 2024 and is now declaring a Q3 2024 dividend of 2.2pps. The Board will target a dividend of 2.2pps for Q4 2024.
**On 29 July 2024, the shares in issue were consolidated by ratio of 1 new share for every 10 shares.
The level of future payment of dividends will be determined by the Board having regard to, among other factors, the financial position and performance of the Group at the relevant time, UK REIT requirements, the interest of shareholders and the long-term future of the Company.
“Average UK house prices nudged up 0.2% in October, continuing the positive momentum of recent months,” Ms Bryden said. “This brought the annual growth rate to 3.9%, slightly lower than in September.
“The average property price has reached a record high of £293,999, surpassing the previous peak of £293,507 set in June 2022, towards the end of the pandemic-era ‘race for space’.”
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The Schroder European Real Estate Investment t (LSE:SERE) is another top UK share that looks incredibly cheap to me.
At 69.2p per share, the business trades at a whopping 32.3% discount to its estimated net asset value (NAV) per share. This leaves scope for significant share price gains as eurozone interest rates fall, boosting asset values alongside economic activity in the region.
The trust owns retail, office, and industrial properties across Germany, France, and the Netherlands. And it focuses on attractive cities with strong economies and infrastructure (like Berlin and Paris) that can deliver long-term returns.
As a real estate investment trust (REIT), it must pay at least 90% of annual rental profits out by way of dividends. This could make it a great option for investors seeking large and reliable dividend income.
Indeed, the dividend yield here sits at a giant 8.4%.
The trust’s high exposure to cyclical sectors leaves it vulnerable to economic downturns. But on balance, I think it’s an attractive stock to consider, and especially given its current discount.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.
We asked our freelance writers to reveal the top US stocks they’d buy in November.
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Every month, we ask our freelance writers to share their top US stocks with investors — here’s what they rate highly for November!
CrowdStrike Holdings
What it does: CrowdStrike operates a cloud-based cybersecurity platform that leverages AI to continuously evolve and defend businesses.
By Zaven Boyrazian.
CrowdStrike Holdings (NASDAQ:CRWD)recently found itself in the media spotlight, and not for a good reason. A botched software update triggered a global outage of IT systems that impacted airlines, medical institutions, and even banks.
Unsurprisingly, this disaster resulted in a significant drop in the CrowdStrike share price. Yet even though the bug that triggered the outage has been fixed with new protocols in place to prevent a repeat, the stock still trades almost 20% lower.
To be fair, there is some justification behind investor concern. Delta Airlines is already in the process of filing a lawsuit, and more legal action could be coming down the pipe. However, when looking at the long-term potential, this may ultimately be a short-term hiccup.
After all, this wasn’t a failure of cybersecurity. In fact, the group’s Falcon platform continues to be one of the best in the world based on the results of the latest SC Awards Europe. Considering the group’s explosive growth and trajectory, this looks like a buying opportunity in my eyes, although volatility is expected.
Zaven Boyrazian does not own shares in any of the companies mentioned.
Netflix
What it does: Netflix is an entertainment streaming service that provides on-demand tv shows, movies and documentaries.
By Harshil Patel : Netflix (NASDAQ:NFLX)is a streaming giant that has over 280m paid subscribers in over 190 countries.
It recently experienced a jump in the number of subscribers in Q3 of 2024, adding 5.1m new users. This along with profit for the quarter beat market expectations.
Netflix has an excellent business model that benefits from a network effect. It has reached a scale that keeps subscribers locked in. More investment in new shows creates content, and more content keeps users hooked.
This was evidenced recently when it changed its pricing model to crack down on password sharing. Its ability to raise prices demonstrates pricing power too. This is a key attribute of a high-quality business.
With Amazon, Disney and Apple all offering streaming services, there is ample competition for Netflix to worry about. Also, raising prices is great for its profits, but there will be a limit to what users are prepared to pay. Getting the balance right will be key to maximising its profitability.
Harshil Patel does not own shares in Netflix.
Nu Holdings
What it does: Nu Holdings is the parent company of Nubank, the leading digital bank in Latin America.
By Ben McPoland. A stock I plan to buy in November is Nu Holdings (NYSE: NU).
While still largely unknown in the West, Nu is Latin America’s largest branchless bank, offering customers loans, insurance, bill payments, stock investing, and more.
Incredibly, it now has 105m users, despite only operating in three countries (Brazil, Colombia, and Mexico). Over half the adult population of Brazil use the app, and it has added more customers in the past 12 months than the five largest Brazilian incumbents combined.
Of course, as the firm expands its credit portfolio, it opens itself up to an increase in non-preforming loans. This is worth monitoring.
Despite this risk, Nu Holdings looks like a high-quality growth stock. Revenue has soared from $1.7bn in 2021 to a forecast $10.3bn this year. Profits are expected to grow above 50% over the next five years. Its return on equity (ROE) is 28%, one of the highest in the industry.
It’s led by founder-CEO David Vélez, a former partner at venture capital firm Sequoia. With tens of millions still underbanked across Latin America, the growth opportunity appears massive.
Finally, the stock isn’t grossly overvalued. At $14, it’s trading at 23 times forward earnings.
Ben McPoland does not have a position in any stocks mentioned
Bluefield Solar (LON: BSIF), the London listed UK income fund focused primarily on acquiring and managing solar energy assets, announces its net asset value (‘NAV’) as at 30 September 2024. Unless otherwise noted herein, the information provided in this announcement is unaudited.
Unaudited Net Asset Value as of 30 September 2024
(pps)
Audited NAV as at 30 June 2024
129.75
Power prices
0.00
Operational updates
0.28
FY24 third interim dividend announced and paid
-2.20
FY24 fourth interim dividend announced
-2.20
Share buyback accretion
0.18
Other movements
0.33
Unaudited NAV as at 30 September 2024
126.14
The unaudited NAV as at 30 September 2024 was £753 million, or 126.14 pence per Ordinary Share (‘pps’), compared to the audited NAV of 129.75 pps as at 30 June 2024. This equates to a movement in the quarter of -2.8% and a NAV total return for the quarter of +0.6% when adjusting for the two interim dividends declared in the period. Dividends are accrued in the period in which they are declared and this Q3 is unusual in that two dividends were declared in the period, which have the effect of detracting a total of -4.40 pps from Bluefield Solar’s NAV. The Company intends to declare its next interim dividend in January 2025.
The latest valuation reflects the completion of Phase Two of the Strategic Partnership with GLIL Infrastructure, being the sale of a 50% stake in 112MW of operational solar assets. A substantial part of the sale proceeds were used to repay £50.5 million of the Company’s Revolving Credit Facility.
The Company has also continued to recycle capital and realise value from its project development activities by disposing of one co-located solar and battery storage project in the period. The Fund received proceeds c.20% above holding value, now reflected in the working capital and captured in ‘Other movements’.
Power price forecasts have remained similar to those used for the June 2024 NAV. Short term forward electricity prices have risen, driven by higher commodity prices, while longer term prices are largely unchanged. The Company remains well hedged against shorter term volatility due to its high proportion of fixed revenues.
The increase in valuation from operational updates (+0.28 pps) reflects the latest tax forecasts available to the Company and updated debt balances as at the end of the period.
‘Other movements’ reflect the change of the calculation date of cash flows from 30 June 2024 to 30 September 2024, along with tax, degradation, debt, and working capital adjustments.
The Company repurchased 5.9 million shares during the quarter to 30 September 2024, providing +0.18 pps of NAV accretion to shareholders.
Gearing
The Company’s UK holding companies and subsidiaries have total outstanding debt of £583 million as at 30 September 2024, with a leverage level of circa 43% of Gross Asset Value.
Dividend Guidance Reaffirmed
The Board is pleased to reaffirm its guidance of a full year dividend of not less than 8.90 pence per Ordinary Share for the financial year ended 30 June 2025 (2024: 8.80 pence). This is expected to be covered by earnings and to be post-debt amortisation.
