Sequoia Economic Infrastructure Income Fund (SEQI) H2 2025 earnings summary

Executive summary

• Achieved a NAV total return of 6.1% for the year, supported by a high-yield, diversified portfolio and a 10+ year track record of meeting dividend targets in volatile markets.

• Maintained a portfolio of 59 positions across eight sectors and 29 subsectors, with a short average loan life of 3.4–3.6 years and strong liquidity, trading around 3 million shares daily.

• Continued strong cash generation, supporting steady dividends and a significant share buyback program, with over 213 million shares (13% of stock) repurchased since July 2022.

• Paid a dividend of 6.875p per share, resulting in a dividend yield of 8.8% and cash dividend cover of 1.00x.

Financial highlights

• Portfolio yield to maturity remained stable at 9.9% year-over-year.

• Total gross assets held steady at GBP 1.5 billion; net assets slightly decreased to GBP 1.4 billion due to share buybacks.

• NAV per share decreased to 92.55p from 93.77p year-over-year; share price fell to 78.3p from 81.1p.

• Earnings per share dropped to 5.04p from 6.58p year-over-year.

• Portfolio ESG score improved to 64.70 from 62.77.

Outlook and guidance

• Pull-to-par expected to add about 4p per share over four years, with most of the benefit front-loaded in the next two years.

• Dividend is expected to remain sustainable, supported by fixed-rate loans, accrued interest, and fee income, even if interest rates decline.

• Portfolio positioned for resilience and upside as market discounts unwind, assuming no adverse changes in performance or external pricing.

• Ongoing focus on maintaining portfolio diversity and thematic freshness, with continued reinvestment and origination.