NAV Performance
The Company's NAV
% Total Return for the month of September was
-0.96%, which brings the NAV % Total Return for the quarter to
1.71%.
The NAV % Total Return over the last
twelve months was 4.25% and inception to date (ITD)
47.61%.
The NAV as at 30th
September 2024 was 87.73 pence per Ordinary Share. This negative
NAV return of -0.853 pence per share in September arose primarily
from an increase in the discount rate for investment loan Ref #39,
as well as a reduction in the valuation of the Company's
wholly-owned student accommodation property based in Coventry
(investment loan Ref #68). Said reduction in valuation resulted
from a deteriorated occupancy level.
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Summary
for September 2024 (pence per share)
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Net interest income
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+0.561p
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Change in portfolio
valuations
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-1.398p
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Other
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-0.017p
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Net NAV Movement
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-0.853p
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Portfolio Activity
As at 30th September
2024, the Company's invested portfolio had an aggregate nominal
outstanding of circa £86 million across 20 investments. The average
yield was 11.90%, with a weighted average loan life remaining of
circa 0.89 years. Overall, the portfolio is 94% invested in private
market assets and 6% in public bonds.
Q3-2024 was an active and successful
quarter for the Company in terms of portfolio realisation with a
total of 5 repayments totalling circa £7.2m, all of which resulted
in full exits of said investment loans. All exits were achieved at
par apart from investment loan ref #79 against which 80p was
recovered, in line with the Company's assumptions and latest
valuation.
· Investment Loan Ref
#95a - c.£2.35m
· Investment Loan Ref
#95b - c.£0.5m
· Investment Loan Ref
#81 - c.£0.4m
· Investment Loan Ref
#98 - c.£0.3m
· Investment Loan Ref
#79 - c.£3.6m
In line with the realisation
mandate, there was limited activity in terms of drawdowns, with
only two drawdowns under existing committed facilities:
· Investment Loan Ref
#96 - c.£75k
· Investment Loan Ref
#76 - £255k
Post period end, a short-term
2-month extension was provided to investment loans Ref #66 &
Ref #67 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. In addition, a 3-year extension was provided to
investment loan Ref #39 to have it co-terminus with the senior
facility. However, the Sponsor will initiate an exit process
of said investment during 2025 and so terms applicable to this
extension have been structured accordingly. Our base case scenario
at present is therefore a full repayment early 2026, circa 1.5 year
ahead of the extended legal maturity.
The Company completed its first
return of capital during the month of September 2024, returning
£17,486,194 of capital to Shareholders via tender offer at 88.59
pence per share. Further details regarding the Company's Managed
Wind-Down and subsequent return of capital to Shareholders will be
announced by the Board as and when appropriate.
At period end, the Company had no
outstanding debt with cash balances standing at circa £4.5m of
which circa £1.5m will be retained by the Company largely to fund
undrawn committed facilities and for working capital
purposes.
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