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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
  1.50 0.98% 155.00 153.00 154.50 154.50 154.00 154.50 638,777 16:35:20
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 0.0 37.2 16.2 9.6 355

Real Estate Credit Inves... Share Discussion Threads

Showing 1201 to 1220 of 1825 messages
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DateSubjectAuthorDiscuss
16/9/2016
18:11
Surely a pricing error
jerseymike
07/9/2016
08:12
EventRECI generated a NAV total return of 0.8% in August 2016 after adjusting for dividends. NAV per share at 31 August 2016 was 161.8p. The company's largest loan position (a whole loan secured against German multi-family properties) substantially repaid in August with €21.3m received by RECI. This loan returned a yield in excess of 15%. Furthermore, two bond positions repaid during the month which resulted in receipts of €9.6m. These bonds generated gains of 4.1% and 4.6%.  Cash as a percentage of NAV was 33% of NAV at the end of the month (after adjusting for the upcoming dividend payment). RECI invested £1m in a bond secured by a portfolio of 13 loans in Germany and Sweden post month-end. The bond has an unlevered yield to worst of 6.4% with a 1.5 year duration. A number of other bond opportunities are under consideration following re-pricing post-Brexit. Liberum viewRECI's has generated a NAV return of 1.8% in the three months since 31 May 2016 highlighting the robust nature of the portfolio cash flows during a volatile period for the underlying real estate market. There is now a significant level of cash to invest and we expect the majority will be deployed into loan opportunities alongside opportunistic investments in the bond market. The high level of repayments had been anticipated as the company's recent results statement indicated that potential inflows of £25m from loan repayments were expected in the near-term. Re-pricing in the bond market should offer potential for accretive investments as the manager has a proven track record of outperforming during periods of market weakness. RECI is now trading on a -3.0% discount to NAV compared to an average 2.3% premium for peers and pays a sector-leading 6.9% dividend yield (vs. 6.1% for peers).
davebowler
05/9/2016
22:06
Gents can anyone tell me when this goes XD for the 30/09 payment? TIA
yieldhunter
24/8/2016
20:27
Just having a gander at that myself
badtime
24/8/2016
19:40
Some changes ahead. Namely for RECI holders removal of the cell entity which amalgamates all investments, authorisation for expanding the companies equity value up to 15% including and removing the cover tests on the preference shares. So effectively a closed-ended investment fund adding some fire power. I suspect this move will be followed by more ambitious proposals next year since there will be a range of options open to them for cheaper funding when the preference share are up for redemption. Prefs holders not allowed to vote in this. As ord hold looks ok to me hxxp://www.recreditinvest.com/PDFs/AR16_NOM.pdf
my retirement fund
11/8/2016
02:03
Wow 6% for BBB 3 year paper. Meanwhile another tasty (licks lips), dividend confirmed for this qtr
my retirement fund
10/8/2016
17:29
DB - THNX FOR THAT - AN INTERESTING READ...
skyship
10/8/2016
15:28
Viewpoint today from TwentyFour Asset Management on MBS value Good Afternoon, The most interesting discussions we have on the desks normally revolve around where we think the best value is, with the different strategies backing their favourite picks and trying to make each other understand the hidden value that the market isn’t appreciating. Yields, and the corresponding value, are “not door numbers” as Gary is fond of reminding us, and have been driven by sentiment, fundamentals and direct central bank intervention amongst others. The last of these – central bank action – took an interesting turn yesterday as the Bank of England, on the second day of buying more gilts, failed to buy their target amount in their reverse auction. Another sign of the technical squeeze in £ fixed income that we are experiencing at the moment. Already since the announcement of the intention to buy £10bn of corporate bonds, spreads on eligible bonds have tightened significantly, and even ineligible bonds – banks and insurers – have seen the “portfolio effect” push prices up and yields down. Has this value shift happened across the entire market? Definitely not, and a deal last week in the UK RMBS market emphasizes this. Hawksmoor 2016-1 is a £2.25bn deal backed by vintage (2007) mortgages originated by GE Money. I’m not going to go into the detail of the trade, or our credit view, rather more interesting is the levels the deal priced at and the demand. Rather unusually there were a couple of tranches issued with split ratings. The Class D bonds are A-/Baa2 and the Class Es are BBB/Ba2. Investors’ interest for these two tranches were between 2 and 5 times the amount of bonds issued, and they priced tighter than initially expected. Even with that in mind, the yields these bonds were issued at were sterling LIBOR plus 4.75% and 6% respectively. That’s an incredible yield for 3yr bonds, when compared to the yield on BBB sterling corporate bonds which is currently 1.85% over the same index. Asset backed securities markets are not as mainstream as corporate bonds and prices do tend to lag, but I challenge any of my colleagues in our other strategies to find something more compelling. Ben Hayward Partner, Portfolio Manager
davebowler
09/8/2016
09:29
Liberum; NAV per share at 31 July was 163.2p which equates to a 0.4% NAV return in the month as the loan portfolio continues to drive returns. Portfolio activity was relatively low although the company did receive £1.6m of partial repayments on its loan secured against retirement villages in London and the South East. Cash on the balance sheet at the month-end was equivalent to 11% of NAV. In terms of market outlook, assets demonstrating a stable cash flow profile are outperforming after Brexit in comparison to more cyclical asset classes such as London offices. RECI has no exposure to the City of London office market in its portfolio. In the MBS market, volatility is expected to continue but higher-grade CMBS should see some spread tightening following the reduced interest rates in the UK and the new corporate bond purchase programme. Liberum view RECI's has maintained a steady NAV performance during a volatile period for the underlying real estate market, with NAV return of 1% in the two months since the end of May. The manager has a proven track record of outperforming during periods of market distress. RECI is now trading on a small (-0.7%) discount to NAV compared to an average 3.6% premium for peers and pays a sector-leading 6.7% dividend yield (vs. 6.0% for peers) excluding any special dividends.
davebowler
12/7/2016
14:29
Nice to see a director buy
badtime
08/7/2016
10:50
Thnx also to erstwhile for posting a contrarian view...all helps in the decision making
badtime
08/7/2016
10:48
Is anyone besides me having problems with the Thread title list, or advfn in general??
grannyboy
08/7/2016
10:45
Thanks DB & Skyship - reassuring update from RECI.
wirralowl
08/7/2016
08:28
LiberumStable performance in June EventNAV per share at 30 June was 162.5p which equates to a 0.6% NAV return in the month after adjusting for dividends. During the month, RECI received a £0.9m partial repayment on its loan secured against retirement villages in London and the South-East. RECI has a cash balance of £13.7m (12% of NAV) and expects further repayments on a number of loans this year. RECI has provided additional market commentary following the referendum and expects the London City office market to be most affected given its exposure to the financial market. RECI has no exposure to the City office market and the portfolio does not contain any loans secured on assets held by open-ended retail funds. The largest loan in the portfolio is a senior mortgage loan secured on German multi-family assets (19% of NAV) and the largest MBS in the portfolio is a Class B bond secured by homes leased to the UK Ministry of Defence with a 45% LTV. Liberum viewRECI is now trading on a 9% discount to NAV (7.3% dividend yield) following a significant de-rating in recent weeks. The manager has a proven track record of outperforming during periods of market distress and recent volatility should present an opportunity to acquire assets at very attractive yields. We believe the 13% discount to the peer group is unwarranted and reiterate our BUY recommendation. 
davebowler
07/7/2016
14:23
Erswhile I disagree regards to pref holders. When 2017 comes theres a lot they could do. What ever happens they will be unlikely to be offered 8% again. However they could be offered a rollover into a fesh issue at say 6.5% with those in issue left over offered to in the open market at 6.2% etc.At the end of the day what happens to any pref restructuring largely depends on the largest holders of both the ords and the prefs who will clearly have a vested interest in both issues.
my retirement fund
07/7/2016
13:36
Looks as though there has been too much scare-mongering: ======================================================= Manager Commentary # Ex div NAV up by 1p per share in June, following Ordinary Dividends declared of 3.5p per share (which includes a 0.8p Special Ordinary Dividend) # 30 June NAV of 162.50p per share, driven by loan portfolio which continues to generate strong interest income returns # In June, RECI received a partial repayment of £0.9m on its loan secured against retirement villages in London and South-East Market Commentary # The recent referendum vote marginally in favour of the UK leaving the EU has led to an immediate period of uncertainty in the UK commercial real estate markets # We expect this period of uncertainty to continue until a new prime minister is elected in the UK and some clarity around the proposed economic relationship with the EU begins to emerge # Uncertainty in the real estate market translates into a pause in leasing and transactional activity, which leads to uncertainty around the value of the underlying asset. This uncertainty on value will eventually dissipate once leasing and transactional activity resumes and stabilises # To date, the impact of the referendum has been acutely felt in the expected decline of valuations in the London City office market (by virtue of its focus on the financial sector which is expected to be most exposed to a decline in structural demand) and also in the gating of a number of open ended retail property funds (Retail funds) The RECI portfolio has the following characteristics today: # It is focused on the debt capital structure, secured by UK and German real estate. By being in the debt part of the capital structure, its investments have a natural buffer protection against a drop in the value of the underlying assets # The underlying assets that secure its debt instruments are predominantly in core locations in the UK and Germany as opposed to assets located in secondary or tertiary cities and towns # It has no exposure to the core City of London office market in its portfolio # It has no exposure to any of the assets held by any of the open ended Retail Funds # The largest loan in RECI’s portfolio (accounting for 19% of NAV) is a senior mortgage loan secured by stable multi-family assets in west Germany. This asset class has demonstrated resilience through many economic cycles and shocks and is unlikely to be impaired by the UK leaving the EU # The largest mortgage backed security in the RECI portfolio is a Class B bond with a LTV of 45%, secured by homes leased to the UK Ministry of Defence on a very long lease # Whilst the current period of uncertainty may delay the timing of repayment on some of its credits, the defensive nature of its underlying debt exposure, and the core locations of the assets provides comfort on the full recovery on its debt investments # As a consequence of recent timely loan repayments RECI currently has a healthy cash balance of £13.7m, being 12% of NAV. RECI also expects further repayments on a number of loans this year, and is well placed now to take advantage of opportunistic debt investments as they arise. RECI has a proven track record of successfully taking advantage of the turmoil in credit markets. In 2009 and again in 2011/12 RECI was able to purchase defensive mortgage back securities at very accretive yields and will look to make similar opportunistic investments in the coming months
skyship
06/7/2016
15:36
thank you for the info , just how do we value this ?
holts
06/7/2016
14:54
I think we are talking at cross purposes. RECI owns a portfolio of mezz slices which are definately subordinate to the senior lenders for each building; each mezz slice is at risk of being zeroed in an LTV covenant fail and payment acceleration by the senior lenders. It would of course take an unusual turn of events for each mezz slice to be blown up, but they are naturally correlated. Also no, the pref holders won't stand for being restructured willy nilly. they might roll but only on terms which are good for them. You just have to hope that the bonds which the company owns and is keeping to redeem the prefs perform ok. but of course note that these bonds are also subordinated tranches of CLOs themselves, not senior debt of any kind, they are in no way cash substitutes.
erstwhile2
06/7/2016
14:34
The point im making is we own the debt as weve not borrowed to buy it (other than what we owe the prefs) so we are not geared.The other point im trying to make is that we are not subject to being written off by some seniority as any mezzanine debt structure is merely part of a consortium of lenders who dont have a hierarchy of seniority in the event of outright default we are part owners in the assets.So what I'm saying is we dont end up worthless (assuming we can repay the prefs come 2017) In reality we could probably easily restructure them as well if it were a lucrative option.
my retirement fund
06/7/2016
12:10
They have net assets of £118.8M having deducted net liabilities. Correct me if I'm wrong but in the event of say a 30% hit on the underlying does not produce the ramifications you state - i.e the ord shares worthless. As I understand it, an "average" 30% hit across the entire portfolio would wipe out the underlying equity in the affected loan portfolio mezz debt upon each redemption due date expiring. This would have the effect of the mezz debt having to take on a market to market loss and a reduction in the underlying stated net assets (£118.8M). However there is no reason to assume any of the underlying loans will default and so the income stream should continue, and in any case when those loans are due and for argument sake lets assume global fiscal meltdown worse than 2008 style and the loans defaulted - we lay relevant claim to the portion of the underlying assets. Is that a fair or am I missing something stupid ?
my retirement fund
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