RM Secured Direct Lending PLC Net Asset Value(s) (7635L)
January 15 2021 - 1:00AM
UK Regulatory
TIDMRMDL TIDMRMDZ TIDMTTM
RNS Number : 7635L
RM Secured Direct Lending PLC
15 January 2021
RM Secured Direct Lending Plc and RM ZDP PLC
("RMDL" or the "Company")
LEI: 213800RBRIYICC2QC958
Net Asset Value
RMDL announces that its unaudited net asset value per ordinary
share as at 31 December 2020, on a cum income basis, was 93.88
pence (30 November 2020: 93.66 pence).
RM ZDP PLC announces that the unaudited accrued capital entitlement
per ZDP share as at 31 December 2020 was 109.87 pence (30 November
2020: 109.55 pence).
NAV
The Company's NAV % Total Return for the month was +1.97%, which
brings the NAV % Total Return for the quarter to 4.29% and for
the full year 2020 to 3.15%.
The Ordinary Share NAV as at 31(st) December 2020 was 93.88 pence
per share, which is 0.22p greater than at 30(th) November 2020.
This monthly return of 0.22 pence per share arose primarily from
the ex-dividend effect of the 1.625 pence per share total ordinary
dividend for the period Q3 2020, declared in October and paid
in December 2020. Otherwise, there was positive net interest
income net of expenses of 1.06 pence per share and an increase
in portfolio valuations and currency hedging costs of 0.79 pence
per share. Summary for month (pence
per share)
Net interest income +1.058
Change in portfolio
valuations +0.788
Payment of Dividend -1.625
Net NAV Movement +0.221
--------------------- -------
Company Activity
During the quarter, the Company continued to purchase shares
in the market with an additional 1,371,299 shares acquired, bringing
the total number held in treasury to 3,860,299. The share price
discount to NAV has narrowed over the last three quarters from
-16% at the end of Q2, then -12% at the end of Q3, to -7.3% at
year end. Both the Board and the Investment Manager remain focused
on reducing the discount to -6% or lower which is the targeted
maximum discount level noted within the Company prospectus.
The portfolio size increased over the quarter by GBP5m as new
CBILS transactions were closed. Cash management has been a key
focus over this period and the Investment Manager has successfully
rotated out of the majority of the syndicated loan investments
with below target yields into higher yielding bilateral loans
originated by RM Funds. The has led to a material increase in
the average portfolio yield from 8.89% to 9.37% during the period.
Using the mid-market current share price against the stated dividend
target gives an implied income yield for investors of 7.55% down
from 8.125% at the end of Q3, as the share price has appreciated
over the period.
Portfolio Update
It has been a strong quarter for the portfolio both in terms
of performance and activities within the portfolio. Key highlights
include:
* GBP15m of HM Government guaranteed CBILS business
written, representing c11% of NAV.
* GBP1.8m partial repayment of 2 hotel loans and an
increase in the lender reserve attached to this
facility of GBP1m.
* Resolution of Covid-related work-out assets
contributing to additional NAV gains during the
month.
CBILS Loans
RM Funds was initially granted GBP15m of HM Government Guarantee
capacity, with the potential to upsize this by a further GBP10m.
The Investment Manager is currently seeking approval for the
additional capacity. All CBILS loans benefit from a UK Government
Guarantee, protecting 80% of the principle and 100% of the first
year's interest.
New Investments
Social Infrastructure > Aged Care Sector: Two tranche Senior
Secured Loan (GBP5m CBILS, GBP2.8m Non-CBILS). The loan will
be utilised to support the development of a high quality 72 bed
purpose-built care home. The borrower has an extensive track
record in developing and operating quality care homes in the
UK.
Hospitality & Leisure > Senior Secured Loan (c.GBP4.5m CBILS).
The loan will be utilised to support the development of hospitality
and leisure assets. The loan benefits from an all-asset debenture
and guarantee over key development assets.
Existing Investments
Social Infrastructure > Student Accommodation (GBP6.1m nominal;
Loan ref 68). RM Funds executed a work-out strategy as the developer
failed to action their Covid recovery plan. This loan is senior
secured on a new, purpose-built student accommodation ("PBSA")
in a prime location in Coventry city centre. The asset has 80
bedrooms and the loan equates to c.GBP76k/bed. The Investment
Manager appointed FRP Advisory LLP "FRP" as part of the work-out
process, which will involve the marketing, operational management
and a variation of planning permissions to maximise the utility
of the asset in the near to medium-term. The loan has been marked
down to 81.86% of par valuing the loan at just over GBP5m. This
values the asset at c.GBP62.8k per bed which is conservative
versus some of the listed peer group and other private comparables.
Hospitality & Leisure > Hotel (Development) ( GBP3.35m, Loan
ref 58): This loan was partially refinanced by GBP2m during December
2020 generating a gain of approximately GBP700,000 as the loan
was previously marked at 64.58% of face value. The remaining
loan balance also saw a valuation increase to 73% of par value
as the hotel development scheme was fully funded during the period
by the senior and junior Lenders, in addition to further equity
cash injection. The additional capital funded by RMDL was via
the CBILS scheme. This loan trajectory is back to 100% of par
value as the scheme is finalised over this coming year. Finally,
the existing loan coupon was increased from 12% to 15% as part
of the refinancing to reflect the general increase in debt costs
since the Covid period started - this interest will roll up as
is typical of a construction financing. In summary the property
has a signed Hotel Management Agreement ("HMA") with a 5* counterparty
and a fully funded scheme. An updated valuation was undertaken
with the new HMA counterparty in-situ, and, on an "as is" basis,
the LTV is 71.5% and the Gross Development Value "GDV" once stabilised,
is expected to be 65%.
Social Infrastructure > Student Accommodation (GBP4.4m nominal;
Loan ref 12): A senior secured loan to a PBSA asset with 77 bedrooms.
This loan equates to c.GBP78k/bed. The borrower has had ongoing
issues with the operator which have been resolved. RMDL had previously
noted overdue interest for this asset in the July Interim accounts,
RM Funds are pleased to report that GBP500k was received in December
2020 and is key contributor to the excess income over the month.
Hospitality & Leisure > Hotels (Operational) Despite the temporary
closure of the hotels, our counterparties have continued to perform
through the Covid pandemic via cash interest payments. December
saw significant progress with the reduction of risk within this
portfolio exposure as our largest borrower completed a ground
rent transaction on an asset held within the two loan portfolios
(ref 66&67). This ultimately reduced the loan balance by c.GBP1.8m,
lowered the LTV back to 80% and has enabled the borrower to deposit
c.GBP1m in a RMDL lender control account.
The Company also announces that the Monthly Report for the period
to 31 December 2020 is now available to be viewed on the Company
website:
https://rmdl.co.uk/investor-centre/monthly-factsheets/
For further information, please contact:
RM Capital Markets Limited - Investment Manager
James Robson
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
Nplus1 Singer Advisory LLP - Financial Adviser and Broker
James Maxwell
Carlo Spingardi
Tel: 020 7496 3000
Peel Hunt LLP - Financial Adviser and Broker
Luke Simpson
Liz Yong
Tel: 020 7418 8900
About RM Secured Direct Lending
RM Secured Direct Lending Plc ("RMDL" 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://rmdl.co.uk/investor-centre/monthly-factsheets/
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 or visit 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.
END
NAVGPURPGUPGGMC
(END) Dow Jones Newswires
January 15, 2021 02:00 ET (07:00 GMT)
Rm Infrastructure Income (LSE:RMII)
Historical Stock Chart
From Apr 2024 to May 2024
Rm Infrastructure Income (LSE:RMII)
Historical Stock Chart
From May 2023 to May 2024