Gcp Asset Backed Income Share Discussion Threads

[chucko1] 20/5/2020 14:31

I’ve been adding also.

[rambutan2] 20/5/2020 14:02

Having properly read through the AR last night and not finding anything to set alarm bells ringing, I added a few on today's 20% discount. hTtps://vimeo.com/413064783

[panshanger1] 29/4/2020 11:17

Very thorough Covid 19 update too from this company tooNice dividend and now reasonable disc - I've got plenty so didn't add Long term hold in SIPPGLA

[chucko1] 29/4/2020 10:39

Who needs dividends from the banks when you can own this? Solid.

[speedsgh] 29/4/2020 10:34

Dividend Declaration & Scrip Dividend Suspension - HTTPS://www.investegate.co.uk/gcp-asset-backed-inc--gabi-/rns/dividend-declaration---scrip-dividend-suspension/202004290700052044L/ The Board of GCP Asset Backed, which invests in asset backed loans, is pleased to announce a quarterly dividend in respect of the period from 1 January 2020 to 31 March 2020 of 1.55 pence per ordinary share (the "Q1 Dividend"). The ordinary shares will go ex-dividend on 7 May 2020 and will be paid on 9 June 2020 to holders of ordinary shares recorded on the register as at close of business on 11 May 2020. Scrip Dividend Suspension The Board, in its discretion, has determined that the offer of a scrip dividend will be suspended for the Q1 Dividend. The suspension is as a result of the significant discount between the likely scrip dividend reference price of the shares and the current net asset value per share of the Company. The Board will keep the payment of future scrip dividends under review. Future Dividends The Board recognises the importance of the dividend to our shareholders. As noted in our net asset value announcement on 21 April 2020, the Company has not received any requests from borrowers to defer payments and the current dividend levels remain fully covered. The Company will keep the future level of dividend under review as the potential for prolonged economic disruption evolves and will update shareholders accordingly.

[rik shaw] 21/4/2020 07:57

yes it seems more positive than the drop in share price implied.

[panshanger1] 21/4/2020 07:36

In this environment / sectorthis strikes me as a very positive update

[rik shaw] 21/4/2020 07:18

update: 'GCP Asset Backed, which invests in asset backed loans, announces that as at 31 March 2020, the unaudited net asset value ("NAV") per ordinary share of the Company (including current period revenue) was 99.93 pence' 'Outlook Overall, the Investment Manager remains positive for the outlook of the portfolio. The loan book remains highly defensive and diverse. The loan book performed extremely strongly both prior to the onset of COVID-19 and during the period. The Investment Manager remains encouraged by the financial position of our borrowers, the steps each borrower is taking in managing an unprecedented situation and the support which they are receiving from their equity investors. The defensive nature of the portfolio means significant income will continue to be generated and distributed as dividends. The Company is in a robust position with significant levels of cash on its balance sheet and it has access to a GBP50m credit facility. In addition the Investment Manager continues to seek out attractive lending opportunities that may present themselves during this time'

[speedsgh] 19/3/2020 10:30

Annual Report & Financial Statements - HTTPS://www.investegate.co.uk/gcp-asset-backed-inc--gabi-/rns/annual-report---financial-statements/202003190700077137G/ Highlights for the year - Dividends of 6.451 pence per share in respect of the year, including a special dividend of 0.25 pence, ahead of the target of 6.20 pence per share. The dividend was fully covered by basic EPS of 6.81 pence. - Total shareholder return2 for the year of 10.2% (31 December 2018: 9.1%) and an annualised total shareholder return since IPO2 of 8.3%. - Profit for the year of £28.0 million, up from 21.6 million in the prior year. - NAV per ordinary share of 102.33 pence at 31 December 2019 increasing from 101.74 pence in the prior year. - Gross proceeds of £63.3 million were raised during the year through a placing of ordinary shares in June 2019. - Exposure to a diversified, partially inflation and/or interest rate-protected portfolio of 45 asset backed loans with a third party valuation of £453.4 million at 31 December 2019. - Loans of £89.4 million advanced against 29 projects with a further £40.3 million secured against five projects, advanced post year end. 1. Includes a dividend of 1.55 pence per share for the quarter to 31 December 2019, which was paid post year end. 2. Alternative performance measure - refer below for definitions and calculation methodology. Alex Ohlsson, Chairman, commented: "I am pleased to report that the Company has once again delivered against its objectives, growing its NAV and exceeding its dividend target for the fourth consecutive year. The Company has paid a fully covered dividend of 6.45 pence per share and generated a total shareholder return for the year of 10.2%. The Investment Manager's focus on assets that are integral to society continues to deliver a strongly performing portfolio for the Group. The portfolio comprises 45 loans, 94% of which are secured against physical assets offering strong downside and capital protection. The remainder of loans are secured against contracted cash flows with robust underlying contractual protection in place. Events continue to unfold in regards to Coronavirus (COVID-19) and the Investment Manager is maintaining close dialogue with borrowers to understand any impact on the portfolio. All borrowers, including the operators of the care home, nursery and student accommodation assets within the portfolio have been following the guidance issued by the UK Government and have put appropriate protections in place. To date there has been no impact on the Company's cashflows as a result of the spread of the virus."

[rik shaw] 18/3/2020 08:08

RNS 'The Board of the Company announces that it is satisfied that any inside information which the Directors and the Company may have in the period leading up to the announcement of the Annual Financial Results for the year ended 31 December 2019 has been announced to the market. The Company is therefore not prohibited from repurchasing its own shares, during the period prior to the release of its final results. The Board anticipates that the Annual Financial Results will be announced to the market on or around Thursday, 19 March 2020. If, prior to the release of the financial results, the Directors of the Company come into possession of any inside information, this will be notified to the market before any repurchase is undertaken.'

[speedsgh] 17/2/2020 10:06

Investment in co-living - HTTPS://www.investegate.co.uk/gcp-asset-backed-inc--gabi-/rns/investment-in-co-living/202002170700091330D/ GCP Asset Backed, which invests in asset backed loans, is pleased to announce the repayment of two of its loans invested in co-living properties, representing a repayment of £49m. The Company benefitted from a repayment fee of c.£1m. The Company has immediately recommitted £53m, to the co-living borrower as part of a wider facility of up to £140m on comparable terms. The remaining commitments are being provided by Deutsche Bank AG, marking the Company's first group lending transaction. The facility is for a term of up to 4 years and the increased commitment will enable the borrower to build out its current pipeline of projects.

[panshanger1] 11/2/2020 11:22

On going issues with SQN has helped the sector

[lord mandelbaum] 11/2/2020 09:31

I'm also wondering. It was called out on Citywire's weekly Z-score list as going cheap. hxxps://citywire.co.uk/investment-trust-insider/news/trust-watch-chance-to-buy-a-cheap-scottish-mortgage/a1321888 Volumes or share price action don't suggest anything amiss

[apollocreed1] 10/2/2020 14:31

Anyone know why GABI has dropped in the last few days?

[chucko1] 06/12/2019 08:51

Apollo, the issue with Sunivar has been going on a while, and they continue to work on it. They imply they expect a decent recovery, but with facts no more concrete than how they have fared on other recovery/restructurings. But 71p was a stupid cheap price and I feel in time we would say 82p was pretty cheap.

[apollocreed1] 06/12/2019 01:24

@chucko1- Thanks. It does seem that infrastructure loans may be lower risk than industrial. Does SQN expect to recover all of the Sunivar loan?

[chucko1] 05/12/2019 14:59

On SQN, no large losses (a large seller, yes) - just a problem loan that they are trying to work out. They claim that their track record of recovery is good. They cite the relevant evidence in their most recent financial report. Potential losses on GABI are loan or sector specific, so it should have no relation to SQN at all. GABI is mainly infrastructure whereas SQN is mainly industrial leasing. I do not follow HWSL.

[apollocreed1] 05/12/2019 14:22

Seeing the large losses incurred by Hadrian's Wall Secured (HWSL) and SQN asset backed Income Fund (SQN) I'm wondering if GABI is a similar fund with similar downside risk. The security taken by the HWSL and SQN has turned out not to be worth very much. Would GABI also be likely to have defaults and find that it's security isn't worth much after all?

[pyufak] 06/10/2019 21:52

Thanks Rambutan - that’s really helpful. I really appreciate. Let me listen to this and will post if if materially affects my view

[rambutan2] 06/10/2019 13:01

Pyufak, the IC personal finance podcast this week: On this week’s show, fund manager David Conlon talks about the advantages and challenges of investing for income via direct lending in the real assets universe. David also tells deputy personal finance editor Dave Baxter how his GCP Asset Backed Income fund is currently positioned and where the next investment opportunities might appear. And from the recent interims: PORTFOLIO AT A GLANCE A diversified portfolio of 40 asset backed loans with an average life of six years which are partially inflation and/or interest rate protected. The loans fall within the following sectors and are secured against assets and cash flows predominantly in the UK: Asset finance GBP24.5 million, 6% Property GBP186.4 million, 44% Energy and infrastructure GBP51.1 million, 12% Social infrastructure GBP159.2 million, 38% SENIOR RANKING SECURITY 63% WEIGHTED AVERAGE ANNUALISED YIELD(1) 8.1% INFLATION AND/OR INTEREST RATE PROTECTION 43%

[pyufak] 05/10/2019 12:53

hi, just checking in and think this will be next addition. Boring but I want 33% of my portfolio in stuff like this for when tough times come around. apollocreed - investors benefit by increased liquidity as the fund grows and diversification of investments. This is an income fund rather an a NAV growth fund after all - however I agree with you - the principal driver from management's perspective is for the fund to increase AUM and so fees and to stay relevant. My bug bear is that I believe fee structures should be linked to fund size so should come lower with every fund raise to directly benefit existing shareholders. It's a long time back but chucko mentions inflation linked anyway? I can't find that in my preliminary reading

[apollocreed1] 28/5/2019 16:43

Can anyone please explain the statement that the GABI fund managers repeat every time that they instigate an equity fund-raising round, namely "to take advantage of a pipeline of attractive investment opportunities which have been identified by Gravis Capital Management Limited (the "Investment Manager"). " Now if these investment opportunities were really attractive, then by now we would have seen NAV increase by a reasonable amount. The NAV has been around 100.5-102 for 3 years. I don't see the benefit to current shareholders for the management to charge and incur fees in order for them to find us other investments that will return us about 5.8% p.a. In other words, we are currently receiving 5.8%pa and the expanded shareholder base/new shares will also yield 5.8%pa. So what's the point? As shareholders we are no better off, but it probably benefits the management who can charge more fees on a larger figure of Assets Under Management.

[chucko1] 13/4/2019 22:12

The more boring, the better on this one. In fact, a whole 108.5p of boredom.