2nd Oct 2018 11:12
LONDON (Alliance News) - ICG Longbow Senior Secured UK Property Debt Investments Ltd on Tuesday reported a decreased net asset value per share at the end of the first half compared to the period before.
At the end of July, ICG Longbow's NAV per share was 100.05 pence, down from 100.80p at the end of January.
The company's net assets, however, increased in the period to GBP121.4 million from GBP118.0 million. The issuance of 4.3 million new shares in the period caused the disparity.
The closed-ended investment company's total income in the first half from its real estate debt portfolio decreased to GBP4.0 million from GBP4.4 million.
ICG Longbow said its investment portfolio was "generally stable" in the period, with one repayment in full - its IRAF facility, comprising of an GBP11.9 million principal balance with interest exit fees of GBP440,000.
The company made one part repayment - its Halcyon facility, which saw its principal balance reduce from GBP8.6 million to GBP6.4 million.
The company made one new investment in the first half, a GBP16.2 million commitment secured by a multi-let office facility in Bristol.
The portfolio weighted average loan-to-value was 61.2% in the period, up from 58.03% the previous half. The "modest" increase is largely owed to the repayment of the "relatively lowly leveraged" IRAF loan replaced by the Bristol office loan.
The weighted average interest coverage ratio on the portfolio remains "broadly stable" at 216%, from 218% at the end of January.
ICG Longbow maintained its interim dividend at 3.0p per share.
Chairman Jack Perry said: "Property and debt market conditions still supportive of the company's product offering, we continue to expect the weighted average coupon on the portfolio to increase. This should be most notable in the first half of 2019 when the lower yielding Commercial Regional Space and BMO loans - which were put in place under the previous investment policy - come towards the end of their terms and are restructured or replaced with higher returning investments.
"Any such increase in average coupons will help underpin the full coverage of quarterly dividends from current income. This will also lay the foundations for modest capital growth over the medium to long term."
Shares in ICG Longbow were untraded Tuesday but last closed at 104.00 pence each.
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