Real Estate Credit Inves... Share Discussion Threads

[holts] 07/6/2016 20:53

Wouldn't disagree , can see many reasons to come out and good ones to stay in , on balance just inclined towards in , would EU see it as a significant shot across the bows if it was a stay in vote with a tiny majority ?Somehow I doubt it , then when I start to think about what they may try and force through after an in vote ......

[cerrito] 07/6/2016 15:17

Congrats to them as according to my records-and please correct me-they had their highest month end NAV for many a year and a higher than normal amount of cash.
I guess referendum accounts for this being greeted by a falling share price with adequate trading volume.
Perhaps this will be clearer on the 17th..too bad that there is no conference call as we need it now.
I need to say I am in a bit of a funk not only with the actual vote but also a v messy political situation in the event of a narrow remain win so am not taking advantage of buying these at a bigger discount than we have seen in recent years.

[kenny] 07/6/2016 10:30

Not late in the sense that the "June" dividend is always paid late - in July - due to it being co-ordinated with the release of annual results.

[badtime] 06/6/2016 17:24

Maybe now overdue?

[badtime] 23/5/2016 13:09

Ah in that case I was being too lazy...I just looked at the Feb one

[langland] 23/5/2016 11:23

Well it was 19th May last year and in November it didn't come till 27th.

[badtime] 23/5/2016 10:51

Div announcement overdue?

[davebowler] 06/5/2016 09:26

Liberum;
Real Estate Credit Investments (BUY)
Steady NAV returns

Event
Real Estate Credit Investments' NAV rose 0.6% in April to 164.2p per share as a result of ongoing strong interest income from the loan portfolio.

A full repayment was received on a mezzanine loan secured against two mixed use estates in Central London. This was accretive to NAV and RECI now has £15.2m of cash to deploy in new opportunities. There are a number of loan opportunities currently under consideration.

Liberum view
We calculate a YTD NAV return of 2.3% for the first four months of 2016 which has been achieved despite volatility in credit markets which has impacted the bond portfolio over the period (on a mark-to-market basis). The monthly NAV returns have been extremely consistent in recent years since the move to a majority weighting to loans and and we believe this will be maintained given its ability to source attractive whole and mezzanine loan opportunities. RECI currently trades in line with NAV (peer group average premium of 2.5%) and offers the highest dividend yield in the sector at 6.6% (peer group average of 5.9%).

[davebowler] 11/4/2016 10:11

Liberum;
Real Estate Credit Investments (BUY)
1.7% Q1 NAV TR

Event
Real Estate Credit Investments' NAV rose 0.6% in March 2016 to 163.2p per share (February 162.2p) mainly due to strong interest income from the loan portfolio (12.4% weighted average yield on loans).

Bonds were marginally positive (+0.07%) and the company invested £1.9m in newly issued CMBS bonds.

Liberum view
We calculate a NAV total return of 1.7% for Q1 2015. This has been achieved despite the volatility in credit markets which reduced the bond portfolio's return over the period. Monthly returns are pretty consistent which is what investors should expect from a portfolio mainly invested in real estate loans which are held at cost and secured on high quality assets. The bond acquisition in March is the first time the fund has acquired bonds in over a year which suggest that there may be more attractive opportunities in this sector following the recent market correction. RECI currently trades on a 1.7% premium to NAV and offers an attractive 6.5% dividend yield (vs. 3.6% premium and 6.0% dividend yield for peers).

[my retirement fund] 08/4/2016 16:51

Good show imo.


NAV increased by 1p to 163.2p per share.

Increase in NAV driven by loan portfolio which continues to generate strong interest income returns.

RECI spent £1.9m In March on new issuance of CMBS bonds. Cheyne continues to see an attractive pipeline of loan opportunities which RECI can participate in as current loans repay.

[skyship] 08/4/2016 13:42

End Mar'16 NAV up 1p to 163.2p

[cwa1] 08/3/2016 13:43

Afternoon All

Found a little bit of cash down the side of a sofa, added it to some rolled up dividends then invested in a few RECI today. Hoping it is a wise use of the hard earned, time will tell. Probably consider adding if it falls further with no negative news.

[cerrito] 04/3/2016 14:47

Yes good results
I have lightened up a bit as I have been reducing property related exposure in the run up to the referendum..partially due to concern about the effect that a BREXIT will have on property , partially because I am not buying into the conventional wisdom that Brexit will lose and partially on the certainty that come May/June the markets will get very nervous.

[davebowler] 04/3/2016 10:08

Liberum;
Real Estate Credit Investments (BUY)
0.7% NAV return in February

Event
RECI's portfolio generated a return of 0.7% in February after adjusting for dividend payments following strong income returns from the loan portfolio (12.4% weighted average yield on loan portfolio).

The NAV uplift from loans was partly offset by a 0.73% mark-to-market loss on the bond portfolio which we believe is a result of ongoing credit market volatility (bonds account for c.23% of gross assets).

Liberum view
RECI's consistent monthly returns are what investors should expect from a real estate loan portfolio secured on high quality assets and where loans are held at cost. There has been a small amount of volatility on the bond portfolio in recent months but this has no implication for the credit quality of the bonds and it may lead to further investment opportunities in that market. We continue to believe RECI offers the best value in the real estate debt sector given the current 6% discount (vs. 0.3% average premium for the sector), 7.1% prospective dividend yield and a track record of sector-leading double digit returns.

[my retirement fund] 04/3/2016 08:47

Yes excellent to see the portfolio increase given the wider markets. Next year the should be able to redeem existing prefs and reissue another batch closer to 4% imo and increase the dividend further on the ords.

[skyship] 04/3/2016 07:50

Good performance last month:

[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?