John Newlands

TOC Property Backed Lending Trust PLC interim results show further growth, despite COVID challenges

31 Aug 2020

The TOC Property Backed Lending Trust PLC (PBLT), managed by Newcastle-based wealth management and property lending experts Tier One Capital, has continued to expand its portfolio of property backed loans supporting investment and development projects across the North East and Scotland.

Announcing interim results for the six months ending 31 May 2020, the London-listed investment company has grown its revenue per share, recording six-month income of £1.290m, an increase on £1.001m in the equivalent 2019 period.

Despite the challenging COVID backdrop, the company made an interim dividend payment to investors of 1.5p during the period, and the company continues to assess its options for making a further dividend payment during the second half of the year.

During this period the company has also provided almost £4.5m of new lending, with £2.2m being used to fund a new housing development in Scotland and £2.3m loaned to support residential house building in the North East.

John Newlands, Chairman of PBLT, said “The company has come a long way since its formation more than three years ago. The portfolio has evolved and strengthened as early projects have been replaced with new opportunities. The board remains committed to a clear, robust and sustainable dividend policy, alongside the core objective to increase the net asset value of the company over the coming years.

“Over the nearer term, it remains prudent to adopt a cautious stance, as the tail end of the COVID-19 pandemic is played out. We need to maintain a strong base as these issues are worked through, and to manage our dividend distribution policy in a similar fashion to other listed companies, to ensure liquidity is available to protect the medium and longer term viability of the fund and its projects. At the same time, encouragement may be drawn from the positive signs being seen and from the number of investment opportunities being presented” he added.

Listed on the London Stock Exchange in January 2017, PBLT passed its third year anniversary earlier this year, a key trading milestone for a stock market listed company. To date PBLT has successfully provided over £38m of much needed financial support, predominantly in the North East of England and Scotland’s commercial and residential property development markets, creating more than 600 jobs and £85m of property value in the process.

PBLT boasts a current loan book of over £27m across its portfolio of property projects, and has strengthened its short term pipeline over recent months to over £12m of new opportunities, many of which are planned for the North East.

Brendan O’Grady, Fund Manager at Tier One Capital Ltd, the investment adviser to PBLT, said: “Despite a challenging six months for the property sector, we are delighted that the majority of PBLT’s borrowers have performed resiliently during this period. It is highly encouraging to see the company’s revenues continue to grow, and to see the ongoing deployment of capital into both new and existing property projects.

“At a time when many lenders are withdrawing from the market, PBLT continues to provide experienced property development teams with an alternative and reliable source of funding. The strong focus on supporting developments in the North East demonstrates our confidence in the region, albeit we must remain vigilant to ongoing economic challenges in the current COVID environment.”



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