Real Estate Credit Inves... Share Discussion Threads

[my retirement fund] 02/3/2016 09:28

Bin addin ear, 8% Yield, below nav, prospect of long term capital growth, rude not to.

[skyship] 25/2/2016 08:54

XD 2.7p today...

[skyship] 10/2/2016 14:36

DB - thnx for that.

In spite of the horrendous markdowns in the debt market, RECI's more specialist property-centric NAV has been commendably static over the past 12months. Nevertheless in the changed Market conditions the share price has rightly returned to reality from the excessive premium last year.

Herewith the NAV stats looking back over the past year:

Jan'16 - 163.8p
Dec'15 - 163.1p
Nov'15 - 164.3p
Oct'15 - 163.3p
Sep'15 - 162.0p
Aug'15 - 161.5p
Jul'15 - 163.4p
Jun'15 - 161.9p
May'15 - 163.6p
Apr'15 - 162.8p
Mar'15 - 162.0p
Feb'15 - 160.1p

[davebowler] 10/2/2016 13:23

Liberum;
Event
RECI's NAV grew 0.5% in January 2015 to 163.8p per share predominantly due to the high interest income on the loan portfolio (12.4% weighted average yield).

The NAV uplift from loans was partially offset by a 1.35% mark-to-market loss on the bond portfolio which we expect is due to recent volatility in credit markets. Bonds now account for only 23% of gross assets and are priced at an average c.20% discount to the nominal face value.

In terms of portfolio activity, RECI received full prepayment on its £8.2m whole loan secured against the development of a student housing property in Bristol.

Liberum view
We believe RECI offers considerable value at the current 4.2% discount to NAV (6.9% dividend yield) particularly given the company's sector-leading NAV total return track record and ability to source attractive investments as loans are repaid.

[skyship] 10/2/2016 11:43

Hi BT - bought a few today 156.7p. Now that they're trading at a discount and also providing a 6.9% yield, frankly they may well be considered by many to be better value than RECP - though I'll retain my overweight position there because of the security; and the 4.7% GRY of course.

[badtime] 10/2/2016 11:10

SKY u in the ords as well?

[skyship] 10/2/2016 10:46

Dividend Announcement

Real Estate Credit Investments PCC Limited announces today that it declares an ordinary dividend for the Core for the period 1 October 2015 to 31 December 2015, of 2.7 pence per share (a total amount of GBP 1,966,099). The dividend is to be paid on 25 March 2016 to ordinary shareholders on the register at the close of business on 26 February 2016. The ex dividend date is 25 February 2016.

[jaws6] 08/2/2016 21:22

In terms of portfolio activity, RECI received full prepayment on its £8.2m whole loan secured against the development of a student housing property in Bristol.

[cerrito] 06/2/2016 23:46

danny500..thanks for pointing that out to me....in my view discount in no way big enough to warrant buy backs

[skyship] 06/2/2016 12:11

DB - could you possibly post the Liberum comment following the latest factsheet - assuming they did one of course!

[danny500] 05/2/2016 22:10

maybe they could spend some of that cash buying and cancelling shares or I guess its still more profitable to loan the cash out, thoughts anyone?

[danny500] 05/2/2016 21:28

Cerrito if you read the managers commentary at the top of the fact sheet it says a £8.2m loan from a Bristol development was repaid in full. yes good to see the NAV increasing and there was a couple of chunky buys today, yielding nearly 7% , someone sees a good investment here, which is reassuring for my holding.

[cerrito] 05/2/2016 20:33

Congrats to them that in this turbulent market they increased their NAV to the 2nd highest on record-after November 2015 end. Indeed the market turbulence is best shown by the fact that for the first time for some time their shares are at a discount.
Interesting to see that cash is at its highest since end of 2014 when they had finished investing the proceeds of the £50m November 2013 equity raise.
Question did they sell assets in light of a falling market(indeed is their market falling??) or was it a result of loan/bond maturities.
Be good if someone can give us the Liberum view.

[skyship] 22/1/2016 13:36

M&G raising more capital for RECI's sector:

[skyship] 07/1/2016 12:16

DB - Yes, but a totally different order of risk. I classify RECP as Zero risk; I classify GLIF's Zeros as relatively high risk.

[davebowler] 07/1/2016 12:06

GLIZ pays 6%

[skyship] 06/1/2016 10:45

Added a few RECP @ 104p yesterday. With Markets the way they are the 5.35% Gross Redemption Yield remains extremely generous against anything remotely similar. The few remaining Zeros are mostly yielding in the range of 3%-3.5%.

[davebowler] 06/1/2016 10:04

Liberum;
Event
RECI's NAV per share including the dividend was 163.1p on 31 December 2015, a 0.7% decrease against the November NAV of 164.3p. At the same time, the Ex Div NAV was up by 1.5p. During the month of December, RECI received full repayment of the senior loan secured against a site in Stratford, London and funded a further £4.8m of its £11.6m commitment to a purchaser and developer of distribution assets in prime UK locations.

The total loan commitments remained relatively flat with 18 loans in the portfolio representing approximately 75% of GAV. The December mark-to-market movement of the bond portfolio was 0.06%. There was very limited activity with 30 bonds in the portfolio, 2 less than November, after disposing £0.1m of bonds at an average selling price of 0.31, lower than the the average purchase price of 0.31. The bonds portfolio represents 25% of the total assets.

Liberum view
RECI maintained its performance during a low activity December and it is trading at 3.5% premium against the December NAV. Given RECI's significant return potential against its peers we believe the company should have a premium rating.

[skyship] 06/1/2016 08:01

FactSheet as at 31st Dec.:

[davebowler] 21/12/2015 11:52

VTA is now at 20% discount to NAV compared to RECI's premium

[davebowler] 18/12/2015 13:45

Erstwhile2 -are you still keen on ARTL then?

[jeff h] 16/12/2015 08:14

Kenny whilst I hold here I am considering a purchase in CIFU.

What loan to the oil sector do they have? - it wasn't something I was aware of or have seen mentioned before.