Real Estate Credit Inves... Share Discussion Threads

[cerrito] 07/6/2015 12:39

By my calculations the end May NAV was at a record high

[davebowler] 04/6/2015 10:53

Liberum;
Real Estate Credit Investments (BUY)
Positive growth continues

Event
RECI's NAV rose 0.5% in May-15 to 163.6p per share (Apr-15: 162.8p) mainly due to interest income from the loan and bonds portfolio.

As disclosed last month, RECI has committed to a £10.2m whole loan secured on a 100% presold residential development in East London, of which £5.8m was drawn in the month. The undrawn senior portion is expected to be sold down which will reduce the company’s exposure and increase the projected IRR to 15%+ pa. In addition, a committed development loan was increased by £2.2m to £6.6m.

£3.7m of bonds were sold in the month to fund the new loan investments with an average sale price of 0.94 (59% above the average purchase price). The mark-to-market movement in the bond portfolio in the month was 0.44% continuing the strong run for 2015 YTD of +6.5%.

Liberum view
RECI’s NAV total return for the first five months of 2015 is +5.6%. The new residential development loan illustrate the manager's ability to structure deals on attractive terms. RECI is our top pick in the asset-backed debt space on the basis of the manager's track record, ability to source deals and the company's NAV growth prospects. RECI's shares currently trade on a premium to NAV of 3.9% (vs an average for the peer group of 6.3%).

[skyship] 08/5/2015 18:25

Bought back in for a few today - wanted more, but was 99% invested!

[skinny] 08/5/2015 16:42

London, 8(th) May 2015 - Real Estate Credit Investments PCC Limited (LSE: RECI, RECP) will be announcing its results for the year ended 31 March 2015 on Thursday, 11(th) June 2015. There will be a conference call at 10.30A.M.for investors and analysts following the 7.00 A.M. announcement. The conference call can be accessed by dialing [phone] ten minutes prior to the scheduled start of the call. Please reference Real Estate Credit.

[wirralowl] 08/5/2015 16:39

Thanks for the Liberum update, DB.

Happy to see that despite the share price performance over the last month, progress continues as usual here, with RECI's NAV rising yet again.

[my retirement fund] 08/5/2015 09:46

Well its yielding over 7%, the new 10M loan does not have detailed income available does it ?

[davebowler] 08/5/2015 09:37

Real Estate Credit Investments (BUY)
Positive growth continues

Event
RECI's NAV rose 0.4% in Apr-15 to 162.8p per share (Mar-15: 162.0p) mainly due to interest income from the loan portfolio.

RECI had cash of £10.9m at Apr-15 of which £10.2m has been committed to a loan which is about to be drawn on a presold residential scheme in London. Three further loan opportunities are currently under consideration.

In the bond portfolio, the mark-to-market movement in the month was -0.22% following a strong run of in Q1 2015 of +6.1%. £2.8m of bonds were sold in the month to generate cash to fund the new £10.8m loan commitment. These bonds were sold at an average price of 1.14 (versus an average purchase price of 0.97).

As previously announced, Bob Cowdell is expected to take over as non-executive chairman following the release of the year-end results on 12 June 2015.

Liberum view
RECI's positive momentum continues with a small uplift in the month and the NAV total return for the first four months of 2015 is +5.0%. The portfolio benefits from the high recurring income from the loan portfolio (13.2% weighted average yield) and the potential for material capital uplifts from the bond portfolio where the manager has an in-depth understanding of the market (as evidenced by the large uplift on the City Point bond in Jan-15).

RECI's shares currently trade on a premium to NAV of 1.4%. The average for the peer group is 5.9%. We believe this discount to peers is unwarranted and represents a buying opportunity. In our view, this is supported by RECI's greater NAV total return potential, impressive track record and ability to continually source attractive deals as existing loans and bonds are repaid.

[badtime] 01/5/2015 12:45

Support at 160?

[badtime] 21/4/2015 16:41

Back down to 165 level?

[kenny] 09/4/2015 10:11

... and don't forget the 6.3% dividend yield, which is hard to find elsewhere.

[davebowler] 09/4/2015 09:52

Liberum;
RECI's NAV per share at the end of Mar-15 was 162.0p per share which equates to a NAV total return of 1.3% in the month and 4.6% over the quarter.

NAV performance in the month was driven by interest on the loan portfolio and a 0.3% fair value movement in the bond portfolio.

Cash balances have increased to £8.1m following the receipt of a partial loan repayment of €2.65m from the sale of a secured portfolio asset in France and £1.3m of bond sales in the month. The partial loan repayment triggered an early prepayment fee of €0.6m.

A new loan drawdown of £5.1m is expected to complete in April.

Liberum view
We calculate a NAV total return of 11.8% for the year to Mar-15 which is 2.5% ahead of our previous forecast of 9.3% NAV return for the full financial year.

The NAV total return also compares favourably to peers, SWEF and TFIF, which delivered returns of 6.6% and 8.4% respectively and over the past 12 months (SWEF's figures are calculated for the year to Feb-15). RECI's return on the ordinary shares has benefited from gearing (preference shares are equivalent to 36% of NAV) but even if we adjust for gearing, RECI's portfolio generated total returns of 10.8% on gross assets.

RECI's shares currently trade on a premium to NAV of 5.6%. The average for the peer group is 5.4%. We believe this marginal premium reflects RECI's superior NAV total return prospects, impressive track record and ability to source accretive deals

[davebowler] 31/3/2015 13:17

Would you say the liquidity in its underlying portfolio is the same or less? I recall that there was a block on their freehold trust sales for a while.
I am seriously considering ARTL , though, thanks to your heads up.
I am keen on Volta too- see the VTA thread- as its on a 10% discount to NAV and moving from Amsterdam quote to a UK one which I think will eliminate it in line with its peers like CIFU .

[davebowler] 30/3/2015 11:06

Having looked at the ARTL Summary, what makes you keen, particularly erstwhile2?
Is it the freeholds and cash making a more stable base?

[davebowler] 28/3/2015 15:14

From memory about a half of RECI's portfolio is in loans secured on commercial property ( typically LTV of c.70%) yielding about 13.5%
That said I'll look at ARTL.

[kenny] 17/3/2015 10:44

RECI's track record is a lot better.

[davebowler] 10/3/2015 09:46

Liberum;
Event
RECI's NAV at Feb-15 was 160.1p per share which equates to a NAV total return of 0.2% in the month.

The bond portfolio returned 0.19% in the month and £5m of bonds were acquired in the Mint Hotels portfolio new issue at a 7.4% yield.

Loans accounted for 56% of gross assets at Feb-15 and would rise to 63% assuming full drawdown of all loan commitments. The loan portfolio produced a weighted average yield of 13.5% and the loans are secured on assets with a weighted average LTV of 63%.

Liberum view
RECI's NAV total return in the first two month of 2015 is 3.4% mainly due to strong gains in January which were driven by a significant increase in the value of the controlling interest in the CMBS bonds owned in EURO 27X E issue (secured on the City Point Tower in London).

RECI's shares have performed strongly YTD (+11.8% total return) with a current premium to NAV of 9.3%. The average for the peer group is 5.4%. We believe this premium reflects RECI's superior NAV total return prospects, impressive track record and ability to source accretive deals.

[badtime] 26/2/2015 08:47

Ex div today

[skinny] 11/2/2015 07:15

Real Estate Credit Investments PCC Limited announces today that it declares an ordinary dividend for the Core for the period 1 October 2014 to 31 December 2014, of 2.7 pence per share (a total amount of GBP 1,966,099). The dividend is to be paid on 20 March 2015 to ordinary shareholders on the register at the close of business on 27 February 2015. The ex dividend date is 26 February 2015.