Sequoia Economic Infrast... Share Discussion Threads

[cocopah] 21/8/2021 20:28

Mach100 Lol edited original post to the correct ‘pence’ not ‘pounds’ … you got the gist though.

[mach100] 14/8/2021 18:06

Cocopah a leap in NAV from 103.2p to £101.86 is not marginal! One of the biggest jumps in history I would say. Maybe it bought Greenland for Trump :P

[cocopah] 13/8/2021 16:44

Latest NAV update released at close of business today. Following divi the NAV increased marginally to 101.86p.

The Company's settled investment activities during July included:

· A $5.0m bond of Inmarsat, the largest UK satellite communications company;

· An additional £2.7m loan to Lloyds Development Limited, a hotel development in Glasgow; and

· A €28.4m takeout financing to Ventus, a German real estate developer specializing in social infrastructure in Germany.

The following assets sold or prepaid in July:

· A €16.4m bridge loan to Ventus, a German real estate developer largely leasing its properties to subnational German government entities with strong credit profiles.

[cocopah] 14/7/2021 18:27

I think we might be at the top of the wave as far as the share price is concerned as we are now valued at a premium of 9%. The new investments are not power related (good) and settling the coal related one is good from an ESG perspective.

[cwa1] 14/7/2021 07:15

Modest increase in NAV:-



NAV update

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 103.13 pence per share from the prior month's NAV of 102.41 pence per share, representing an increase of 0.72 pence per share.

A full attribution of the changes in the NAV per share is as follows:


pence per
share
--------------------------------- ---------
May NAV 102.41
Interest income, net of expenses 0.66
FX movements, net of hedges 0.01
Increase in asset valuations 0.05
June NAV 103.13
================================= =========

[chucko1] 06/7/2021 09:53

"SEQI has demonstrated the considerable resilience of its portfolio and the wider infrastructure asset class throughout the Covid-19 related challenges of the past year. In an environment of necessarily accommodative fiscal and monetary policies, our in-year return performance was well in excess of our long-term targets.
"We believe that the company continues to be well placed to deliver attractive risk-adjusted returns in a sustainable manner over the long term."

Indeed. And I am pleased about that, I suppose. But he is also suggesting that, upon a reversal of this accommodation, don't be surprised if the target is merely outperformance, rather than something absolutely positive.

That said, this one certainly has a place.

[cocopah] 06/7/2021 08:51

Gateside - Agree, good to see solid results with no drama, market reaction should be positive (by which I mean muted). This from the press: Sequoia saw its total net assets grow from £1.59bn to £1.81bn throughout the year, while its net asset value increased to 103.18p per ordinary shares from 96.6p for a NAV total return of 13.5%.
The FTSE 250-listed group also paid a total dividend of 6.25p during the year, up slightly from the 6.18p returned to investors a year earlier.
Sequoia also recorded a share price total return of 17.4% in the year.
Chairman Robert Jennings said: "SEQI has demonstrated the considerable resilience of its portfolio and the wider infrastructure asset class throughout the Covid-19 related challenges of the past year. In an environment of necessarily accommodative fiscal and monetary policies, our in-year return performance was well in excess of our long-term targets.
"We believe that the company continues to be well placed to deliver attractive risk-adjusted returns in a sustainable manner over the long term."

[gateside] 06/7/2021 08:31

Good set of results.Nice predictable quarterly dividend."In the absence of any significant restricting factors, the Board expects to pay dividends totalling 6.25p per Ordinary Share per annum (increased from 6p per Ordinary Share with effect from the quarter ended 30 June 2019) for the foreseeable future."

[cocopah] 05/7/2021 22:29

RNS details of investor call for y/e results call tomorrow:
hxxps://polaris.brighterir.com/public/sequoia_fund/news/rns/story/xj3041w/export

[cocopah] 25/6/2021 18:04

This from the financial press today:

“The $1.2trn infrastructure deal approved by the President will provide a boost to roads, bridges, broadband, passenger and freight services,” said Interactive Investor analyst Richard Hunter.
“Quite apart from the further injection into revitalising the economy, the amount is less than the $3trn which had been sought by the President, thus having lower tax implications than had been thought to pay for it.”

Not sure but I believe it could be really positive for SEQI … obviously another fundraise would be required. Thoughts?

[cocopah] 15/6/2021 00:00

Apollocreed1 ... and in answer to your second question ... the Mid-June NAV update ...

“SEQI, the specialist investor in economic infrastructure debt, has seen its net asset value (NAV) rise to 102.41p per share, an increase of 0.13p on the month prior.

The decrease in asset valuations in the NAV attribution this month is primarily due to several sizeable US power positions being marked down as a result of the negative impact of the lower than expected 2022/23 Base Residual Auction (BRA) PJM capacity results that were released.

SEQI also had a significant price decline in one of its least liquid positions based on a small secondary trade in the bond near the end of May.

It is expected that the previously identified uplift in valuations of the assets where COVID-19 has impacted performance to continue. This trend is likely to persist as economies continue to recover and lockdowns start to further ease globally.

As at 28 May 2021, the company had cash of £84.7 million and had drawn £83.6 million on its £280 million revolving credit facility. It had also undrawn commitments on existing investments collectively valued at £72.6m.

The company's invested portfolio comprised of 63 private debt investments and 11 infrastructure bonds across eight sectors and 30 sub-sectors, with an annualised yield-to-maturity (or yield-to-worst in the case of callable bonds) of 9.0% and a cash yield of 5.6%.”

[apollocreed1] 14/6/2021 01:06

@cocopah-Thanks for your reply. I actually did see that article you posted but had completely forgotten by now.

[cocopah] 13/6/2021 17:46

Appolocreed1 I mentioned on an earlier post that the increase in corporation tax appeared to be immaterial for SEQI. The article below was where I obtained the information ... though I don’t know the ‘why’ or whether it’s correct. I can’t help with your second question other than to say recent ‘new’ lending has focused on data centres, telecoms, healthcare and potash ... so perhaps they are reducing their exposure to solar power. Admittedly they have undertaken ‘additional217; lending to a couple of the existing solar power investments.🤷;‍♂ʊ39;🤔

hxxp://citywire.co.uk/funds-insider/news/budget-2021-infrastructure-and-renewables-funds-hit-by-corporation-tax-hike/a1475130

[apollocreed1] 10/6/2021 15:48

Have SEQI mentioned in any of their news releases about how the increased Corporation Tax and falling renewable power prices will affect their NAV?

Today, GCP Infrastructure (who seem to me to be very similar in business type and assets) announced a 9% decrease in NAV over the year and the stock is trading on a discount of -1%. The decrease was attributed to those 2 factors mentioned above. So how come SEQI have not addressed this issue and are trading on a 6% premium?

I'm still puzzled as to why a debt-company is exposed to declining power prices -don't the operators of renewable infrastructure have to repay their debts regardless of the price at which they sell their power?

[mackie] 10/6/2021 13:11

Fuss all over! Div received today, sorry, the 4 days I referred too above was for the SIR div which was due last Friday also received today. Just another senior moment!

[cocopah] 10/6/2021 11:47

Divi credited in Halifax Sharedealing today. 👍🏻

On a separate matter good to see the share price at its current level for (essentially) a divi stock. Interesting to see what the NAV will be mid-month and what types of investment/divestments have taken place in the last month.🤔

[cwa1] 10/6/2021 11:10

Yes, mine showing now as well on iWeb

[simonheard] 10/6/2021 10:51

Shows in Dividend History on iWeb this morning, presumably value available later today (after trading hours?)

[cwa1] 10/6/2021 08:13

iWeb not coughed up yet either-but not a surprise as they are Halifax run. They are almost always the slowest of any of the brokers I use, which I just accept and live with. Apart from that they are cheap, frill free and reasonably competent in most other areas

[mackie] 10/6/2021 07:59

Thanks for that. 4 days now, very unusual but no doubt will turn up sooner or later. Doubt I would change broker, past experience tells me you can be very quickly out of the pan and into the fire.

[cocopah] 09/6/2021 18:36

Mackie I’m still waiting and I use Halifax Sharedealing. If I remember rightly, previous dividends were paid into my account a day or two after the pay date (not the case with other investments). Perhaps it’s because they are Jersey based or something to do with their bank account rather than your broker or mine.🤷‍;♂️

[mackie] 09/6/2021 16:26

Thanks, think its time I changed my stockbroker.