wllm - yes - but its a very small club! :-) |
Fair play. Thx. |
H8 Brucie,I've never published my portfolio in full but I generally say when I buy or sell something on Twitter (@WShak1) so most people know what I own.I always say when I sell, but it's fair to say I don't sell that often. |
ebb, there is some occasional discussion at vta. It's the same instrument just ones in Euro the other in sterling |
waterloo - I've been considering VTAS for some while now but rather concerned about the usual very low number of trades, and more often than not - none!
Also they is no BB.
Please tell me if there is anywhere I can get more info.
Regards and thanks. |
WShak14 Feb '25 - 11:51 - 2793 of 2803
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RECI is one of my biggest holdings.
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Wshak, do you ever publish your folio? I'd be very interested to take a look! |
It's a shame that RECI can't raise new funds due to their shares being priced at a discount.
With the rise in interest rates, they have more opportunities to generate IRR of 16%+ than they have capital available. |
RECI are my 3rd largest holding by capital invested. Skinny, this and LGEN must be your 2 greatest investments?
wllm :) |
VTAS, which I think some others are also in, is in a similar category IMV |
If ever there was a long term hold, this is a prime candidate - until a truly significant reason to sell comes along. The various small impairments over the years have never come close to that point.
(famous last words) |
Obviously I could have sold for a decent profit - but that's not why I bought (from memory). |
Yep the asset growth is mainly inflation. Look at Skinny's buy at 96p which is probably a growth rate in line with inflation and then the dividend is all profit |
RECI has a performance fee as do most US externally managed credit funds but almost no UK fund has That always out of new institutional investors But it's no coincidence that the only real estate credit fund with a performance fee is the only one left Pay peanuts (even if they are large peanuts) and get monkeys |
Before then it was at a premium to NAV The better credit funds in the US trade at a premium to NAV of c5-25%So long term capital growth of c25% isn't unreasonable A premium to NAV means they can raise cheap money which benefits existing shareholders It's notable that this is now literally the only UK listed real estate debt fund that's not being wound up (AFAIK) |
I wouldn't buy RECI for asset growth, but I'd like to think there'd be some share price growth due to a closing discount.
It was trading at NAV in mid-2022, and it's at a 14% discount now 125/145.2 |
I've got a holding from 2012 @96p and added in December. |
RECI is one of my biggest holdings.
I imagine that an increased discount factor used in calculating value of loans is a reason for the drop.
That isn't a bad thing. |
Just compare the last 2 factsheets and you can see where they've marked valuations up & down |
I think you need to do more research mwj i certainly wouldn't be invested here if i was making your comments. RECI have always had a concentrated portfolio of between 15-25 positions. They mitigate risk mainly by taking a conservative view on valuation, a big entry LTV buffer and a short duration of mainly under 2 years. Of course its higher risk than taking 100 positions but you are compensated well for this. They also give a detailed risk table half yearly and i certainly wouldn't not want monthly commentary on immaterial ups and downs as the management fee would go up |
Some explanation of asset valuation decline would be useful. Concentration of assets in the Top 3 positions at 43% is also too high in my opinion (they actually saw a £1.5m uplift in FV in January, so the valuation issues were elsewhere). Would prefer a much more diversified portfolio than we've currently got. NAV risk is material if one of these goes wrong. |
I don't consider an investment write down or an upwards revaluation as being part of the dividend cover calculation. Interest income, fx and expenses are the relevant components and we are bang on 1 pence for the month unless my maths is failing me in which case i apologise. RECI should be considered a bank account generating the holder a nice fat (should be wrapped tax free) covered annual dividend. The nice discount to book value can absorb any nasties. Is this not the investment case skyship? I don't think anyone should buy RECI for capital growth |
Divi unlikely to be cut, interest income increased |
Sold half my holding. Not sure about sustainability of the current dividend at the moment |
waterloo - on the contrary; a poor month with an investment write-down meaning we didn't earn our way to dividend cover this month
A full attribution of changes in the NAV per share is presented in the table:
December NAV: 145.0p
Interest income: 1.1p
Asset valuations: -0.8p
FX: 0.1p
Expenses: -0.2p
January NAV: 145.2p |
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