For some strange reason - NBI declares and maintains their stated dividend yield based on the funds' NTA as of 30 June each year.
So on 30/6/21, with NTA of c. $2.00 they stated were targeting a yield of 4.75%. All good at this point in time.
But roll forward 12 months and current NTA is $1.67 (noting there has been no reported defaults or missed payments by their underlying borrowers) hence current yield is actually 5.7% based on current NTA.
Further, if you calculate the projected yield off their current share price ($1.35), then current yield is 7.0%+
They should make this clearer in their daily NTA reports and other marketing, as I feel like their largely retail base would be far more interested at 7% plus, rather than seeing 4.75% as their stated yield (given the retail market probably fails to connect the dots).
The 4.75% is also conservative, and as @eigenvalue points out, their June distribution always has a little more representative of the excess yield they collected through the year.
As an aside - as each of their 500+ underlying loans is repaid / refinanced - the yield on the overall portfolio should rise as the new interest rates being obtained for term funding are fixed against the latest long-term interest rates (which are substantially higher than seen in the past few years).
DYOR, and fingers crossed when NBI states their new yield based on the 30/6/22 NTA it shows a markedly higher number, which should in turn attract investors and close the discount to NTA....
NBI Price at posting:
$1.35 Sentiment: Hold Disclosure: Held
