Guernsey -- (MARKET WIRE) -- May 9, 2007 -- Prodesse Investment Limited
Results for the Quarter Ended 31 March 2007
Highlights for first quarter 2007:
- Core net income(1) per average share of US$0.15
- Dividend per share of US$0.14 from net interest income - equates to
an annualised dividend yield of 6.42%(2) (FTSE All Share annualised
dividend yield of 2.84%(3))
- Net income per average share of US$0.16
- NAV per share of US$8.22 (31 December 2006: US$8.08)
- Issued 2.54 million new shares raising approximate net proceeds of
US$21.8 million
- Portfolio remains 100% implied "AAA" mortgage-backed securities.
(1) Core net income is defined as net income excluding realised and
unrealised gains and losses on securities.
(2) Based on annualisation of Q1 dividend, an exchange rate of 1.9686
US$ per Pound Sterling and a closing price of 443.0p on 31 March 2007
(3) Based on closing share prices of the constituents of the FTSE All
Share index on 31 March 2007 (JCF Datastream).
Michael A.J. Farrell, Chairman and CEO of FIDAC, Investment Manager to Prodesse,
commented: "The investment strategy of Prodesse continues to generate positive
momentum. Our recently concluded successful equity offering occurred at the end
of the quarter, which means the increase in dividend did not reflect the full
run rate of that new capital, nevertheless we were able to increase our dividend
for the third quarter in a row. Given the backdrop of credit performance in
certain sectors of the market, it is also particularly important to note that we
continue to avoid the introduction of credit risk into our portfolio. All of our
assets are Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities,
which carry an actual or implied "AAA" rating."
Financial Highlights Q1 2007 Q4 2006 Q3 2006 Q2 2006 Q1 2006
$US
Dividend
per share 0.14 0.13 0.12 0.10 0.12
Core net
income per
average share 0.15 0.14 0.12 0.10 0.12
Net income/
(loss) per
average share 0.16 0.19 0.25 (1.38) 0.12
Net income/
(loss) 4.0m 4.9m 6.4m (37.6m) 3.2m
Net asset
value per share 8.22 8.08 8.05 7.52 8.03
GBP Sterling(4)
Dividend
per share 7p 7p 6p 5p 7p
Core net
income per
average share 8p 7p 6p 5p 7p
Net income/
(loss) per
average share 8p 10p 13p (74p) 7p
Net income/
(loss) GBP2.0m GBP2.5m GBP3.4m (GBP20.4m) GBP1.8m
Net asset
value per share 417.6p 412.9p 430.1p 407.2p 461.8p
(4) Illustration is based upon an exchange rate of 1.9686, 1.9569,
1.8718, 1.8469, and 1.7390 US$ per Pound Sterling at 31 March 2007,
31 December 2006, 30 September 2006, 30 June 2006, and 31 March 2006
respectively. Translation to GBP Sterling is given for illustration
purposes only as Prodesse invests only in US$ denominated assets
which produce US$ income. Should shareholders choose to
receive their dividends in GBP Sterling they may elect to do so.
Enquiries
Investor Relations
Rob Bailhache / Nick Henderson, Financial Dynamics
Tel: 020 7269 7200 / 020 7269 7114
Company Secretary and Administrator
Sara Radford / Paul Smith, RBSI Fund Services (Guernsey) Limited
Tel: 01481 743000
About Prodesse
Prodesse Investment Limited is a limited liability Guernsey-incorporated
closed-end investment company, the investments of which are managed by Fixed
Income Discount Advisory Company. The Company's investment policy is to provide
net income for distribution from the spread between the interest income earned
from a portfolio of residential mortgage-backed securities and the cost of
repurchase agreements entered into to finance the acquisition of such
residential mortgage-backed securities.
Conference Call
There will be a conference call to discuss the results at 11:00 am UK time on
Wednesday 9 May 2007 and an audio webcast and presentation will be available via
the Prodesse website,
www.prodesse.co.uk. The dial-in number for the conference
call is +44 (0) 1452 562 717 / 0845 113 0070 and the passcode is 8005411.
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