ICG-Longbow Senior Secured UK Property Debt Investments reports annuals – The UK real estate debt investor ICG-Longbow Senior Secured UK Property Debt Investments (LBOW) has reported annual results this morning for the 12m period to January 31, 2019.
Key portfolio figures
- £107,221,546 invested in 9 loans as at 31 January 2019
- £121,271,423 invested in 10 loans as at 23 April 2019
- Over 60% of original portfolio transitioned or extended, with strong pipeline to invest upcoming loan maturities
- 3.75 Year weighted average maturity of new loans
- £25 Million, 3 year revolving credit facility secured
Performance
- NAV Per Share 99.16 pence
- Dividend per Share 6.00 pence
- Shareholder Total Return since IPO 35.4%
Chairman Jack Perry’s outlook statement
“Following year end, the group completed a new £15m commitment and drew down a further £1.5 million on the committed affinity loan. In all cases the investment adviser has sought – and continues to seek – to stress test the Brexit resiliency of new opportunities, which in certain cases led to a delay in completion of these new loans but resulted in an improved risk position for the Group.
Following these completions, the weighted average unexpired loan term of the committed portfolio increases to 1.13 years and the average LTV of the portfolio rises to 63.0%. The group’s wider pipeline remains highly encouraging with terms now agreed on three new transactions and the investment adviser has, from late February onwards, seen a strong pick up in new enquiries.
Certain of the group’s short-dated and lower-returning loans will reach maturity, with an expectation of repayment in the first half of the year of up to approximately £46m. The depth of the current pipeline will allow for the substantial transitioning of the portfolio towards longer-dated and higher returning loans in line with the stated investment objectives. As at 31 January 2019, over 60% of the portfolio had been extended or transitioned to the new investment policy and based on current expected maturities and redeployments, this should rise to over 80% by July 2019.
The board continues to progress a potential investment in an LBOW private fund opportunity as detailed in our last fact sheet. The likely timing for such an investment will be balanced against the pipeline of new direct lending deals and the group’s available funds to ensure the optimum outcome for shareholders from a risk, return and loan diversification perspective.”
About LBOW
LBOW’s objective is to construct a portfolio of UK real estate debt related investments predominantly comprising loans secured by first ranking fixed charges against commercial property investments, with the aim of providing shareholders with attractive, quarterly dividends, capital preservation and, over the longer term, a degree of capital appreciation.
LBOW: ICG-Longbow Senior Secured UK Property Debt Investments reports annuals