Real Estate Credit Inves... Share Discussion Threads

[nerja] 30/1/2020 08:55

Have to wait for the big boys get there fill and start the selling I think Holts

[holts] 30/1/2020 08:45

Hopefully everyone will wait for the indegestion and let it drop to the issue price or slightly less before charging in .

[nerja] 30/1/2020 08:33

Fund raising , hoping to top up near the 168p issue

[davebowler] 28/1/2020 16:03

Interesting read-
3rd Q Manager's update.

[davebowler] 28/1/2020 15:52

Real Estate Credit has a vaguely similar competitor in the wings -Alpha Real Estate.
It is aiming to have more than 50% of its assets in secured loans on Commercial Property up to 75% LTV.
However it trades about 10% below its recent NAV, unlike RECI which is at a premium.


Recent comment from IC......As the UK property lending book scales up then Alpha Real Estate could easily make interest income north of £11m on a £85m property loan book at a blended rate of 13.3 per cent, a sum that covers the £3.8m annual running costs of the company and leaves surplus cash for further dividend hikes. Indeed, the cash cost is only £0.7m for the 1p a share quarterly payout. Moreover, there is a natural NAV accretive mechanism built into the shares from the double-digit investment returns made on property lending activities, and supplemented by capital upside on the equity interests in Madrid, Hamburg and a £1.7m equity investment in the high yielding Cambourne business park in Cambridge. Buy.

[skinny] 15/1/2020 15:55

Thanks for the updates.

[davebowler] 15/1/2020 15:54

Mentioned here - hTTps://citywire.co.uk/investment-trust-insider/news/new-year-tips-winterflood-overhauls-investment-trust-recommendations-for-2020/a1312060

[davebowler] 10/1/2020 08:45

LiberumSpecialist Finance Real Estate Credit Investments £106m of new loan commitments Mkt Cap £358m | Prem/(disc) 3.5% | Div yield 7.0%EventReal Estate Credit Investments' NAV per share at 31 December 2019 was 165.2p, resulting in a 0.6% return for the month and an 8.8% NAV total return in 2019. The company has committed £106m to four new loan deals in the UK (£38m), France (£64m) and Italy (£3.6m). The new loans include a £40m whole loan secured on a prime residential/retail building in Paris and a £39m senior loan secured on a mixed use portfolio in the UK. £3.9m was also drawn to fund existing loan commitments. The manager continues to report a strong pipeline of potential investments. Cash on the balance sheet has declined from £63m to £34m (10% of NAV) primarily due to investments in the bond portfolio. Liberum viewRECI has achieved an 8.8% NAV total return for the year, representing a 19% increase over the level achieved in 2018. The uplift in returns has been achieved despite a reduction in average portfolio LTV over the past 12 months. This is a result of the improved investment opportunity set. The manager retains a cautious investment approach and is focused on deploying capital in senior loans and core income bonds.?The new loan commitments will effectively deploy the majority of the remaining available investment capacity (cash and debt capacity). The manager's flexible mandate to invest in relative value opportunities across both loans and bonds has ensured swift deployment of capital following loan repayments and capital raises. 

[grahamburn] 17/12/2019 14:42

Interesting report:

[skyship] 12/12/2019 21:31

MONTHLY UPDATE

• NAV as at 30 November 2019 was £1.671
• Declared a second interim dividend of 3.0 pence per share
• A further £1.7m was drawn in the month for existing loans
• With its increased leverage headroom and available cash, RECI is well placed to participate in the Cheyne deals closing in the coming weeks

[skinny] 29/11/2019 07:08

.

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[yieldsearch] 18/11/2019 19:08

from earlier reporting, i think this mezz loan was 15m (Reci portion).
1.5x on this should have some ++ impact on the NAV?

[skinny] 18/11/2019 17:29

Thanks Dave - I totally missed that!

[davebowler] 18/11/2019 17:25

18 November 2019

Press Release

RECI RECEIVES FULL REPAYMENT OF REAL ESTATE LOAN FOR THE DEVELOPMENT OF THE ATLAS BUILDING

-- RECI is fully repaid 33 months prior to practical completion
-- RECI realises a profit multiple of 1.51x at exit
London, 18 November 2019: Real Estate Credit Investments Ltd "RECI" is pleased to announce that it has received a full repayment of a loan for a mixed-use development in Old Street, London.

The Atlas building is an iconic development featuring 302 apartments over 38 residential floors, which combines the sophistication of the city with contemporary urban style. Every detail has been sympathetically considered and designed, providing a high specification residential offering.

RECI's Investment Manager, Cheyne Capital "Cheyne", was approached in 2016 to refinance a mezzanine loan, as the existing mezzanine lender (a US-based credit opportunity fund) was looking to exit the UK market shortly after the Brexit referendum vote.

The sponsor, Rocket Properties, is a highly experienced developer with a successful track record of development in the office and residential space in London.

RECI participated pari passu alongside Cheyne's other real estate funds, in a GBP87.5m mezzanine loan, at 47%-73% LTC and 38-57% LTGDV ranking behind a senior loan of GBP163.0m, giving an exit basis of GBP250.0m against a GDV of GBP433.5m.

At closing, the deal had a significantly de-risked day one position, as the sponsor had fully pre-let the office space and secured GBP145m of residential pre-sales to create total security value of GBP245m against the mezzanine exit basis of GBP250m. By November 2016, the cumulative security from additional pre-sales was GBP251m, at which point the mezzanine loan had broken even - 33 months before practical completion. At exit, RECI realised an attractive return with a profit multiple of 1.51x. The exit was from a combination of residential pre-sales and refinancing of the office space.

[badtime] 07/11/2019 10:04

Thanks as always DB

[davebowler] 07/11/2019 09:15

Liberum:ttractive returns Mkt Cap £350m | Prem/(disc) 0.4% | Div yield 7.2%EventReal Estate Credit Investments' NAV per share rose by 0.7% in October 2019 to 166.3p. The YTD NAV total return is now 7.6%. Returns in the month benefited from the full repayment of a loan to a mixed-use development in Old Street, London. The repayment was accretive to NAV and resulted in a 1.51x multiple on the overall investment. In terms of deployment, £9.5m was invested in three new bonds and £2.3m was drawn to fund existing loan commitments. Cash at the month-end was £71m, leaving the company well placed to fund new transactions. Gearing has risen marginally to £68m (20% of NAV).Liberum viewWe believe RECI offers attractive exposure to real estate markets with significant capital value headroom implied by the average c.64% portfolio LTV. The fund has consistently delivered NAV returns in excess of 7% and is on track to generate 8.5%+ in 2019. We expect this will continue as lending competition from traditional lenders recedes. Since 2012, all realisations have achieved or exceeded expected returns. Portfolio risk has reduced as the majority of the loan portfolio is now comprised of senior loan positions. The short duration portfolio minimises exposure to potential yield widening and also provides the ability to reposition the portfolio if market dynamics change. We believe RECI's 7.2% dividend yield is compelling given the level of protection within the capital structures in which it invests

[davebowler] 09/10/2019 08:58

Liberum;

Mkt Cap �348m | Prem/(disc) 0.5% | Div yield 7.2%

Event

NAV per share at 30 September 2019 was 165.2p, representing a total return of 0.7% in the month. NAV total return in 2019 to date is 6.9%.

September's performance was partly due to a restructuring of a loan to a regional UK housebuilder. The restructuring has resulted in an enhanced return for RECI. The loan is a profit-sharing mezzanine loan and has an LTV ratio of 75%.

Gearing remained stable in the month at �61m (18.5% of NAV). RECI had cash of �45m at 30 September and an additional �17m of equity was raised in October to fund pipeline investments.

Liberum view

We believe RECI offers attractive exposure to real estate markets with significant capital value headroom implied by the average c.64% portfolio LTV. The fund has consistently delivered NAV returns in excess of 7% and we expect this will continue as lending competition from traditional lenders recedes.

Portfolio risk has reduced as the majority of the loan portfolio is now comprised of senior loan positions. The short duration portfolio minimises exposure to potential yield widening and also provides the ability to reposition the portfolio if market dynamics change.

[skyship] 09/10/2019 07:58

MONTHLY UPDATE:

• NAV as at 30 September 2019 was £1.652, up from £1.640 the previous month
• This increase was partly due to a restructuring of one of RECI’s loans to a UK regional housebuilder, and provided the sponsor with more suitable financing, while securing an enhanced return for the Company
• A further £3m was drawn in the month for existing loans
• RECI undertook another placing in the month, raising gross proceeds of £17 million through the issue of 10,208,480 new ordinary shares.
• This capital raise, combined with the current leverage headroom, leave RECI both well positioned for upcoming pipeline deals, and defensive ahead of potential market volatility.

[davebowler] 01/10/2019 15:20

1 October 2019

Real Estate Credit Investments Limited

Close of Issue of New Ordinary Shares

Further to the announcement on 19 September 2019, the Board of Real Estate Credit Investments Limited ("RECI" or "Company") is pleased to announce that the Company has raised gross proceeds of GBP17 million through the issue of 10,208,480 new ordinary shares ("New Ordinary Shares") at 167 pence per New Ordinary Share (the "Placing").

[davebowler] 19/9/2019 08:36

New issue of shares by a placing via Liberum.

[davebowler] 16/9/2019 13:41

ARTL, trading at 17% discount to NAV, just announced -

The Company is currently targeting up to GBP70 million for investment in secured senior and mezzanine loans.

Each loan will typically have a term of up to two years, a maximum 75% loan to value ratio and be targeted to generate attractive risk-adjusted income returns. Repayment proceeds will be reinvested into new facilities. The Company continues to develop a strong pipeline of new lending opportunities.