Real Estate Credit Inves... Share Discussion Threads

[holts] 10/2/2017 16:43

Not guilty , would have been useful though .

[asmodeus] 10/2/2017 16:04

Did you have any connection with Holts (Car accys.) HOLTS?

[kenny] 09/2/2017 14:42

It does appear there is no intention of replacing the £41.9m of pref's - which actually means the management fee will be reduced.

I cannot see where there is dilution because most of the funds will likely be used in a combination of repaying pref's, therefore a 9.25% yield when including the 1.25% management fee on the pref's, or invested in the market at yields currently between 8.25% and 9.25%.

[my retirement fund] 09/2/2017 14:42

Jolly good that was expensive debt at 8% equity is cheaper

[holts] 09/2/2017 14:36

being lazy , how many prefs in issue ?

[holts] 09/2/2017 14:35

reading the blurb it would seem there is no intention to replace the prefs when they expire.

[davebowler] 09/2/2017 14:21

Dilution is a bit worrying though.It will be a while before the proceeds are utilised ,I bet.

[kenny] 09/2/2017 14:07

badtime - the shares are better value to buy on the market at 164p (or the current price of just over 163p) because the placing shares do not qualify for the dividend that goes ex-div on 23 February.

[badtime] 09/2/2017 12:49

Placing at 162.5?Am I reading it right that we all might get a chance to participate on the funding up to 60/65 Million ..the first 20 million already taken up?

[skyship] 07/2/2017 07:54

Manager Commentary

• The NAV per share declined by 1.1p per share (or 0.7% of NAV) to 162.7p per share in the month of January
• The main investment portfolio contributors to the monthly NAV movements are as follows:
o Fair value revaluation on the loan portfolio: -2.09p per share
o Revaluation of the bond portfolio: -0.23p per share
o Income from the investment portfolio: 1.65p per share
o Exit fee from a realised loan in the month: 0.15p per share

Etcetcetc……see link below:

[davebowler] 06/1/2017 10:40

Liberum;
Specialist Finance

Real Estate Credit Investments (BUY, Mkt Cap £115m)
7.5% NAV return in 2016

Event
RECI generated a NAV return of 1.1% in December 2016 bringing the NAV total return for 2016 to 7.5%. NAV performance in the month was driven by the loan portfolio and the third consecutive month of positive returns from the bond portfolio.

December was an active month for portfolio activity with the company acquiring £15.4m of a bond secured against a prominent office building in the City of London (8.3% expected yield). £2.0m of bonds were sold above the prior month-end carrying values.

In the loan portfolio, a new loan commitment was signed for a senior loan to fund the development of a site in Woolwich, London into 152 mid-market residential units. A €7.6m repayment on a loan secured on a Berlin shopping centre was received in the month.

Liberum view
2016 has been another positive period for RECI and the 7.5% NAV return has been achieved despite volatility in the underlying real estate market during the year and cash drag in H2 2016 following a large loan repayment in August. Cash as a percentage of NAV at the end of December was 15% and outstanding loan commitments account for the majority of this.

RECI's share price discount to NAV has widened to 3.2% which compares to an average 4.2% premium for peers. This is despite RECI's superior NAV total return track record and sector-leading dividend yield of 6.8% (6.0% for peer group).

[kenny] 06/1/2017 09:49

Very good performance, so rather surprised it is trading well below NAV.

[skyship] 06/1/2017 07:21

Fact sheet shows good performance in December:


Manager Commentary

# Ex div NAV up 1.7p per share to 163.8p per share, following the 2.7p per share ordinary dividend
# NAV increase driven by both the loan portfolio, which continues to generate strong interest income returns, as well as a third successive month of positive returns on the bond portfolio
# RECI purchased £15.4m of a new bond issuance with a strong cash pay coupon secured against a prominent office building located in the City of London
# RECI sold 2 bonds in December realising an amount of £2.0m, at prices above their values at the previous month end
# As at December month end, RECI’s bond portfolio is £47.3m (28.8% of GAV)
# RECI signed a new loan commitment of £7.3m to provide a senior loan to finance the development of a site in Woolwich, London into 152 mid-market residential units, 120 of which are to be private, with the remainder to be affordable units
# RECI received a substantial repayment of €7.6m on its senior loan secured by a dominant shopping centre in a residential suburb of Berlin, following the successful refinancing of a large part of the debt
# RECI’s total loan commitments are £111.7m (68.1% of GAV)
# As at December month end, RECI has a cash balance of £18m. Cheyne’s pipeline remains strong, and RECI remains well placed to take advantage of opportunities in both the loan and structured credit markets

[skyship] 04/1/2017 08:04

Sudden turnaround in RECI. Up 4p to 160p Bid today. Has there been a New Year tip somewhere perhaps...

Well-timed top-up MRF.

[orinocor] 21/12/2016 23:33

Dropped from 165p to 156p in 2 weeks. That's 5.5%. 2.7p of that is the dividend. Any underlying reason or is this just another buying op before xmas?

[holts] 14/12/2016 21:14

Seems to have been a seller for the last few days , irritatingly paid 1.61 something , what the xd implications are ....


looks like just using pre divi to sell a few .

[deadly] 14/12/2016 15:31

Dropped more today pre-XD tomorrow bizarrely. So bought more at 160.5p. Would be rude not to.

[holts] 12/12/2016 19:00

Thanks, I carried on trawling and came up with the same , connected with a court ruling . Selftrade never show with associated credit and Kenny explained that as well , trouble is you never know when somethings changed and what you have done previously no longer applies , with the new rules it will become an irrelevant question anyway .

[investor_tp] 12/12/2016 17:10

HOLTS - there's some discussion on the RECP thread around message 182 (8 Sep 11, Kenny), which I assume also applies to RECI (?). I believe with RECP it boiled down to

|| "From 22 April 2009, to qualify for the 1/9 tax credit you must pass *ONE*
|| of the following tests. These are that:
||
|| 1) the company paying the dividend is not an offshore fund and you own
|| less than 10% of the issued share capital, or any class of share,
||
|| 2) ...
|| "

(my emphasis). This is assuming you own less than 10% of the share capital ;)

[asmodeus] 12/12/2016 16:44

Well there have been no tax credits on my div. slips.

[holts] 12/12/2016 15:44

I know this has been discussed here before , but failed to find it so far .

I am correct in thinking RECI dividends are entitled to the tax credit ?

[skyship] 08/12/2016 14:08

Exactly - so couldn't resist putting cash accrued to work on a 6.65% yield @ 162.45p