Fair Oaks Income Ltd on Tuesday maintained its dividend as it reported a higher net asset value return per share in 2024 compared to the prior year.
The Guernsey-based investor which specialises in collateralised loan obligations said its net asset value return per 2021 share was 14.9% in 2024, compared to 13.0% in 2023. The NAV return per realisation share was 17.4%, up from 13.8% a year ago.
In April 2021, the company designated 13% of its 2017 shares in issue as ‘realisation shares,’ with the remaining 87% redesignated ‘2021 shares’.
NAV per 2021 share on December 31 was 56.14 US cents, down 0.4% from 56.38 US cents at the end of December 2023.
Fair Oaks Income said NAV per realisation share climbed 2.0% to 58.32 US cents at the end of December from 57.15 US cents a year ago.
The company declared a dividend of 8.00 US cents per 2021 share and realisation share for 2024, unchanged from the previous year.
In the investment adviser’s report, Fair Oaks Capital noted the changing expectations for the path of US interest rates towards the end of 2024.
The firm said this was catalysed by the ‘shifting geopolitical landscape,’ including expectations of new tariffs and inflationary policy.
Fair Oaks said this increased the demand for floating-rate loans and supported the increase in average US loan prices during 2024.
The investment adviser said Fair Oaks Income is ‘well positioned to generate attractive risk-adjusted returns in 2025’.
‘We continue to believe that the high-quality portfolio of primarily first-lien, senior secured loans with attractive long-term, non-mark-to-market financing represents one of the most attractive risk-adjusted opportunities available to investors in the current market environment,’ Fair Oaks Capital Ltd said.
Shares in Fair Oaks Income were flat at 52 US cents in London on Tuesday morning.
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