RM Infrastructure Income PLC, which specialises in secured social and environmental infrastructure lending, announces its results for the six months ended 30 June 2021.
Highlights
- Strong momentum in Net Asset Value as pandemic-related valuations have recovered as the outlook becomes clearer
- Share price performance relative to the NAV has stabilised
- Diversified portfolio of £128 million invested across 34 loans
– 7 new investments and 9 repayments in the Period
– 15% Floating rate investments and set to increase over the next period
– Short weighted average life of the investments; approximately 2.74 years creating reinvestment opportunities and limiting duration risk - CBILS partially UK government guaranteed loans now represent 25% of the gross assets of the portfolio offering a material credit enhancement
- Company name and ticker change to RM Infrastructure Income PLC and “RMII” to reflect narrower investment focus on Social and Environmental Infrastructure sectors
– New focus loans now represent 40% of the portfolio
– Including funding commitments in place but undrawn, this exposure rises to 46% and is expected to increase to circa 55% over the second half of 2021 - The Good Economy completed a scoring of the portfolio during H1 2021 and will use this as their baseline scoring for the Impact Report due in 2022
- Second interim dividend of 1.625 pence per Ordinary Share; 3.25 pence per Ordinary Share aggregate dividend for the Period
- NAV total return for the Period is 5.0%
Financial Information As at 30 June 2021 As at 30 June 2020
Gross asset value (£’000) £124,769 £122,274
Net Asset Value (”NAV”) (£’000) £112,348 £110,536
NAV per Ordinary Share (pence) 95.25p 91.16p
Ordinary Share price (pence) 90.00p 77.00p
Ordinary Share price discount to NAV (5.5%) (15.5%)
Norman Crighton, Chair, RMII said:
“I am pleased to report a period of strong performance for the portfolio, which has demonstrated its considerable resilience throughout the challenges of the past year. We have made excellent progress with our new investment focus, which our new company name now reflects, with further social and environmental infrastructure investments expected during the year. The proportion of loans that benefit from the UK Government Guarantee due to CBILS increased to 25% of gross assets during the Period, offering investors a material credit enhancement of the portfolio. The outlook remains promising as the economic environment improves and the Investment Manager continues to grow its strong pipeline of impact opportunities within the new focus sectors.”
Thomas Le Grix De La Salle, Portfolio Manager, said:
“As the economic recovery continues, the portfolio is well positioned to generate attractive NAV growth and a positive total return. Looking towards H2 2021, we believe RM Infrastructure Income’s refined focus on social and environmental infrastructure investments, will improve the overall counterparty risk, with a degree of income often serviced directly or indirectly by UK government entities. RM Funds have now deployed 25% of GAV into CBILS facilities and is keeping an open dialogue with government institutions about potential future schemes. As a firm we continue to invest in the Company, via partial reinvestment of our management fees demonstrating a continued alignment of interest with our Shareholders.”
