LMS Capital has announced the company’s annual results for the year ended 31 December 2023.The NAV total return for the year fell 7.9%. The main drivers of the negative returns were FX headwinds and an unrealised loss on the revaluation of the Brockton Fund 1. Offsetting this was the sale of the company’s Medhost investment in addition to positive interest income and unrealised gains on other assets.
Despite the negative return, the company noted positive progress on its real estate activity paving the way for an investment in Castle View Retirement Village, which the managers see as a foundation for further investment in the sector. The company also noted the sale of Medhost which represents a material realisation from our mature asset portfolio, generating $7.0m cash in 2023, and a deferred payment of $1.7 million with a coupon of 11.25% due in December 2024. This produced a gain on the sale of £1.4m which after accounting for foreign exchange movements resulted in a net gain of £1.1m.
Robert Rayne, Chairman of LMS Capital, commented on the results:
“The company had a strong end to the year with the realisation of Medhost and the completion of our first investment in the retirement living sector, although the write down on Brockton is disappointing.
While we continue to nurture and support all of our investments we see our real estate activities, particularly in retirement living, as being a key area of focus over the next period in establishing a portfolio which can deliver our long-term goal. In particular we will be focussed on identifying additional investment opportunities and funding partners with whom to develop our investment platform in the retirement living sector. I look forward to reporting further progress across our portfolio during 2024.”
LMS : Challenging year for LMS Capital