Real Estate Credit Inves... Share Discussion Threads

[speedsgh] 13/2/2014 10:04

"The Company has also increased its target annualised yield for future dividends, commencing in 2014 from 6% of NAV to 7% of placing price [152.2p]."

Kenny - does this mean that their dividend policy will not be progressive going forward but fixed indefinitely to 7% of the placing price of 152.2p i.e. 10.65p p.a.? Or do you expect them to revisit the policy again within the next 12 months or so? TIA

[holts] 12/2/2014 12:00

and another payout on the cell

[gary1966] 12/2/2014 08:06

Ok Kenny I will get off my high horse then. Thanks for correcting me.

[kenny] 12/2/2014 08:03

Gary1966 - the 7% yield commences from 01.01.14. This dividend is for the quarter to 31.12.13 and is therefore correctly paid at the historic percentage of 6% of NAV.

Note; the new dividend ratio is 7% of 152.2p and not NAV from time to time.

[skinny] 12/2/2014 07:31

RECI1 Highlights

· RECI made a net profit of £0.5 million in the quarter ended 31 December 2013, compared with £2.7 million the previous quarter. In the financial year to date the Company has made a profit of £4.4 million.
· From 30 September 2013 to 31 December 2013, RECI's NAV decreased 2.6% from £1.56 per share to £1.52 per share2, following the capital raising in November.
· Since year end NAV increased to £1.54 per share as at 31 January.
· The Board has declared a dividend of 2.3p per share in respect of RECI Ordinary Shares for the quarter ended 31 December 2013.
Bonds
· Since 30 September 2013 RECI has made £49.9 million of new bond investments, limiting cash drag.
· As at 31 January 2014 the bond portfolio's market value was £94.9 million and nominal value was £119.7 million.
Loans
· New loan commitments of £25.0 million were made in the quarter ending 31 December 2013, significant progress already made in investing the proceeds of the capital raise.

The loan portfolio has grown in absolute terms to a dirty fair value of £50.2 million as at 31 January 2014 from £43.1 million as at 30 September 2013. As at 31 December 2013, RECI's loan portfolio accounted for 32.3% of gross assets. As at 31 January 2014 RECI has undrawn loan commitments of £11.9 million.

[gary1966] 12/2/2014 07:20

So much for the dividend being minimum 7% of the placing price going forward. 2.3p is annualised 9.2p which just about equates to 6%. Not too shabby but I am struggling to understand why the 7% previously stated hasn't been met.

[johnandrew47] 05/2/2014 15:16

brilliant analysis erstwhile2.

[davebowler] 05/2/2014 10:56

Liberum
Event

NAV per share grew by 1.3% to 153.5p at 31 January representing growth of 1.3% in the month and 0.4% in the second half of the month. NAV performance was driven by gains in the bond portfolio (+1.1% in January) and interest from the portfolio.

£18.3m of bonds were acquired during the month at an average price and yield of 0.93 and 4.37% respectively. Further loan investments are expected this quarter as the manager currently has a healthy pipeline of loan opportunities under consideration.

Liberum view

The 1.3% NAV uplift is ahead of our expectations for the month particularly as most of the proceeds from the recent capital raise have been invested in lower yielding bonds. The investment programme is on track and management have reiterated guidance of further loan purchases this quarter.

RECI is trading in line with today's published NAV compared to an average premium of 2.9% for peers. We believe the company's 7.0% prospective dividend yield and strong NAV growth prospects warrants a premium rating relative to peers and we mainta

[davebowler] 03/2/2014 16:00

Investec;
Real Estate Credit Investments (RECI) Monthly Fact-sheet

¢ RECI has increased its funded exposure on one of its German Multi-Family loans by €0.9 million in the period, taking the total funded amount on this loan to €6.9 million.

¢ The Company purchased £14.4 million of bonds during December at a yield of 5.2%. The Company will rotate from bonds to loans as new investment opportunities arise.

¢ RECI is on track for investing the proceeds from the November capital raise.

¢ NAV =£131.3m. Cash & cash equivalents= £22.4m, Derivative assets = £1.2m. Total = £154.8m

¢ Liabilities: Pref share liability = £44.0m, 'other liabilities' = £0.5m.

¢ NET assets = £110.4m , equivalent to £1.52 / share.

¢ Bond portfolio summary:

¢ Average purchase price (December 2013 purchases ) = 0.86

¢ Average effective yield (December 2013 purchases) = 5.23%
........................................................................

¢ Loan Portfolio: No. of loans = 9

¢ Drawn dirty value £50.1m, Total loan commitments = £62.4m

¢ Loans as % of GAV = 32.3%

¢ Weighted average yield of loan portfolio = 12.9%

¢ Weighted average LTV of loan portfolio = 65.0%

¢ Top ten exposures = £72.3m

¢ WA Original LTV 62.5%, WA Cheyne Current LTV 60.7%, WA Effective yield 10.6%

[wirralowl] 30/1/2014 13:29

I think he probably was, but I presume he agrees with it, or why else would he have gone to the trouble of copying it onto several boards?

All smacks of someone having a go, which doesn't seem right when its against a poster who contributes a lot of useful info to these boards.

[asmodeus] 30/1/2014 12:01

I think DC was referring to Loverat's post 1341, though, wasn't he?

[wirralowl] 30/1/2014 11:47

Well I've come across Kenny too both here and on the GLIF board and feel any criticism is most unfair.

For me, he's an extremely knowledgeable and valued poster, and presents his information in a fair and reasoned manner, usually supported with facts, figs and references.

DC on the other hand is filtered.

[dr contrarian] 29/1/2014 23:29

Loverat 23 Jan'14 - 20:11 - 1341 of 1395 0 0


Dr Contrarian - I have come across Kenny on quite a few threads. Quite a negative poster and I recall he used to lay into some bombed out companies I held shares in. Some of his criticisms were fair points but there was little appreciation whatsover of the fact the share price more than reflected the risks. Anyway - most of the shares did well and recovered eventually and I suspect he was talking them down so he could take a long position.

[skyship] 29/1/2014 15:44

As a matter of profound interest, does anyone have a take on how the distressed debt markets have been affected by the Market falls, the Turkish interest rate move and any other aspects changing sentiment recently? Will this be having a negative affect on our NAV?

[owenski] 22/1/2014 13:12

Apologies, was writing that when Kenny posted

[owenski] 22/1/2014 13:10

RECP Divi is 2p per quarter, 8p for the year.

RECI, I thought was the same but is now being increased, I dont know what the annual figure is as my understanding is that it is tied into the value of the NAV and will be paid at rates of between 6 - 7% of NAV. I did think it was now more than 8p though.

Eg; 6% of 150 would be 9p, so you sound about right to me GARYCOOK.

.....................................................................

RECI declared a dividend of 3.4p per share (equating to a 6% annualised yield on NAV) in respect of RECI Ordinary Shares up to the period up to 11 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 raise

[skinny] 22/1/2014 13:09

Yes sorry - got my 'I' and 'P' confused!

[jaws6] 22/1/2014 13:06

please Try this , then change RECP in header

[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?