LONDON (Alliance News) - Property investor Ediston Property Investment Co PLC on Wednesday said it will renew its share-placing programme for another twelve months later this month, after it invested all of the initial proceeds from its launch in October 2014, as well as the proceeds from its placing programme, and has around GBP52.0 million of term debt.
Ediston first launched its share placing programme on June 22, 2015, under which it has since issued 33.3 million shares. When it renews the programme, shortly after the existing programme expires on June 22, 2016, the new shares will be at a premium to net asset value per share and at a price "sufficient to cover the direct costs of issue" as with the current programme, Ediston said.
Ediston currently holds around GBP120.0 million of capital for asset management initiatives and normal working capital requirements.
The company said its portfolio was last valued at GBP181.0 million as at March 31, and said its current annual dividend rate of 5.5 pence per share is expected to be covered by net income in its second quarter.
Ediston said if it can raise further equity, it will be able to diversify its portfolio further through buying properties which "should be accretive to net asset value".
"The board is aware that there are a number of uncertainties surrounding the market at this time, including the EU referendum, which could impact on share prices for all listed stocks, including property investment companies. However, it remains the view of the board that the manager, Ediston Properties Ltd, is well positioned to identify attractive property acquisition opportunities which fit with the investment strategy of the company," Ediston said.
Shares in Ediston were untraded on Wednesday, having last traded at 107.25p.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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