Gcp Asset Backed Income Share Discussion Threads

[speedsgh] 29/4/2022 16:13

Dividend Declaration - HTTPS://www.investegate.co.uk/gcp-asset-backed-inc--gabi-/rns/dividend-declaration/202204290700067426J/ 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 2022 to 31 March 2022 of 1.58125 pence per ordinary share (the "Q1 Dividend"). The ordinary shares will go ex-dividend on 12 May 2022 and will be paid on 14 June 2022 to holders of ordinary shares recorded on the register as at close of business on 13 May 2022...

[speedsgh] 20/4/2022 10:45

NAV 99.36p as at 31/3/22... Net Asset Value and Investment Update - HTTPS://otp.tools.investis.com/clients/uk/gravis_capital_partners2/rns-asset/regulatory-story.aspx?cid=1242&newsid=1575119

[speedsgh] 24/3/2022 07:43

Dividend target 6.325p (1.58125p per qtr) for FY22: The Company paid 6.30 pence in interim dividends, meeting the target set by the Company for 2021 and fulfilling the Company's stated aim to grow its annual dividend year-on-year, compared to 6.2252 pence paid in interim dividends for 2020. In respect of the forthcoming financial year, the Company is targeting an annual dividend of 6.325 pence per ordinary share.

[speedsgh] 24/3/2022 07:40

Co-living loan The Co-living loan was a significant disappointment during the year, with the loan defaulting due to breaching a liquidity covenant. The loan is a syndicated loan and we are part of a consortium of lenders. Since the loan defaulted in May 2021, the consortium of lenders have been looking to sell the assets of the Co-living group to recover as much value as possible. Significant progress has been made in this regard, with a number of assets sold in the period and exclusivity agreements in place to sell a number of others. In terms of the remaining assets, the following current positions are in place at the time of writing: - US assets - exclusivity in place and working towards sales in the coming weeks; - UK HMO assets - sale process started and more than 50 parties have expressed an interest and are reviewing the sales information; and - UK large assets - an exclusivity was entered into with a proposed REIT; however, due to the situation in Ukraine, the IPO of the REIT has been paused. The operating assets have both been stabilised and are operating above 95% occupancy. We have had significant interest from parties looking to acquire the assets and if the REIT does not IPO, we will look to launch a sales process for the assets in the coming months. We expect strong competition for these assets and remain confident that they offer a defensive and stable cashflow that will prove highly attractive to investors. As noted later in the report, the key features of this loan are not present in any other loan in the portfolio. -------------- In the Chairman's statement: ... We continue to closely monitor our two loans to multi‑use community facilities. These loans are public facing, consisting of bars and restaurants as well as studio and co-working spaces. These facilities, like all in the hospitality sector, have been severely impacted by lockdowns during the year. However, we remain positive for their long-term future with performance so far this year showing good recovery.

[speedsgh] 24/3/2022 07:38

Annual Report & Financial Statements - HTTPS://www.investegate.co.uk/gcp-asset-backed-inc--gabi-/rns/annual-report---financial-statements/202203240700078302F/ Highlights for the year - Dividends of 6.30 pence per share declared in respect of the year, including a dividend of 1.575 pence per share for the quarter to 31 December 2021, which was paid post year end. - Total shareholder return3 of 13.2%, total NAV return3 of 3.4% (31 December 2020: -9.8% and 6.5%) and an annualised total shareholder return3 since IPO of 5.3%. - Profit for the year of £15.0 million (31 December 2020: £27.4 million). The decrease year-on-year reflects the impact of the decrease in fair value of the Group's Co‑living loan. - Renewal of existing £50 million revolving credit arrangements with RBSI to extend maturity from August 2021 to August 2023. - NAV per ordinary share of 99.29 pence at 31 December 2021, a decrease from 102.18 pence in the prior year, predominantly due to a 4.5 pence per share write-down of the Group's Co‑living loan, partially offset by valuation gains elsewhere in the portfolio and excess income. Refer to the Investment Manager's report below for further detail. - Exposure to a diversified, partially inflation and/or interest rate-protected portfolio of 60 asset backed loans with a third party valuation of £443.64 million at 31 December 2021. - Loans of £135.5 million (new and follow‑on) advanced by the Group during the year, secured against 35 projects with a further £16.6 million secured against five projects, advanced post year end. - Repayments of £118.1 million during the year generating repayment fees of £2.5 million, with a further £31.7 million of repayments received post year end.

[williamcooper104] 03/2/2022 23:10

That's a turn up The Co-living bad loans assets are being bought by a newly created GCP managed REIT

[speedsgh] 27/1/2022 08:37

Dividend Declaration - HTTPS://www.investegate.co.uk/gcp-asset-backed-inc--gabi-/rns/dividend-declaration/202201270700137556Z/ 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 October 2021 to 31 December 2021 of 1.575 pence per ordinary share (the "Q4 Dividend"). The ordinary shares will go ex-dividend on 03 February 2022 and will be paid on 04 March 2022 to holders of ordinary shares recorded on the register as at close of business on 04 February 2022.

[rogerramjett] 25/1/2022 13:39

Thanks speedsgh. Not bad reading.

[rogerramjett] 13/1/2022 14:07

Added some of these to my wife's IT PF. Very boring but I'm inclined to say I like the potential outlook and dividend.

[speedsgh] 03/11/2021 12:52

Dividend Declaration - HTTPS://www.investegate.co.uk/gcp-asset-backed-inc--gabi-/rns/dividend-declaration/202111030700071202R/ 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 July 2021 to 30 September 2021 of 1.575 pence per ordinary share (the "Q3 Dividend"). The ordinary shares will go ex-dividend on 11 November 2021 and will be paid on 10 December 2021 to holders of ordinary shares recorded on the register as at close of business on 12 November 2021...

[speedsgh] 15/10/2021 11:52

Bit of a kick in the nuts. Over 5yrs worth of NAV growth disappeared as a result of the Co-living Group loan. "The Investment Manager continues to look to realise value across all elements of the Co-living Group and continues to believe there is additional value to be found from these other assets. We are seeking to remain conservative and will only move the valuation upwards as these sums are realised, <<though it should be noted that current discussions would not lead to a material movement in the Company's NAV>>."

[speedsgh] 15/10/2021 11:45

Net Asset Value and Investment Update - HTTPS://otp.tools.investis.com/clients/uk/gravis_capital_partners2/rns-asset/regulatory-story.aspx?cid=1242&newsid=1517576 GCP Asset Backed, which invests in asset backed loans, announces that, as at 30 September 2021, the unaudited net asset value ("NAV") per ordinary share of the Company (including current period revenue) is 98.94 pence per share. NAV The NAV performance for the 3 month period is a negative movement of 3.77 pence per share after the payment of dividends, a decrease of 3.67 per cent. The negative NAV performance for the period was driven by the write-down of the Co-living Group loan as announced on 13 September 2021. The rest of the Company's investments continued to perform as expected in the period to 30 September 2021, with all principal and interest payments received as anticipated[1]. Portfolio Update The only portfolio assets that remain categorised as high risk are the Co-living Group loan and the two community facility loans, representing an aggregate 5.84% of the total portfolio value. Co-living Further to the announcements of 13 September and 16 September, we are pleased to report that the credit bid is proceeding as planned. The first two assets have transferred to the acquisition vehicle, and it is anticipated that the remaining four assets will transfer over the coming weeks. The negative NAV movement of 3.77p is greater than the 3.69p reduction announced on 13 September as a result of no income being recognised on the entirety of the loan in the period. Occupancy across the operating assets was strong in the period. The UK assets are all at or above 90% in occupancy and the US operating asset reported its strongest month of the year in September. The lenders to the Co-living Group are holding discussions with several parties who are interested in buying assets which are not part of the credit bid and hope to transact on a number of these in the coming weeks. The Investment Manager continues to look to realise value across all elements of the Co-living Group and continues to believe there is additional value to be found from these other assets. We are seeking to remain conservative and will only move the valuation upwards as these sums are realised, though it should be noted that current discussions would not lead to a material movement in the Company's NAV. Community Facility The Company has provided loans to two community facilities. These facilities house a variety of small businesses including bars, food outlets, co-working and studio space. A sale process was commenced in the period for the two community assets, with the appointment of a preferred bidder occurring at the end of September. It is expected that the transaction will complete before the end of October. We do not expect a reduction in the carrying value of these loans as a result of the transaction and believe that the preferred bidder will be able to fully realise the value of the facilities. General The portfolio continues to rotate well with £36.8m repaid and £16.6m deployed in the period. The Investment Manager continues to target loans to borrowers it already knows and in sectors that have performed well for the Company. The Company's interim results for the six months ended 30 June 2021 were released on 28 September 2021. Dividends On 22 July 2021, the Company declared a quarterly dividend in respect of the period from 1 April 2021 to 30 June 2021 of 1.575p per share, which was paid on 27 August 2021. Outlook Whilst endeavouring to recover value from the Co-living Group loan has been a primary focus for the Investment Manager over the period, we remain encouraged by the continued performance and strong cash generation of the wider portfolio. We continue to have access to funds as loans repay, including £20m which has been repaid post period end and we have a pipeline of opportunities which is in excess of our available capital. The Investment Manager will be holding a webinar on 3 November 2021 at 10am to provide more detail on the portfolio. For any investor interested in joining, please e-mail [e-mail].

[jong] 16/9/2021 16:53

Thanks for the link speedsgh. The comments on care homes at the end bodes well for holders of THRL who have just had a placing - maybe a good buying opportunity there on the placing dip ?

[speedsgh] 15/9/2021 17:03

GCP Asset Backed Income hurt by Co-living loan writedown - HTTPS://citywire.co.uk/investment-trust-insider/news/gcp-asset-backed-income-hurt-by-co-living-loan-writedown/a1554714 ... GABI was a small player in a syndicate of lenders to Co-living, leading Liberum analyst Conor Finn to say it illustrated ‘some of the risks in minority lending investments, particularly the lack of control in distressed situations.’ ‘The scale of the writedown is significant given the LTV [loan to value] of the position was less than 65% at March 2021,’ Finn said, meaning there was a healthy cushion of equity to protect the lender. Stifel analyst Iain Scouller cut his ‘positive&rsquo; rating to ‘neutral&rsquo; saying there was a risk the shares could drop to a discount to NAV. ‘We are disappointed to see this writedown especially given what had been the improving backdrop and comments from the company regarding its high-risk loans. While no portfolio is immune to problems, the size of the writedown – around 54% as the loan was 6.8% of the portfolio 30 June – is significant and means that something has clearly changed quite materially in the third quarter,’ Scouller said. Shares in GABI have dropped from 104.5p to 101p since the announcement on Monday, but remain on a small premium to the reduced NAV following Conlon’s insistence that no ‘read-across should be made as a result of the writedown in the value of the Co-living Group loan to the rest of the company’s portfolio which continues to perform as expected.’ Speaking at an Association of Investment Companies event yesterday, Gravis associate director Joanne Fisk, who works with Conlon on GAVI, said the fund remained committed to funding sustainable borrowers. ‘Core to the sustainable theme is looking for assets that meet a structural demand in society or serve a purpose as we think that underpins the value of the investment we are making,’ she said. While the Co-living loan has been painful, GABI remains keen on housing, lending £5m earlier this year to Apex Airspace, whose modular pods on top of flat-roof buildings are designed to solving the property shortage. Fisk said Apex had ‘a borrower track record’ and is working on an affordable homes project with the Greater London Authority and local councils. ‘It is improving and building on existing housing stock providing affordable homes in London,’ she said. Within social infrastructure, GABI is also a lender to four care homes. Fisk hoped to add to the exposure in ‘areas of undersupply when there is a need for elderly and vulnerable care’. ‘These assets have seen really strong growth in valuations,’ she said. Fisk said the managers of the four homes ‘impressed through Covid-19 by taking steps early on, maintaining occupation, and gaining new contracts’, despite the sector being hit hard by the pandemic. ‘This is an area we are interested in. We are looking at other projects and are hoping to close soon.’

[panshanger1] 13/9/2021 08:33

Co op Living group loan being written down and reduction in NAV

[speedsgh] 20/8/2021 07:19

Extension to term of Revolving Credit Facility - HTTPS://www.investegate.co.uk/gcp-asset-backed-inc--gabi-/rns/extension-to-term-of-revolving-credit-facility/202108200700062283J/ On 10 July 2020, GCP Asset Backed, which invests in asset backed loans, announced that it had exercised a 12-month extension option in respect of its £50 million Revolving Credit Facility ("RCF") with Royal Bank of Scotland International Limited (the "lender"), maturing in August 2021. The Company is pleased to announce that the RCF has been extended by 24-months on the same terms as the previous facility. An additional 12-month extension option has also been included to be approved at the lender's discretion upon expiration in August 2023. The Company's Investment Manager, Gravis Capital Management Limited, considers having continued access to the revolving credit facility an essential tool to allow the Company to access attractive investment opportunities. As at the date of this announcement, the facility is drawn by £20.2 million.

[jonathan49] 13/8/2021 12:32

Thanks appollocreed1 - I am a long term holder of the credit ITs for reasons of diversification and total return (not driven by need for income) As it happens I also held SQN and GCP infra. I sold out of GCP infra because the dependence on power prices was much too great for my liking. There is a tight linkage and my view is that power prices need to fall in the long term because much more electricity will need to be used and it will need to be affordable. Plus since the assets are "wasting" (being amortised away to nothing) there is a big question about whether they are reinvesting enough and have good enough opportunities in the long term to maintain the NAV. The power price aspect is evidenced that some of the GCP infra loans are already valued below cost due to the power price having fallen. I also sold out of TRIG at a nice profit for the same reason. Gore Street may be different because it is not power price dependant as I understand it. I got SQN C shares on at about 80p and have held on - now hopeful that I will get most of my money back as it winds up. SQN management was a learning experience to be very careful that any Boutique manager really has the market network, contacts and access to source good deals with responsible sponsors who have meaningful equity in the deal deep pockets. None of these existed with SQN, they were just lending to anyone who came along and wanted money. Gravis does look better than that but they are still a boutique manager and I wonder about their market access compared to the big boys. My preferred ITs for credit are now CCPG/NCHY/RECI/MGCI/TFIF/NBMI/BIPS/HDIV. I have equal weight of all those plus GABI.

[apollocreed1] 13/8/2021 02:37

@jonathan49 - I sold out of this at 105.5 because I didn't think it was worth holding at a premium when they have a list of loans that are being watched for potential default. You can buy something like Gore Street Energy Fund or GCP Infrastructure that yield about 6% just like GABI, but without the loan risk. I also came around to the idea recently that loan trusts can often be much riskier than other high yielding trusts like the infrastucture ones, because I was a holder of SQN (KKVL) Asset Finance and Hadrians Wall that are also loan funds and they lost over 50% of their NAVs.

[jonathan49] 12/8/2021 22:15

Did anyone else listen to this presentation? There is one large mezzanine loan to a Co living project which appears to be taking a substantial loss. The loan has been marked down to £32.8M from £36.4M. The project is evidently still perfectly viable and rents are being received OK but a covenant had been broken for the senior loan. The senior lender instructed a sale process. Current project value means that senior loan can be repaid in full be the Mez loan will take a £4M loss even though the income is still there to pay all interest payments and the project value will likely recover in due course. It was a very unclear explanation but left me with the impression that Gravis had not done a good job in structuring the terms of the GABI mez loan in that they had no say in the sale or refinancing. I am now wondering whether Gravis has enough expertise in order to get appropriate terms for the types of loans being made by GABI. Any comments or insights would be appreciated.

[playful] 15/7/2021 07:08

The Investment Manager will be holding a webinar on 27 July 2021 at 10am to provide more detail on the portfolio. For any investor interested in joining, please e-mail [e-mail] .

[panshanger1] 18/6/2021 10:04

New 52 week high @105

[badtime] 17/6/2021 13:16

Nice move up this month

[jong] 13/5/2021 10:02

XD today (1.575p) payable on 14 June

[frazboy] 27/4/2021 13:53

Divi announcement due - hopefully this week unless anyone has a definite date?