Real Estate Credit Inves... Share Discussion Threads

[stemis] 12/10/2022 09:29

Seems a little strange. Unlikely to be any big issue as they've just released a fact sheet, with a NAV of 148.3p, in which "the Manager has reflected its assessment of the long term negative impact of COVID 19 on real estate markets and to the long term potential recovery of its loan assets" and directors were buying 15 days ago.

Can buy at 118.5p, which is a yield of 10.1%.

[cc2014] 12/10/2022 09:25

Jeez 2. It seems I now own RECI which goes to show there's a price for everything as I'm not overly keen on this fund

3 lots. 118.5 worst price paid. This is crazy.

[davebowler] 12/10/2022 09:22

www.recreditinvest.com/investors/fact-sheets/

[davebowler] 12/10/2022 09:20

?-

[...]

The highlights of the monthly update are provided below:

-- NAV as at 30 September 2022 was GBP1.483 per share, representing an increase of 0.5p per share from the 31 August 2022 NAV of 1.478 per share.

-- The change in NAV per share was due to:-
-- 1.0p of interest income; and
-- 0.5p of negative mark-to-market ('MTM') adjustments across the bond portfolio, due to volatility in bond markets, in particular the GILT markets, has resulted in persistent forced selling across all fixed income instruments, including CMBS. The selling has resulted in significant mark to market movements across the Company's CMBS portfolio.

-- The Company expects to deploy its currently available cash resources in near term commitments and continues to see a growing pipeline of new attractive opportunities.

[my retirement fund] 12/10/2022 09:02

Jeez, never thought a 10% yield would be possible here, just took a few at 118.5

[holts] 12/10/2022 08:36

Try this one , seems rather over the top .

[badtime] 11/10/2022 21:08

Bit of a dip today

[mwj1959] 27/9/2022 16:27

Interestingly they all bought 10k shares each...hmmm! But I agree its probably the right thing to be doing at these levels given the historical stability of the NAV.

[my retirement fund] 27/9/2022 16:17

they are all at it

[cwa1] 27/9/2022 16:12

Filling their boots...well, a little at least...

[mwj1959] 27/9/2022 10:10

Share price reflecting the general battering property related stocks have taken in recent days courtesy of Kwasi. Now trading on a c.13% discount and 9%+ yield. About 50% of assets are Euro denominated, so NAV will benefit from £ weakness. However, marking to market of c.20% of NAV in Market Bonds will detract. Weighted average life of bonds is 1.6 years, so a short duration portfolio, which is both good and bad. May end up with a lot of cash if re-investment opportunities dry up on back of much higher rates and clearly default risk has increased too. However, in the last factsheet the company said that it expected to deploy its currently available cash resources in near term commitments and continued to see a growing pipeline of new attractive opportunities, so they were optimistic about the backdrop then. But clearly a lot has changed since then, particularly relating to the 50% of assets in the UK. It will be interesting to see whether the tone changes a month further on. So, all in all a widening discount is probably appropriate and it will be interesting to see what the Sep NAV looks like when its published in a couple of weeks time. The discount could get a lot wider, of course, and looking back through the NAV history I note that during the Pandemic it got to around 30%, but that was solely due to share price weakness (got to near £1) as the lowest the NAV got during this period was £1.46p.

[my retirement fund] 27/9/2022 10:02

Good to see directors dipping a bit of bread in the bowl

[ammons] 26/9/2022 17:10

A couple of small director purchases RNS after hours.

[badtime] 26/9/2022 16:31

Aye ..I have a small holding ..happy too add ..but maybe not just yet

[skyship] 26/9/2022 16:05

They had held up pretty well until today... 9.2% yield now looking interesting again.

[mwj1959] 23/9/2022 14:23

Kwasi ensuring that the cost of borrowing is going to rise even further. That's a positive for RECI, albeit also increases the default risk.

[holts] 23/9/2022 09:34

Still holding from Queens walk days it has been a real income play , however the payout has not really changed since 2010 although it was in Euro initially back then.

[chucko1] 22/9/2022 21:29

Ditto to all the above. Short duration is key for now.

In a different area, VSL achieving much the same, and with a larger discount.

[williamcooper104] 22/9/2022 21:08

Totally; will go higher with rates going up

[mwj1959] 22/9/2022 19:19

And you're clipping a decent coupon

[williamcooper104] 22/9/2022 19:08

I'm only holding on basis of Cheyne and their proven ability Otherwise would run That and the leverage is pretty low

[mwj1959] 22/9/2022 17:26

Credit spreads widening are as you say not a particular big deal for the fund...in fact it benefits any new lending that they do. The bigger issue is for the potential for defaults down the line. Recessions are never good for RE and its still unclear as to how bad and for how long the current / impending one will be. Yes RECI's loans are all secured, but rising defaults would inevitably hurt sentiment towards the share price, even if ultimately there is no loss of principal from defaults. We saw that at the time of the pandemic when the share price collapsed far more than the NAV did.

[panshanger1] 22/9/2022 11:51

Joined you here for a few today GLA