A Newcastle-based mortgage lender believes it is in a ‘strong position to maximize opportunities’ after announcing record lending levels.
TOC Property Backed Lending Trust (PBLT), which is managed by Newcastle-based Tier One Capital, announced new annual lending facilities of £13.9m in its financial results for the year ending November 30 2021, which was the highest since its inception in 2017.
Profit before finance charges and tax fell from £1.09m to £930,000, while total profit before tax fell from £856,000 to £929,000, with total net income slipping slightly by £1.8m at £1.6m.
A report accompanying the results said that over the past year the company and the economy have, “to put it mildly, faced an uncertain backdrop”, but added that its “strong balance sheet, its investment margin and agility should put it in a solid position”. position to maximize the opportunities available to us”.
The companies’ new loans have been deployed in five developments in the residential and commercial real estate sectors and, as of November 2021, 17 projects are receiving LTBP loans, split between 12 residential projects and five commercial projects.
In its results, the company paid a dividend of 4 pence per share, which rose from 3 pence per share in 2020. Its total net asset value return also rose from 3.9% in 2020 to 4.8% in 2021.
Ian McElroy, Managing Director of Tier One, Investment Advisor to PBLT, said: “The quality of our loan portfolio reflects PBLT’s growing position as a credible alternative lending resource for developers and the strong market activity. immovable.
“We have used this year to protect shareholder value and maintain our strategy of managing a balanced portfolio between residential and commercial programs.
“We also continued to focus on liquidity within the fund as there remain elements of volatility in the market due to the pandemic, Brexit and the conflict in Ukraine.
“As a result, we have created a fund headroom of £11 million at the end of the year, which contributes to our continued ambitions to support developments, primarily in the North East, but also in Scotland, with a strong pipeline of potential programs at various stages of progression.”
Brendan O’Grady, fund manager at Tier One, added: “In addition to PBLT’s record lending over the past year, the pipeline of opportunities in commercial and residential projects is also the strongest we have seen. After the end of the year, we have already announced our support for Harrow Living to build executive homes in Morpeth and there are a number of other loans undergoing due diligence at this time.
“The residential housing market has seen considerable growth over the past 12 months and analysts’ outlook for 2022 and beyond appears positive.”
He added: “While rising construction costs pose particular challenges, we are nevertheless confident of continued growth in the coming year. We look forward to continuing our proud progress by supporting the both the communities we serve and the creation of jobs within them”.