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Share Name Share Symbol Market Type Share ISIN Share Description
Real Estate Credit Investments Limited LSE:RECI London Ordinary Share GB00B0HW5366 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -2.50 -1.62% 151.50 152.50 153.00 154.00 153.00 153.00 228,881 16:35:22
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 0.0 37.2 16.2 9.4 347

Real Estate Credit Inves... Share Discussion Threads

Showing 951 to 972 of 1900 messages
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DateSubjectAuthorDiscuss
04/4/2014
07:17
NAV now 155p. Factsheets only being produced at the end of each month from now on. Cash position increased in last two weeks and so there have obviously been sales.
gary1966
01/4/2014
08:58
Were we not due a pref payment yesterday ?
holts
28/3/2014
17:49
Transaction in own shares Real Estate Credit Investments PCC Limited announces that on Friday 28(th) March 2014 it purchased 1,450,000 preference shares at a price of 107.00p per share. The purchased shares are expected to be held in treasury. The number of Preference Shares purchased represented approximately 3.34% of the total Preference Shares in issue prior to such purchases.
skyship
28/3/2014
17:46
surprised that RECI has not got a better for its cash than to spend £2m on buying RECP-or indeed that they delayed so long after their last equity raise to buy these. Good question to ask the next time we have a conference call
cerrito
24/3/2014
09:46
|Liberum; Event NAV per share rose by 0.5% in the first half of March to 153.9p (28 February 153.1p). The uplift was attributable to m-t-m gains in the bond portfolio and recurring interest from loans and bonds. Further loan investments are expected in the near term as the investment manager is currently working on 4 deals which are in legal documentation. Liberum view NAV performance is broadly in line with our expectations for the portfolio and has been helped by consistent returns from the bond portfolio (+2.8% in 2014 to date). The new loan investments will have a positive impact on returns as they will be funded by capital recycled out of lower yielding bonds. We understand the pipeline currently includes loans secured against a commercial property in London, UK regional hotels and a Dutch commercial loan. RECI is trading on a 2.2% discount to NAV and we believe the high dividend yield (7.1% prospective dividend yield), NAV growth prospects and attractive pipeline warrants a premium rating relative to peers (1.6% weighted average premium).
davebowler
24/3/2014
07:06
Fact sheet 15 March 2014
skinny
19/3/2014
07:36
No, in the illustrative case it should be 16%. Assume assets of 100 units, with pref NAV of 50 and ords NAV of 50. the prefs rank ahead. So if the TER is 2% on 100, that is 8 units of fees over 4 years, or 16% of Ords NAV eaten away. In a trite case, lets assume asset growth is nil and fees are 12.5%pa of initial NAV. the NAV after 4 years would be 50. the prefs pay in full, the ords are zero. I know this is a daft analogy, but I'm just trying to llustrate why the ords bear all the fees. Of course, 10% portfolio growth (which any buyer of the ords MUST believe in for the investment to make any sense) would lead to 20% ords NAV growth becasue of the gearing. Folk are happy to remind you that asset growth is double geared to the benefit of investors. I'm just making the same case for fees in the opposite direction, or asset falls. As skyship notes, making an investment case for commercial mezz bonds and loans is not the issue I am addressing. But do remember that the assets the company acquires are also highly geared, even if they are not the first loss piece of the liability structure of the underlying commercial properties. That's why they yield so much in cashflow and pull to par. They are not just risk free assets guaranteed to deliver the maximum total return they can.
erstwhile2
18/3/2014
16:40
2% TER x 4yrs x 2 for gearing = 16%. Not sure that the last bit is entirely right though. Should it not just be 2 x 4 = 8%? What do we think? His bald stats pass no comment upon the basic investment case for upside from high yielding and and redeeming loans. Personally I agree with his: "As a flat rule I would never buy anything trading at or near NAV". So I sold my RECI quite some time ago; and added to my RECP.
skyship
18/3/2014
15:07
erstwhile2- I did not understand your last post, please explain in greater detail. For example, what does "16% of Ords NAV eaten" mean and how is that figure arrived at?
kenny
18/3/2014
14:43
Company Broker statements leave me jaded hence the tone of that post. As a flat rule I would never buy anything trading at or near NAV. In this case, it's even worse - if the TER is 2% (didn't look, just illustrative) and you look out say 4 years to the pref windup, the Ords bear all that on their NAV, and roughly assuming ords are 2x geared that's 16% of Ords NAV eaten before you start to break even. Screw that sort of thing for value investing. I find it highly amusing that the main argument to buy this one is because other ones are on a higher premium to NAV.
erstwhile2
18/3/2014
14:13
erstwhile2 -care to elaborate, as you are usually more eloquent than that and give argued reasons for your views?
davebowler
17/3/2014
10:39
Liberum; ICG Longbow (NR) 95% invested Event LBOW has committed to a £10m loan to Lanos (York) Ltd secured by a first charge on the Best Western York Monkbar Hotel. The facility has a maturity date of 31 December 2018. Part of the facility will be used to fund a refurbishment and 27 bedroom extension to the hotel. The deal is LBOW's ninth transaction with total commitments to date of £97.3m (94.9% of available capital). The average coupon and IRR on the portfolio is 7.3% and 8.4% pa respectively. The portfolio has a weighted average LTV of 62% and interest cover ratio of 1.6x. Liberum view The completion of this loan has taken slightly longer than expected with management guidance previously indicating the fund would be 95% invested by the middle of January 2014. We estimate recurring earnings of 1.5p for the year to January 2014 compared to an original target of 4-5p in year 1 at the time of the IPO. LBOW has the highest rating amongst the real estate debt funds (4.8% premium vs. weighted average 2.0% premium for peers) which we regard as unwarranted given the fund's track record to date.
davebowler
10/3/2014
10:15
Liberum; Event Following on from the 0.5% increase in the first half of February, RECI's NAV TR in the second half of the month was +0.8%. A dividend of £1.7m was accrued (2.3p per share) and will be paid on 21 March to shareholders on the register at 28 February. After adjusting for the dividend, NAV stood at 153.1p, aided by a strong performance in the bond portfolio, up 1.27% in the month. Furthermore, the Annington Finance bond was a notable strong performer. £239k of bonds were purchased during the month at 87% of par with an average effective yield of 4.6%. No disposals were undertaken during February. Liberum view The bonds are currently priced at 80% of par, equivalent to c.31p of further NAV upside and February's bond performance of 1.27% was the highest monthly return since September 2013 (+2.61%). Further loan purchases are expected in the near term and we expect these to be both loans secured against London & UK regional commercial property and a Dutch commercial loan. RECI trades on a 0.7% discount to NAV and provides a 7% prospective dividend yield, following the increase in distributions from 2014. With further upside from the bond portfolio, stable NAV growth expected and near-term investment expect in the loan portfolio, RECI remains our top pick in the real estate debt space. BUY.
davebowler
10/3/2014
07:02
Fact sheet 28 February 2014
skinny
24/2/2014
10:03
Liberum; Further loan purchases expected this quarter Event RECI's NAV rose marginally by c.0.5% from 153.5p at 31 January to 154.2p at 15 February (Net assets rose from £111.8m to £112.3m), with the bond portfolio gaining 0.35% and UK CMBS the main contributor to performance. RECI made no bond purchases or sales during the first half of February, but on the loan portfolio they state that they are working on several opportunities and remain confident of making further loan purchases this quarter. Liberum view The bond portfolio has delivered positive m-t-m performance in the past 3 months (December +0.57%, January +1.11%, H1 February +0.35%). The bonds are priced on a weighted average 20.5% discount to par which is equivalent to c.33p of NAV upside. Management have reiterated guidance on expectations of a number of new loan investments this quarter. We understand the pipeline currently includes loans secured against commercial property in London, UK regional loans and a Dutch commercial loan. RECI is trading at par and the high dividend yield (6.9% prospective dividend yield), strong NAV growth prospects and attractive pipeline warrants a premium rating relative to the peers single-digit average premium.
davebowler
24/2/2014
07:03
Fact sheet 15 February 2014
skinny
14/2/2014
16:48
Cheyne mentioned; hxxp://www.realestatecapital.co.uk/pdf%20files/REC%2011.12%20ISSUE%20LOW%20RES..pdf
davebowler
13/2/2014
14:30
I think it will increase in time but for the next few quarters will likely be in the order of 2.7p per quarter. Over the next few quarters they need to find a home for the balance of the placing money that is currently earning less than the dividend yield. This does take time. However, yesterday's announcements from the BoE - rates may stay below 2% until about 2016 or 2017 and then may only rise to no more than 3% - bodes well for RECI. Also, it suggests to me there is no point in selling up an investment yielding over 6% when there is not a lot otherwise available at a near 7% yield. Indeed, after Mr Carney's announcement yesterday, my current view is that I am not inclined to even consider a sale of any of my RECI shares before 2017 - even if management do not increase the dividend before then!! As always, only my own view; which may not be appropriate to your circumstances.
kenny
13/2/2014
12:46
DREF might be worth a look -below NAV and about to pay a big divi http://uk.advfn.com/news/UKREG/2014/article/61043088
davebowler
13/2/2014
12:25
I'd be interested in Kenny's thoughts too, but from the Interims, it did state a MINIMUM of 7% of placing price, so does still give scope for them to increase from this level if they see fit? See below: Raising target dividend On 16th October, the Board declared a dividend of 3.4 pence per share on RECI ordinary shares for the period 1 July 2013 to 30 September 2013, and to cover the period from 1st October 2013 to the date of admission of the new shares. The Directors intend to announce a full quarter's dividend for the quarter ended 31 December alongside the IMS scheduled to be announced in February 2014. The Board will thereafter increase its target annualised dividend yield, to a minimum of 7 per cent of the placing price of GBP1.522 per share, up from the previous target of 6 per cent of NAV. This increase reflects its confidence in RECI's ability to continue delivering strong returns from real estate debt investments combined with the reduction in the expenses per ordinary share resulting from the placing
wirralowl
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
speedsgh
12/2/2014
12:00
and another payout on the cell
holts
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