RM Infrastructure Income PLC (LSE:RMII) reported a 5.0% net asset value (NAV) total return for first half of 2021, with "strong momentum" in asset value growth as pandemic-related valuations have recovered as the outlook becomes clearer.
The investment company, which specialises in secured social and environmental infrastructure lending, changed its name in the period from RM Secured Direct Lending PLC to reflect what it said is a narrower investment focus on social and environmental infrastructure sectors.
In social infrastructure investments are made in healthcare, childcare & education, and accommodation, while environmental infrastructure includes clean energy & renewables, waste management, as well as energy efficiency & carbon reduction.
The portfolio was valued at £128mln, invested across 34 loans after seven new investments and nine repayments were made in the period, with loans under the new investment focus now representing 40% of the portfolio.
Including funding commitments in place but not yet drawn, this exposure would rises to 46% and is expected to increase to circa 55% over the second half of 2021, the company said.
At the end of June, NAV stood at £112.35mln, up from £110.54mln a year earlier, while NAV per share rose to 95.25p from 91.16p.
RM Infrastructure Income said the portfolio had 15% floating rate investments and this was "set to increase" over the second half, while the average life of the investments was roughly 2.74 years, "creating reinvestment opportunities and limiting duration risk".
The UK government guaranteed CBILS loans represented 25% of the gross assets of the portfolio, which the company said offered investors "a material credit enhancement".
A second interim dividend of 1.625p per ordinary share meant the aggregate dividend for the period was 3.25p per share.
Norman Crighton, chair of RMII, said: "I am pleased to report a period of strong performance for the portfolio, which has demonstrated its considerable resilience throughout the challenges of the past year.
"We have made excellent progress with our new investment focus, which our new company name now reflects, with further social and environmental infrastructure investments expected during the year."
He added: "The outlook remains promising as the economic environment improves and the Investment Manager continues to grow its strong pipeline of impact opportunities within the new focus sectors."