Chenavari Toro Share Price (TORO)

Couple of observations....

They are at the limit of their leverage , which can be interpreted many ways, but to me means they are advantaging opportunities, being well below their maximum sector/individual holding limit.

Their market commentary of an increase in distressed debt was notable, in that such is the first time I've seen such stated in their factsheet, albeit it should be noted, they appear to be commenting generally rather than TORO specific

Boringly great results. Still boringly bullish on TORO after 10 years. Long may her stampede of Income continue......

Gavster-NBC; Bravo, you succinctly summarised the results.

Having digested the whole thing, these are my thoughts -

Earnings per share were 8.73c and dividends were 6.76c, rather dispelling the frequent concern some have that this type of stock is eating itself, unsustainable, in it's high yield. It is clear, it is earning well in excess of it's dividend, and as I don't see any change to the current dividend policy (ever), that excess cash is obviously allowing them to advantage further contributing opportunities.

'The best contribution came from ABS/CLO risk retention strategies.......reflecting a high annualised NAV return of 46%'. This statement suggests that previously originated product has generated great margin, and TORO's mgmt (gambling?) on not trading such has bore fruit, which I see as a great positive as to their diligence/ability. I think for investors in this sphere, this is really important to appreciate - that there is a life cycle of commitment and obligation, upfront depreciating risk/cost, whilst appreciating reward/income.

Income of €1.1m from SRed, the Spanish property investment. I've said before SRed has been a drag on performance (albeit still marginally profitable), but they are now 90% out, and expect closure in 18 months. Whilst analytically you could consider this proportionally a poor investment for TORO (it is/was), their patient mgmt of this, to achieve cost +, I see as this as a great demonstration of their mgmt ability, and long term view. They could have, some would say should of, fire sold this, but rather than take that hit, they have curated it to a profit.

'although the discount to NAV narrowed......the Company intends to continue efforts to reduce it further....' well, as a seasoned watcher here, bar them stating such a couple of times previously, I'm not sure they have done anything to support this statement.if you increased the dividend, it would raise concerns of a basket case, so do they do buybacks? Not a fan, but even at the reduced NAV discount, still obviously accretive. Their assertion of action specifically on that point is spurious - their actions in delivering excellent performance/results isn't, and their continuance of such will naturally reduce the discount, as this years performance has demonstrated.. They highlight that 'credit losses will see an uptick '. This doesn't concern me remotely, both because they factor in a percentage of failure, and because of the very fact that they highlight it so matter of factly - ie business as usual but we are monitoring. The only thing that caught my eye, headline negatively, was, total operating expenses increased from €4.3m to €6.4m which is a substantial increase. Didn't observe any director/staff largesse, so can only presume that reflects higher financing/trading costs linked to increased proactivity on margin procurement. Frankly if you keep delivering such performance/dividends, to me, that's a barely noticeable smudge. Borin

Gavster-NBC; ha ha, you did make me chuckle. Yes loads of boring stuff, but thanks for the synopsis, as I haven't read yet. I often find boring stuff (stocks) very rewarding!

I'll have a look later, and add my thoughts, but as I've posted here recently, I do think TORO are really excelling at the moment - and I've been here 10 years, so I don't suggest such lightly.

Also being responding on the FAIR board, as quite a few thoughts on that, which I've also held for 10 years.

Https://www.rns-pdf.londonstockexchange.com/rns/2620O_1-2025-6-24.pdf

Had a quick read and so far good :

"The profit of the Company for the Period was €27.2 million (31 March 2024: €15.8 million), or a profit of 8.73 cents per Ordinary Share"

"The Company delivered robust gross returns over six months, up 13.64%. (with dividend reinvested in security) surpassing the 12 months NAV target return of 10%. "

"The Portfolio Manager believes the next 12 to 24 months will continue to present significant investment opportunities in Public European ABS and CLOs.

Although the discount to NAV narrowed to around 16%, the Company intends to continue efforts to reduce it further and capitalise on market strength."

Not sure I'll manage to stay awake until the end, but I'm betting it's full of reassuring boring investment choices and a good outlook.

Still discount to NAV... Still a buy IMO