Share Name Share Symbol Market Type Share ISIN Share Description
Icg-longbow Senior Secured Uk Property Debt Investments Limited LSE:LBOW London Ordinary Share GG00B8C23S81 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.60 0.71% 85.00 84.00 85.00 84.80 84.00 84.80 85,423 16:35:09
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonequity Investment Instruments 10.0 7.4 6.1 13.9 103

Icg-longbow Senior Secur... Share Discussion Threads

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Chat Pages: 5  4  3  2  1
Hi jon, You crop up on a lot of threads that I am interested in. If you don't mind me asking, what sort of annual return do you aim for across your portfolio and what do you generally manage to achieve? I am looking for steady growth without too many surprises and would value knowing what others who seem to operate in the same investment universe are aiming for. My money was managed by a third party until about a year ago and so I'm relatively new at investing sensibly (I've been having reckless punts for years though!). I'm aiming for around 10% with a balance of property, infrastructure and share based collectives, though I need to introduce some PE and possibly debt.
mad foetus
They go into some detail about the re-deployment in the July 2014 fact sheet (page 5) which just about coincides with the H1 results: It is anticipated that the aggregate prepayment pro ceeds discussed above (£2.1million) will be redeployed within the existing loan portfolio to finance value enhancing capital expenditure. The 10 loans in the portfolio have a weighted coupon of 7.39% and a projected IRR of 8.41% Http://www.icgplc.co.uk/SiteCollectionDocuments/senior-secured/Fact%20sheet%20-%20July%202014%20Q2.pdf
They will probably return capital to shareholders, and the dividend will be reduced in absolute terms, but the yield will remain the same on the smaller base.
Ptolemy - they raised "New capital" in April via a share placing. They see no prospect of further capital raisings in the foreseeable future. However, they have managed to recycle some existing capital via some of their loan repayments (probably because they were amortisation loans rather than bullet) and intend re-deploying it as the opportunity arises. (Naturally, either that or return it to us shareholders!) I think that clarifies their dividend statement, maybe?
Think the answer lies in two different words - "deploy" and "redeploy".
Been looking at this one. Could anyone reconcile these two statements, a paragraph apart in the recent update: "we do not currently foresee the opportunity to deploy any further new capital at levels which would be accretive to investors" "We are actively looking at possibilities for redeploying this capital and I look forward to being able to report to you further on this in due course." They also state that the dividend is maintainable, but with capital being returned to them and (according to the quote above) with no foreseeable opportunity to reinvest, just how will they manage to maintain the divi?
YES - bought in just under 2weeks ago @ 103.85p; a small allocation to a slow-burner. I quite like yesterday's pop above the 104p parapet. Technically looks as though we might anticipate some small capital gain to add to the income.
Back to sleep for 6 months!
Ok...just checking
Anyone here? :)
Their results to Jan 2014 are out. They tell us, more than once: On 25 April 2014, the Directors declared a dividend in respect of the quarter ended 31 January 2014 of 1.25 pence per Ordinary Share. If "declare" means issue a statement, I certainly can't find it - I'm looking for ex and pay dates. Incidentally, they tell us (pdf p5): a weighted average original loan term of 5.2 years which may answer the point in post #8.
Interesting point - another senior loan company [HSLE, though not property oriented] classifies its loans as 'A' (amortising) and 'B' (bullet). The vast majority are 'B'. Also, as loans mature, it is returning capital. This may need to be the path such as LBOW, SWEF take. On the other hand, as interest rates rise, loan rates are less likely to fall?
I have looked at this; I take Investec's point that the risk/reward ratio is attractive at the moment. What concerns me is how much longer will we be able to get these attractive deals. For all our sakes and the health of the UK economy I hope that the lending market loosens up over the next few years which would mean that when these loans run off then the rates that can be obtained will be much lower ie the market conditions of today are not representative of what they will be in the coming years. In their last IMS they suggest that the loan life is 5.2 years and the recent York Best Western Loan has a Dec 18 maturity-what I do not know from the RNS is if these loans have a bullet maturity or are repaying in instalments ie what is the average life of the whole loan portfolio.
Investec Insights ¢ Today's announcement is excellent news and takes LBOW to substantially fully-invested, and more-or-less within the time-frame set out at launch (12 months). This is in contrast with SWEF which has struggled to deploy the capital it raised at launch. We understand the property-lending space remains competitive – and we prefer the regional UK exposure the LBOW team offer, rather than a London-centric approach. ¢ The underlying loan metrics mean the company's target return of a 6% pa dividend should be more than fully met going forwards. Net of fees and expenses, we believe a run-to-maturity IRR of 7.2% pa looks achievable. We think ICG Longbow have now demonstrated they are amongst the market leaders in UK Commercial Property Senior Secured Lending. ¢ We continue to like the property debt space and think LBOW highlights the very attractive risk / reward profile experienced managers can offer to investors right at the top of the capital structure with low LTVs. (In all cases, LBOW's loans are given the senior secured position and the average portfolio LTV is 61%, with 160% interest coverage ratio.) ¢ We note the potential tenth investment opportunity and look forward to an announcement on it (in the near future. We also expect the company's maiden set of final results soon. ¢ Looking at the other funds within the property debt space – which, to reiterate, we main bullish on – LBOW offers the purest senior-loan exposure but we also believe RECI's more diverse strategy of bond and loan exposure offers investors excellent returns; a 12 month dividend yield of 6.1% with the shares trading around par. This is a much more attractive proposition, in our view, than SWEF which is currently 71% committed and trades at a premium of 3.4% and yields 3% (although this should increase when the fund becomes fully invested).
Liberum; ICG Longbow (NR) 95% invested Event LBOW has committed to a £10m loan to Lanos (York) Ltd secured by a first charge on the Best Western York Monkbar Hotel. The facility has a maturity date of 31 December 2018. Part of the facility will be used to fund a refurbishment and 27 bedroom extension to the hotel. The deal is LBOW's ninth transaction with total commitments to date of £97.3m (94.9% of available capital). The average coupon and IRR on the portfolio is 7.3% and 8.4% pa respectively. The portfolio has a weighted average LTV of 62% and interest cover ratio of 1.6x. Liberum view The completion of this loan has taken slightly longer than expected with management guidance previously indicating the fund would be 95% invested by the middle of January 2014. We estimate recurring earnings of 1.5p for the year to January 2014 compared to an original target of 4-5p in year 1 at the time of the IPO. LBOW has the highest rating amongst the real estate debt funds (4.8% premium vs. weighted average 2.0% premium for peers) which we regard as unwarranted given the fund's track record to date.
RECI vs LBOW; Liberum; Real Estate Credit Investments (RECI / BUY) - Bond gains highlight NAV upside potential n 1.8% NAV uplift: NAV per share grew by 1.8% in the second half of September to 155p (15 September: 152p) due to strong performance in the bond portfolio. n Bond portfolio +2.6%: The bond portfolio rose 2.6% in the month as a result of material repayments and strong m-t-m gains. n Loan pipeline: Cheyne, the investment manager, has a £150m pipeline of loan opportunities (of which we would expect approximately 25% to be allocated to RECI) with further investments expected in Q4 2013. Liberum View: n RECI's bond portfolio continues to deliver consistent returns with a YTD return of +15.2%. This is partially driven by bond sales / repayments above market value and ahead of management's assumed repayment date. RECI has sold £64m of bonds over the past year at an average uplift of 26% over the acquisition price (weighted average sale price of 0.89 vs. cost of 0.70). The total amount of sales is equivalent to 81% of the portfolio market value at the start of the period. There is an additional £20.6m of embedded value in the bond portfolio which is equivalent to 52p per share. n The pipeline of loan opportunities is encouraging and highlights the manager's ability to access dealflow in the current lending market. This is in direct contrast to recently-listed peers where the pace of investment has been slower than anticipated resulting in downward revisions to year one dividends. n RECI trades on a 2.6% discount to NAV and the shares offer a prospective 7.2% dividend yield (assuming the proposed placing completes), This compares to a 3.6% premium and 4.0% dividend yield for peers. We regard the 5 point differential in the share rating as unjustified given RECI's superior track record and the combination of attractive income in addition to NAV upside potential.
See page 38 onwards for our prospects; http://www.investec.co.uk/content/dam/investec/investec.co.uk/Files/cef-new/CEF-Symposium/Investec%20Symposium%20Slides.pdf
The £50bn investment opportunity from banks' retreat Graham Emmett, partner at ICG Longbow, talks about an opportunity in commercial property debt for income investors. http://www.citywire.co.uk/money/the-50bn-investment-opportunity-from-banks-retreat/a671120
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