reports
- Roger Leboff
Raven Property Group - full occupancy and strong portfolio outlook
The H1 21 results provide further confirmation of a robust underlying (local currency) operational outlook, underpinned by an inherently resilient and stable asset base. Property values rose on the back of higher rents and continuing demand for a diminishing pool of available vacant space. That momentum is arguably building, with vacant space at a premium and a limited pipeline as development is discouraged by the risks associated with escalating construction costs.
- Roger Leboff
Investment focus switching back to the portfolio
By repurchasing the stake held by its largest investor Raven has removed a perceived drag on its equity and source of uncertainty. That should enable attention to steer back towards the positive dynamics of its predominantly Moscow-based warehouse and logistics portfolio. Raven has completed the £51.1m repurchase of a substantial share overhang held by its previously largest shareholder (IAM / Invesco Funds). It bought back and cancelled 9.85m ordinary shares and acquired 100m ordinary and 32....
- Roger Leboff
Attractive outlook for warehouse provider
A strong FY20 portfolio performance underpins a compelling core investment case. Other initiatives could, by the second half of this year, help refocus attention on the appeal of a well-let warehouse and logistics portfolio, ideally placed to capitalise on emerging trends for Russian businesses and consumers. Raven operates mainly in Roubles but reports in Sterling, which makes its results sensitive to Russia’s economy and exchange rate, the latter vulnerable to specific macro trends such as o...
- Roger Leboff
Successfully navigating choppy seas
Interims to end June 2020 reveal operational resilience in a challenging period: 99% collection of rent due during the period plus increases in average and period end occupancy rates. That strong, steady performance by the portfolio during Russia’s lockdown confirms growing demand for exactly the kind of logistics space RAV offers. Strip out unrealised forex related adjustments taken through the P&L and the picture revealed is a 4.7% fall in underlying pre-tax profit. That shows far more sta...
- Roger Leboff
Robust trading, rent receipt and occupation
Raven’s positive trading update was reassuringly robust, despite ongoing uncertainty regarding the long-term impact of Covid-19 on the Russian market. It has tempered its own leasing expectations for the next 18 months and assumes some sectors will delay planned investment/expansion. But sees potential and indeed some evidence that the crisis will accelerate moves to create e-commerce supply chains. The Group derives its competitive positioning from a 1.9m sqm portfolio of logistics wareho...
- Roger Leboff
Key metrics moving ahead
Raven is understandably pleased with these strong first half results. The business has responded well to efforts to stabilise the portfolio and de-risk its finances. A 40% increase in NAV/share to 67p during the period was driven by both uplifts in property valuations and Rouble/GDP strength. Another 5p was added in August (post the period end) via the repurchase and cancellation of c 14% of its ordinary shares at around half underlying NAV. Valuation: 45% NAV discount, risk factors being addre...
- Roger Leboff
Making headway
Raven Property Group (Raven) is a Guernsey registered property investor. Its invests and develops high quality Class A warehouse complexes in major Russian cities let to domestic and international tenants. Today’s interims confirmed the progress of strategic initiatives designed to enhance revenue and earnings quality. Portfolio occupancy was 87% at end June (FY17: 81%), and the outlook is backed by improving local property markets, growing tenant demand and tighter investment yields. Frustra...
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