Real Estate Credit Inves... Share Discussion Threads

[skyship] 03/5/2013 07:30

Manager Commentary
• NAV increase supported by strong mark to market gains in the bond portfolio led by the Annington UK housing bond, and the Four Seasons Health Care bond
• Healthy pipeline of loans materialising with further loan investments expected in coming months
• Continue to take profits on bonds that have increased in value and re-investing cash in higher yielding bonds. In April, sold bonds at an average price of 97% of par and purchased bonds at 48% of par.


P/F Monthly NAV (in £m).......15/04/2013.....30/04/2013
Investment Portfolio............ 95.7.... 101.6
Cash and Cash Equivalents....... 9.2..... 3.8
Derivative Assets............... 0.9..... 1.0
Other Assets.................... -....... -
................................ 105.8... 106.4

Other Liabilities............... (1.0)... (1.0)
Preference Dividend............. (0.1)... (0.3)
Ordinary Dividend............... -....... -
Preference Share Liability...... (45.0).. (45.0)
................................ (46.1).. (46.3)

Net Assets (estimate)........... 59.7.... 60.2
Shares outstanding.............. 39,966,985 39,966,985
Net Assets per Ordinary Share (est) 1.49.... 1.51

[gary1966] 03/5/2013 07:22

And this is why I continue to hold and think that there is quite a bit more to come:

Manager Commentary
• NAV increase supported by strong mark to market gains in the bond portfolio led by the Annington UK housing bond, and the Four Seasons Health Care bond
• Healthy pipeline of loans materialising with further loan investments expected in coming months
• Continue to take profits on bonds that have increased in value and re-investing cash in higher yielding bonds. In April, sold bonds at an average price of 97% of par and purchased bonds at 48% of par.

Figures for RECI Core stated in GBP for 15 April 2013 & 30 April 2013

Pro Forma Monthly RECI Core NAV1 (in £ million) 15/04/20138 30/04/20138
Investment Portfolio2 95.7 101.6
Cash and Cash Equivalents 9.2 3.8
Derivative Assets 0.9 1.0
Other Assets 3,4 - -
105.8 106.4

Other Liabilities5 (1.0) (1.0)
Preference Dividend6 (0.1) (0.3)
Ordinary Dividend7 - -
Preference Share Liability (45.0) (45.0)
(46.1) (46.3)

Net Assets (estimate) 59.7 60.2
Shares outstanding 39,966,985 39,966,985
Net Assets per Ordinary Share (estimate) 1.49 1.51

[skinny] 03/5/2013 07:13

The Board of Real Estate Credit Investments PCC Limited is pleased to announce the appointment of Investec Bank plc as joint broker alongside Liberum Capital Limited. The appointment is with immediate effect.

[hieronymous1] 02/5/2013 13:20

Sold RECI bought JIL and ACD.

[santar] 02/5/2013 09:49

Hold RECI - keeping for divi yield

[spittingbarrel] 02/5/2013 09:47

Sold RECI to buy DSC and ACD

[mangal] 01/5/2013 21:54

Hold both RECP & RECI, though halved RECI holding a month or so back.

[eeza] 01/5/2013 19:05

Sold the last of mine this morning, after a superb run.

[holts] 01/5/2013 18:50

In all three still .

[skyship] 01/5/2013 17:04

I'm out - switched half into a top-up in RECP and the other half into a top-up in ACD for further equity upside from the debt markets. This latter perhaps a more secure play for 14%pa as it liquidates over the next 21-23months.

[wirralowl] 01/5/2013 17:04

Still holding both, Kenny, in for the long haul too.

[pillion] 01/5/2013 16:52

Holding RECI for the long haul

[pyemckay] 01/5/2013 16:48

reduced substantially after reci climbed 60% for me. still have a smaller holding but the large discount to nav was the key for my original investment. hold a small amount of recp which intend to sell year or so before 2017 call

[owenski] 01/5/2013 16:39

Still hold RECI and RECP

[skinny] 01/5/2013 16:36

I still hold RECI & RECP.

[kenny] 01/5/2013 16:33

I get the impression that a lot of people have sold out of RECI and moved on. I am still invested - for the longer term - and would like to carry out a poll of who is still holding or has sold. Let's hear from you please?

[hieronymous1] 25/4/2013 12:50

Dave

You are quite correct. My history teacher misinformed me. Either that or my memory from fifty years back has deteriorated worse than I realised.

Apologies to all.

[davebowler] 25/4/2013 11:59

I thought defenestrate was to chuck someone out of a window!
A popular pasttime in old Czechoslovakia, I understand.

[skyship] 23/4/2013 18:40

H - thnx for that. Of course I understand that for a shorter a move up would be a risk to be assessed. But for an investor a share price has both downside risk and upside potential.

Liberum should be talking the language of investment - not statistics.

[hieronymous1] 23/4/2013 16:02

Statisticians tend to talk of the possibility of a forecast being wrong in either direction in terms of risk percentage. It is correct usage even though the majority of the population understand risk as applying only to an adverse event.

People who use words well should not help debase the language further. An example might be the popular belief that defenestrate means castrate. In fact it refers to puritans smashing church windows that contained pictures - "Thou shalt not make unto thee any graven image". Exodus 20:4

NB I make a lexicographical point here, not a religious one :-)

[skyship] 23/4/2013 13:51

"There is considerable upside risk to our numbers from further credit spread tightening or early repayment of bonds."

Upside risk!!

Surely they should be saying Upside potential...

Semantics really - but hope they read this and amend next time.

[davebowler] 23/4/2013 09:19

Liberum;
Highlights:

n NAV of 149p: NAV remained unchanged at 149p as bond m-t-m gains (+0.64%) were offset by losses in the €10m short position in the Itraxx Main Index.

n New loan investment: RECI has completed a new €5.8m loan investment backed by German multi-family properties with an expected return of 15%+.

n Titan 2006-2 CMBS repayment expected: Two underlying loans in the Titan 2006-2 CMBS repaid in Q1 and 46% of the outstanding debt will be repaid at the next interest payment date.

n Portfolio activity: £0.39m of acquisitions at an average price of 0.36. £0.85m of sales at an average price of 0.97 (29% uplift over acquisition price).

Liberum View:

n Management had previously indicated the a further loan investment was expected in the short term. Loans now account for 23% of GAV and are forecast to deliver a weighted average yield of c14%.

n RECI is trading on a 3.0% discount to NAV with a prospective dividend yield of 6.2%. The discount looks attractive when compared to when compared to listed real estate debt funds (average premium of 2.1%) given RECI's NAV performance (+59% NAV TR since January 2012) and the manager's ability to source attractive new investments.

n RECI is our top pick in the listed debt space and our conservative price target of 157p implies 15% return over the next 12 months. There is considerable upside risk to our numbers from further credit spread tightening or early repayment of bonds.

[kenny] 22/4/2013 17:15

Thanks chaps. It is a small purchase but amazing they were able to pick up some bonds at 36p in the pound. I know the managers are really good at assessing mortgage debt/the underlying asset so let's hope they prove correct on that one albeit, in either event, it is only a £100k investment.

Onwards and upwards!

[skyship] 22/4/2013 11:53

Manager Commentary
• Two loans underlying the Titan 2006-2 CMBS transaction repaid in Q1. 46% of the debt outstanding will be repaid as at the next interest payment date.
• Bond mark to market gains partially offset by mark to market loss in the outstanding €10 million short position in the Itraxx Main.
• The Company has completed a €5.8 million loan backed by German multi-family properties with an expected return in excess of 15%.

Figures for RECI: 31 March 2013 & 15 April 2013

P/F Monthly RECI Core NAV (in £m) 31/03/13 15/04/13
Investment Portfolio............ 95.4.... 95.7
Cash and Cash Equivalents....... .8.5.... 9.2
Derivative Assets............... .1.6.... 0.9
Other Assets.................... -....... -
................................ 105.5... 105.8

Other Liabilities............... (0.9)... (1.0)
Preference Dividend............. -....... (0.1)
Ordinary Dividend............... -....... -
Preference Share Liability...... (45.0).. (45.0)
................................ (45.9).. (46.1)

Net Assets (estimate)........... 59.6.... 59.7
Shares outstanding.............. 39,966,985 39,966,985
Net Assets per Ordinary Share (est) 1.49.... 1.49