RM Infrastructure Income PLC GBP · LSE:RMII
RM Infrastructure Income PLC GBP — RM Infrastructure Income — Investor Day (October 2021)
34 slides from RM Infrastructure Income PLC GBP's investor day presentation, October 2021
Slide 1: RM Infrastructure Income PLC Capital Markets Day - October 2021
RM Infrastructure Income PLC “RMII LN” Capital Markets Day - October 2021
Slide 2: Disclaimer
Disclaimer Disclaimer All information and opinions contained in this document has been provided by RM Capital Markets Limited ("Company"), which is authorised and regulated by the Financial Conduct Authority, and have not been independently verified as to their accuracy by either the Company or any
Slide 3: RM Funds – Senior Leadership
RM Funds – Senior Leadership Portfolio Management Team Firm Senior Management Team James Robson Henry Caplin (Chair) Portfolio Manager, Private & Public Credit ▪ 27 Years experience Chief Investment Officer ▪ Experience in private equity and corporate finance ▪ Responsible for private credit strateg
Slide 4: Executive Summary
Executive Summary Secured lending strategy, Targeting 6.5 pence dividend. Was generalist approach, now narrower sectoral focus Lending focused on UK corporates with real asset backing. Seeking to Invest with impact RMII launched in Dec 2016, nearly 5 years of track record – 57 months Consistent NAV
Slide 5: RM Infrastructure Income PLC – Performance
RM Infrastructure Income PLC – Performance Key Performance Metrics Avg. YTD Share Price Total NAV Return Cash Yield on Mid Price Market Cap Discount to NAV ✓ 30.8% ✓ 7.22% ✓ £106m ✓ c.6.0% 135 10% 130 5% Prem/ Discount to NAV (%) 125 120 0% Total Return 115 110 -5% 105 100 -10% 95 90 -15% 85 80 -20%
Slide 6: About RM Funds
About RM Funds RM Funds – Specialists in private credit investments, with a 360-degree perspective investing in the debt and equity of businesses operating in the alternatives sector. RM was founded in 2010. Headquarters in Edinburgh and offices in London. RM currently manages c.£250m split across:
Slide 7: Strategy, Portfolio Update, Relative Value
RM Infrastructure Income PLC ➢ Strategy ➢ Portfolio Update ➢ Relative Value 7 7
Slide 8: RM Infrastructure Income PLC – Investment Strategy
RM Infrastructure Income PLC – Investment Strategy Investment Priorities Focused on non-benchmark loans, “the missing middle”, of up to c.£15m which are often too complex for traditional bank lending and too small for institutional direct lenders. Bespoke documentation with significant lender-friend
Slide 9: RM Infrastructure Income PLC – Investment Focus
RM Infrastructure Income PLC – Investment Focus Social Infrastructure Environmental Infrastructure Childcare & Clean Energy & Waste Energy Efficiency & Accommodation Healthcare Education Renewables Management Carbon Reduction Investment highlights Typical loan terms Access to critical infrastructure
Slide 10: RM Funds – the competitive advantages
RM Funds – the competitive advantages Sourcing and origination capability Robust credit scoring and credit processes “PRISM” proprietary system Monitoring & Control Data collection and analysis tools / gives RM “ considerable local knowledge 10
Slide 11: RM Infrastructure Income PLC - Portfolio Update
RM Infrastructure Income PLC - Portfolio Update Portfolio has navigated strongly over COVID Sector breakdown, September 20219 Consistent distributions ahead of target Food and beverages Low interest rate sensitivity portfolio Construction 3%2% Hotel & Leisure 3% 25% CBILS 25% / Senior 28% Manufactur
Slide 12: RM Infrastructure Income PLC – Relative Value
RM Infrastructure Income PLC – Relative Value Government Bonds High Yield Bonds Key Points to Note 10% 10% ✓ High exposure to Dividend yield Dividend yield 400bps government 5% 5% guaranteed debt - 25% 695bps of GAV 0% 0% Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 ✓ Consistent dividend Jul-18
Slide 13: Sustainability & Impact Focus
➢ Sustainability & Impact Focus 13 13
Slide 14: Fund evolution - from avoiding ESG risks to creating positive impact
Fund evolution - from avoiding ESG risks to creating positive impact ESG integration ESG Exclusions/ Positive Impact engagement Negative ESG screening measurement screening (ESG impact) “RM Secured Direct Lending Plc” “RM Infrastructure Income Plc” Responsible Investment Working with
Slide 15: Challenges & Impact objectives
Challenges & Impact objectives THEME / TARGET SECTORS WITH INVESTABLE CHALLENGES RMII IMPACT OBJECTIVES SDGS OPPORTUNITIES Social Infrastructure Improving quality and The UK is facing a growing and ageing population, combined with the Healthcare; Health Fitness accessibility of health and social inc
Slide 16: Contact Information
Contact Information RM Funds Distribution James Robson: 0131 603 7069 james.robson@rm-funds.co.uk James Satterthwaite: 0131 603 7068 james.satterthwaite@rm-funds.co.uk Pietro Nicholls: 0203 697 1768 pietro.nicholls@rm-funds.co.uk David Watts: 0131 603 7064 david.watts@rm-funds.co.uk Thomas Le Grix d
Slide 17: Registered office and regulatory information
Registered in Scotland No SC380707 Registered Office: 4th Floor, 7 Castle Street, Edinburgh, EH2 3AH RM Capital Markets Limited is authorised and regulated by the Financial Conduct Authority (Number 562209) 17
Slide 18: Student Accommodation
Student Accommodation Michael Sharples - Oct 2021 18
Slide 19: Michael Sharples Co-Founder
Michael Sharples Co-Founder Michael has successfully operated a number of businesses during his career. Since 1991 he has been founder, acquirer and seller of a number of diverse businesses in different market sectors. He co-founded the Hamsard Group plc and as CEO acquired three technology business
Slide 20: What We Do
What We Do Crosslane Property Group (CPG) is a successful, award winning developer and operator of Purpose-Built Student Accommodation (PBSA) assets across the UK & Europe providing investors with a fully integrated end-to-end solution 01 Acquisition and 02 Secure funding & 02 03 Development 04 Lett
Slide 21: Our Development Track Record
Our Development Track Record Trinity View, Coventry 1,094 Coppergate, Swansea Scotland Assets Beds 3,28 790 30 >7,000 207 6 The Netherlands Republic of England Ireland 505 Germany St James Point, Newcastle Cities Asset Value Brass Founders, Sheffield 22 >£0.5bn 98 2 Wales 264 France Annual Rental In
Slide 22: Our Clients
Our Clients That we have developed for or sold to 22
Slide 23: Secured Development Pipeline
Secured Development Pipeline Dundee – 524 beds Liverpool – 292 beds Manchester – 1,000 beds Leicester – 360 beds Dublin – 97 beds 23 Nottingham – 210 beds Dundee – 179 beds Nottingham – 259 beds Norwich – 141 beds Swansea -312 beds
Slide 24: Future Development Pipeline
We continue to grow our future pipeline with 7,000 beds Future Development Pipeline identified in addition to those already secured for delivery over the next 3 years to become a major player in the PBSA sector by 2026 University of Sheffield Manchester University Glasgow University University of Br
Slide 25: UK Student Market
UK Student Market Stable & robust asset class in growth with attractive returns High demand and low supply dynamics drive need for Purpose-Built Student Accommodation (PBSA) development • 2.3 million students (2 million full-time) • 681,000 student accommodation beds • 2:1 students v bed numbers (fo
Slide 26: Why We need debt
Why We need debt Three main areas: • Development debt • To fund the construction of PBSA developments • Investment debt • To fund operational PBSA assets • Corporate debt • To fund working capital for our day-to-day business cashflow needs to accelerate our growth 26
Slide 27: Why We chose RM Funds
Why We chose RM Funds RM Infrastructure Income (“RMII”) provided Crosslane Property Group (“CPG”) with a corporate funding facility in February 2021 In coming to this arrangement RMII considered: CPG’s 13 year track record of performance Strength of CPG’s balance sheet & the high-quality of operatio
Slide 28: Athena Healthcare Group
Athena Healthcare Group was formed in 2011 to deliver high quality, new, purpose built assets in the care sector. Presentation by Steven Wylie
Slide 29: Research
RESEARCH o Research using powerful demographic software o Private market very strong o Driving factor, extremely wealthy generation with high demand for next 20 years o Demand exponential o Limited timescale of supply of smaller operated homes o Model to build homes with 60+ beds, with EBITDA in exc
Slide 30: Our End to End Solution
OUR END TO END SOLUTION o Identify land (based on strong demographic demand) o Obtain planning permission o Construct with our in-house construction arm o Operate under an Opco -> Propco structure
Slide 31: Where We Are Now
WHERE WE ARE NOW o Planning process for first home started 2012 o Construction of first home started 2013 o First care home opened 2014 o To date, successfully constructed 11 care homes o Two development projects in progress o Four new developments currently in planning process
Slide 32: Funding to Date
FUNDING TO DATE o Private and other debt lenders o Sold initial homes to REIT market • To enable cash to grow the group • Tax efficient at the time o Group’s intention is to hold assets with debt moving forward
Slide 33: Future Funding
FUTURE FUNDING o Good working relationship with RM Funds o 3 year funding arrangement (works in synergy with our end to end solution) • Enables our construction of the assets • Enables us to start operations and bring to maturity • Enables step to senior debt
Slide 34: Where We Are Going
WHERE WE ARE GOING o Current completed beds, 700 beds o Current beds under construction, 277 beds o Current planning pipeline, 458 beds o Target for group, 2,500 beds o Target 0.65% share of whole UK, £120m turnover, £45m EBITDA o Strong senior leadership team in both Construction and Care
RM Infrastructure Income — Investor Day (October 2021) on 6ix