Sequoia Economic Infrast... Share Discussion Threads

[speedsgh] 18/4/2024 12:09

Dividend Declaration -

The Directors of the Company have declared that an interim dividend of 1.71875p per share will be payable to holders of Ordinary Shares as follows in respect of the three-month period ended 31 March 2024:

Ex-Dividend Date: 25 April 2024
Record Date: 26 April 2024
Payment Date: 23 May 2024

Dividend per Ordinary Share: 1.71875 pence per share

[cocopah] 12/4/2024 21:53

9.2% of shares now in treasury. With buybacks at 850,000 shares a day it won’t be long before that’s 10%! No wonder there was a director buy today. If I wasn’t so stacked, I’d have a few few more! I wonder if they will increase the dividend or just keep the share buybacks going once they hit 10% of issued shares in treasury?🤔🤔

[cocopah] 28/3/2024 07:17

8.7% of shares in Treasury now, golden star in the long-term chart, good risk management of NPLs, tight run ship on costs … yes interest rates higher for longer doesn’t help the share price but positive on income.

[panshanger1] 27/3/2024 18:28

As with a lot ( most ) of infra / renewable trusts significant sellers out there atm Regardless of quality I might add Just have to hold on and wait for interest rates to come down Eventually there will be a re rating GLA

[spoole5] 27/3/2024 18:18

Where would this be without the buyback

[cocopah] 15/3/2024 16:37

Yes, we are nearly at 8.5% of issued shares now in treasury, so one would expect an improvement in the share price. However, one only has to look at BP to see that share buybacks do not always deliver! Definitely very good news on the Bulb investment and of course we could earn more from the technology. I was surprised that there was no news at all about the hotel in Scotland that is underwater. At the previous update they said that the improvements involved would offset the issue with the hotel but no commentary on it today at all? I still believe this is a quality investment and as a long-term holder I’m very happy with the due diligence being applied to lending and the frugal approach to costs. Let’s hope we see some upward momentum on the share price!

[catch007] 15/3/2024 09:50

Overall an excellent recovery from the BULB position another £2m secured. Hopefully the share will eventually rerate as it has stabilised and offers an excellent yield supported by buy backs currently.

[cocopah] 04/3/2024 15:45

8.05% of issued shares now held in treasury, seem to have added impetus to the ‘daily’ buyback (used to be c600,000 shares, now 850,000), good news on Bulb (slightly offset by the hotel in Scotland) … the BOD must be staggered that the share price isn’t 85p+ now! 🤷‍a94;️🤔

[cocopah] 20/2/2024 13:21

I emailed the MD (as you know they run a tight ship so no investor comms dept) to ask if a review of shareholder returns was in the pipeline. He replied the same day, obviously couldn’t be specific but from his reply I think they will simply keep on with the share buybacks focusing on reducing the NAV discount (in as much as that is possible whilst interest rates remain elevated). I’m happy with that tbh and we now have roughly 8% of issued share capital in treasury so I expect that to increase to 10%. Lots of execs have skin in the game above 80p so I guess if they can get the share price to the mid 80s that will be the short-term goal. 🤔👍🏻

[neilyb675] 19/2/2024 15:18

80.40 - 80.70 (GBX) at 15:01:47
on Market (LSE)

[cocopah] 26/1/2024 08:30

Another 50 days of buybacks at this level and we will have 10% of issued shares held in treasury. At that time a hike in divi to 7p+/p.a. would be well supported. Personally I’d like to see us progress a quarterly dividend of 2p.

[chucko1] 16/1/2024 12:13

My recollection from the previous dividend increase is that there were warm words regarding future increases.

My money is on a circa 5% increase, but that is no more than a personal estimate based upon the above comment.

[speedsgh] 16/1/2024 11:34

"The interest income supports a 10% yield at the current share price." Is another increase in the dividend (currently 6.875p/8.2% annualised) therefore on the cards?

[chucko1] 16/1/2024 09:15

The interest income supports a 10% yield at the current share price. The reduction in rates and gradually increasing fixed income valuation (as seen in this month's NAV upward movement) is icing.

Too easy to buy first off this morning, as though this is not especially on radar screens. The move lower from 85p to 82p over the past week was an open invitation given this update.

[gateside] 16/1/2024 08:24

The NAV per share for SEQI, increased to 94.41 pence per share from the prior month's NAV per share of 92.89 pence, an increase of 1.52 pence per share, underpinned by steady interest income and increases in asset valuations in the month of December.

[mpage] 11/1/2024 09:50

I did read the Winterflood list. In my opinion - based on comments made in Money Makers IT podcasts - E Bird is not THAT experienced and the list(obviously) has a clear bias to W's own clients.

If you're looking for an investment trust analyst who knows 'what's what' then Colette Ord at Numis is hard to beat.

As you all know, in October SEQI turned to using an interest rate swap (7 years) to lock in high rates (at what it hopes is the interest rate peak) to overcome the rule stating it needs to hold 50% in floating rates/index-linked debt. Floating rate loans do help to dampen the volatility of NAV.

DORE is younger, smaller, more volatile, trades at a 25% discount (hence the plug)and has a much lower yield than SEQI. The underlying assets are not really comparable - around two-thirds equity (compared to all private debt) invested in a narrow range of assets, mainly solar + hydro. Greencoat UK Wind looks a better bet than DORE for anyone wanting inflation-linked income.

[cocopah] 11/1/2024 06:13

Not sure how much this will interfere with the share price recovery.⬇5039;

Winterflood Analyst recommendations list …

Infrastructure & Renewable Energy Infrastructure

There was just one change in the infrastructure and renewables sector, as Sequoia Economic Infrastructure Income (SEQI) was removed in favour of Downing Renewables & Infrastructure (DORE).

Sequoia was added last year due to the ‘considerable floating rate exposure in its portfolio’, which Bird felt made it well placed to ‘capture short-term rate rises’ but that opportunity has ‘now largely played out’.

[cocopah] 06/1/2024 10:31

Looks like we need to start the buybacks again now the share price has drifted below the BoD’s recent personal investments … I’m all for it btw! 😎😜🤞🏻

[cocopah] 28/12/2023 19:48

Looks like the net impact of Clyde St will not be negative to NAV … and … given the BOD have lots of skin in the game I would imagine the share buyback will continue apace IF the share price dips below 85p. 🤷‍♂;️⬇5039;

[catch007] 19/12/2023 17:05

Virgin Hotel Glasgow Closes


The decision for Virgin Hotels Glasgow comes just a week after The Scotsman reported the owners of the building had entered an administration process


Virgin Hotels Glasgow closes with immediate effect - four months after opening - as staff escorted from building

Virgin’s premier hotel in Glasgow is set to shut with immediate effect – just four months after first opening.

Staff were told in a morning meeting on Tuesday before being escorted from the building.

The 242-bedroom hotel on the Broomielaw was due to close for trading on Tuesday. The move comes less than a week since The Scotsman first reported that Lloyds Development Limited – the company that owns the landmark building – has entered an administration process.

Staff told The Scotsman they were left surprised and shocked when the announcement was made.
On November 14, a Virgin Hotels spokesperson had told this newspaper: “We can confirm an administration process has started for Lloyds Development Limited, the current owner of Virgin Hotels Glasgow. Geoff Jacobs and Blair Nimmo of Interpath Advisory have been appointed as interim managers of Lloyds Development Limited. It is, however, very much business as usual for the hotel and our team, and we look forward to continuing to welcome guests and build on the hotel’s success.”


A statement released by union Unite Hospitality on X on Tuesday reads: "Our members at Virgin Hotels Glasgow have just been informed that the hotel is to close with immediate effect six days before Christmas.

"The CEO flew in from the US, but couldn’t even answer whether workers will get paid for hours worked."

Virgin Group had on Monday made an approach to buy Virgin Hotels Glasgow from the owner, Lloyds Development Limited, as part of the administration process.

It is understood the company was told the lender was choosing to pursue a sales process in the hope of getting a better offer and that will have an impact on employees, suppliers and guests. Each Virgin hotel is owned independently and operated under a hotel management agreement.

The company that owns the hotel building is part of a limited liability partnership of four designated members.

They are Richard Diamond and Rishipal Singh alongside Lloyds Development Ltd with a registered address in Guernsey and Moreply Ltd, registered in London. All four partners were appointed on 18 May 2017. The partnership was placed into administration on 30 November with interim managers appointed to the company that owns the Glasgow hotel building.

A spokesperson for the joint interim managers said: “Blair Nimmo and Geoff Jacobs of Interpath Advisory were appointed on December 1, 2023 as Insolvency Practitioners to Lloyds Developments Limited, which owns the property located at 246 Clyde Street in Glasgow. They have not been involved with the trading of the hotel at this address. The interim managers are disappointed for everyone involved with the insolvency.”

Virgin Hotels Glasgow was initially scheduled to launch in summer 2022 before being delayed until December last year, then eventually opening the lower floors and welcoming guests to some of the projected 242 bedrooms in August. The upper floors and suites of the hotel were not complete when the hotel opened.

Virgin Group said last week the property had performed as expected since opening.

[scburbs] 05/12/2023 08:11

Worse than that I assume they have refused to put in sufficient money to keep the company afloat (let alone pay back existing debts). Probably means the equity is well out of the money, not sure if it’s SEQI next in line (to take a loss) or if there are junior lenders as well (probably SEQI next in line). Any ideas what the name of the owning company is?

Also not clear how they are going to secure working capital funding. Presumably either this will need to come from SEQI or they will need super senior funding ranking ahead of SEQI. I am guessing the latter.

[winsome] 04/12/2023 21:12

I assume the hotel in question is the new Virgin Hotel Group one. If so its a shame Branson cannot honour his debts

[cocopah] 04/12/2023 12:38

Interesting RNS this morning. Looks like we are going to get out of the Bulb mess losing only £5m. Of course that assumes that the investment in the technology also pays off. I would imagine this must have a positive impact on the next NAV update.

On the other hand, it looks as if there will be a mitigating negative impact from Clyde St although I do believe that the company will also turn this around.

Let’s hope that the two contrasting pieces of news balance each other out, or perhaps work in our favour.

The continuation of the significant buyback is also good news.

[speedsgh] 29/11/2023 20:20

Analysts flag high-yielding debt fund Sequoia as a peak rates winner -

[cocopah] 26/11/2023 00:03

I registered for the investor call and was pleased to be able to listen in at a later date. I remain impressed by the professionalism and dedication to shareholder interests exhibited by the board.

The Q&A session was brief, indeed, the first three questions were submitted by me a few days before the event.

I’m pleased to see that it looks as though we will have good news on the Bulb front in the immediate future and that a positive resolution of the educational facility is forecast.

I would like to see the dividend at least 7p but understand that it’s much better to continue with the excellent share buyback program whilst the discount to NAV remains. Locking in the benefit of current high interest rates will also provide a tailwind to the share price and returns.

This is by far my biggest individual holding and I remain confident. In fact I’m likely to add in next year’s ISA.

As always DYOR 👍🏻😎