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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Real Estate Credit Investments Limited | RECI | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 116.00 | 16:35:16 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 116.50 | 115.00 | 118.00 | 116.00 | 116.00 |
| Industry Sector |
|---|
| GENERAL FINANCIAL |
| Top Posts |
|---|
Posted at 04/4/2024 17:26 by wilwak Nice buy BondofBond at 112.3!I was watching the price down at that level and transferred funds from my Barclays current account to Barclays Smart Investor but it took two hours to arrive! By then the price had increased a little. Good to see a director buy 9000 shares. Better than seeing a sell! |
Posted at 04/4/2024 12:44 by wilwak Well another fall this morning. Tempted to buy more! I hope this low price holds until 6th April as it’ll be my ISA target.Looking at the portfolio it is pretty well spread. Even if one or two loans are going bad the large discount more than allows for this and they are backed by assets. I’d like to think that a large investor is simply repositioning their portfolio. I remember once seeing Invesco do exactly this on one of their holdings which caused a large drop in the share price of the investment trust. Once they had finished the share price bounced straight back. With hindsight it was a fantastic buying opportunity. If we have faith in Cheyenne then best just ride this out I feel. It’s certainly a bit un-nerving even for me as an experienced investor. There may be a lot of small panicing investors running for the exit with this fall. Buy when there’s blood on the floor!? |
Posted at 04/4/2024 11:15 by my retirement fund We are seeing the effects now, we have very clear post covid statistics showing a significant decline in exported goods, albeit it slightly offset by an increase in services but presumably a blip. As for GDP, your showing the limit of your intelligence there, ot is normal for GDP to grow in an economy showing inflation, indeed significantly where many costs have exceeded 10%! Getting back to RECI and on topic. I believe we are already seeing early signs of the Brexit effect. That's why we are seeing it's investor base shrink and the company being forced to shrink by buying back its own shares. Already, some wiley investors are beginning to question the sustainability of the dividend. That's a forgone conclusion, much like the shareprice in the longer term environment we have, it would need to be cut. Clearly the problems Brexit has created over investment and trade will need to be addressed eventually. However, we can see a reluctance in all political divides to talk about that, and it may be another generation when it is addressed. Therefore, in the medium term, you should prepare for compounding hit upon your wealth. |
Posted at 04/4/2024 10:11 by my retirement fund Brexit introduced Higher Tariffs, Lower investment, weaker pound, lower growth, customs checks and greater uncertainty and the UK economy is on track to be10% smaller by 2035 than it would have been without brexit. This will be reflected in many ways, including lower shareprices. You can expect RECI to have a lower long term shareprice, higher costs, increased loan losses, and overall lower returns to investors. Please tell me why it is not relevant to someone here? |
Posted at 01/4/2024 21:03 by wilwak Tournesol… Are you talking about VPC by any chance? I’m also hooked in to that one and hopefully it’ll all work out ok once the capital return gets underway.RECI….. I may buy more tomorrow if I can get them at 115p’ish. Seems very cheap. I’m nervous about the fall in share price because it may be that professional investors know more than us! On the other hand I’ve seen shares fall simply because a large investor decides to reposition their portfolio. Or a large unit trust investor is suffering withdrawals which forces them to dump liquid shares. So the fall is a worry but there could be very plausible short term reasons for it. Let’s see what tomorrow brings! |
Posted at 29/3/2024 11:17 by mwj1959 There are number of possible reasons for the share price weakness in my opinion:1. A forced seller(s) out there, overwhelming demad from the buyback / other investors. I'm going to try and get hold of a Bloomberg shareholder print out to see whether that can shine any light on where any selling might be coming from. 2. Increased writedown / default concerns against a still challenging RE backdrop. We've had a number of modest writedowns in recent months and in the last presentation (as at end Dec 23) there were £44m worth of loans (13% NAV) that were described as "Performing. Watchlist for potential underperformance". The next update on this will likely not be until early May, when they publish their Q4 presentation. While LTVs at 60% for the overall portfolio are relatively conservative (at least in the context of a RE vehicle)we should not forget this is still a leveraged vehicle. 3. Concerns about the sustainability of the dividend. The 12p annual payout has been very stable, even in "difficult" market environments, but is currently only "predominately covered by net interest income", albeit they are targeting it to be fully covered down the line. Clearly, what happens to 2 will be key here. Does this warrant the share price to be trading at a 20%+ discount? If you believe one or both of 2 and 3 were to be realised such a large discount is probably warranted and would probably see the share price fall further. But for those who don't around current levels should provide an attractive entry point. Interested to hear other thoughts here. |
Posted at 17/3/2024 15:46 by loglorry1 RECI seem well managed but they did screw up their bond portfolio and it cost investors quite a few pence of NAV. They were less than transparent about it also.That's largely in the rear view now and so I'm back in. They also take out a lot of the interest in fees and costs but i suppose quality, relatively speaking, costs! |
Posted at 17/3/2024 09:57 by hpcg If the assets are short duration then why have dividends not gone up? Loan repayments should be going into higher coupon loans, especially with a weighted average life on the loan book at 1.4 years. I'll admit, I didn't realise the duration was so short, and it makes the numbers more perplexing.This time last year (Feb 23 fact sheet) the WA yield was 11.6% and now it is 10.2%. I has gone in the opposite direction to base rates. The unlevered yield shows no change. So the margin investors are getting over base rates has halved. Anyway, it's your choice, but as I say, IMO there are better. |
Posted at 11/3/2024 09:12 by davebowler Liberum-NAV +0.8% MoM Analyst: Bjorn Zietsman Mkt Cap £276m | Share price 121.0p | Prem/(disc) -16.8% | Div yield 9.9% Event RECI’s NAV per share as at 29th February 2023 was 146.6p representing a +0.8% NAV total return MoM. The change in the NAV for the month largely relates to 0.8p of interest income, 0.4p in asset valuation increases and 0.1p in FX, offset by expenses of -0.2p. The portfolio comprises 32 positions with an aggregate value of £306.2m. The weighted average LTV is reported at 60.6%. RECI had available cash of £23.7m at the month end. Cash held as collateral totalled £4.2m RECI’s investor presentation showed: (i) Cash reserves are targeted at between 5 and 10% of the NAV (February’s total cash levels are c.7.7% of the NAV); (ii) The outlook is positive, guiding for a growing opportunity set as bank lending becomes more constrained. RECI stated they have a strong pipeline of floating rate senior loans. Liberum view February’s performance is in line with expectations. The opportunity set for new investments is very strong in this environment and the current 9.9% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs. RECI’s portfolio LTVs (60.6%) provide a comfortable cushion against asset write downs and has underpinned asset recoverability. We view the recent write-downs of assets as conservative and note that RECI’s impairment testing policy is asset specific. We expect the company to continue rotating its bond portfolio (GAV of 7.8m remaining) into senior loans as it views senior loans as offering better risk adjusted returns. The gross fair value of the bond portfolio is now £7.8m (2.5% of GAV). |
Posted at 29/11/2023 09:39 by davebowler Liberum-H1 24 results – Capital recycling creates the opportunity for more attractive future yields Analyst: Bjorn Zietsman Mkt Cap £297m | Share price 130.5p | Prem/(disc) -12.3% | Div yield 9.3% Event RECI reported its interim results this morning. NAV per share as at 30 September 2023 was 147.7p and RECI generated an annualised NAV total return of +9.4% (dividend yield of 9.1%). EPS increased c.51% y/y to 6.8p mainly as prior period losses from the bond portfolio and currency instruments reversed with RECI generating gains in the current period. Expenses have been well contained, with other operating expenses (excl. management and administration fees) declining c.32% y/y. Finance costs increased +63% y/y due to the impact of higher interest rates. The portfolio comprises 45 positions with an aggregate value of £334.1m. RECI had cash of £14.9m at the month end. The outlook statement cites caution around current macro-economic conditions, but confidence in Cheyne’s management expertise which positions RECI well, stating that scheduled portfolio repayments will boost available cash resources for investment into attractive higher yielding opportunities identified by Cheyne. RECI’s latest investor presentation showed: (i) The portfolio experienced no defaults; (ii) Cash reserves are targeted at between 5% and 10% of the NAV (September’s cash levels were c.4.8% of the NAV); (iii) The outlook is positive, guiding for a growing opportunity set as bank lending becomes more constrained. RECI stated they have a strong pipeline of floating rate senior loans. Liberum view RECI’s portfolio of real estate debt offers higher yielding returns than direct real estate investments whilst still being underpinned by tangible property in the event of default, thereby offering investors a higher risk adjusted return profile than direct real estate. Moreover, RECI also pays a higher dividend yield than UK REITs. When compared to banks, RECI is more capital efficient as its permanent capital structure allows for lower regulatory capital requirements enabling a higher return on equity than some traditional bank lenders. The opportunity set for more attractive non-bank real estate debt investments can only expand (in our view) as banks lenders continue to tighten their lending on liquidity concerns in a rising rate environment and increasing need to maintain capital adequacy and increase deposit rates. The H1’24 performance is in line with our expectations. The opportunity set for new investments is very strong in this environment and the current 9.3% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs. We expect the company to continue rotating its bond portfolio into senior loans as it views senior loans as offering better risk adjusted returns |
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