Share Name Share Symbol Market Type Share ISIN Share Description
Real Est.Cred LSE:RECI London Ordinary Share GB00B0HW5366 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +1.50p +0.89% 170.00p 169.50p 170.50p 170.50p 168.50p 170.50p 452,368 16:35:22
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 0.0 9.1 12.0 14.2 216.08

Real Est.Cred Share Discussion Threads

Showing 1351 to 1373 of 1375 messages
Chat Pages: 55  54  53  52  51  50  49  48  47  46  45  44  Older
DateSubjectAuthorDiscuss
08/1/2018
07:58
Further growth of 0.66% in December: =================================== Manager Commentary # NAV as at 31 December 2017 was £1.633. After taking into account the 3.0p per share dividend declared on 1 December (which was paid on 5 January 2018), this represents an increase in NAV of 1.1p over the month #RECI’s combined loan and bond portfolio has grown to £241.5m as at 31 December. During the month, the Company invested: - £9m in a new senior loan to fund a mid-market residential development in Chatham, Kent, with an IRR of c14% and a day 1 LTV of c65%. The leverage ratio is expected to reduce significantly as the development progresses - £6m in a new listed bond backed by a fully operational French hotel. The bond has an LTV of 50% and a yield of 6.25%. - A further £4m drawn under existing loan commitments and the purchase of another new bond # Taking the above into account, RECI has successfully invested over £46m in the quarter ended 31 December 2017 # Two loans fully repaid in December, returning over £7m to the Company. Both repayments were above the November carrying values and were accretive to NAV # On 15 December 2017, RECI closed its fourth placing under its placing programme, raising gross proceeds of a further £20.5m for the Company. RECI has issued the full 65 million shares available to be issued under the placing programme and raised gross proceeds of £110m since February 2017 # Following receipt of the placing proceeds, RECI has a healthy cash balance of £34.8m (representing 15% of the increased NAV), which positions the Company well to participate in the Investment Manager’s pipeline of deals in Q1 2018.
skyship
18/12/2017
09:54
Having bought lower down my capital gain on paper is lower...but I'm getting the income I wanted and management don't seem that bad...it's a hold for me
badtime
16/12/2017
18:20
I suppose theres room for the shareprice to rise a little brining the yield closer to 6% but it may take another 12 months of published results
my retirement fund
16/12/2017
17:03
“Since redemption, RECI has replaced some of this Preference Share leverage, which carried a coupon of 8% per annum, with short term leverage at a significantly lower cost of borrowing (the weighted average cost being 1.35% per annum as at 30 September 2017). The Board believes that this, combined with the reduction in the Management Fee (which is only payable on net assets post the Preference Shares’ redemption), should enhance the risk adjusted returns and the overall yield of the Company. The Company continues to evaluate a range and combination of potential leverage options.” The EPS for the 6months to 30/09/17 was 6.05p. The dividends were 6.0p. So effectively RECI paid out 100% of earnings. Going forward borrowing costs and management fees are lower; so the cover will be slightly improved. The success of recent placings @ 166p & 167p suggest that the new shareholders will have been reassured on the earnings front during the roadshows. So though I wouldn’t expect any near-term improvement on the improved 12p/annum running rate; nevertheless that 12p does look secure. The yield @ 170p = 7.06%. Happy with that.
skyship
16/12/2017
11:36
I dont think there is need for panicky selling on the back of recent events although I can understand why some people feel unsettled including moi
my retirement fund
16/12/2017
09:20
Kenny - will take a look; though initially I would make just two comments: # The bonds bought at par just parks cash - effectively on deposit, but earning a good return # You perhaps haven't allowed for the small element of gearing, which though at only 17.7% of NAV, nevertheless adds a meaningful revenue surplus when borrowed at 2% and lent @ 8%+. Remember the Weighted average yield of the loan portfolio is 11.2%; and the WA Effective Yield of the top bond holdings is 8.6% - all as per the monthly fact sheets: http://www.recreditinvest.com/factsheets/20171130factsheet.html
skyship
15/12/2017
21:42
Skyship - that looks like a very convincing write-up but it is incomplete and has a very big factor missing in the analysis. The missing important fact is that while expenses have reduced, the yields available on new loans have moved down because the historical good yield deals no longer seem to be available. For example, in November RECI bought a number of bonds at par which yield an average of 5.8% - investing a total of £19.9m which is a not insubstantial sum of their total invested funds, about 8.6% of the company’s total interest earning funds. The yield on the shares, for comparison purposes with earnings, is 7.26% being 12p divided by the latest NAV of 165.2p. Therefore, even ignoring expenses, that is a chunk of their invested funds which is not earning its keep. It is bringing in 5.8% - before expenses - but the shares are paying out 7.26%. Please do run the total fund net income after total expenses because there are loans earning a much higher yield (albeit expiring in 2 years, average) so one does need to consider the position for the whole company taking account of not only lower expenses but lower income. Last time I ran the total calculation was some time ago and the position has changed. Look forward to seeing your figures.
kenny
15/12/2017
17:15
Kenny - I'll check that re uncovered dividend. In the meantime holders should be reassured by this extract from October's piece in the DTel. As for RUSP - holders have done well thus far; but I wouldn't sleep well at night holding stock in Putin's kleptocracy. Certainly NOT one for me! ============================================================== “We believe that the opportunity set available to RECI today, for the UK market, may be as compelling as that present in 2008 and 2009 in the immediate aftermath of the global financial crisis.” The fund manager gave the example of one £20m loan in April. It was for just 40pc of the property value, with the owner and other lenders ranking behind RECI in the event of default – but the return is expected to be 8pc a year. This kind of figure is normally associated with highly risky assets, not secured lending on London property when other parties have to lose 60pc of the asset’s value before any impact is felt. Across the £113m loan portfolio as a whole, RECI has lent about 69pc of the value of the properties concerned. The trust also owns about £50m in bonds backed by residential or commercial property. Some were bought below par value, which offers some limited scope for capital growth. The trust currently yields a highly attractive 6.8pc but there are good reasons to expect that figure to rise to about 8pc or perhaps even more, said James Burns, who holds it in multi-manager portfolios he runs for Smith & Williamson. “The trust used to have some expensive preference shares in issue, but they were redeemed last month,” he said. “These prefs cost 8pc a year but the fund manager expects to refinance at less than 2pc. “The other change is that the management fee will in future be calculated as a percentage of net assets, not the higher gross assets figure. Taken together, these two developments could see the yield rise by between 1.5 and two percentage points, so it could reach 8pc or more at the current share price.”
skyship
15/12/2017
16:47
That large UT trade at the end at 167p may well mean a drift down below the issue price like last time , Kenny Russians dropped interest rates today so should help RUSP
nerja
15/12/2017
16:23
I'll carry on holding for now
badtime
15/12/2017
16:09
More important than the constant issue of shares, I am beginning to wonder if RECI are going to continue to struggle to earn an average of 3p per quarter net; to meet the quarterly dividend. Averaging the last 3 months, they just about made 3p in those 3 months but, importantly, those earnings include the effect of issuing shares at above NAV. Therefore in the last 3 months, in reality, they have not earned an average of 1p per month. You cannot keep issuing new shares at above NAV so your earnings are flattered. Essentially, if you look at the yield on recent loans, those investments have not been at a high enough yield to produce earnings after costs averaging 1p per month. Nothing to say the yield on new investments will improve even if interest rates nudge upwards because their loan rates are not really related to base rate. In essence, if future earnings are only just going to cover the dividend yield and for some periods not cover the dividends, there is no reason for the shares to trade at much over NAV. I appreciate people are desperate for yield – that might support the share price at a premium to NAV - but there are more risks below the surface with RECI than perhaps most investors appreciate. After careful consideration of the longer term outlook I sold some weeks ago and reinvested in RUSP. I appreciate that RUSP invests in Russian warehouses but this class is preference so the yield is fixed, higher and very well covered by earnings. I think all the political and other risks, if any transpire, will be borne by the ordinary class: RUS and not the preference I am invested in. I had held RECI for some years so it is sad selling the last of my holding of a share that had served me well for so long. However, I believe I have much less risk in RUSP (strange as that might sound!), my yield is higher, very well covered and, importantly to me, much more secure when comparing risks between the two investments.
kenny
15/12/2017
15:55
Well, for any doubters, they've met their target for both the Placing and the Tap Issue and have now confirmed that that is the end of dipping into the well.... for the time being, I guess.
grahamburn
15/12/2017
14:41
They risk taking the pitcher to the well a little too often - and why this: "The Tap Issue does not form part of the Placing Programme. The new Ordinary Shares being issued pursuant to the Tap Issue are being issued under the Company's general authority to allot and issue equity securities contained in Article 5 of the Company's articles of incorporation." Seems to be part of the Placing Programme as far as I'm concerned. Just what is the difference?
skyship
15/12/2017
13:15
Proposed placing of min £15m worth of shares at 167p
nk104
14/12/2017
10:20
And, so far, the share price has held up well.
grahamburn
08/12/2017
17:47
However given the possibly very uncertain outlook perhaps extreme caution should prevail.
holts
07/12/2017
10:25
For me this is the almost unbelievable stat: # As at 30 November, the Company had borrowings of £37.2 million at a weighted average cost of 1.5% 1.5%!!! On the basis of borrowing at below 2% and lending above 8%, perhaps our excellent management team should be raising those borrowings a tad... "Borrowings represent 17.7% of NAV, well within the Company’s stated total borrowing limit of 40% of NAV"
skyship
06/12/2017
17:51
Yes, I read the latest update this morning, very happy to hold despite the premium.
hpcg
06/12/2017
07:41
Another profitable month; and more of the cash being put to work: ================================================= Manager Commentary - Activity in Month # RECI made £1.1 million net profit in the month (equating to 0.9p per share), taking NAV per share as at 30 November to £1.652 # RECI’s investment portfolio was £231 million as at 30 November.  During the month, the Company invested:   - £19.9 million in six new listed bonds. Of note was a €10.3 million investment in a listed bond secured by seven student accommodation assets spread across established French student cities. The bond has an LTV of c54% and a yield of more than 8% - The Company also made a new senior whole loan commitment of £9.9 million, secured by a student housing asset in Cardiff, with an IRR of c10% - £3.4 million to fund its ongoing loan book commitment # As at 30 November, the Company had borrowings of £37.2 million at a weighted average cost of 1.5%.  Borrowings represent 17.7% of NAV, well within the Company’s stated total borrowing limit of 40% of NAV # RECI’s cash balance was £17.6 million, representing 8.4% of NAV
skyship
01/12/2017
14:14
This does rather confirm that the 3p Qtly divi is the new norm: ============================================================== Dividend Announcement - Ordinary Dividend for RECI LN (Ordinary shares) Real Estate Credit Investments Limited announces today that it has declared a second interim dividend of 3.0 pence / Ordinary Share (a total amount of GBP 3,813,226.02). The dividend is to be paid on 5 January'18 to ordinary shareholders on the register at the close of business on 15 December'17. The ex-dividend date is 14 December'17.
skyship
07/11/2017
10:01
Thanks Sky
badtime
07/11/2017
07:36
Another good performance last month: Manager Commentary # NAV per share at 31 October of 164.3p, up 1.1p per share in October # During the month, the Company invested - £3.3 million in 3 different new mortgage secured bonds - £2.0 million towards funding its ongoing loan book commitments # The Company has a further £66 million of unfunded loan commitments as at 31 October 2017. Of this, it expects to fund £8 million before the year end # Following receipt of proceeds from the third placing under the Company’s placing programme, RECI has a strong cash balance of £37.6 million, representing 18% of NAV # RECI has several deals expected to close before the end of 2017. The current pipeline includes four loan deals with combined commitments for RECI of around £58 million (consisting of a number of senior loans with low LTVs  in the UK), and a number of listed bonds secured by core / core+ income across Europe
skyship
26/10/2017
13:45
Good to see the share price firming after the fund raising
badtime
Chat Pages: 55  54  53  52  51  50  49  48  47  46  45  44  Older
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