REG - EJF Investments Ltd EJF Investments-EJFZ - Announcement of Interim Results to 30 June 2025

EJF InvestmentsAnnouncement

30/09/2025 07:00

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RNS Number : 2937B  EJF Investments Ltd  30 September 2025

FOR IMMEDIATE RELEASE

 

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30 September 2025

EJF Investments Ltd

("EJFI" or the "Company")

Announcement of Interim Results to 30 June 2025

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 2025.

Highlights

·    Total Loss for the period¹ ended 30 June 2025, inclusive of
dividends, of 2.44%;

·    Total Return since inception¹ to 30 June 2025, inclusive of
dividends, of 92.09%;

·    NAV as at 30 June 2025 of £95.1 million, being 155 pence per
Ordinary Share¹;

·    Share Price Discount to NAV per Ordinary Share¹ as at 30 June 2025
of 23.9%; and

·    Annualised Dividend Yield¹ for the period ended 30 June 2025 of
9.1%.

John Kingston III, Chair of the Board of the Company said: "While the currency
environment in the first half of 2025 was very challenging (principally
precipitated by the tariff policies of the Trump administration and resultant
strengthening of Sterling against the USD), we are very pleased with the
strength and performance of the underlying portfolio holdings.  The strong
performance of the Company's portfolio generated a 7.91% return, but these
gains were more than offset by volatility in the currency market and FX losses
of 7.82%, producing a net negative Total Return of 2.44%.

Notwithstanding these currency challenges and its impact on Total Return, the
Company continued to deliver on its cash dividend commitments to its
Shareholders, paying 5.35p per share over the first half of the year, an
annualised dividend yield of 9.1% for the period.

Portfolio highlights for the period include:

•     7.95% gains from Securitisation and Related Investments, of which
1.01% was attributable to an increase in the CDO Manager valuation following
closing of the TFINS 2025-1 transaction in March 2025 (EJF's eleventh risk
retention investment).  Each time EJF sponsors a new securitisation, there is
the opportunity for the CDO Manager to negotiate an increased management fee
and in the first half of 2025, this led to an increase in the value of the CDO
Manager interests held by the Company.

•     EJF sold the remainder of the Company's MSR portfolio, recording a
0.48% loss for the period.   Over the life of its MSR portfolio investment,
the Company realised an IRR in excess of 20%.

•     In June, the Company invested USD 6m in its third Credit Risk
Transfer ("CRT") transaction. This brings the percentage of CRT positions to
7.6% of gross assets, in line with our expectation that CRTs will provide an
attractive and growing opportunity for the Company.

There are very favourable tailwinds in the regulation of financial services
generally, and smaller banks particularly. With the easing of regulatory
constraints on bank mergers and acquisitions in the new US administration, the
prospect of meaningful consolidation provides an opportunity for substantial
returns.

With a 97% total return in the eight years since inception in April 2017, the
Manager has demonstrated its ability to do just that, almost doubling the
capital of our Shareholders - and the opportunities in the US banking sector
appear more compelling than ever."

Post Interim Financial Statements Update

·    Dividend of 2.675 pence per Ordinary Share was paid in August 2025 in
respect of the quarter ended 30 June 2025;

·    On 23 July 2025, the Board of the Company made an application to the
London Stock Exchange for a block listing of 4,700,000 new 2029 ZDP Shares.
Pursuant to this block listing, 1,500,000 2029 ZDP shares have been issued to
date; and

·    Following the period end, the Company subscribed for an additional
1,928,200 ordinary shares of no par value in the capital of EJFIH for an
aggregate subscription amount of £1,928,200.

The Company's Interim Report will be available on the Company's website at
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 at National Storage Mechanism | FCA
(https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism)
shortly.

Terms used and not defined in this announcement bear the meaning given to them
in the Interim Report.

As announced on 22 September 2025, a results presentation for analysts and
institutional investors will take place at 2.00pm (BST) on Wednesday, 1
October 2025 via a live webcast. To access the live webcast, please register
by contacting your usual representative at Panmure Liberum. 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.

Further, as announced on 24 September 2025, the Manager will make a live
presentation of the Company's interim results for the period six months to 30
June 2025 via Investor Meet Company on 2 October 2025 at 11:00am (BST).
Investors can sign up to Investor Meet Company for free via:
https://www.investormeetcompany.com/ejf-investments-ltd/register-investor
(https://www.investormeetcompany.com/ejf-investments-ltd/register-investor) .
Investors who already follow EJF Investments Ltd on the Investor Meet Company
platform will automatically be invited.

¹These are APMs as defined on pages 37 and 38 of the Interim Report.

ENQUIRIES

For the Investment Manager

EJF Investments Manager LLC

Mungo Hargreaves / Jay Ghatalia

MHargreaves@ejfcap.com / jghatalia@ejfcap.com

+44 20 3752 6775 / +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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