Raven Property Group

Investment summary

Raven Property Group made further operational and strategic progress in H119 against the background of a strengthening operating environment and firming market rents. Leasing progress is maintaining improved levels of occupancy (average 90% in H119) and rental income grew with indexation of rouble-denominated rents and a full period contribution from 2018 acquisitions. Property values increased in roubles and more so in sterling, with a c 10% increase in the value of the rouble versus sterling during H119. NAV per share rose 40% to 67p and the effect of the 14.8% share repurchase, primarily from Woodford Investment Management, that has since completed would have been to add a further 5p per share while eliminating any perceived stock overhang. An unusually wide discount to NAV has opened up while an interim distribution of 1.25p will be made by way of a tender offer buyback of one share in every 44 at 55p.