Gcp Asset Backed Income Share Discussion Threads

[2wild] 20/7/2023 13:04

NAV 93.96p on 30th June.

Ex 1.58125p 27th July.
Payments 25th August.

Annual 6.325p giving 11% dividend yield at 57.5p.

[hugepants] 20/7/2023 12:52

quarterly update and dividend

[speedsgh] 07/7/2023 07:46

Extension to term of Revolving Credit Facility -

GCP Asset Backed, which invests in asset backed loans, refers to its £50 million Revolving Credit Facility ("RCF") with Royal Bank of Scotland International Limited, maturing in August 2023 and is pleased to announce that the RCF has been extended by 12-months on the same terms as the previous facility, extending the maturity date to August 2024.

The current drawn balance on the RCF is £48,050,000.

[donald pond] 26/5/2023 09:09

I worked closely with Gravis for a decade and they - and Phil Kent in particular- are cautious, modest and extremely conscientious. But it feels like Phil may be spread too thin at the moment and support from Orix (who must be regretting buying into Gravis at the moment) is welcome. I'm torn here - there's definitely value but to lose 2 managers in swift succession makes me worry that there may be loans which aren't problems yet but look likely to become so shortly.

[speedsgh] 25/5/2023 18:24

Discounted Gravis debt fund loses second manager in six months -

... Numis analyst Ewan Lovett-Turner said the latest departure will ‘likely be a concern for investors, particularly during a period when the manager is trying to work through a few issues in the portfolio, particularly around its Co-living assets’.

‘That said, it is useful that Gravis can drop in addition people from its owner, Orix, although it does highlight the current lack of resources which it is seeking to tackle through the appointment of a new head of private credit,’ Lovett-Turner said.

[cc2014] 23/5/2023 12:27

It's high yield with investments largely made when interest rates were zero.

That was fine when credit risk was nil or perceived as nil as the loan could get rolled, interest added to the debt or the period extended or there was a willing party to pass it on to due to TINA.

I have looked at this over 100 times and every time I ask do I want this level of return for the risk and the answer is no. I even have a spreadsheet with some comments in reminding myself why I don't want it.

There's a price for everything but whatever that price is, the current price is far higher than I'm prepared to pay.

[williamcooper104] 23/5/2023 12:09

Hmmm Football finance, social/supported leaving development loans Don't think we've seen the peak of loan non-performance here Meanwhile they've sacrificed liquidity buying back shares for no uplift in the sp

[speedsgh] 23/5/2023 11:51

Market understandably not overly impressed by disclosure of another co-fund manager deciding they are better off 'pursuing new opportunities' elsewhere.

ORIX (strategic partner to the manager, Gravis Capital) are seconding 2 staff from its London-based global credit business to support the current team, "particularly relating to portfolio transactions and new pipeline origination activity".

"In addition, Gravis is in late-stage discussions with a senior individual for the role of Head of Private Credit and Gravis hopes to be in a position to confirm this appointment in due course.

The Company and Gravis are also pursuing strategic initiatives that, if completed, should further support the resources available to the Company."

[panshanger1] 17/2/2023 18:16

Finding some support

[panshanger1] 10/2/2023 15:19

Relentless downward pressure here Dividend now over 8%

[i of the tigers] 26/1/2023 23:54

There'll be no run off.
Social housing is a poisoned chalice.
Other opportunities seemingly to be had; with patience this will imo turn around.

[williamcooper104] 26/1/2023 17:03

How long before this goes into run off

[speedsgh] 26/1/2023 16:59

NAV drops to 94.90p (30/9/22: 96.18p). Further write-down of Co-Living Group Loan and a new loan (Supported Living Asset, representing 3.0% of company's portfolio) added to their negative watchlist...

Quarterly Portfolio Update and Dividend Announcement -

[speedsgh] 02/11/2022 09:31

Dividend Declaration -

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 2022 to 30 September 2022 of 1.58125 pence per ordinary share (the "Q3 Dividend").

The ordinary shares will go ex-dividend on 10 November 2022 and will be paid on 09 December 2022 to holders of ordinary shares recorded on the register as at close of business on 11 November 2022.

[gopher] 11/10/2022 16:31

Too right Stifel. The shares were down with market today so a muted reaction, at least initially.

[speedsgh] 10/10/2022 17:53

Fund Manager Update -

The Board of GCP Asset Backed Income Fund Limited has been informed by Gravis Capital Management Ltd, the investment manager of the Company ("Gravis"), that David Conlon, the Company's lead fund manager and member of its investment committee, has decided to leave Gravis and will be relinquishing responsibility for the management of the Company's portfolio with effect from today.

Joanne Fisk continues as the portfolio manager of the Company. Joanne has worked with David as portfolio manager since joining Gravis in 2017 and has played a key role in identifying investments, leading negotiations, liaising with borrowers and overseeing portfolio development. In addition, Gravis CEO, Rollo Wright, and Phil Kent, a director of Gravis, have assumed the role of joint portfolio managers to the Company, alongside Joanne.

Rollo and Phil both sit on the investment committee at Gravis that oversees investment decision making on behalf of the Company, alongside Nick Barker, Saira Johnston and Nick Parker. Phil co-led the fund management of the Company alongside David until 2018 and Rollo was the lead fund manager of GCP Infrastructure Investments until 2018. Gravis' services to the Company will continue to be supported by the wider team across Gravis that provides investment advisory services. The Gravis team members are happy to make themselves available for any questions or updates the Company's shareholders might have in relation to the contents of this announcement.

In accordance with the key person provisions of the investment management agreement entered into by the Company and Gravis, the Board is in discussions with Gravis concerning finding a suitable replacement for David and further information in this respect will be announced in due course.

Alex Ohlsson, Chairman of the Company commented: "The Board remains confident of the management of the Company's assets and the execution of the continued pipeline of attractive investment opportunities, utilising the broad and deep expertise of the investment advisory team at Gravis. The Board would like to thank David for the role he has played since the IPO of the Company and wish him the best for the future."

[speedsgh] 29/4/2022 16:13

Dividend Declaration -

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 -

[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 -

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