Real Estate Credit Inves... Share Discussion Threads

[valhamos] 07/6/2013 15:38

I'm a bit late to the party but with the increase in dividend and NAV finally bought in early this morning. Been looking at these for a while, couldn't make my mind up between this and RECP, but despite all the noise about the end of the financial world as we know it if the QE tap is turned off, there seems to be still some life left in credit markets.

[wirralowl] 07/6/2013 09:43

Nice increase in NAV, 10% increase in dividend, wish all my income shares could achieve this in the current climate! RECI and RECP are both solid long-term holds for me.

[skyship] 07/6/2013 08:14

Manager Commentary
• NAV growth has been driven by strong MTM gains in the bond portfolio as well as interest on bonds and loans
• The Annington Finance bond continues to contribute strong returns, it is now marked at 120.5% of par
• RECI expects to invest in a German multi-family loan and German multi-family bond in the coming month

P/F RECI Core NAV (in £m) 15/05/20138 31/05/20138
Investment Portfolio........ 102.0... 103.5
Cash and Cash Equivalents... 3.8..... 3.7
Derivative Assets........... 1.1..... 0.8
Other Assets................ -....... -
............................ 106.9... 108.0

Other Liabilities........... (1.0)... (1.0)
Preference Dividend......... (0.4)... (0.6)
Ordinary Dividend........... -....... -
Preference Share Liability.. (45.0).. (45.0)
............................ (46.4).. (46.6)

Net Assets (est.)........... 60.5.... 61.4
Shares outstanding.......... 39,966,985 39,966,985
NAV/Ord. Share (est)........ 1.51.... 1.54

[holts] 07/6/2013 07:42

Gary , quite correct , however it was with tongue in cheek :-)

[gary1966] 07/6/2013 07:33

Nice jump in NAV to 154p.

Holts we have been 'robbed' of 1/20th of a penny not 1/4. Paid 2.2p whereas NAV would have suggested 2.25p. Very happy to have that increase of 10% though.

[holts] 07/6/2013 07:20

Kenny ,robbed of a quarter of penny , payout on the cell as well About 2.5p' results read well so far.

[skinny] 07/6/2013 07:03

· RECI reported a net profit of £19.0 million for the year ended 31 March 2013, including a profit of £5.9 million in the fourth quarter of the financial year
· Total return of 43.2% with Net Asset Value ("NAV") increasing by 36.5% in the year and total RECI Ordinary Share dividends of 6.7%
· Attractive investment opportunities in both loans and bonds; pipeline of real estate loans with yields in excess of 10%
· RECI is declaring a dividend of 2.2p per share (equating to a 6% annualised yield on NAV) in respect of RECI Ordinary Shares for the quarter ended 31 March 2013

[cerrito] 06/6/2013 10:55

I see that tomorrow there will be a conference call
I normally tune into these
Noy many people ask questions; if there are few questions, they may well be tempted to say noone is interested and dispense with these calls which I for one find useful..ie the more people that can tune in and ask searching questions the better.

[kenny] 06/6/2013 01:02

Me too! Should be raised to 2.25p per quarter but will have to wait for an announcement - on Friday presumably.

[holts] 05/6/2013 20:22

Should be div announcement in a couple of days , hoping for an increase this time

[davebowler] 05/6/2013 15:27

ICG real estate fund closed at £700m
StockMarketWire.com
Intermediate Capital Group has announced the closing of its real estate fund, ICG-Longbow UK Real Estate Debt Investment III, at £700m, the hard cap of the fund.

The fund is a UK commercial real estate debt fund focused on newly originated first charge whole loans and mezzanine debt, and is advised by Intermediate Capital Managers Limited, a subsidiary of ICG.

[davebowler] 04/6/2013 14:56

Hopefully judging from TFIF's performance our NAV is also up a couple of percent over the last two weeks.

[davebowler] 31/5/2013 10:12

TFIF -an ungeared Trust similar to ours is raising more;
Investec;


24 Income Fund (TFIF) Equity raise

¢ TFIF LN is looking to raise up to £40m through issue of new ords. Issue closes 12 noon 07/06/13 & will be at a minimum of a 2% premium to NAV

Investec Insight:

¢ TFIF shares are down 1.6% on the news and currently trade on a premium of 3.4%

[davebowler] 28/5/2013 16:11

TFIF a similar Trust has just announced its NAV has gone up about 1.75% over a week.

[davebowler] 24/5/2013 17:34

Good article.

[kenny] 24/5/2013 12:30

Nice article highlighting RECI's advantages and the importance of a good manager to make the investment decisions:

[spittingbarrel] 22/5/2013 16:34

Just had some money freed up so bought 15000 this afternoon at 1.41

[mozy123] 22/5/2013 14:37

Women - cant live with em cant live without.

[holts] 22/5/2013 13:51

Have just topped up as well

[skyship] 22/5/2013 10:37

The drop through the 50day MA might be considered bearish; and a move down to nearer the 200day MA might be a consequence. However, the overbought RSI has completely unravelled, so they are now in an oversold state..

I've bought back just 10k @ 141p as holding excess cash after taking a few profits elsewhere. The 6.6% NAV discount and 6.4% yield represents fair value again. Will top-up if they retreat further.

[skyship] 22/5/2013 10:28

Zastas - "They may need to pay for divorce!"

Sadly that is exactly what our host on this site had to do a year ago; including selling these at c100p!

Envirovision was - IS - a great value investor and sorely missed. Hopefully he will be back in action some day...

[skyship] 22/5/2013 10:24

Manager Commentary
• A strong performance in the bond portfolio with mark to market gains of 0.40% in the past two weeks
• May is on track to become the 12th consecutive month of growth in the bond portfolio
• Healthy pipeline of potential loan investments backed by German and UK property

P/F Monthly Core NAV1 (in £m) 30/04/2013 15/05/2013
Investment Portfolio... 101.6... 102.0
Cash and Cash Equivalents...... 3.8..... 3.8
Derivative Assets....... 1.0..... 1.1
Other Assets............ -....... -
....................... 106.4... 106.9

Other Liabilities....... (1.0)... (1.0)
Preference Dividend..... (0.3)... (0.4)
Ordinary Dividend....... -....... -
Preference Share Liability (45.0).. (45.0)
....................... (46.3).. (46.4)

Net Assets (estimate)... 60.2.... 60.5
Shares outstanding...... 39,966,985 39,966,985
NAV/Ordinary Share (estimate) 1.51.... 1.51

[kenny] 22/5/2013 10:18

... and the Liberum note complete with a nice chart showing how cheap RECI is compared to other quoted entites is now on the company's website at:

[davebowler] 22/5/2013 10:16

Liberum;
NAV +0.6%: RECI's NAV per share increased by 0.6% in the first half of May to 151.4p (30 April 2013 150.5p).

n Bond portfolio +0.4%: The NAV uplift was driven by a 0.4% m-t-m increase in the value of the bond portfolio and May is on track to be the 12th consecutive month of growth in the portfolio.

n Portfolio activity: There has been limited portfolio activity in May to date with £40k of acquisitions (at an average purchase price of 0.32) and no sales in the period. Management report a healthy pipeline of potential loan investments on German and UK assets.

Liberum View:

n RECI's consistent NAV growth continues with a 0.6% increase in the first half of May. YTD NAV total return is +12% and since the beginning of 2012 the company has delivered NAV TR of +60%.

n We forecast share price total return of 17% in the period to March 2013 as we expect shareholders to benefit from a combination of the discount narrowing and NAV growth over the next year. There is considerable upside risk to our estimates from further credit spread tightening or the early repayment of bonds. We view this as conservative as credit spreads on RMBS and CMBS assets are at historically high levels relative to high yield bonds.

n RECI trades on a 7.2% discount to NAV (6.5% prospective dividend yield) which is 11 percentage points wider than the average 4.0% premium for the other real estate and asset backed debt funds. This looks particularly anomalous given RECI's NAV performance and pipeline of new loan investments.

[owenski] 22/5/2013 10:16

Thanks for the post Dave