Net Asset Value(s)

RNS Number : 3354I

RM Infrastructure Income PLC

14 April 2022

 

RM Infrastructure Income Plc

("RMII" or the "Company")

LEI: 213800RBRIYICC2QC958

Net Asset Value

NAV The Company's NAV % Total Return for the month of March was -0.17%, which brings the NAV % Total Return for the quarter to +0.33%. The NAV % Total Return over the last twelve months was +8.18%, and since January 2020 pre-COVID-19 pandemic the NAV % Total Return has been +12.46%. The Ordinary Share NAV as at 31st March 2022 was 94.54 pence per share. This monthly NAV return of -1.792 pence per share arose primarily from the ex-dividend effect of the 1.625 pence per share total ordinary dividend for the period Q4 2021, declared in February 2022 and paid in March 2022. Otherwise, there was positive interest income, net of expenses, of 0.571 pence per share and a decrease in portfolio valuations of 0.738 pence per share. Summary for March 2022 (pence per share) Net interest income +0.571p Change in portfolio valuations -0.738p Payment of Dividend (Q4 2021) -1.625p Net NAV Movement -1.792p The closing mid-market share price at the quarter-end was 92.75 pence which is 2.25 pence per share lower than the opening mid-market share price at the start of the year and represents a total shareholder return12 of 14.05% over the twelve months to 31st March 2022.  Company Activity The Company declared a dividend of 1.625 pence per share in respect of Q4 2021 in February 2022. This was paid in March and for the full year 2021 the Company met its stated annual dividend target of 6.5 pence per share. Since inception, the Company has distributed a total of 30.725 pence per share to investors. There were no further share buy-backs during the quarter with the mid-market share price discount to Net Asset Value at each month end during the quarter being within the 6% discount to net asset value objective. The Company's cash position remains robust with c.£6.5m of available undrawn RCF and several repayments expected shortly which will be used to fund imminent pipeline transactions, totalling c.£10m. Portfolio Update Overall, the first quarter of 2022 was a stable quarter for the portfolio with a NAV % Total Return of +0.33%. There were two significant valuation adjustments over the quarter, both occurred in March 2022 and are detailed below: Loan reference 76, Energie Fitness (7.02% of NAV) ; continued strong trading performance and cash servicing of debt since September 2021 justified the review of the mark to 100.00 from 92.50. The margin is still c.300bp/400bp wider than that of comparable, more publicly tradeable instruments and demonstrates the value of the private, bilateral lending which RMII specialises in.  Further positive trading will likely see a review of the c. 28% equity stake in the business which RMII owns and which is currently valued at zero. Investment reference 68, student accommodation Coventry (3.24% of NAV) ; in January 2022, RM Funds received a Fire Safety Report commissioned during 2021 which concluded that remedial works were required due to the fire risk of the building. These remediation costs were received in late March 2022 and totalled approximately £1.5m including VAT. As the building was in a non-compliant state as at 31 December 2021, under accounting standards it is deemed an adjustment event for the purposes of the audited 2021 final results.  Although this provision (c.1.3p/share) has now been reflected in the March 2022 NAV, it will also be reflected in the 2021 audited final results and associated year-end reported NAV. Concurrent to this remediation workstream there is work on a legal claim via the original loan documentation's collateral warranties. This claim is ongoing and aims to recover all costs associated with the remedial works and associated loss of income, and Shareholders will be kept informed with progress on the case claim. There was £12m repaid over the quarter and the majority of this has been redeployed. The transactions for the quarter are shown below: · Loan reference 15; Healthcare - Voyage Care repaid £4.5m 1st lien bonds and £3.0m second lien bonds. Re-invested into £7.5m 1st lien bonds maturing 2027. · Loan reference 6; Healthcare - Elysium Healthcare repaid £4.5m from 1st lien private loan. · Loan reference 88; Healthcare - Further drawdowns totalling circa £1.8m under the construction facility provided to a leading UK healthcare asset owner and operator in the purpose-built modern care home market. Finally, with high inflation levels and further interest rate hikes by global central banks likely, the Investment Manager remains confident with regards to the low interest rate sensitivity of the portfolio. This is largely due to the short duration nature of the portfolio meaning that, in a relatively high inflationary environment, loans are repaid relatively quickly as well as being high yielding. The portfolio also has no direct exposure to Russia or Ukraine.

The Company also announces that the Monthly Report for the period to 28 Feb 2022 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/

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For further information, please contact:

RM Capital Markets Limited - Investment Manager

James Robson

Pietro Nicholls Thomas Le Grix De La Salle

Tel: [phone]

International Fund Management - AIFM

Chris Hickling

Shaun Robert

Tel: [phone]

Tulchan Group - Financial PR

Elizabeth Snow

Oliver Norgate

Tel: [phone]

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

Brian Smith

Ciara McKillop

Tel: [phone]

Singer Capital Markers Advisory LLP - Financial Adviser and Broker

James Maxwell

Asha Chotai

Tel: [phone]

Peel Hunt LLP - Financial Adviser and Broker

Luke Simpson

Liz Yong

Tel: [phone]

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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