27th Mar 2019 11:34
LONDON (Alliance News) - RM Secured Direct Lending PLC said Wednesday its net asset value per share declined slightly in 2018 as it issued shares to fund growth, but overall net assets increased significantly.
RM Secured Direct Lending is an investment trust managed by RM Funds, part of RM Capital Markets Ltd. It invests in debt instruments back by real assets such as property, company cash flow, or equipment.
At the end of 2018, net assets value per share narrowed to 96.96 pence from 98.20p the year prior. This was after total net assets rose to GBP95.7 million from GBP56.3 million the year before and after raising GBP11.3 million through two successful capital raises.
Since the year end, the investment trust raised a further GBP13.5 million through a capital raise.
The board is pleased to report another year of growth for RMDL," RM Secured Direct Lending Chair Norman Crighton said. "During the period we successfully raised new capital, which has successfully deployed by the investment manager, with a further fund raise post year end."
"Since our IPO in 2016, the fund has continued to grow, with 35 investments across 14 sectors and we are pleased with both the rate at which we have allocated our capital and the pipeline of opportunities identified," Crighton added.
During the year, RM Secured Direct paid 6.50p per share in dividends. The firm expects to maintain the dividend at the same level in 2019.
"In the current volatile market, our direct lending strategy offers shareholders capacity to preserve capital, guard against inflation and rising rates, while generating attractive risk-adjusted returns," Crighton continued. "The board remains confident in the long-term future of RMDL and believes the foundations are firmly in place for the portfolio to deliver strong and sustainable performance for our shareholders."
Shares in RM Secured Direct Lending were untraded at 100.15 pence on Wednesday.