VPC Specialty Lending Investments PLC has declared an interim dividend of 1.50 pence per share for the three month period to 31 March 2016, including 0.19p contributed from the Company’s other distributable reserves. The dividend will be paid on 30 June 2016 to shareholders on the register as at 3 June 2016. The ex-dividend date is 2 June 2016.
VPC stated that during the quarter the company’s revenue return was 1.31p – below their targeted annualized dividend. The shortfall was due to the use of leverage facilities and securitizations which incurred fees and costs, completed securitizations and cash drag which caused a deferral of residual income, and margin requirements which caused an FX margin impact.
VPC said the weighted average gross coupon of the invested portfolio is within expectations at approximately 14.73% as of 31 March 2016. VPC has selectively accessed the securitisation market and added leverage to certain assets in the portfolio. These transactions resulted in an increased level of cash pending reinvestment, which has impacted the company’s performance and its ability to meet the dividend target in the short term. As an example, the company explained it was substantially fully invested on 29 January 2016, but was only 72% invested at 31 March 2016 after closing a securitisation transaction and a leverage facility in February and March, respectively. VPC expects stronger performance over the long term.
VPC invests in the online lending market across the US, Europe, UK and Australia.