Net Asset Value(s)

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 31st 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 31st 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 31st 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/

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For further information, please contact:

RM Capital Markets Limited - Investment Manager

James Robson

Thomas Le Grix De La Salle

Tel: [phone]

FundRock Management Company (Guernsey) Limited - AIFM

Chris Hickling

Dave Taylor

Tel: [phone]

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

Jenny Thompson

Tel: [phone]

Singer Capital Markers Advisory LLP - Financial Adviser and Broker

James Maxwell

Asha Chotai

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. 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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