RCS - Grit Real Estate Inc - Update research from QuotedData

Grit Real Estate Income

07/12/2021 15:49

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RNS Number : 8771U  Grit Real Estate Income Group  07 December 2021

Grit Real Estate Income Group - Update research from QuotedData

 

6(th) December 2021

 

Showing some grit

 

Grit Real Estate Income Group (Grit) has taken decisive action to secure its
future with the announcement of a proposed capital raise of up to US$215.6m.
The group's portfolio has suffered heavy valuation declines during the
COVID-19 pandemic, especially in the retail sector, which has seen its loan to
value ratio (LTV - borrowings plus cash as a percentage of portfolio
valuation) soar to 53.1%. The proceeds of the equity raise will be used in two
parts: firstly to pay down debt and secondly to acquire a controlling stake in
a real estate developer, which has an attractive pipeline of projects
including diplomatic residences let to the US government (see page 7 for an
in-depth look at the proposed capital raise and acquisition).

 

If fully subscribed, the issue will not only result in the LTV dropping to
33.6% but will allow Grit to address its short-dated debt and be a catalyst
for a re-rating of the discount to net asset value (NAV). The active
development pipeline and a resumption of dividend payments has led the group
to raise its annual NAV total return target to between 13% and 15%, should the
proposed fund raise be successful.

 

Full research:

 

https://quoteddata.com/research/grit-real-estate-income-group-showing-grit-qd/
(https://quoteddata.com/research/grit-real-estate-income-group-showing-grit-qd/)

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NB: Marten & Co was paid to produce this note on Grit Real Estate Income
Group and it is for information purposes only. It is not intended to encourage
the reader to deal in the security or securities mentioned in this report.
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