Real Estate Credit Inves... Share Discussion Threads

[davebowler] 12/11/2024 08:53

Mkt Cap £284m | Share price 128p | Prem/(disc) -12.3% | Div yield 9.4%EventRECI's NAV per share as of 31st October 2024 was 146.0p representing a +0.7% NAV total return MoM. The change in the NAV for the month largely relates to +1.2p of interest income, -0.1p in asset valuations and +0.1p in fx movements, offset by -0.3p of expenses.The portfolio comprises 26 positions with an aggregate value of £313.9m. The weighted average LTV is reported at 59.6%. RECI had available cash of £9.9m at the month end. Cash held as collateral totalled -£1.0m. Net effective leverage has increased 2.9ppts to 22.7% as RECI continued to use cash to invest in loans and performed share buy backs. We note that RECI recently re-invested £18.5m, refinancing an existing portfolio of four-star hotels anticipating a levered yield of 15%+.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.Panmure Liberum viewWe expect recent news of reinvestment at a projected mid-double-digit yield was taken positively by the market. We believe the market has been waiting for evidence of capital recycling to evidence future growth prospects.  The opportunity set for new investments is very strong in this environment and the current c.9.4% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs. We see scope for dividend and earnings growth as capital is recycled. RECI's portfolio LTVs (59.6%) provide a comfortable cushion against asset write-downs and has underpinned asset recoverability. We expect the company to continue rotating its bond portfolio (GAV of c.£8.2m 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 £8.2m (2.6% of NAV).

[loglorry1] 07/11/2024 11:58

They screwed up with the covered bond portfolio but seem to be back in their lane again now. They didn't ever really confess to their screw up but it happened.

[skinny] 06/11/2024 16:36

For info :-

[mwj1959] 06/11/2024 16:15

Wishful thinking that this is ever going to trade in-line with NAV! But certainly room for the discount to narrow further. Key for investors is that we get rid of some of the discount volatility we've seen in recent times.

[williamcooper104] 05/11/2024 22:49

They are now the only real estate debt fund that's listed and not in wind down Used to hear that they couldn't raise equity as they were the only listed debt fund with a performance fee (they've never whacked up the leverage to trigger that fee) Cant see that being a problem now - once share price catches up with NAV they'll be able to raise equity which should create a virtuous circle

[davebowler] 05/11/2024 20:47

Citywire- award ...This category represents the best investment companies drawn from each Deutsche Numis debt sub-sector. Investment companies ranked by their three-year Sharpe ratio. Those with less than £25m, three years' manager performance history or in potential or actual wind-down have been removed.For our last performance award we returned to using the Sharpe ratio to calculate which of a diverse group of lending funds had generated the best return against cash.The winner for a second year in a row was Real Estate Credit Investments. Congratulations to fund manager Cheyne Capital.My thanks to Annabel Brodie-Smith of the Association of Investment Companies for collecting the award on Cheyne's behalf.

[mwj1959] 05/11/2024 09:21

Not entirely sure that he brings much to the table, certainly not on the investment front.

[mcunliffe1] 18/10/2024 17:35

I thank all of you who answered my question in post #2752.

You learn something every day on these threads.

Strikes me ii appear to be well liked, certainly in respect of processing divi's quickly and in the withdrawal of money. They should be promoting their ability to take in specie transfers from other platforms.

Explained here in an old FT article - from 2013 🙄



It appears the cost may be high, but I moved a £198k pension pot from Standard Life to i.i. in March 2023 and having re-invested about £150k at 0.5% stamp duty it's cost me £750 plus of course the commissions.

Have a great weekend all.

[davebowler] 18/10/2024 17:05

AJ Bell and ii can certainly accept in specie transfers of shareholdings.

[tournesol] 18/10/2024 16:43

Q) Why can't our shares be moved from one provider/broker/platform to another with the need to first sell and later buy?A) They can. it's perfectly possible to do in specie transfers.

[skinny] 18/10/2024 13:07

Nominee accounts.

[mcunliffe1] 18/10/2024 12:51

Spangle93: post #2749

You raise an interesting point and one I hadn't considered before.

I can move my cash from one ISA to another - a different provider even - with no loss.

Why can't our shares be moved from one provider/broker/platform to another with the need to first sell and later buy?

I see advantages for all platforms in the sell and/or buy commissions and even for the govt. in the form of stamp duty on the re-purchase.

But, in this day and age it's not rocket science to move a holding from A to B surely?

[joe say] 18/10/2024 12:41

Someone likes to vote posts down - they probably need to get a life

[rcturner2] 18/10/2024 12:25

I got 3 dividends today at AJBell. RECI, MNG and SOM.

[spangle93] 18/10/2024 12:25

My first trade with HL was in 2007 - buy Centamin at 13.25p. Just sold the last of them yesterday. Sadly that was the peak of my investing career.

Their information quality is good, but can be accessed without logging in. But passing on cash, and providing quotes in a volatile trading are poor, they aren't cheap, and notification of actions is belated.

The only reason I remain with them is, as williamcooper says, to retain more than one broker, but mainly because the sell and repurchase costs of each holding would be significant.

[skinny] 18/10/2024 12:02

I think my first 'trade' with them in 1984, was a purchase of M&G recovery - by post!

Happy days :-)

[williamcooper104] 18/10/2024 10:24

I opened my HL account about 20 years ago At the time I thought the platform/tech was amazing Only problem is that now it's not a lot different than was 20 years ago Whereas IBKR have improved their platform hugely in just the last 5 years I've been with them Still keep a small HL account; just because it's always good to have a few brokers

[joe say] 18/10/2024 09:56

I received my monies ex Hargreaves on WD 20.

However, that was after phoning on WD 15 (the promised timescale), and receiving an assurance they would process that day.

This they indeed did.

The trouble was they then sent the money to an incorrect bank account as they had misread a 7 as a 2.

So much for their 'confirmation of payee' checks!!!!!

[killing_time] 18/10/2024 09:50

The fastest I have had was 12 calendar days and the slowest 19 calendar days so things are grinding to a halt at the moment. I'm not taking 25% tax free, I'm just taking my regular amount at certain times of the year but if no news by next week then I will have a go at them. Trouble is I always seem to be having a go these days.
Hoping with new owners things might improve.

[cwa1] 18/10/2024 09:45

If Barclays can do it, there's really no excuse for anyone else!

[chucko1] 18/10/2024 09:40

ii turned one around in 6 days (just completed two days ago). Others in the past have been about the same time, even including Barclays Wealth. If they can, anyone can.

[killing_time] 18/10/2024 09:33

Calendar day.

20 Business days.

[chucko1] 18/10/2024 09:31

KT - Calendar day 28 or business day 28?