REG - EJF Investments Ltd EJF Investments-EJFZ - Half-year Report

EJF InvestmentsAnnouncement

08/09/2023 07:00

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RNS Number : 7623L  EJF Investments Ltd  08 September 2023

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.

8 September 2023

EJF Investments Ltd

Announcement of Interim Results to 30 June 2023

 

EJF Investments Ltd ("EJFI" or the "Company"), which provides investors
exposure to primarily a diversified portfolio of debt issued by smaller U.S.
banks and insurance companies, announces the release of its Interim Report and
Unaudited Condensed Interim Financial Statements ("the Interim Report") for
the period ended 30 June 2023.

Joanna Dentskevich, Chair of the Board of Directors of the Company said: "On
behalf of the Board, I am pleased to present the Interim Report for the period
ended 30 June 2023.

The period under review has continued to be dominated by a challenging
macroeconomic and geopolitical backdrop and the resultant downward pressure on
share prices across multiple sectors. The US banking sector has seen a number
of significant events in the first half of 2023 including the failure of
Silicon Valley Bank and Signature Bank, the US government engineered and
back-stopped sale of First Republic Bank to JP Morgan and the voluntary
liquidation of Silvergate Capital Corporation ("Silvergate"). Of the four
banks, the Company's only exposure was to Silvergate, which was equivalent to
less than 2.5% of the then NAV on a look through basis and prior to any
recoveries.

Due to the impact of these events on broader market sentiment and the
recommencement of limited trading activity in the second quarter of the year,
the CDO Equity Tranches held by the Company recorded significant unrealised
mark-to-market losses. These mark-to-market losses were then further
influenced by the FDIC auction of small bank debt assets seized from Signature
Bank. Taking account of this, the Company generated a Total Return(1) of
(9.57)% for the period.

Despite these challenges, I am pleased to confirm that the Company continued
to pay dividends in line with its Target Dividend as the underlying cashflows
remained robust notwithstanding lower valuations."

The Manager believes that in the vast majority of cases, the unrealised
mark-to-market losses booked during the period are likely to be temporary, and
broadly relate to a catch-up of market sentiment and a recommencement of
limited trading activity of illiquid assets. As such, the Manager anticipates
a gradual return to the otherwise strong performance that has characterised
the Company since launch.

Highlights

·      Total Return for the period(1) ended 30 June 2023, inclusive of
dividends, of (9.57)%;

·      Total Return since inception(1) to 30 June 2023, inclusive of
dividends, of 74.86%;

·      NAV as at 30 June 2023 of £98.7 million, 162 pence NAV per
Ordinary Share(1);

·      Share Price Discount to NAV per Ordinary Share(1) as at 30 June
2023 of (33.0)%; and

·      Annualised Dividend Yield(1) for the period ended 30 June 2023 of
9.86%.

Post Interim Financial Statements Update

·      Dividend of 2.675 pence per ordinary share was paid in August
2023 in respect of the quarter ended 30 June 2023;

·      NAV as at 31 July 2023 of £99.6 million or 163 pence per
ordinary share, representing a Total Return, inclusive of dividends, for the
month of 0.91%; and

·      Neal J. Wilson retired from his role as a Director of the Company
effective 25 August 2023.

The Company's Interim Report for the period ended 30 June 2023 is attached to
this release and 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
(https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism
(https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism)
) shortly.

 

As announced on 23 August 2023, a Results Presentation for analysts and
institutional investors will take place at 1.00pm (BST) today 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.

 

(1)These are APMs as defined on pages 47 to 48 of the Interim Report.

 

ENQUIRIES

 

For the Investment Manager

EJF Investments Manager LLC

Peter Stage / Jay Ghatalia

pstage@ejfcap.com / jghatalia@ejfcap.com

+44 203 752 6775 / +44 203 752 6776

 

For the Company Secretary and Administrator

BNP Paribas S.A., Jersey Branch

jersey.bp2s.ejf.cosec@bnpparibas.com

+44 1534 709 198 / +44 1534 813 967

 

For the Brokers

Barclays Bank PLC

Dion Di Miceli / Stuart Muress

BarclaysInvestmentCompanies@barclays.com

+44 20 7623 2323

 

Liberum Capital Limited

Darren Vickers / Owen Matthews

+44 203 100 2222

 

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 Equity Tranches of CDOs 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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