Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Rio eyes move for Lithium miner
Potentially some big news for smaller miners here with Rio Tinto LON:RIO confirming media reports that they have made a bid approach to US listed Arcadium Lithium. The $3bn company is far from being a small cap, but with a miner of this size digging around the Lithium market the move – if it completes – would give Rio access to mines and processing facilities for the increasingly in demand element in four continents.
#2. Grainger sees portfolio grow, occupancy slips marginally
The largest listed provider of rental homes in the UK is Grainger LON:GRI and they have issued a full year trading update this morning. The estate has grown by around 10% over the financial year, like for like rental growth is 6.3% and occupancy stands at 97.4% – although that’s down from 98.6% a year ago. The note is welcoming of Labour’s stance so far on the rental market, dismissing the idea of rent controls and legislating to improve standards.
#3. Assura sees UK healthcare at inflexion point following hospitals acquisition
Healthcare REIT Assura LON:AGR has its interim trading update out this morning. Comparatives here have been impacted by the acquisition of a £500m portfolio of 14 hospitals in August but the headline numbers certainly look impressive. Borrowing costs are low, the company is continuing to dispose of assets to fuel further expansion and management note that UK healthcare is now at an inflexion point. Perhaps there’s a risk here from the stance of the new government – politics doesn’t make it into the report – but for now it seems there’s little not to like.
