REG - EJF Investments Ltd EJF Investments-EJFZ - Announcement of Interim Results to 30 June 2024

EJF InvestmentsAnnouncement

17/09/2024 15:15

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RNS Number : 5647E  EJF Investments Ltd  17 September 2024

FOR IMMEDIATE RELEASE

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, ANY MEMBER STATE OF THE
EUROPEAN ECONOMIC AREA (OTHER THAN THE REPUBLIC OF IRELAND), AUSTRALIA,
CANADA, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO.

 

17 September 2024

EJF Investments Ltd

("EJFI" or the "Company")

Announcement of Interim Results to 30 June 2024

EJFI, which provides investors exposure to primarily a diversified portfolio
of debt issued by smaller U.S. banks and insurance companies, and
participation in certain management fee income streams of EJF Capital LLC,
today announces the release of its Interim Report and Unaudited Condensed
Interim Financial Statements ("the Interim Report") for the period ended 30
June 2024.

Highlights

·    Total Return for the period¹ ended 30 June 2024, inclusive of
dividends, of 5.57%;

·    Total Return since inception¹ to 30 June 2024, inclusive of
dividends, of 89.3%;

·    NAV as at 30 June 2024 of £100.1 million, 164 pence NAV per Ordinary
Share ¹;

·    Share Price Discount to NAV per Ordinary Share¹ as at 30 June 2024
of 41.5%; and

·    Annualised Dividend Yield¹ for the period ended 30 June 2024 of
11.1%.

After a tumultuous 2023 in the public equities market for US banks, the
Company's debt portfolio continued to display its resilience in the first half
of 2024. The Total Return of the Company for the period was 5.57%. The
underlying portfolio component of this was 7.32% which was primarily driven by
net gains from Securitisation and Related Investments of 6.69%. The Company's
Total Return is in line with the expectation of a calmer 2024 as the Manager
indicated in the 2023 Annual Report and reflects the robustness of interest
accruals which contributed to most of this return. Also included within this
return is an initial gain of 0.36% on Mezzanine debt securities of
securitisations sponsored by EJF Capital LLC, purchased in March 2024.
Elsewhere, the Speciality Finance Investments as well as US bank debt exposure
recorded modest gains for the period.

Given that most of the Subsidiary's investments are currently denominated in
USD, the Manager, under an approved authority from the Board, hedges a portion
of this exposure to reduce the impact of overall FX movements which, as a
result of Sterling weakening against the USD during the period, produced a
gain of 0.22% for the period. As at 30 June 2024, 54.5% of the underlying USD
exposure was hedged.

The Manager and its parent affiliate, EJF Capital, have executed two of only
three CRT transactions of banks with less than $100 billion in assets. In the
Manager's opinion, CRT transactions offer the opportunity for the Company to
achieve low to high double digit cash flowing returns on loan assets with
strong credit profiles.

The Board and the Manager are also exploring possible long-term structural
mechanisms that would seek to introduce potential liquidity for shareholders,
whilst maintaining the Company's ability to continue investing in accordance
with its investment policy, including taking advantage of the attractive
opportunity to invest in CRTs.

Post Interim Financial Statements Update

·    Dividend of 2.675 pence per ordinary share was paid in August 2024 in
respect of the quarter ended 30 June 2024;

·    EJF Capital Limited, an affiliate of the Manager, purchased 47,866
Ordinary Shares of the Company. This was in line with the Manager's decision
to re-invest approximately 20% of its management fee into the Company's
Ordinary Shares and;

·    On 6 September 2024, John Kingston III was appointed as a
non-executive director of the Company.

The Company's Interim Report for the period ended 30 June 2024 will be
available on the Company's website
(https://www.ejfi.com/investors/?category=investor-presentations&year=#filter
(https://www.ejfi.com/investors/?category=investor-presentations&year=#filter)
) and the National Storage Mechanism (National Storage Mechanism | FCA
(https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism)
) shortly.

As announced on 21 August 2024 a Results Presentation for analysts and
institutional investors will take place at 1.00pm (BST) on Wednesday, 18
September 2024 via a live webcast. To access the live webcast, please register
by contacting your usual representative at Liberum or Barclays. The Results
Presentation slides will be made available via the Company website at
(https://www.ejfi.com/investors/?category=investor-presentations&year=#filter
(https://www.ejfi.com/investors/?category=investor-presentations&year=#filter)
) shortly.

¹These are APMs as defined on pages 48 and 49 of the Interim Report.

ENQUIRIES

For the Investment Manager

EJF Investments Manager LLC

Adeeb Ahmed / Jay Ghatalia

aahmed@ejfcap.com / jghatalia@ejfcap.com

+44 203 752 6774 / +44 203 752 6776

 

For the Company Secretary and Administrator

Apex Financial Services (Alternative Funds) Limited

ejficosec@apexgroup.com

+44 204 549 0721

 

For the Broker

Panmure Liberum

Darren Vickers

ejfinvestments@panmureliberum.com

+44 203 100 2222

 

Barclays Bank PLC

Dion Di Miceli/Stuart Muress/James Atkinson

BarclaysInvestmentCompanies@barclays.com

+44 207 623 2323

 

About EJF Investments Ltd

EJFI's objective is to provide shareholders with attractive risk adjusted
returns through regular dividends and capital growth over the long term. EJFI
generates exposure primarily to a diversified portfolio of loans issued by
financial institutions and related or similar assets in the U.S., U.K. and
Europe.

EJFI currently invests primarily in CDO Equity Tranches structured by an
affiliate of EJF Capital LLC, providing levered exposure to a highly
diversified portfolio of securities issued by U.S. financial institutions
(banks and insurance companies), these being Risk Retention Investments.

EJFI is a registered closed-ended limited liability company incorporated in
Jersey under the Companies (Jersey) Law 1991, as amended, on 20 October 2016
with registered number 122353. The Company is regulated by the Jersey
Financial Services Commission (the "JFSC"). The JFSC is protected by both the
Collective Investment Funds (Jersey) Law 1988 and the Financial Services
(Jersey) Law 1998, as amended, against liability arising from the discharge of
its functions under such laws.

The JFSC has not reviewed or approved this announcement.

LEI:  549300XZYEQCLA1ZAT25

Investor information & warnings

The latest available information on the Company can be accessed via its
website at www.ejfi.com (http://www.ejfi.com) .

This communication has been issued by, and is the sole responsibility of, the
Company and is for information purposes only. It is not, and is not intended
to be an invitation, inducement, offer or solicitation to deal in the shares
of the Company. The price and value of shares in the Company and the income
from them may go down as well as up and investors may not get back the full
amount invested on disposal of shares in the Company. An investment in the
Company should be considered only as part of a balanced portfolio of which it
should not form a disproportionate part. Prospective investors are advised to
seek expert legal, financial, tax and other professional advice before making
any investment decision.

 

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