REG - RM Infrastructure RM SecDirect - RMDC - Net Asset Value(s)

RM Infrastructure IncomeAnnouncement

18/12/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231218:nRSR0421Xa&default-theme=true

RNS Number : 0421X  RM Infrastructure Income PLC  18 December 2023

 RM Infrastructure Income Plc

 ("RMII" or the "Company")

 LEI: 213800RBRIYICC2QC958

 Net Asset Value

 NAV Performance

The NAV % Total Return for November 2023 was -0.91%, which takes the NAV %
 Total Return to +1.06% over the past six months, and +3.65% over the past 12
 months.

 The NAV as at 30(th) November 2023 was 90.35 pence per Ordinary Share, which
 was 0.83 pence lower than at 31(st) October 2023. This overall loss comprised
 positive interest income of 0.41 pence per Ordinary Share, net of expenses,
 and a decrease in portfolio valuations of 1.23 pence per Ordinary Share.

 The interest income net of expenses has been negatively impacted during the
 period due to the prepayment of all outstanding Company leverage which in turn
 has resulted in the amortisation of associated costs to be recognised in full
 during the reporting period as opposed to a monthly amortisation until the
 expected maturity of said facilities.

 The primary driver behind the shifts in portfolio valuations is the
 performance of investment loans 66 and 67. These loans are junior secured and
 are backed by two portfolios jointly owning five operational hotels in the UK.
 It is important to note that both loans have been performing consistently,
 meeting their interest obligations in cash since their inception. They are
 scheduled for repayment on 4 April 2024.

 However, there is uncertainty regarding the borrower's ability to secure
 refinancing upon maturity. Consequently, the valuation agent has marked down
 the position by approximately 10% of its nominal value, or when assessed using
 a discounted cash flow approach, reflecting an increase in default risk from a
 discount rate of approximately 9% to around 30%.

 Currently, the loan-to-value ratio stands at 71%. Nevertheless, the valuer has
 factored in the possibility that, during a potentially limited marketing
 period, the hotels could experience a decline in market value of around 30%
 compared to the latest valuation report. After repaying senior debt, this
 would result in an indicative average asset coverage of approximately 90%,
 aligning with the current revised assessment.

 Since inception, the portfolio's valuation approach has been based around fair
 value where the independent third-party valuation agent looks at observable
 pricing for similar sectors and values the assets based upon where comparables
 are valued. This incorporates the broader market returns as well as any
 idiosyncratic risks. Through review of the latest iteration of the extant IPEV
 guidelines and discussions with the Company's valuation agent and a review of
 industry practice in light of the change in guidelines, the Company will move
 to a valuation process that is driven by a yield-based methodology i.e.
 discounted cash flow approach. The discount rate is driven by observable risk
 pricing and thus the method is similar in its approach to obtaining fair
 market value, however this change could lead to valuation differences. After
 an initial appraisal by the valuation agent, these potential differences are
 not expected to be material.  This valuation methodology is expected to be
 used from December onwards.

Portfolio Activity

As at 30(th) November 2023, the Company's invested portfolio had an aggregate
 valuation of £101 million across 31 investments. The average yield was
 10.84%, with a weighted average loan life remaining of circa 1.69 years(10).
 Overall, the portfolio is 95% invested in private market assets and 5% in
 public bonds.

 During the reporting period, investment loan ref 84 was fully repaid at par,
 or £4m.

 At period end, the Company's RCF remains fully undrawn with the term loan B
 having been repaid in full. The balance sheet has cash of circa £10m of which
 circa £6m is committed for existing loans that have not been drawn down.

 The Company also announces that the Monthly Report for the period to 30
 November 2023 is now available to be viewed on the Company website:

 https://rm-funds.co.uk/rm-infrastructure-income/rm-funds-investor-monthly-fact-sheets-2/

 END

 For further information, please contact:
 RM Capital Markets Limited - Investment Manager
 James Robson
 Thomas Le Grix De La Salle
 Tel: 0131 603 7060

 FundRock Management Company (Guernsey) Limited - AIFM
 Chris Hickling
 Dave Taylor
 Tel: 01481 737600

 Apex Listed Companies Services (UK) Ltd - Administrator and Company Secretary
 Jenny Thompson

 Tel: 07767102572

 Singer Capital Markers Advisory LLP - Financial Adviser and Broker
 James Maxwell
 Asha Chotai
 Tel: 020 7496 3000

 About RM Infrastructure Income

 RM Infrastructure Income Plc ("RMII" or the "Company") is a closed-ended
 investment trust established to invest in a portfolio of secured debt
 instruments.

 The Company aims to generate attractive and regular dividends through loans
 sourced or originated by the Investment Manager with a degree of inflation
 protection through index-linked returns where appropriate. Loans in which the
 Company invests are predominantly secured against assets such as real estate
 or plant and machinery and/or income streams such as account receivables.

 For more information, please see
 https://rm-funds.co.uk/rm-infrastructure-income/

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NAVDELFFXLLXFBL