Investment manager MedicX has posted a broadly flat NAV of 64.8p per share in a quarterly trading update.
The healthcare specialist, which during the period from 1 April to 31 July announced it is to be bought by Octopus Capital, said the value of its 134-strong portfolio has risen by £800,000 to £494.5m.
Its portfolio net initial yield of 5.73% compares with a benchmark 20-year gilt rate of 3.45% and a weighted average fixed cost of debt of 4.45%.
The group has also undertaken a discounted cash flow calculation of the primary healthcare assets which came out at £324.9m, or 91.9p per share, compared with £319.0m or 93.1p per share as at 31 March 2014.
The decrease per share is a direct result of the 10m shares sold from treasury by way of tap issues during the period, and the DCF valuation is expected to improve following the full deployment of the funds raised from the tap issues.
During the period MedicX agreed 18 leases and rents of £1m have been reviewed and the equivalent of a 1.81% pa increase agreed.
Of these reviews, an uplift of 1.74% was achieved through open market reviews, with RPI reviews achieving 3.27%. Reviews of £9.9m of passing rent are currently under negotiation.
Looking at investment activity, the company has committed £16.9m to four further properties, three of which are currently under construction.
Construction on a property at Potters Bar, Hertfordshire, completed in the period since 1 April 2014. Six properties are now under construction at Wigston, Prenton, Buckley, Peterborough, Stevenage and Devonport. All of these properties are due to complete in the next 12 months.
In June 2014, the group disposed of three non-core smaller properties for a combined price of £4.3m. These properties were acquired as part of the portfolio acquisition announced in March 2014 and were subject to options to sell to a party connected to the vendor of the portfolio.
It added that it has pipeline of approximately £100m in value when fully developed.
MedicX expects to pay dividends totalling 5.8p per ordinary share in the financial year ending 30 September 2014, an increase of 0.1p per from the prior year.
The company added that its purchase by Octopus is subject only to Financial Conduct Authority approval and is expected to close by the end of September 2014.
Chief executive Mike Adams will continue to work with his existing team in the same role.
bridget.o’connell@estatesgazette.com
