RNS Number : 6676I
GCP Asset Backed Income Fund Ltd
20 April 2022
20 April 2022
GCP Asset Backed Income Fund Limited
(the "Company" or "GCP Asset Backed")
Net Asset Value and Investment Update
GCP Asset Backed, which invests in asset backed loans, announces
that, as at 31 March 2022, the unaudited net asset value ("NAV")
per ordinary share of the Company (including current period
revenue) is 99.36 pence per share.
The NAV performance for the 3 month period is a positive
movement of 0.07 pence per share after the payment of dividends, an
increase of 0.07 per cent.
The positive NAV performance for the period was driven by excess
earnings in the period.
Year end results
The Company's annual results were published on 24 March 2022 for
the year ended 31 December 2021. The results reported on a
challenging year for the Company (which included a write-down of
the Company's investment in a Co-Living Group) but highlighted the
strong performance across the significant majority of the loan
book, as well as highlighting the high level of portfolio rotation
with GBP118.1m in repayments received and GBP135.5m of investments
made in the year.
The Company announced in its results that it has increased its
target dividend for the current year to 6.325pps  .
The results and a link to the analyst presentation can be found
The only portfolio assets that remain categorised as high risk
are the loan to a co-living group (the "Co-living Group") and the
two community facility loans.
During the three month period, we had a number of notable
- Partial principal repayment of EUR7.1m from one of the
football finance positions secured against a team competing in La
Liga, following the sale of a portion of the broadcasting rights to
CVC Capital Partners.
- Partial prepayment of GBP11.9m from a student accommodation
project in Dublin which represented the largest single asset
exposure in the portfolio prior to repayment. The asset is
performing well with 97% occupancy. The largest single asset
exposure has now reduced from 5.39% to 3.33%.
The Investment Manager continues to be happy with the level of
prepayments it is receiving as these enable the Fund to reinvest
into new and attractive areas in sectors which the Investment
Manager continues to support. There continues to be a healthy
pipeline of new investments and repayments coming through.
New investments were made in the period in loans supporting new
build residential developments, football finance and the
development of a new care home in an underserved community in the
The realisation of the Co-living Group continued, with the
following positive movements in the period:
- One US asset was sold to a co-investor;
- Three German assets were sold;
- Exclusivity was agreed for the sale of the US operating asset,
with the asset expected to trade in Q2 2022;
- The UK operating assets continued to perform very well, with
all but one asset operating at above 98% occupancy. The other asset
operated at an average occupancy of 94% in the period.
The following less positive movements were noted in the
- The proposed launch of the GCP Co-living REIT was paused due
to global events. The pausing of the REIT has had no impact on the
value of the assets, which remain highly attractive. We are pleased
to report the Company is expecting to shortly enter into a new
exclusivity to sell two of the assets to a private fund post period
end. This transaction is expected to complete in Q2 2022;
- The sales process for the UK HMO assets ended with no serious
bids received. The Investment Manager is therefore reviewing
options with respect to these assets, which are performing very
well and are cash generative. We currently hold these assets at nil
We are not proposing any change to the holding value of the
Co-living Group loan, in line with the decision to only recognise
movements on the receipt of funds. The value of the loan therefore
continues to be held in line with the initial NAV write-down on 13
September 2021, although we would expect to update this in the
coming quarter as cash is received.
The Company has provided loans to two community facilities.
These facilities house a variety of small businesses including
bars, food outlets, co-working, studio and workshop space.
Trading continues to improve for both projects boosted by the
recent good weather. The first site is near fully occupied with the
current focus on improvements to the public F&B spaces,
basement, bar and events operation which are expected to improve
footfall and profitability.
Plans for improvement of the second site have been presented to
stakeholders, with works beginning on site to convert the garden
area to a bar and seating area which will significantly increase
the outdoor seating capacity of the site.
The Investment Manager continues to work closely with the
management team to support the stabilisation of these assets.
On 27 January 2022, the Company declared a quarterly dividend in
respect of the period from 1 October 2021 to 31 December 2021 of
1.575p per share, which was paid on 4 March 2022.
The Investment Manager is continuing to see strong opportunities
for investment which match repayments that the Company is receiving
from maturing investments. Equally, the portfolio continues to
provide a diversified loan book benefitting from significant
inflation and interest rate protection.
The Investment Manager will be holding a webinar on Friday
29(th) April at 10am to provide more detail on the portfolio. For
any investor interested in joining, please e-mail
For further information, please contact:
Gravis Capital Management Ltd +44 (0)20 3405 8500
Investec Bank plc +44 (0)20 7597 4000
Buchanan/Quill +44 (0)20 7466 5000
Notes to Editors
GCP Asset Backed is a closed ended investment company traded on
the Main Market of the London Stock Exchange. Its investment
objective is to generate attractive risk-adjusted returns primarily
through regular, growing distributions and modest capital
appreciation over the long term.
The Group seeks to meet its investment objective by making
investments in a diversified portfolio of predominantly UK based
asset backed loans which are secured against contracted,
predictable medium to long term cash flows and/or physical
 The target dividend set out above is a target only and not a
profit forecast or estimate and there can be no assurance that it
will be met.
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(END) Dow Jones Newswires
April 20, 2022 02:11 ET (06:11 GMT)
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