Real Estate Credit Inves... Share Discussion Threads

[kenny] 22/1/2014 13:05

As part of the £50m capital raise, RECI undertook that it would in future pay 7% of the price at which the new ordinary shares were issued. Subsequently, it stated that although the new shares were issued in the quarter to 31.12.13, it would pay all shareholders at the rate of 7% p.a. for that quarter (existing shareholders has already been paid a bit extra to cover the period to November when the new shares were issued - in the divi for the quarter to 30.09.13).

The issue price was 152.2p, so 7% of that is 10.65p or 2.6625p per quarter.

[skinny] 22/1/2014 13:02

Sorry - wrong and amended.

[garycook] 22/1/2014 12:53

Skinny.So what IS RECP Divi?

[skinny] 22/1/2014 12:50

RECP pays 8p dividend - @106.25p = 7.52% yield.

[garycook] 22/1/2014 12:31

Am I correct in stating that at the moment RECI is yielding 6.37% at a price of 1.5543 paying 9.9 pence.RECP is yielding 7.5 at a price of 1.0650 paying 8 pence

[davebowler] 02/1/2014 15:07

Maybe not, but of course they are lending directly to Property Co.s so may face that sort of deal - holding property- by necessity.Hope not though.

[zastas] 02/1/2014 12:35

Thanks DB.

But Hansteen is a property investor, no doubt aiming to take real control of some kind . Still, a very large discount . Just shows that banks do not want to end up holding property itself, if at all avoidable. And want get rid of in-breach loans, given the regulatory financial punishment associated with them.

Not quite something for RECI to be interested in.

[davebowler] 01/1/2014 16:27

Debt purchase by rival Hansteen at 51% discount to face value!;

[davebowler] 19/12/2013 09:22

Liberum


Specialist Finance
Real Estate Credit Investments (RECI / BUY) - Investment progress continues

n NAV +0.7%: RECI's NAV per share grew by 0.7% to 152p at 15 December (30 November: 151p) due to combination of returns from the loan portfolio (currently yielding 12.3%) and a m-t-m uplift of 0.29% in the bond portfolio.

n New £3m loan: RECI has completed a new £3m mezzanine loan (at 62% LTV) secured against a commercial property in West London. The loan generates a double digit yield.

n Successful loan syndication: RECI has syndicated the senior portion of the £15m loan (completed in August 2013) backed by a serviced office portfolio. The company has retained the mezzanine loan with a 65% LTV and a strong double digit yield.

n £13.8m of bond investments: The company has acquired £13.8m of bonds at an average yield of 5.3% to minimise cash drag from the recent raise.
Liberum View:

n The new loan investment is RECI's third loan investment in the 5 weeks since the £50m placing was completed in mid-November with total commitments of £19.4m. In addition, £30.5m has been invested in the bond portfolio in that period (at an average yield of c4.9%) and this will be rolled into higher yielding bonds and loans as opportunities arise.

n The syndication of the loan secured on the serviced office portfolio is important as it demonstrates both the manager's relationships with senior lenders and their ability to structure deals acceptable to the senior lenders whilst retaining the mezzanine portion on extremely attractive terms.

[gary1966] 19/12/2013 07:13

NAV now 152p and couple of nice loans completed at 62&65% LTV with double digit yields.

[wirralowl] 11/12/2013 11:06

agree with sbp, also holding a large proportion of my cash in RECP as an alternative to a savings accounts nowadays.

[stupidboypike] 11/12/2013 07:39

as a pref holder I really like that, even more safety for me and I'm quite happy with 6.71% as I see them as a holding place for cash

Best regards SBP

[gary1966] 10/12/2013 20:59

My thoughts exactly Skyship, sure there are better places to put £1m and they have said as much themselves. If they were buying them at 90-95p then I could see some sense but at 105p I am disappointed that they can't find something better.

[skyship] 10/12/2013 17:34

Surely quite an intriguing deal. RECI buys in 1million of its own prefs @ 105p. 1m shares = 2.22% of the issued pref:



The GRY @ 105p = 6.71%pa

[pyemckay] 09/12/2013 15:27

nice one graham.

[grahamburn] 09/12/2013 15:08

pyemckay

Try this from 16 October:

Ordinary Dividend for RECI LN (the Core shares)

Real Estate Credit Investments PCC Limited announces today that it declares an ordinary dividend for the Core for the period 1 July 2013 to 30 September 2013, and to cover the period from 1(st) October 2013 to the date of admission of the new shares in conjunction with the Placing also announced today, of 3.4 pence per share (a total amount of GBP 1,358,877). The dividend is to be paid on 29 November 2013 to ordinary shareholders on the register at the close of business on 8 November 2013. The ex dividend date is 6 November 2013.



followed by this extract from the half yearly report on 27 November:

-- The Directors intend to announce a full quarter's dividend for the quarter ended 31 December at 6 per cent of NAV, thereafter RECI will increase its target annualised dividend yield, to a minimum of 7 per cent of the placing price of the capital raised.

Both should explain the recent dividend received as well as dividend policy going forward.

[skinny] 09/12/2013 15:02

Skyship - thanks for the ACD pointer.

[pyemckay] 09/12/2013 15:00

I wasn't expecting a dividend early December.i thought this was usually at the end of December.

[skyship] 06/12/2013 17:53

Skinny - thanks for posting the link for the benefit of others.

I no longer post the fortnightly NAV statement as RECI now trades
at a premium to its NAV; so I no longer hold RECI or RECP.

The best value in the distressed debt market is now the hedge fund
Acencia Debt Strategies (ACD).

ACD doesn't have the raw exposure which has provided such a great
ride here for the past two years; but it is a far more secure play as
it is in liquidation mode, winding up Q1'15.

Sp 99p; NAV 108.04p; Target liquidation value conservatively 112p.

Gross Redemption Yield for the next 16months = 11.34%pa + the
current yield of 3.72%; so Total GRY = 15.06%pa

For more info see post No.165 on the annual JDT:

[skinny] 05/12/2013 07:18

Direct link :-

[davebowler] 27/11/2013 10:19

Results Presentation extract;
The Company will continue to invest cash surplus in bonds to minimise negative carry from cash deposits.
From
1
October to
15
November
2013
the Company invested £.6
million at an average price of
87% of par

[rogerbridge] 27/11/2013 08:04

Very nice progress and looking forward to the dividend