Last checked at 17 Oct 2022 07:00
RNS Number : 0011D Foresight Sustain. Forestry Co PLC 17 October 2022 16017 October 2022
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Foresight Sustainable Forestry Company Plc
("FSF" or "the Company")
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Five acquisitions aing c.700 hectares to the Company's portfolio an traing upate
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Foresight Sustainable Forestry Company Plc, an investment company that invests in UK forestry an afforestation assets, toay announces five acquisitions an provies a traing upate.
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Acquisitions
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Over the last two months FSF eploye 1637.9 million (inclusive of tax an transaction costs) into four afforestation properties an one forestry property, all of which are in Scotlan. The acquisitions increase the portfolio by approximately 700 hectares an FSF's total portfolio now covers 9,71 hectares.
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Each afforestation acquisition is well suite for the establishment of a woolan creation scheme an has esign allocations to native broaleaves alongsie commercially prouctive forestry an open groun. The Company is also exploring natural capital potential, incluing peatlan an wetlan restoration, for the properties. Once plante, the properties are anticipate to be aware approximately 77,000 voluntary carbon units for the aitional CO2 sequestere over the project lifetime.
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The single forestry property provies the Company with a goo opportunity to harvest, re-esign an re-stock the site in the meium term. Once the harvesting programme has occurre, a new tree species composition will be incorporate to fully capture the property's upsie potential. Well locate in relation to other portfolio assets, sawmills an timber processors, the property further expans FSF's Scottish portfolio.
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Aitional property etails can be foun in the appenix.
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Traing upate
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In light of the current volatility, the Investment Manager an the Company will ensure a carefully prioritise allocation of capital until the shifting macro-economic market conitions are fully unerstoo.
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The Company has not utilise its Revolving Creit Facility ("RCF") an therefore has no irect exposure to rising ebt base rates (Sterling Over Night Inex Average, SONIA). A pruent approach to the utilisation of the RCF will be taken uring these uncertain times given the rapily increasing cost of ebt.
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During times of financial market turbulence, UK forestry asset prices have historically prove resilient. UK forestry is commonly acquire an owne without the use of ebt which, in the view of the Company, provies an element of insulation against base rate increases relative to other asset classes where leverage is more frequently use.
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Richar Kelly an Robert Guest, Co-Heas of Foresight Sustainable Forestry Company, commente:
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"We are elighte to have ae these five high quality assets to the portfolio. Afforestation properties are a great opportunity for capital appreciation an unlocking aitional value as the woolan creation schemes reach evelopment milestones. They also make a significant contribution to the removal of carbon from the atmosphere.
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Recent market volatility has create increase uncertainty within equity an ebt markets. Whilst we believe that UK forestry is relatively resilient to market turbulence, it is of course important that we consier all potential impacts in our strategic ecisions an as we carefully grow our UK portfolio. We will be closely monitoring market evelopments an remaining ynamic in our approach to the management of the Company."
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About the Company
Foresight Sustainable Forestry Company Plc ("the Company") is an externally manage investment company investing in a iversifie portfolio of UK forestry an afforestation assets. Targeting a net total return of more than CPI +%, the Company provies investors with the opportunity for real returns an capital appreciation riven by the prevailing global imbalance between supply an eman for timber the inflation-protection qualities of UK lan freehols an biological tree growth of 3% to 4% not correlate to financial markets. It also offers outstaning sustainability an ESG attributes an access to carbon units relate to carbon sequestration from new afforestation planting. The Company targets value creation as the afforestation projects successfully achieve evelopment milestones in the process of converting open groun into establishe commercial forest an woolan areas. The Company is seeking to make a irect contribution in the fight against climate change through forestry an afforestation carbon sequestration initiatives an to preserve an proactively enhance natural capital an bioiversity across its portfolio. It is manage by Foresight Group LLP.160 https://fsfc.foresightgroup.eu/
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For further information, please contact:
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This announcement oes not constitute, an may not be construe as, an offer to sell or an invitation to purchase investments of any escription, or the provision of investment avice by any party. No information set out in this announcement is intene to form the basis of any contract of sale, investment ecision or any ecision to purchase securities in the Company.
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This announcement may inclue statements that are, or may be eeme to be, "forwar-looking statements". These forwar-looking statements can be ientifie by the use of forwar-looking terminology, incluing the terms "believes", "estimates", "anticipates", "expects", "intens", "may", "will", "targeting" or "shoul" or, in each case, their negative or other variations or comparable terminology. All statements other than statements of historical facts inclue in this announcement, incluing, without limitation, those regaring the Company's financial position, strategy, plans, propose acquisitions an objectives, are forwar-looking statements.
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Appenix
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Acquisitions: asset specific information
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