Performance - February 2024
This post documents the published current and quick ideas on this site for the month of February 2024 and provides quick commentary on any developments in the published ideas.
Performance is measured by the total return of the current ideas section. However, for tracking and illustrative purposes, quick ideas and a basket of both portfolios will be published, too.
*Performance of ideas is currently measured as a basket of equal weights in their respective categories. The performance results are not actual trading results. Please conduct your own due diligence before making any investment yourself.
Acitvity over the month
In February, no new posts were added on Whiteacre:
Current ideas - 0 new current ideas were published (0 closed)
Quick ideas - 0 new quick ideas were published (0 closed)
Updates on portfolio companies:
EuroTeleSites (VIE:ETS) reported its first earnings as a stand-alone company on February 13. These results only cover the first 100 days of activity as a stand-alone company. Naturally, there was very little surprise in their presentation. Revenues and EBITDAaL rose by 6% vs. 2022 and leverage slightly decreased to 7.3x. The tenancy ratio, one of the primary attractions to the investment thesis, rose slightly from 1.21x in 2022 to 1.23x. Capex rose due to an asset deal with its parent for another 118 sites - a move that was actually surprising as we believe the utmost priority should be at reducing leverage. Both the CEO and CFO made insider purchases in February.
abrdn European Logistics Income plc (LSE:ASLI) rose on news that the fund would suspend its dividend payments in light of its ongoing formal sales process. It further announced it was taking a former tenant, bancrupt Arrival, to court to sue for unpaid rent. Regarding the sales process, ASLI's CEO was quoted with saying that "the board was ‘encouraged’ by the progress so far and that the company’s advisers were ‘actively engaging with a select number of parties’ as they conducted due diligence. Another semi-encouragnig sign that a transaction can be done came from another abrdn managed listed real estate fund, API, as a takeover "battle" has ensued between two other listed funds, Urban Logistcs (API) and Custodian Property Income (CREI). However, both offers for this fund are all-share offers, a risk that could also materialize for ASLI shareholders that, in my opinion, should seek a cash buyout as the most straight forward way to realize value.
Performance of the portfolio names in the month of February was as follows:
