Real Estate Credit Inves... Share Discussion Threads

[badtime] 27/3/2020 22:01

Both of those landed in my account with YOUINVEST earlier today

[grahamburn] 27/3/2020 20:54

I had another dividend due today with EQI and it was credited fine (Tritax Big Box), but not the RECI dividend.

[holts] 27/3/2020 19:29

Odd as i thought a lot of this was automated , seems like its still being manually posted .

[cwa1] 27/3/2020 13:33

LOL, ditto, I have BOTH of those in Selft...sorry... EQi(stupid name) myself and they haven't arrived yet either. However, I'm happy to cut them a little slack for now...

[holts] 27/3/2020 13:29

Can not say the same for selftrade so far , usually very prompt , no BP either .

[cwa1] 27/3/2020 08:44

Well, dividends normally land in the account without so much as a mention-but under the current circumstances it is nice to see the RECI dividend in the account this morning :-)

[badtime] 26/3/2020 10:12

Dipped a toe back in yesterday against what I said naughty me

[skyship] 21/3/2020 09:01

Well timed sale. Are you looking to reinvest at some stage; looks to be no rush to do so!

Personally I share the same problem as every pension fund in the country, needing revenue to draw my pension from my SIPP. Looks to be nowhere safe to secure such; though as you read elsewhere - BBYB & INLZ help a bit from current levels.

Still, I'm over 80% CASH, with a good chunk of that before the meltdown, so can live off the capital for this year at least. Real pension funds will be revenue starved and now underfunded. Every company in the country will be faced with pension fund top-ups...as well as all the other problems. What a ghastly mess; and with so many personal tragedies to come.

STAY SEPARATED.....STAY WELL.

[badtime] 20/3/2020 22:45

Nicely done....pleased I got out with a small loss at 160

[skyship] 20/3/2020 09:44

…& sold at 108p. Nice to make a turn - good for morale 😊

[skyship] 20/3/2020 09:16

Bt a few first thing at just under 100p...

[cerrito] 20/3/2020 08:34

I have not bought more at these lower prices so far.
There has as far as I know no noticeable contraction in construction activity though we need to brace ourselves that things will take longer. While my understanding is that all deals have planning permissions, Council planning departments will be taking longer to provide specific consents. I need to do prep to determine how many of the developments have a firm buyer.
Too bad we do not have the investor calls we had about 8 years ago.

[davebowler] 20/3/2020 08:24

20 March 2020

Real Estate Credit Investments Limited

Market Update

The Board of Real Estate Credit Investments Limited ("RECI" or "Company") wishes to update investors given the recent volatility in financial and credit markets in light of COVID-19.

As noted in the 29 February factsheet:

-- The Company is strongly collateralised with an investment portfolio of GBP411m, plus a robust cash position of approximately GBP60m, providing robust asset cover over the Company's liabilities;

-- The Company's liabilities, financing secured by the more liquid end of the bond portfolio, is approximately GBP97m; and
-- The investment portfolio is focussed on senior lending, with a weighted average loan-to-value of approximately 65 per cent. and a short duration.

The Investment Manager has been actively monitoring the entire investment portfolio and is carrying out analysis on the impact of financial and credit markets on each individual asset, including the impact on forecast cash flows in both the short and full term of each investment.

The Investment Manager is monitoring its leverage position closely and as at 19 March 2020:

-- There has been no change in the leverage quantum as a percentage of NAV since month end;
-- The Company has experienced some margin calls, due to pricing adjustments and FX rates, and these have all been comfortably met from the Company's robust cash balance;

-- The Company's financing has an average maturity of three months, and is spread over many financing counterparties. The Investment Manager has not received any notice from any of its financing counterparties that they intend to withdraw their financing;

-- Whilst the Investment Manager continues to monitor the position closely, it expects any further margin calls on financing and FX to remain manageable. This belief is based on the Company having a strong cash position (holding approximately GBP60m at 29 February), the ability to sell bonds, and the relatively defensive nature of the GBP411m portfolio, i.e. senior lending and bonds with strong coupon and short duration.

This announcement has been prepared by, and is the sole responsibility of, Real Estate Credit Investments Limited. This announcement has been released by Chris Copperwaite of Aztec Financial Services (Guernsey) Limited, Secretary of the Company.

[badtime] 16/3/2020 10:16

Cheaper by far today

[davebowler] 13/3/2020 13:50

That presupposes a lot of defaults.Hope the market is wrong.

[skyship] 13/3/2020 09:36

Strewth - 150p - 8% yield...

[badtime] 09/3/2020 13:06

Lol ..what a difference a week makes

[badtime] 03/3/2020 16:12

Happy to hold ..has been a good income payer in a low interest rate environment..selective buying has also produced a on paper capital gain

[nk104] 02/3/2020 21:14

You would expect the share price to fall if it goes xd. This would lower the NAV by the amount of the dividend paid.

That’s not a reason to sell. Objections to management may or may not be valid, but that’s another point.

[davebowler] 28/2/2020 16:28

It would be better to have a large 'C'share issue and merge later at NAV, in my opinion.

[santos123] 28/2/2020 11:51

Hi Graham.

I have to agree with every thing you say.

I sold my entire holding yesterday for 168.7p.

The reasons being :-
The net asset value (N.A.V) of the share is 166p, it was getting close to that price.
The company goes xd next Thursday, 5 March.
The price will drop next Thursday, it will probably go below the 166p N.A.V.
That will send the price down further.
The company directors are not interested individual shareholders, and do not look after their interests.

I wish all remaining shareholders good luck, I think they may need it.

Always do your own research.

Stay Prosperous.
Santos123.

[grahamburn] 25/2/2020 14:50

The difficulty for long standing retail shareholders in respect of the dividend is that, as you say, it has been steady for years so far as they are concerned. However, so far as the business itself is concerned the dividend payment has been going up annually due to the regular increase in the number of shares in issue.

It's just a pity that retail shareholders (unlike some institutional shareholders) have not been given the opportunity to take part in the numerous placings over the years, and still won't in the year ahead.

[santos123] 25/2/2020 11:53

Hi Cerrito.

Thank you for your research, very interesting.

I don't know if you had seen company notice on the next divi.
It is 3p, exactly the same as last years divi, no increase.
The share price is going nowhere, and the divi's are not going up with inflation.

Makes you wonder what the executive directors, and non executive directors, are doing to earn their salaries.

Stay Prosperous.
Santos123.

[cerrito] 23/2/2020 20:50

Reading the prospectus I see that on the basis that the full amount of 150m shares are issued the expenses will be £4.6m which given that it is not under written seems very good business for Liberum.
Given that the net proceeds in this ssenario of all the shares being issued will be £240m plus it will take some time to disburse and the balance sheet will have plenty of cash

I was thinking of adding but this has put a dampener.