SQN Asset Finance Income has updated the market now that it is just over six months old. It announced that its NAV at the end of December was estimated to be 98.92p. The Board is declaring a dividend of 0.92p for the final quarter of 2014.
93.7% of the capital raised at IPO has been committed to investments – about £140m worth. Of that, £77m has actually been funded and the balance will be deployed over coming months. They say they are getting higher yields than they anticipated at the time of the IPO with “longer tenures, more committed cash flows and less reliance on residual values” which is all good news for the portfolio. The projected cash yield on the portfolio is 9.8%.
SQN has given some indication of the types of things that they are funding – unleveraged marine vessels, a senior interest in a portfolio of helicopters, and ground support equipment for airports, plus equipment for the agricultural, energy, environmental, material handling, medical, remote operated vehicles, and technology sectors. The average investment size is £3.7m (they are targeting assets worth less than £20m).
SQN : SQN Asset Finance on track to full investment