Sequoia Economic Infrastructure Inc (LON:SEQI) has announced its Final Results for the year ended 31 March 2026
| Financial Highlights for year ended | 31 March 2026 | 31 March 2025 |
| Total net assets | £1.38bn | £1.44bn |
| Net Asset Value (“NAV”) per Ordinary Share | 93.17p | 92.55p |
| Ordinary Share price* | 76.60p | 78.30p |
| Ordinary Share discount to NAV* | (17.8)% | (15.4)% |
| Market capitalisation | £1.13bn | £1.22bn |
| ESG score of the portfolio** | 66.12 | 64.70 |
| Earnings per Ordinary Share | 6.83p | 5.04p |
| Dividends declared | 6.875p | 6.875p |
| Annualised dividend yield | 9.0% | 8.8% |
* Cum dividend
** As measured by the in-house proprietary scoring methodology
KEY HIGHLIGHTS
· Strong NAV performance, underpinned by resilient portfolio income and disciplined credit management
o NAV increased 0.62p to 93.17p (FY2025: 92.55p); Annualised NAV total return of 8.4% (FY2025: 6.1%), in excess of the Fund’s target annual gross return of 7-8%
o Dividends of 6.875p per Ordinary Share, consistent with full-year target; dividend remains fully cash covered by a factor of 1.06x (FY2025: 1.00x) representing an attractive dividend yield of 9.0% as at 31 March 2026 and 8.4% at 9 June 2026
· Improved or maintained credit quality with robust, diversified portfolio, while targeting a portfolio yield of 9-10%
o Reduced proportion of non-performing loans (“NPLs”) to 0.3% of NAV (FY2025: 1.0%) and no new NPLs recorded during the period
o Maintained diversification, covering 27 sub-sectors
· Originated £422.1 million of new loans over the period, at a weighted average yield-to-maturity of 9.6%
o Proportion of senior secured loans rose to 63.5% (FY2025: 59.9%)
o Continue to focus on finding operational assets, senior secured debt, and non-cyclical industries
· Continued proactive management of share price discount with NAV-accretive share buyback programme and enhanced engagement with investors
o Maintained balanced approach to capital allocation with 75.3 million Ordinary Shares purchased over the period; 288.5 million Shares repurchased since the beginning of the programme
o Programme of initiatives to market the Company to a wider audience, with the goal of attracting new investors, including overseas
· ESG score of the portfolio of 66.12 (FY2025: 64.70)
o New sustainability scoring methodology and framework to align with evolving market standards and best practice to be rolled out over the coming year
James Stewart, Chair, commented:
“Our performance demonstrates the resilience of SEQI’s diversified infrastructure debt portfolio in a period characterised by heightened geopolitical uncertainty and market volatility. SEQI delivered a NAV total return of 8.4%, ahead of our long-term target range, while maintaining full dividend cover and continuing our disciplined approach to capital allocation.
“We continue to believe that the current level of discount does not reflect SEQI’s long-term prospects, the strength of the investment portfolio or our ability to generate attractive returns in a sector that is recognised as lower risk than general corporate lending. Addressing the discount remains a priority for the Board. We will continue to find the right balance of capital allocation between new originations and share buybacks to help reduce the discount.
“We remain confident in the long-term investment case for infrastructure debt and in SEQI’s ability to continue delivering attractive risk-adjusted returns for Shareholders.”
Randall Sandstrom, Director and CEO/CIO, SIMCo, said:
“The portfolio delivered another year of strong income generation and resilient credit performance. Against a backdrop of ongoing market volatility, our focus remained on originating high-quality senior secured infrastructure debt opportunities while actively managing portfolio risk.
“Infrastructure debt continues to offer an attractive combination of strong income generation, downside protection and diversification. The global infrastructure funding gap remains substantial, creating a compelling opportunity set for specialist lenders such as SEQI.”
