Sequoia Economic Infrast... Share Discussion Threads

[uapatel] 17/8/2023 07:23

‘Pull to par’ could make 8%-yielder Sequoia an appealing punt

[gateside] 15/8/2023 14:54

I have set up a Watchlist on LSE, and use that for checking for RNS information at 7amADVFN also highlights shares in your portfolio if there is a news release.

[jonwig] 15/8/2023 12:57

New owners. They've done a lot to improve it, but I suspect it will become a subscription service when the changes are complete.

[speedsgh] 15/8/2023 10:32

Yes, I used to use Investegate for daily alerts and reading rns announcements but it became so unreliable that I then switch to advfn for alerts and the used LSE for actually reading the updates (I prefer the formatting on LSE). But frustrating that some rns don't seem to show (always seems to be NAV updates for some reason). I think there was recently an MBO or similar at Investegate and I think they have now got their game back in order so may look at starting to use them again.

[spangle93] 15/8/2023 10:07

cheers jonwig - I used investegate for my 7am fix and for research for years, but it went shonky about 3 months ago. Looks like it's now got back all the functionality it previously had.

[jonwig] 15/8/2023 08:03

It's on Investegate, which pulls its data from the LSE:

[spangle93] 15/8/2023 07:59

Thanks speedsgh - not sure why the NAV UPdate is not showing on London Stock Exchange RNS list whereas the daily "transaction in shares" is?

[speedsgh] 15/8/2023 07:21

NAV and Investment Update -

NAV update

The NAV per share for SEQI, the specialist investor in economic infrastructure debt, increased to 92.41 pence per share from the prior month's NAV per share of 91.95 pence, (being the 30 June 2023 cum-income NAV of 93.67 less the dividend of 1.71875 pence per share declared in respect of the quarter ended 30 June 2023 and paid in August 2023), representing an increase of 0.46 pence per share...

Portfolio update

The Company is attractively positioned from a liquidity perspective with cash of GBP101.7m available, compared to undrawn commitments on existing investments of GBP36.1m. The Company's is currently not geared and its revolving credit facility is undrawn, resulting in additional capacity to manage future volatility in exchange rates, while simultaneously reducing cash drag on non-invested capital. The Company also has an active pipeline of new investments with attractive yields in the current interest rate environment and intends to draw on the revolving credit facility when appropriate while prudently balancing its capital allocation. Further updates will be provided to shareholders upon the completion of these deals during the summer of 2023. The pipeline is diversified by sector, sub-sector, and jurisdiction, with yields ranging from 9% -11%...

... The following investments settled in July 2023 (excluding small loan drawings of less than GBP0.5m):

-- Two additional Senior loans for GBP3.4m to Project Octopus, a telecom infrastructure services provider based in the UK; and

-- An additional Senior loan for PLN 7.6m (equivalent to GBP1.5m) to Green Genius to finance the construction of solar PV projects in Poland.

No investments sold or prepaid in July 2023

Non-performing loans

The Investment Advisor continues to actively manage its two non-performing loans (which together represent 3.5% of NAV) with the loans independently marked to market by PwC as part of the monthly valuation process. Further updates will be provided to shareholders in the future when developments occur.

[cocopah] 27/7/2023 17:20

… narrowing more is what I meant … tbf if you take the share price correction following the influence of rising interest rates and then the levelling off/drop in inflation, then the narrowing has been marginal.🤷‍♂️

[chucko1] 27/7/2023 08:16

Worth reflecting that we have just gone 1.7p or so ex-div with around 0.3p price drop. You won't get rich immediately as a holder, but it's a further example of the irrationality of the infra IT price movements of late.

Worth taking advantage of the weak in these circumstances. Unabashedly.

[tiltonboy] 25/7/2023 07:13

It has been narrowing

[cocopah] 24/7/2023 20:09

Frustrating that the discount isn’t narrowing here, especially with the buybacks being relatively aggressive. 🤷‍a94;️

[cwa1] 20/7/2023 07:27

Dividend Declaration

Investment Adviser Shares

Interim Dividend for the Period Ended 30 June 2023

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 30 June 2023:


Ex-Dividend Date: 27 July 2023
Record Date: 28 July 2023
Payment Date: 25 August 2023
Dividend per Ordinary 1.71875 pence per share
Share:

[williamcooper104] 19/7/2023 09:23

It is; surprised they got away with using it

[jonwig] 19/7/2023 09:17

Incidentally, there are 117,540 companies and persons with the Kent House address.

[jonwig] 19/7/2023 09:08

William - OK, sorry. It's a bit like the name "Phoenix", weel-overused.

[williamcooper104] 19/7/2023 08:57

https://find-and-update.company-information.service.gov.uk/company/05902847/filing-historyThere's two Sequoias managing funds; a huge one in the US and our one - Sequoia Investment Management Company https://www.seqimco.com- which is owner/managed with two funds under management earning man fees of £13m; they show profit of just £1m but that's likely after taking cash out to the owners, so probably proforma profit exclusive of distributions taken as invoices of about £5m

[spangle93] 19/7/2023 08:31

Nice to see the price start with an 8- again :-)

[jonwig] 18/7/2023 07:01

Sequoia is a huge outfit - not many would have the means to take them. (Unlike Gresham House where others have seen the value and acted.)

[williamcooper104] 17/7/2023 20:45

Yes but there best route to value is to buy the management vehicle first and then low ball for the fund - have seen that done a lot in the US and something similar seems to have happened recently with CSH I'd rather keep it public

[cocopah] 17/7/2023 20:03

Musing … does this get to a stage where a private equity firm might think “we’ll have a bit of that!”.㈳4;🤔

[cocopah] 17/7/2023 13:39

Pretty standard NAV update, not much to shout about either way. Pull to par worth 6p and update on NPLs below ⬇️ … I can’t see this, moving the share price dial, much either way …🤷R05;♂️

“There has been ongoing progress over the past month in relation to Bulb Energy / Zoa Equity, the marks on which are approximately unchanged this month. The Investment advisor continues to proactively manage the 4000 Connecticut B loan (formerly known as Whittle Schools) investment and is exploring various alternatives with the borrower and co-lenders to protect the value of its investment. The loan has been marked down in June reflecting higher discount rates and delays in re-leasing the property.”

The Company's two non-performing loans account for 3.2% of NAV as of June 2023.

[cocopah] 13/7/2023 17:39

There may be hope for us yet, especially when the board all bought in c85p versus where the share price is now! I’d take NAV +5% 😂⬇5039;

[cocopah] 06/7/2023 09:37

Given the mood music on interest rates and the recent rate paid on the latest BOE gilt auction I can see 7p+ incoming on the annual dividend. The dividend cover is high enough, replacement loans must now be driving income levels ever higher and we haven’t seen the full benefit of the buybacks yet. 🤞🏻🤞🏻9335;‍♂️

[cocopah] 29/6/2023 14:54

I listened to the investor update following the annual results this morning and asked a few questions. My understanding is that there is no exposure to the water companies. I suggested they had a business Twitter account and they said they’d think about it but had to weigh up the costs against the fact that their monthly updates are probably best in class for an infrastructure company. They are confident that they will get more back from Bulb and whilst nothing is happening with the school building, the security is good. They are very aware of the discount to NAV, but I don’t think there’s much they can do at the moment other than continue buying the shares and putting them in Treasury. I was pretty satisfied that they are on top of credit quality and my intention is to hold and continue taking the dividends. It wouldn’t surprise me if the dividend cover remains high and the interest income stays good that we will see a slight rise in the dividend as well in a few months. We shall see but they are aware that (as an income stock dealing in BB credit) investors need to see much more the 5% interest-free rate that can be obtained in the market. They certainly don’t want to see the share price decline further to make this happen either!