8th Jul 2016 07:52
LONDON (Alliance News) - Twentyfour Income Fund Ltd Friday said it has continued to trade at a premium to its share price and the dividend for the year has been increased as the fund reported declines in the value of its net assets.
Total net assets fell to GBP333.4 million at the end of the financial year to the end of March from the GBP343.2 million reported a year earlier, with the net asset value per share declining to 103.73 pence from 120.47p.
The dividend for the year was raised to 7.14p from 6.65p.
The share price ended the year at 105.75p after falling from 128.0p at the start, but Twentyfour has continued trading at a premium to its net asset value. The premium of 1.94%, however, is much lower than the premium last year of 6.25%. The average premium over the course of the entire year was 4.16%.
"The premium...saw material compression from late October onwards as investors recognised that it had grown significantly, largely due to the company not having issued shares since October 2014," said the fund.
Notably, Twentyfour did conduct a fundraising in March of this year, issuing 9.7 million shares at a small premium to meet investor demand.
Twentyfour shares were down 0.7% to 104.75 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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