Last checked at 
28 Apr 2014 07:00
ICG-LONGBOW SENIOR SECURED UK PROPERTY DEBT INVESTMENTS LIMITED
Annual results
Annual Financial Statements For the period from 29 November 2012 (date of incorporation) to 31 January 2014
HIGHLIGHTS
Operational Highlights
The Company completed an Initial Public Offering ("IPO") on 5 February 2013 issuing 104,619,250 ordinary shares of £1.00 each. It was admitted on the same date to the UK Listing Authority's Official List and commenced trading on the Main Market of the London Stock Exchange.
The Company completed eight investments during the period to 31 January 2014 deploying £87.3million of capital, of which six investments (£55.0 million) were completed after 31 July 2013. The Company was 85.1% invested at 31 January 2014 with the eight investments having a weighted average Loan to Value ("LTV") ratio of 61.7% and a weighted average annual interest rate of 7.28%. All the investments are senior, secured loans on commercial and mixed use UK property across a range of sectors and geographies.
Financial Highlights
The post-tax profit for the 14 month period since incorporation of £1.35million (1.29pence per share) is lower than anticipated at the time of the IPO reflecting the slower than expected investment rate, however the Company is now fully invested and on track to deliver its target annual dividend yield of circa 6.0% per annum on the IPO issue price.
The total expense ratio for the period; calculated as total expenses for period as a percentage of the NAV at the end of the period, was 1.54%. This includes certain expenses that are not expected to recur in the future.
The Net Asset Value (NAV) at 31 January 2014 was 98.79 pence per share (98.00 pence per share following the IPO, 97.74 pence at 31 July 2013).
Dividend
The Company paid its first dividend (0.5 pence per share) in respect of the period ended 31 October 2013 and now declares a second interim dividend of 1.25 pence per share in respect of the quarter ended 31 January 2014, bringing the dividend for this initial financial reporting period to 1.75 pence.
In line with its Dividend Policy the Company expects to increase its dividend in the next quarter and remains confident that it will achieve its objective of paying the target dividend yield of circa 6% per annum on the IPO issue price from earnings generated by the now fully invested portfolio.
Post balance sheet events
Two further transactions have been completed since 31 January 2014, part funded by a placing of 3.6 million new Ordinary Shares on 17 April 2014, following which the Company became fully invested.
Following the completion of these two investments and an expected partial prepayment of £0.9 million on the LM Real Estate Loan, the total investment portfolio as at the date of this report is £104.3 million representing 98.3% of the net capital raised including the placing, with a weighted average LTV of 62.2% and annual interest yield of 7.39%.
Chairman Jack Perry said: "I am happy to confirm that, upon completion of the final two loans, the Company's Investment Objective of constructing a portfolio of good quality, defensive, senior debt investments secured by first ranking fixed charges predominantly against UK commercial property investments, providing target dividends of circa 6% pa, paid quarterly, with an underlying target portfolio IRR of 8% pa has been achieved."
Enquiries
Mark Huntley +44 (0)14 8171 6000
James Christie
Investec Bank plc: +44 (0)20 7597 4000
David Anderson
Jeremy Ellis
Maitland Consultancy Limited: +44 (0)20 7379 5151
Rebecca Mitchell
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