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

RM Infrastructure IncomeAnnouncement

18/10/2021 07:05

RNS Number : 2923P
  
RM Infrastructure Income PLC
  
18 October 2021
  
 




RM Infrastructure Income Plc 










("RMII" or the "Company")










LEI: 213800RBRIYICC2QC958










Net Asset Value 










NAV 
The Company's NAV % Total Return for the month of September was +0.63%, which brings the NAV % Total Return for the quarter to +3.20%.
The Ordinary Share NAV as at 30th September 2021 was 96.68 pence per share. This monthly NAV return of -1.008 pence per share arose primarily from the ex-dividend effect of the 1.625 pence per share total ordinary dividend for the period Q2 2021, declared in August and paid in September 2021. Otherwise, there was positive interest income, net of expenses, of 0.683 pence per share and a decrease in portfolio valuations of 0.066 pence per share.
 



Summary for September 2021 (pence per share)




Net interest income


+0.683p




Change in portfolio valuations


-0.066p




Payment of Dividend


-1.625p




Net NAV Movement


-1.008p



 
Company Activity 
During the period the Company declared and paid a 1.625 pence per share dividend in respect of Q2 2021. This marks the 18th distribution for the Company all being at or above the Company's stated target and 29.1 pence returned as income distributions to investors since IPO. 
In May 2021, the Investment Manager announced the refining of the Company's focus to social & environmental infrastructure and it is pleasing to see the journey of the portfolio's rotation into these core sectors. Currently the core sectors represent nearly 50%, a circa 15% increase from the 35% as of May 2021 and this is expected to continue at pace with a target of 55% by Year End 21 and 75 % by Year end 2022. 
Finally, there will be an update release on Monday 18th October at 8am with regards to the progress of RM Funds as a Recovery Loan Scheme "RLS" lender and RMII as a funding partner to this.
Portfolio Update
Overall, Q3 was a very strong quarter for the portfolio with a NAV % total return of +3.20%. This above target return was largely driven by the revaluation of some of the loans that had been conservatively marked down during the COVID pandemic. This positive revaluation momentum is expected to continue over the remainder of 2021 / early 2022 with some remaining reserves taken in March 2020 yet to be released.
 Valuation movements for the quarter are shown below:
·      76. Energie Fitness - business has returned to circa 94% of pre-COVID trading levels and moved back to cash pay starting 1st September 2021.  Moved from 82.5% to 92.5% of nominal value.
·      66 & 67. Hotel exposure - the two largest hotel loans have had an uninterrupted debt service throughout the pandemic and have a material liquidity reserve controlled by the lender. Moved from 97.5% to 100% of nominal value.
·      39. Beinbauer - the loan reverted to its original cash / PIK interest payment mechanism and has credit metrics which are improved from the initial underwriting stage. Moved from 95% to 100% of nominal value.
·      64. Invoice Finance - business has shown exceptional resilience throughout COVID and significantly improved its interest cover ratio and leverage metrics vs. pre-COVID levels. Moved from 98% to 100% of nominal value. 
·      68. Student Accommodation - the property is now fully occupied (100%) for the 2021/22 academic cycle. Moved from 96% to 100% of nominal value. 
·      12.  Student Accommodation - the portfolio is well positioned to achieve near full occupancy for the 2021/22 academic cycle, with current occupancy at nearly 85%. Moved from 97.5% to 100% of nominal value. 
·      79 & 86. Hotel Glasgow - Although the refurbishment works are progressing well with practical completion expected late Q1/22, due to minor delays and some inflationary pressures which are being closely monitored, CBILS loans were marked from 100% to 97% of nominal value. 
 
The reporting quarter was relatively quiet in terms of new investments. There were 7 scheduled drawdowns under the two healthcare construction loans totalling circa £3.9m. With regards to repayments, one of the portfolio's non-core loans, Valeo (Loan ref: 34), an Irish food-based business, repaid the full £4.5m nominal outstanding. Post the reporting period, this was reinvested within one of the Company's core sector, healthcare, with an investment in Voyage Care 1st Lien.  
Finally, in light of the current inflationary concerns, the Investment Manager remains confident in regard to the low interest rate sensitivity of the portfolio. This is mainly due to the short duration of the portfolio with a weighted average loan life of circa 2.5 years and the manager will continue investing in short duration high coupon loans. The investments ultimately allow the Investment Manager to minimise any duration risk.
 










The Company also announces that the Monthly Report for the period to 30 September 2021 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




Pietro Nicholls
Thomas Le Grix De La Salle 




Tel: 0131 603 7060










International Fund Management - AIFM




Chris Hickling




Shaun Robert




Tel: 01481 737600










Tulchan Group - Financial PR




James Macey White




Elizabeth Snow




Tel: 0207 353 4200










PraxisIFM Fund Services (UK) Limited - Administrator and Company Secretary




Brian Smith




Ciara McKillop




Tel: 020 4513 9260










Singer Capital Markers Advisory LLP - Financial Adviser and Broker




James Maxwell




Asha Chotai




Tel: 020 7496 3000










Peel Hunt LLP - Financial Adviser and Broker




Luke Simpson




Liz Yong




Tel: 020 7418 8900










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/



 

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