Real Estate Credit Inves... Share Discussion Threads

[my retirement fund] 21/5/2020 13:52

Reckon this will push towards 1.30. Bad luck Sky but you're rich enough anyways

[cwa1] 21/5/2020 08:35

Hardman report(may need to register)...

[holts] 21/5/2020 08:11

Thanks , I missed it .

[davebowler] 20/5/2020 11:42

Yes Holts, positive.

[badtime] 20/5/2020 10:38

Always nice to take a quick 10% Sky....I'd have done the same if I hadn't sold my trading buy ...happy to hold the ones i retained ..for now

[skyship] 20/5/2020 08:30

Couldn't resist the temptation to take another turn here as RECI carves out its base - out at 112p yesterday - hopefully temporarily...

[holts] 18/5/2020 17:18

Positively illuminating in your opinion ?

[davebowler] 18/5/2020 15:04

Company presentation dial in was very helpful and illuminating.

[hpcg] 15/5/2020 23:23

Bought some shares but I think I'll go long with leverage too.

[badtime] 15/5/2020 13:01

Well pity I sold those I was looking to trade but more than happy that I kept those bought late April..would have been happy at 2p per quarter:)

[my retirement fund] 15/5/2020 12:12

Back to 1.10

[holts] 15/5/2020 08:23

Been through it quickly , one or two currently sticky but not alarming positions , I am relying on their detailed approach to carry them through as in 2008 , of course if this goes on for a very very extended period this will change , but having bought more yesterday I am bias as well .
Question will be, is the persistent seller still to continue?

[skinny] 15/5/2020 08:17

Added for the first time in 8 years and at almost the same price!

[skyship] 15/5/2020 08:09

Well, I may be biased being a small holder, but that reads really well. The 12% yield looking rather secure. As I posted earlier, I suspected a cut from 3p/Qtr to 2p/Qtr.

[rik shaw] 15/5/2020 07:25

and copy of the presentation:

[skinny] 15/5/2020 07:03

.

Payment of the fourth interim dividend will complete the payment of dividends totalling 12 pence per ordinary share in respect of the financial year ended 31 March 2020.

Following a comprehensive review exercise carried out by the Board and the Investment Manager, more details of which are contained in the Company Update Investor Presentation released today, the Board confirms that there will be no change to its dividend policy for the current financial year ending 31 March 2021, and that the Company intends to continue to pay a stable quarterly dividend.


more.....

[badtime] 12/5/2020 16:16

I dumped the amount I was going to trade at roughly b/e ..still done for longer term ..seems to be someone dumping stock today and recently ..even after today's relatively positive comments ..

[badtime] 12/5/2020 10:17

Which is why I'd be happy to see 2p per quarter

[my retirement fund] 12/5/2020 10:16

I will be fascinated to see the presentation on the 15th. The problem with the 08 crash was from memory they raised and invested shareholders equity into the portfolio at the bottom. What are their plans for when the bottom of the cycle approaches again? That could still be several months away.

[davebowler] 12/5/2020 09:26

Liberum;
Mkt Cap £229m | Prem/(disc) -32.2% | Div yield 12.0%

Event

Real Estate Credit Investments' NAV per share at 30 April 2020 was 147.6p, reflecting a NAV total return of 0.4% in the month.

Three bonds were sold during April for £24.3m. The proceeds were used to repay drawings under the company's debt facilities. Leverage reduced from £81.7m (24.2% of NAV) to £50.5m (14.9% of NAV). Cash on the balance sheet at the end of the month was £31.3m, resulting in a net debt to equity ratio of 5.6%.

Investment activity was limited during the month with £2.9m of drawdowns to fund existing loan commitments. 87% of the top ten assets in the portfolio now comprise senior loans and bonds. The manager has commenced the origination of a new pipeline of senior loans with a more attractive risk/reward offering than before the crisis (higher margins and lower LTV/LTC ratios). The completion of new loans is expected to commence from Q3 this year.

Liberum view

RECI's portfolio is defensively positioned with a focus on senior loans and core income bonds. LTVs are relatively low (bonds 56.1%; loans 66.0%). The majority of the investments are relatively short duration (loans 1.1 years; bonds 1.7 years). Some of the borrowers are likely to experience cash flow difficulties but there is significant headroom in valuations. Risk is mitigated by collateral quality, loan structuring, borrower strength and robust documentation.The current discount to NAV is pricing in an extreme situation for property values. At the current discount to NAV (-32%), we estimate the implied headroom in the underlying collateral value is 53% for portfolio. This compares to a peak to trough drawdown of 44% in UK commercial property values in the financial crisis between 2007 and 2009.

[skinny] 12/5/2020 08:46

FWIW - the £1 area has provided decent support.

[my retirement fund] 12/5/2020 08:41

90 pence ? Will it double bottom or fall through?

[cerrito] 12/5/2020 08:37

Well done to those who bought yesterday as the the fact that no more write downs needed after the ones made in March and hence share price increase.
There has to be a slight question mark for paying a dividend costing £7m next time around. They have undrawn loan committments of £60m and cash of £30m. There will be a delay in both them getting loan repayments in and having to disburse the undrawn loan committments.
We will have to see.