RM Infrastructure Income (RMII) has released its annual results for the year end 31 December 2023. Earlier in the year, it was announced that the company would be facilitating a managed wind down due to a stubborn discount and falling scale.

At 31 December 2023 the NAV total return for the year was 3.16% and annualised over 2022 and 2023 gives a 4.15% per annum NAV total return. Since inception the NAV total return on an annualised basis has been 5.15%.

Over 2023, the loan portfolio reduced in size as borrowers repaid and no new loans were made during the latter half of the year, instead capital was used to repay borrowing facilities so that at year end these were undrawn. The portfolio size closed at £94m (2022: £126m) of invested capital across 31 loans (38 loans 2022). The year was much quieter than previous years in terms of investment activity with one new loan made during the year to a children’s nursery and one refinance of an existing transaction. There were several smaller drawdowns to existing facilities. The investment manager is now targeting a reduction of the portfolio and an expedient return of capital to shareholders. No new loans will be made save for the funding of committed facilities and any follow-on funding required to protect value for RMII Shareholders.

Regarding the outlook, chair Norman Crighton commented:

The investment manager is targeting a significant return of capital to shareholders during 2024 and 2025 and is aiming to return a majority of shareholder capital by year end 2025. It believes the key risks to this repayment schedule relate to several factors linked to either recovery or the ability to refinance for the larger borrowers.

RMII : RM Infrastructure Income making steady progress on wind down