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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Ejf Investments Ltd | EJFI | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 112.50 | 07:35:12 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 112.50 | 112.50 | 112.50 | 112.50 | 112.50 |
| Industry Sector |
|---|
| UNKNOWN |
| Announcement Date | Type | Currency | Dividend Amount | Ex Date | Record Date | Payment Date |
|---|---|---|---|---|---|---|
| 29/10/2024 | Interim | GBP | 0.02675 | 07/11/2024 | 08/11/2024 | 29/11/2024 |
| 26/07/2024 | Interim | GBP | 0.02675 | 08/08/2024 | 09/08/2024 | 30/08/2024 |
| 03/05/2024 | Interim | GBP | 0.02675 | 16/05/2024 | 17/05/2024 | 31/05/2024 |
| 29/01/2024 | Interim | GBP | 0.02675 | 08/02/2024 | 09/02/2024 | 29/02/2024 |
| 25/10/2023 | Interim | GBP | 0.02675 | 02/11/2023 | 03/11/2023 | 30/11/2023 |
| 28/07/2023 | Interim | GBP | 0.02675 | 03/08/2023 | 04/08/2023 | 31/08/2023 |
| 25/04/2023 | Interim | GBP | 0.02675 | 04/05/2023 | 05/05/2023 | 31/05/2023 |
| 26/01/2023 | Interim | GBP | 0.02675 | 02/02/2023 | 03/02/2023 | 28/02/2023 |
| 27/10/2022 | Interim | GBP | 0.02675 | 03/11/2022 | 04/11/2022 | 30/11/2022 |
| 28/07/2022 | Interim | GBP | 0.02675 | 04/08/2022 | 05/08/2022 | 31/08/2022 |
| 26/04/2022 | Interim | GBP | 0.02675 | 05/05/2022 | 06/05/2022 | 31/05/2022 |
| 27/01/2022 | Interim | GBP | 0.02675 | 03/02/2022 | 04/02/2022 | 28/02/2022 |
| 28/10/2021 | Interim | GBP | 0.02675 | 04/11/2021 | 05/11/2021 | 30/11/2021 |
| 29/07/2021 | Interim | GBP | 0.02675 | 05/08/2021 | 06/08/2021 | 31/08/2021 |
| 28/04/2021 | Interim | GBP | 0.02675 | 06/05/2021 | 07/05/2021 | 28/05/2021 |
| 29/01/2021 | Interim | GBP | 0.02675 | 04/02/2021 | 05/02/2021 | 26/02/2021 |
| 26/10/2020 | Interim | GBP | 0.02675 | 05/11/2020 | 06/11/2020 | 30/11/2020 |
| 24/07/2020 | Interim | USD | 0.034617 | 06/08/2020 | 07/08/2020 | 28/08/2020 |
| 24/04/2020 | Interim | GBP | 0.02675 | 07/05/2020 | 11/05/2020 | 29/05/2020 |
| 25/01/2019 | Interim | GBP | 0.02675 | 06/02/2020 | 07/02/2020 | 28/02/2020 |
| Top Posts |
|---|
Posted at 14/9/2024 09:20 by cousinit That they have probably received a decent chunk of the EJFI marketing budget...? |
Posted at 14/9/2024 09:11 by tag57 I receive summary emails from Citywire and am really surprised at how hard they appear to be pushing EJFI. Any reason why?I have taken a small position here and intend to build it up over the coming months as I get more comfortable with it. |
Posted at 09/9/2024 12:59 by njb67 I watched the presentation, a few observations.Positives Stable/increasing dividend over the last seven years Yield 10% (after recent share price rise) Management expertise Niche investment that may complement other holdings Low default rate over seven years (<1%) Questions - If this is such a good investment (high yield, low(er) risk), then why has interest in the trust been relatively low (£65m MCAP)? - To what extent will the stated investment case translate into shareholder value? a) The share price has risen by 10% (the yield has reduced from 11.1% to 10%) from the data that was in the presentation, suggesting that the 10% reduction in share price resulting from the fall out of regional bank failures has already reversed. b) The majority of the company's investments are rated by Moodys between Baa3 and Ba3 (slide 14). While Baa3 is at the lower end of what is classified as investment grade by Moodys, Ba3 is classified as non-investment grade/speculative. We do not know the break down between investment and non-investment grade holdings. c) The presenter argued that the underlying value of their holdings can increase when two separate issuers of debt merge. EJFI have only worked with 166 banks out of 4300 in the US, so how likely will consolidation impact the value of their holdings? It is an interesting fund, quite niche and could be a good long term holding. It will likely be tainted, rightly or wrongly, with the fall out from the US banking sector crisis 10 or so years ago. I have added a small position to my portfolio. |
Posted at 07/9/2024 09:24 by fordtin Many thanks for the link.Anyone with an investment, or considering an investment in EJFI, really should take the time to watch the video and/or read the transcript. For people without an hour to spare, this bit of the Q&A might be of interest; “Are dividends covered? GL: In terms of this high yield you’re offering and your dividends, you’ve got a target of paying 10.7 pence per share in dividends. Is that a flat or rising dividend? NW: It’s been flat the last few years. We’ve raised it twice since we started. We think the CRT transactions, where you get this higher 12% to 20% yield on those opportunities-, again, I can’t promise or guarantee of course, but we would expect the dividend to go up. Again, we’re motivated to do so. We own 26% of the shares as well. So, this is really supposed to generate nice steady income. So, if the underlying assets-, I think it’s on page 14, that most important slide, on a net basis we’re producing 10%-11% yield. So that covers a nice dividend, even if that discount compresses. GL: These dividends are covered by earnings? By the income you’re receiving? NW: Yes. GL: If you succeed in rerating the shares, eliminating this wide discount, would the current yield fall to around 8%? NW: It would be that 10% net yield, yes. GL: 10%, so still a very attractive yield and then you’ve got the potential rerating in the share price. NW: Yes.” |
Posted at 25/8/2024 07:39 by boystown From the article above referenced by davebowler, Citywire:"DON’T MISS! EJF – High yields, lower risk: Why US small bank lending makes sense" (Tues 3 Sept) I have a few of these but don't have a real feel for how safe it is - and my P/F is way overloaded with financials already. ----- Here's the gist: "EJF Investments (EJFI), a high-yielding lender to small US banks and insurers, is coming to Citywire at 11am on Tuesday 3 September to explain why its specialist strategy deserves a closer look from income investors. In a presentation entitled, ‘High yields, lower risk: Why lending to US small banks makes sense’, Neal Wilson, chief executive and chief investment officer of fund manager EJF Capital will set out why he believes the fund’s low share price rating exaggerates the risks after last year’s crisis in US regional banks. Shares in the £58m investment company currently stand at a significant 42% discount to the £100m net asset value (NAV) of its loan portfolio and offer an attractive 11% yield. While the collapse of Silicon Valley and Signature banks rattled the market, Wilson (pictured below) will explain that EJF was largely immune with its highly diversified exposure to small, but not regional, US institutions. UK investors can take comfort from the presence of fund managers Premier Miton and Newton and an insurance company among its top shareholders." |
Posted at 02/8/2024 07:42 by tradertrev Very full of dividend here, going xd next Thursday (2.675p). Spread relatively tight, suggesting a shareholder capitulating here at a 42% discount to NAV. Fill yer boots! |
Posted at 21/6/2024 08:10 by davebowler Liberum1.3% portfolio return in May Analyst: Shonil Chande Mkt Cap £62m | Share price 101.0p | Prem/(disc) -37.3% | Div yield 10.6% Event EJF Investments’ NAV per share of 161p, as at 31 May 2024, reflected a NAV total return of -0.2%. Valuation movements were minimal, with a portfolio return of 1.3% largely reflecting interest accruals from the CDO equity portfolio (+1.16% in the month). The impact of the dollar weakening was -1.2%. Investment activity In May, EJFI invested c.$1m through a cross trade with a fund managed by an affiliate in a capital relief transaction (CRT) bond. The bond bears an interest rate of SOFR plus 15.50%. It was issued by an SPV containing a pool of nursing home development loans originated by a small US bank with c.$16bn in assets. By issuing this bond, the bank significantly reduces its required regulatory capital on the pool of loans carried on its balance sheet. EJFI’s manager believes that future CRTs on strong loan pools from small US banks may present a growing and attractive opportunity. Market update Bank equities experienced a modest rally in May as interest rates declined following in-line inflation readings. M&A activity in the US banking sector also intensified. However, small and mid-sized banks with high commercial real estate (CRE) exposure remained out of favor. The manager’s view is that most traditional commercial real estate loans outside of CRE Office are likely to fare well this cycle as long as interest rates do not climb to much higher levels and stay at those higher levels for a long period of time. M&A in May On 20 May 2024, SouthState Corp announced the acquisition of Independent Bank Group in Texas in an all-stock transaction valued at approximately 1.48 times tangible book value. The combined entity will have nearly $65 billion in assets, with a significant presence in the southeast and southwest US. This was the second deal since the beginning of April where an acquirer has surpassed the $50bn asset threshold. EJFI’s manager believes the deal is likely to gain regulatory approval and was surprised at the low valuation IBTX accepted. There is a chance of a higher bid emerging, as similar franchises have sold for closer to twice tangible book value in the past. EJFI has exposure to IBTX through its CDO Equity investments and expects the acquisition to be value-accretive as the combined entity will be stronger. |
Posted at 23/5/2024 09:36 by davebowler Liberum-Banking sector M&A and Republic First and NYCB updates Analyst: Shonil Chande Mkt Cap £62m | Share price 101.0p | Prem/(disc) -38.4% | Div yield 10.6% Event EJF Investments’ NAV per share increased by 1.3% month-on-month in April 2024, to 126p. Valuation movements were minimal, with a portfolio return of 1.0% largely reflecting interest accruals from the CDO equity portfolio. The impact of the dollar strengthening was +0.5%. Republic First failure and EJFI exposure Republic First became the first US banking failure of 2024 in April. Its failure has been attributed largely to a mismanagement of interest rate risk. Higher interest rates increased unrealised losses in its available-for-sale securities portfolio, reducing buyer interest and tangible book value. Fulton Financial subsequently announced the acquisition of the majority of Republic First’s $6bn in assets, through the the FDIC resolution process. Fulton expects a 1.2-year earn-back on the deal. Assuming no recovery and considering the current over-collateralisati New York Community Bank (NYCB) out of crisis mode NYCB has been the key factor behind lower sentiment towards US regional banks over the past two months or so, reflected by the KBW bank index. In January 2024, NYCB reported unexpectedly low earnings, down by 50% and leading to a 70% dividend cut. NYCB’s earnings announcement also included an increase in credit provisions on account of commercial real estate office loans and rent-regulated multi-family exposures. EJFI’s factsheet notes that NYCB is out of crisis mode, following its Q1 results and a stabilisation in deposit levels. As at 31 January 2024, EJFI’s underlying exposure to NYCB was less than 2.5%. US banking sector M&A Three meaningful deals took place in April, summarised below: Liberum view Some lingering concerns over the US banking sector have impacted EJFI’s share price rating YTD, with first NYCB and more recently Republic First. In the manager’s view, there are unlikely to be many FDIC deals (like Republic First) this cycle as most banks with upside-down balance sheets should be able to be sold at a price with time. As long as banking issues remain idiosyncratic, we think a bigger takeaway is the recent vibrancy in M&A. If the manager’s assertion (in the factsheet) that the deals are the tip of the iceberg plays out, this will materially increase the return potential of the equity securitisation portfolio (69% of total investments). One of the acquired banks, Heartland Financial, was the 8th largest look-through portfolio exposure, as at 31 March 2024. From EJFI’s perspective, the regulatory aspect of the strategy centres on the consolidation of US banks. The number of banks consolidated from c. 16k in the 1980s to c. 8k following the GFC. Today, there are still over 4k banks. A unique characteristic is the ubiquity of community banks and it is these institutions that issue the bulk of the TruPS collateral pool. As the majority of the TruPS trade at a discount to par, prepayment speeds have a material impact on the returns to equity holders of the securitisations. When a larger bank acquires a smaller one, it can result in the acquired bank's TruPS being redeemed or called at par. This pull-to-par effect has historically allowed EJFI to realise gains on TruPS purchased at a discount within legacy CDO deals. Maintaining the c. 5% post-GFC consolidation rate over the next 10 years would result in c. 2.5k banks by 2033. A rate of between 2.5% and 5% is probably a fair working assumption, in our view. We are BUYers with a 137p TP. |
Posted at 27/3/2024 10:22 by davebowler Liberum EventsDate: Thursday 28th March 2024 Time: 13:00 GMT Host: Neal Wilson (CEO) , Peter Stage (CIO) & Jay Ghatalia (FD) Summary: EJF Investments primarily invests in the securitisations of debt issued by smaller US banks, aiming to take advantage of regulatory and structural changes within financial services. The securitisations contain subordinated debt where the weighted average credit rating of the collateral pools is typically BBB-/BB+. Across a range of metrics, smaller community banks have improved their financial performance since the GFC. Cover for EJFI’s 10.7p dividend tends to oscillate between 1.2x and 1.3x and the dividend remained covered and unchanged through 2020. The shares currently trade at a 36% discount to NAV. Highlights: Majority floating-rate exposure in a rising interest rate environment. The fund has delivered a 9% annualised NAV TR since launch in 2017 (8-10% annual NAV TR target), which compares favourably with structured credit peers over this period. The potential for lower interest rates and a stabilised economy improves the likelihood of banking consolidation picking up pace, which is a key driver of returns via pull-to-par prepayments and improved credit ratings within the securitised structures. Significantly aligned with Principals owning c.26% of the ordinary shares and 5% of the ZDP shares. RSVP to our Corporate & Investor Relations team for registration details: CIR@liberum.com |
Posted at 22/9/2023 08:22 by davebowler Liberum-EJF Investments’ NAV per share of 163p, as at 31 August 2023, represented a 1.6% NAV total return in the month. The portfolio returned 118bps, driven by regular interest accruals attributable to the securitisations portfolio. The earlier unrealised mark-to-market loss in June 2023 is expected to be temporary. It largely reflected the lagged pass-through of the earlier upheaval in the banking sector in March. The valuation of the portfolio’s CDO equity investments tends to lag both on the way down and the way up, relative to movements in the underlying collateral or markets. Other positive contributors to returns in August were from the mortgage servicing rights investment, (+26 bps) and FX (+71bps). We estimate the IRR on the mortgage servicing rights investment to be over 40% since the first investment was made in late 2020. This senior stream of income benefits from lower prepayments on US mortgages. Liberum view The core securitisation portfolio should continue to reverse some of the earlier mark-to-market losses, with the banking sector having stabilised. Important differences exist between the c.160 community banks that underpin the securitisation collateral EJFI has exposure to and the banks that failed earlier this year. The three banks were outliers based on the proportion of uninsured deposits held, ranging from 94% (Silicon Valley Bank) to 68% (First Republic). Distributions to equity investors in the CDOs, like EJFI, are based on the residual cash flows remaining from the collateral pool after distributions to AA and Mezzanine tranche holders. The majority of the collateral pool pays floating rates and in a higher interest rate environment there is an additional benefit from the overcollateralisatio In our view, risks on the CDO portfolio are lower than perceived by the market. In addition to the structural differences between the underlying collateral, US community banks and the banking sector in general is in far better shape than it was 15 years ago or so. Deposit stability has been evident over recent months. The main concern for community banks at the moment is the potential for higher rates to last for longer, as this affects net interest margins. Strong track record On a NAV total return basis, EJFI has been the best-performing fund within its peer group since it launched in 2017. Some of the best return years were driven by significant consolidation in US banking, which remains an idiosyncratic market with far more banks than most developed markets (1.24 commercial banks for every 100k people vs 0.52 for the UK and 0.31 for Germany). Consolidation significantly helps returns as there is a pull-to-par effect on the underlying collateral when larger banks acquire smaller ones and prepay at par. This effect can also improve the credit rating of the CDO debt tranches, as the collateral credit quality increases, raising the value of the equity tranches. M&A remains relatively muted in the banking sector but should regain momentum over time – a 3-5% consolidation rate is typical. |
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