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

RM Infrastructure IncomeAnnouncement

23/01/2025 07:00

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RNS Number : 3304U  RM Infrastructure Income PLC  23 January 2025

 RM Infrastructure Income Plc

 ("RMII" or the "Company")

 LEI: 213800RBRIYICC2QC958

 Net Asset Value

 NAV Performance

The Company's NAV % Total Return for the month of December was -0.44%, which
 brings the NAV % Total Return for the quarter to -0.70%. The NAV % Total
 Return over the last twelve months was 3.54% and inception to date (ITD)
 46.57%.

 The NAV as at 31(st) December 2024 was 85.50 pence per Ordinary Share. This
 negative NAV return of -0.376 pence per share in December arose primarily from
 mark to market valuation adjustments, namely, (1) an increase in the discount
 rate for investment loan Ref #39, and (2) a reduction in the valuation of
 investment loan Ref #76.1, the Company's quasi-equity holding in the gym
 franchise business led by challenging trading conditions.

 Said valuation adjustments were offset by a strong net interest income of
 +0.947 pence per share. This higher-than-expected net interest income was
 predominantly derived from a partial year-end accounting reversal of the
 liquidation cost accruals (which had been fully accounted for in the year-end
 NAV of FY23) of circa 0.65 pence per share. Disregarding this, the net
 interest income was circa 0.30 pence per share - roughly in line with previous
 months.

Summary for December 2024 (pence per share)
 Net interest income             +0.947p
 Change in portfolio valuations  -1.393p
 Other                           0.070p
 Net NAV Movement                -0.376p

 

Portfolio Activity

As at 31(st) December 2024, the Company's invested portfolio had an aggregate
 nominal outstanding of circa £79 million across 18 investments. The average
 yield was 12.50%, with a weighted average loan life remaining of circa 0.73
 years. Overall, the portfolio is 94% invested in private market assets and 6%
 in public bonds.

 Q4-2024 was an active and successful quarter for the Company in terms of
 portfolio realisation with a total of 2 repayments totalling circa £6m, which
 resulted in full exits of said investment loans - both of which had been on
 the Company's watch list for quite some time and it is therefore pleasing to
 report to Shareholders a successful exit. Equally as important, both
 repayments were achieved in line with the Company's assumptions and slightly
 ahead of the latest valuation.

 ·      Investment Loan Ref #80 - c.£4.00m

 ·      Investment Loan Ref #92 - c.£1.96m

 In line with the realisation mandate, there was limited activity in terms of
 drawdowns, with only one drawdown under existing committed facilities:

 ·      Investment Loan Ref #96 - c.£225k

 During the reporting period, a number of extensions were granted, as outlined
 below:

 ·      Investment Loans Ref #66 & Ref #67 - a short-term 2-month
 extension was provided to enable the Borrower to complete on its refinancing
 transaction, which is currently underway. There can be no assurances that said
 refinancing process will successfully complete.

 ·      Investment Loan Ref #39 - a 3-year extension was provided to the
 Borrower to have our junior secured facility co-terminus with the senior
 facility. However, it is worth noting that the Sponsor has a legal requirement
 to initiate an exit process of said investment during 2025 and so our base
 case scenario at present is therefore a full repayment in early 2026, circa
 1.5 years ahead of the extended legal maturity.

 ·      Investment Loan Ref #73 - a 6-month extension was provided to the
 Borrower to enable a refinancing of the current lending group.

 At period end, the Company had no outstanding debt with cash balances standing
 at circa £8.5m of which circa £1.5m will be retained by the Company largely
 to fund undrawn committed facilities and for working capital purposes.

 Finally, further updates regarding the Company's Managed Wind-Down process and
 subsequent return(s) of capital to Shareholders will be announced by the Board
 as and when appropriate.

 The Company also announces that the Monthly Report for the period to 31(st)
 December 2024 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.

 On 20 December 2023, shareholders approved the implementation of the Managed
 Wind-down of the Company. Accordingly, the Company's investment objective was
 restated as follows: "The Company aims to conduct an orderly realisation of
 the assets of the Company, to be effected in a manner that seeks to achieve a
 balance between returning cash to Shareholders promptly and maximising value."

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

 

Portfolio Activity

As at 31(st) December 2024, the Company's invested portfolio had an aggregate
nominal outstanding of circa £79 million across 18 investments. The average
yield was 12.50%, with a weighted average loan life remaining of circa 0.73
years. Overall, the portfolio is 94% invested in private market assets and 6%
in public bonds.

Q4-2024 was an active and successful quarter for the Company in terms of
portfolio realisation with a total of 2 repayments totalling circa £6m, which
resulted in full exits of said investment loans - both of which had been on
the Company's watch list for quite some time and it is therefore pleasing to
report to Shareholders a successful exit. Equally as important, both
repayments were achieved in line with the Company's assumptions and slightly
ahead of the latest valuation.

·      Investment Loan Ref #80 - c.£4.00m

·      Investment Loan Ref #92 - c.£1.96m

 

In line with the realisation mandate, there was limited activity in terms of
drawdowns, with only one drawdown under existing committed facilities:

·      Investment Loan Ref #96 - c.£225k

 

During the reporting period, a number of extensions were granted, as outlined
below:

·      Investment Loans Ref #66 & Ref #67 - a short-term 2-month
extension was provided to enable the Borrower to complete on its refinancing
transaction, which is currently underway. There can be no assurances that said
refinancing process will successfully complete.

·      Investment Loan Ref #39 - a 3-year extension was provided to the
Borrower to have our junior secured facility co-terminus with the senior
facility. However, it is worth noting that the Sponsor has a legal requirement
to initiate an exit process of said investment during 2025 and so our base
case scenario at present is therefore a full repayment in early 2026, circa
1.5 years ahead of the extended legal maturity.

·      Investment Loan Ref #73 - a 6-month extension was provided to the
Borrower to enable a refinancing of the current lending group.

 

At period end, the Company had no outstanding debt with cash balances standing
at circa £8.5m of which circa £1.5m will be retained by the Company largely
to fund undrawn committed facilities and for working capital purposes.

Finally, further updates regarding the Company's Managed Wind-Down process and
subsequent return(s) of capital to Shareholders will be announced by the Board
as and when appropriate.

The Company also announces that the Monthly Report for the period to 31(st)
December 2024 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.

 

On 20 December 2023, shareholders approved the implementation of the Managed
Wind-down of the Company. Accordingly, the Company's investment objective was
restated as follows: "The Company aims to conduct an orderly realisation of
the assets of the Company, to be effected in a manner that seeks to achieve a
balance between returning cash to Shareholders promptly and maximising value."

 

For more information, please see

https://rm-funds.co.uk/rm-infrastructure-income/

 

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