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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
  0.50 0.33% 153.50 153.00 154.00 154.00 154.00 154.00 1,360,735 16:35:11
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 0.0 37.2 16.2 9.5 352

Real Estate Credit Inves... Share Discussion Threads

Showing 1326 to 1346 of 1825 messages
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DateSubjectAuthorDiscuss
15/12/2017
17:15
Kenny - I'll check that re uncovered dividend. In the meantime holders should be reassured by this extract from October's piece in the DTel. As for RUSP - holders have done well thus far; but I wouldn't sleep well at night holding stock in Putin's kleptocracy. Certainly NOT one for me! ============================================================== “We believe that the opportunity set available to RECI today, for the UK market, may be as compelling as that present in 2008 and 2009 in the immediate aftermath of the global financial crisis.” The fund manager gave the example of one £20m loan in April. It was for just 40pc of the property value, with the owner and other lenders ranking behind RECI in the event of default – but the return is expected to be 8pc a year. This kind of figure is normally associated with highly risky assets, not secured lending on London property when other parties have to lose 60pc of the asset’s value before any impact is felt. Across the £113m loan portfolio as a whole, RECI has lent about 69pc of the value of the properties concerned. The trust also owns about £50m in bonds backed by residential or commercial property. Some were bought below par value, which offers some limited scope for capital growth. The trust currently yields a highly attractive 6.8pc but there are good reasons to expect that figure to rise to about 8pc or perhaps even more, said James Burns, who holds it in multi-manager portfolios he runs for Smith & Williamson. “The trust used to have some expensive preference shares in issue, but they were redeemed last month,” he said. “These prefs cost 8pc a year but the fund manager expects to refinance at less than 2pc. “The other change is that the management fee will in future be calculated as a percentage of net assets, not the higher gross assets figure. Taken together, these two developments could see the yield rise by between 1.5 and two percentage points, so it could reach 8pc or more at the current share price.”
skyship
15/12/2017
16:47
That large UT trade at the end at 167p may well mean a drift down below the issue price like last time , Kenny Russians dropped interest rates today so should help RUSP
nerja
15/12/2017
16:23
I'll carry on holding for now
badtime
15/12/2017
16:09
More important than the constant issue of shares, I am beginning to wonder if RECI are going to continue to struggle to earn an average of 3p per quarter net; to meet the quarterly dividend. Averaging the last 3 months, they just about made 3p in those 3 months but, importantly, those earnings include the effect of issuing shares at above NAV. Therefore in the last 3 months, in reality, they have not earned an average of 1p per month. You cannot keep issuing new shares at above NAV so your earnings are flattered. Essentially, if you look at the yield on recent loans, those investments have not been at a high enough yield to produce earnings after costs averaging 1p per month. Nothing to say the yield on new investments will improve even if interest rates nudge upwards because their loan rates are not really related to base rate. In essence, if future earnings are only just going to cover the dividend yield and for some periods not cover the dividends, there is no reason for the shares to trade at much over NAV. I appreciate people are desperate for yield – that might support the share price at a premium to NAV - but there are more risks below the surface with RECI than perhaps most investors appreciate. After careful consideration of the longer term outlook I sold some weeks ago and reinvested in RUSP. I appreciate that RUSP invests in Russian warehouses but this class is preference so the yield is fixed, higher and very well covered by earnings. I think all the political and other risks, if any transpire, will be borne by the ordinary class: RUS and not the preference I am invested in. I had held RECI for some years so it is sad selling the last of my holding of a share that had served me well for so long. However, I believe I have much less risk in RUSP (strange as that might sound!), my yield is higher, very well covered and, importantly to me, much more secure when comparing risks between the two investments.
kenny
15/12/2017
15:55
Well, for any doubters, they've met their target for both the Placing and the Tap Issue and have now confirmed that that is the end of dipping into the well.... for the time being, I guess.
grahamburn
15/12/2017
14:41
They risk taking the pitcher to the well a little too often - and why this: "The Tap Issue does not form part of the Placing Programme. The new Ordinary Shares being issued pursuant to the Tap Issue are being issued under the Company's general authority to allot and issue equity securities contained in Article 5 of the Company's articles of incorporation." Seems to be part of the Placing Programme as far as I'm concerned. Just what is the difference?
skyship
15/12/2017
13:15
Proposed placing of min £15m worth of shares at 167p
nk104
14/12/2017
10:20
And, so far, the share price has held up well.
grahamburn
08/12/2017
17:47
However given the possibly very uncertain outlook perhaps extreme caution should prevail.
holts
07/12/2017
10:25
For me this is the almost unbelievable stat: # As at 30 November, the Company had borrowings of £37.2 million at a weighted average cost of 1.5% 1.5%!!! On the basis of borrowing at below 2% and lending above 8%, perhaps our excellent management team should be raising those borrowings a tad... "Borrowings represent 17.7% of NAV, well within the Company’s stated total borrowing limit of 40% of NAV"
skyship
06/12/2017
17:51
Yes, I read the latest update this morning, very happy to hold despite the premium.
hpcg
06/12/2017
07:41
Another profitable month; and more of the cash being put to work: ================================================= Manager Commentary - Activity in Month # RECI made £1.1 million net profit in the month (equating to 0.9p per share), taking NAV per share as at 30 November to £1.652 # RECI’s investment portfolio was £231 million as at 30 November.  During the month, the Company invested:   - £19.9 million in six new listed bonds. Of note was a €10.3 million investment in a listed bond secured by seven student accommodation assets spread across established French student cities. The bond has an LTV of c54% and a yield of more than 8% - The Company also made a new senior whole loan commitment of £9.9 million, secured by a student housing asset in Cardiff, with an IRR of c10% - £3.4 million to fund its ongoing loan book commitment # As at 30 November, the Company had borrowings of £37.2 million at a weighted average cost of 1.5%.  Borrowings represent 17.7% of NAV, well within the Company’s stated total borrowing limit of 40% of NAV # RECI’s cash balance was £17.6 million, representing 8.4% of NAV
skyship
01/12/2017
14:14
This does rather confirm that the 3p Qtly divi is the new norm: ============================================================== Dividend Announcement - Ordinary Dividend for RECI LN (Ordinary shares) Real Estate Credit Investments Limited announces today that it has declared a second interim dividend of 3.0 pence / Ordinary Share (a total amount of GBP 3,813,226.02). The dividend is to be paid on 5 January'18 to ordinary shareholders on the register at the close of business on 15 December'17. The ex-dividend date is 14 December'17.
skyship
07/11/2017
10:01
Thanks Sky
badtime
07/11/2017
07:36
Another good performance last month: Manager Commentary # NAV per share at 31 October of 164.3p, up 1.1p per share in October # During the month, the Company invested - £3.3 million in 3 different new mortgage secured bonds - £2.0 million towards funding its ongoing loan book commitments # The Company has a further £66 million of unfunded loan commitments as at 31 October 2017. Of this, it expects to fund £8 million before the year end # Following receipt of proceeds from the third placing under the Company’s placing programme, RECI has a strong cash balance of £37.6 million, representing 18% of NAV # RECI has several deals expected to close before the end of 2017. The current pipeline includes four loan deals with combined commitments for RECI of around £58 million (consisting of a number of senior loans with low LTVs  in the UK), and a number of listed bonds secured by core / core+ income across Europe
skyship
26/10/2017
14:45
Good to see the share price firming after the fund raising
badtime
26/10/2017
11:53
An interesting para lifted from that DTel article: "The fund manager gave the example of one £20m loan in April. It was for just 40pc of the property value, with the owner and other lenders ranking behind RECI in the event of default – but the return is expected to be 8pc a year. This kind of figure is normally associated with highly risky assets, not secured lending on London property when other parties have to lose 60pc of the asset’s value before any impact is felt."
skyship
26/10/2017
11:47
....and why not as the yield still 7% @ 171.5p (assuming 12p/annum dividend) @ 175p the yield = 6.86% @ 180p the yield = 6.67% Obviously one has to keep an eye on the premium; but I suspect we are headed to 180p.
skyship
26/10/2017
10:00
RECI tipped in today's Telegraph.
asmodeus
06/10/2017
09:33
Liberum; Significant improvement in capital structure Event NAV per share rose 0.7% in September to 163.2p per share (August: 162.2p). NAV total return in the six-month period since March 2017 is 3.7%. During the month, RECI redeemed all of its £41.9m of preference shares (8% coupon) which has been replaced with significantly lower cost debt. Debt has reduced to £34m and the weighted average cost is now 1.3%. As previously announced, the company raised £40.7m under its placing programme. Gearing as a percentage of NAV has reduced from 26% to 16%. The company agreed a new £8.4m senior loan commitment secured against an office development asset in London's Tech City district. The LTV on the loan is 63%. £5.5m of bonds were acquired in the month including £3.7m secured by the assets of an established UK mid-market housebuilder and £1.8m secured against the UK's largest operator of holiday villages. Cash as a percentage of NAV at 30 September was 20% and the manager reports a strong pipeline with a number of deals due to close in the coming months. Liberum view The capital raise and preference share repayment leaves the company well-placed to deliver an uplift on NAV returns achieved in recent years. The preference share repayment will result in significant interest cost savings and a reduced TER due to lower management fees. In addition, risk/reward dynamics have improved considerably in certain segments of the UK real estate lending markets and the company has been very active in 2017 in order to take advantage of these opportunities. RECI currently trades on a 3.6% premium to NAV (5.6% average for peer group) and the latest quarterly dividend implies a 7.1% dividend yield compared to an average 6.3% dividend yield for the peer group.
davebowler
06/10/2017
08:50
Another good month: =================== http://www.recreditinvest.com/factsheets/201700930factsheet.html Manager Commentary NAV per share at 30 September of 163.2p, up 1.0p per share in September. This brings the total NAV return since 31 March 2017 to 6.0p per share # On 18 September RECI announced it had redeemed all of its £41.9 million Preference Shares, which had been accruing at a cost of 8% # RECI has replaced some of this leverage at a significantly lower cost of borrowing. At 30 September the outstanding debt has reduced to £34 million, and has a weighted average cost of just 1.3%. This, combined with the lower management fee, will immediately improve the risk adjusted returns from the more liquid assets in the investment portfolio and the overall yield of the Company # On 27 September RECI announced the successful closing of a third placing under its placing programme raising gross proceeds of a further £40.7m for the  Company # In September RECI signed a new £8.4 million senior loan commitment secured against a new office development asset in London’s ‘Tech City’ district. The LTV of the loan is 63% and it carries a coupon that is in line with the Company’s target gross return # RECI purchased £3.7 million of a listed bond collateralised by the assets and business of an established UK mid-market housebuilder. RECI also purchased £1.8 million of bonds secured against the UK’s largest operator of holiday villages # Following receipt of the third placing proceeds, RECI has a healthy cash balance of £41.7 million (representing 20% of the increased NAV) # The continued pipeline of opportunities developed by Cheyne across both the loan and structured credit markets remains strong with a number of deals due to close in the coming months
skyship
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