RM Infrastructure Income (RMII) has published results for the year to 31 December 2024 – its first full year operating under a managed wind-down strategy, following shareholder approval in December 2023.
During the period, the number of loans in the portfolio fell from 31 to 17, with invested capital reducing from £101m to £80m. Net assets at year-end stood at £82.7m, with a NAV per share of 84.73p, down from 88.88p the year before. The NAV total return for the year was 2.62%, while the share price total return was 7.93%, increasing to 11.68% for investors who tendered into the company’s first buyback offer.
A key milestone was the September 2024 tender offer, which returned £17.5m to shareholders at a 21.9% premium to the prevailing market price. Since IPO, RMII has delivered a NAV total return of 45.26%.
The portfolio now comprises 17 loans and one wholly owned equity asset, with a weighted average yield of 12.5% and low interest rate sensitivity (average duration of 0.73 years). Cash holdings increased to around £20m post-period-end, following the partial repayment of hotel-backed loans (references 66 & 67), paving the way for a second tender offer.
Looking ahead, the manager expects further material capital repayments in 2025, targeting an additional £29.5m. However, with the portfolio becoming more concentrated and income increasingly reliant on payment-in-kind (PIK) loans, distributable income is expected to fall. The board has also introduced a deferred compensation mechanism for the directors involved in the wind-down, funded by a 0.5% retention on future cash distributions. Despite operational challenges in some underlying assets – notably a German auto parts manufacturer and a gym franchise – the manager says that it continues to work closely with borrowers and expects the wind-down process to conclude by end-2027.
