Real Estate Credit Inves... Share Discussion Threads

[wllmherk] 28/8/2020 14:25

thanks db,

Very reassuring update, happy to hold these for the foreseeable, dividend seems safe too.

wllm

[wllmherk] 17/8/2020 16:56

Got these in my ISA, hoping for some share price weakness to add some more with my dividend money in September.

wllm :)

[dragonsteeth] 17/8/2020 11:58

Thanks for the updates guys , much appreciated. While I would never tuck away n forget any of my holdings this one gives me no concerns , even potential for more share price movement later in the year.

[skinny] 17/8/2020 11:01

Thanks for the update - here's a more readable view of the Top 10.

[williamcooper104] 17/8/2020 11:00

Thanks for posting The benefits of investing in the only listed loan fund that existed before the credit crunch

[yieldsearch] 17/8/2020 10:02

This company (and asset manager) is providing much better disclosure than the like of swef, lbow etc.
clearly the stakeholders are engaging with shareholders.

Davebowler: as always, tks for sharing

[davebowler] 07/8/2020 11:08

Liberum;


Real Estate Credit Investments' NAV per share at 31 July 2020 was 147.6p, reflecting a NAV total return of -0.2% in the month. July's NAV was reduced by 1.0p as a result of negative mark-to-market movements on the bond portfolio (-0.7% NAV impact).

The mark-to-market movements relate to two bonds secured on Italian outlet malls owned by a global private equity sponsor. The manager remains confident of a full recovery of all of the exposure from the positions due to the quality of the asset and the low LTV. The malls re-opened in May following a four-month closure.

Cash on the balance sheet has increased by £22.5m to £53.0m following repayments related to two of the larger positions in the portfolio. The repayments were due to the the financing of the loan secured on a prime Paris residential/retail asset and the early partial repayment of a UK mixed use portfolio. This resulted in a net debt to equity ratio of 5.4% at 31 July.

Liberum view

The repayments provide additional liquidity for RECI and the capacity to recycle capital into loans offering attractive returns. Cash now accounts for 15.7% of NAV. The development loan on the mixed-use portfolio was conservatively structured with a 55% loan-to-cost ratio (45% LTV). The office element of the project is fully pre-let and the residential is substantially pre-sold. Prior guidance from the manager was that half of the loan was expected to be repaid by September. The manager had also previously indicated the possibility of syndicating the senior part of the loan secured on the Paris property. Other larger positions in the portfolio are expecting partial repayments in the near term.

RECI remains well-capitalised and we note the dividend for the quarter to June was unchanged at 3p per share, in line with the board's guidance of a stable dividend policy over the next 12 months.

[yieldsearch] 07/8/2020 09:32

Factsheet released
Noticing 1p negative mtm on 2 bonds,secured against italian outlet malls: Thoase are not part of the top 10 so to to create 1p overal NAV decline, the mtm down must have been quite large??
however, saying that they "are confident of a recovery of all exposure on these positions"

[davebowler] 06/8/2020 09:41

Liberum;
Event

Real Estate Credit Investments has announced an unchanged quarterly dividend of 3.0p per share following robust cash collection from the portfolio. This comes following the company's announcement in May that its was committed to maintaining a stable quarterly dividend for the full financial year to March 2021.

NAV performance in Q2 was robust, generating a total return of 2.7% (previously announced) and the company has a conservative net debt to equity ratio of 5.6%. RECI's £357m portfolio has been assembled with a focus on capital preservation and is diversified across 48 positions at the end of June. The portfolio has a weighted average LTV of 63% and the weighted average unlevered yield is 8.9% (10.4% levered).

Liberum view

The unchanged dividend is positive news for the company, especially given the recent cuts within the peer group and the wider alternative funds universe. The commitment to an unchanged dividend policy over the next 12 months highlights the company's confidence in the portfolio. RECI has a strong track record in distributing a consistent level of income to shareholders. We continue to see the significant 14.8% discount to NAV as attractive given the 9.3% dividend yield.

[williamcooper104] 03/8/2020 13:57

Happy either way Low share price means divis reinvested But still would be good to see them trading at book value

[skyship] 03/8/2020 13:49

Start of a nice move higher...


free stock charts from uk.advfn.com

[belgraviaboy] 15/7/2020 09:47

Big fan of this at these prices

[skyship] 09/7/2020 15:42

This week at just under 120p; then added a few more today@ 122.3p.

As I posted at the time, the maintenance of the dividend at 3p/Qtr surprised me. I was anticipating a cut to 2p/Qtr.

[badtime] 09/7/2020 15:10

When did u buy back in Sky?

[skinny] 09/7/2020 14:07

You've convinced me!

[skyship] 09/7/2020 14:05

Hoping that the share price breaks north out of the short-term downtrend. Yield at 122.5p = 9.8%. A run to the brown descending 200day SMA would deliver 147p for a yield still at 8.2%. Seems fair value to me.


free stock charts from uk.advfn.com

[davebowler] 07/7/2020 08:58

Liberum;
Real Estate Credit Investments

2.7% NAV return in Q2 2020

Mkt Cap £287m | Prem/(disc) -17.2% | Div yield 9.6%

Event

Real Estate Credit Investments' NAV per share at 30 June 2020 was 150.9p, reflecting a NAV total return of 1.2% in the month and 2.7% in Q2 2020. NAV performance benefited from mark-to-market gains on the bond portfolio (1.0p) in addition to interest income (0.8p).

Investment activity was limited during the month with £1.8m of drawdowns to fund existing loan commitments. Gross leverage has reduced slightly to £49.8m (14.4% of NAV). Cash on the balance sheet at the end of the month was £30.5m, resulting in a net debt to equity ratio of 5.6%.

RECI’s £357m portfolio has been assembled with a focus on capital preservation and is diversified across 48 positions. The portfolio has a weighted average LTV of 63% and the weighted average unlevered yield is 8.9% (10.4% levered).

Liberum view

The uplift in the bond portfolio maintains the recent recovery against the 8.9p of mark-to-market losses in March and April. 1.9p of mark-to-market gains have occurred across May and June. At 30 April, the bonds were valued at a 17.3% discount to par. The bonds are primarily senior secured with relatively conservative LTVs (55.3% LTV). The underlying collateral largely comprises income-producing core assets owned by large institutional borrowers.

RECI's discount to NAV has narrowed since the lows of mid-May and now stands at 17%. In terms of downside protection implied by average LTVs and share price discount to NAV, we estimate the average headroom for reduction in collateral values before capital loss is 46%. We believe loan repayments could act as a catalyst for a further re-rating of the shares in the second half of the year. Three of the larger loans in the portfolio are expecting partial repayments in the near term following agreed asset sales, providing additional liquidity for RECI and the ability to recycle capital into attractive returns. The company's confidence in the portfolio was illustrated by the commitment to an unchanged dividend policy over the next 12 months. RECI has a strong track record in distributing a consistent level of income to shareholders.

[badtime] 06/7/2020 21:09

....and holding

[badtime] 06/7/2020 21:09

Still holing from low 100's

[my retirement fund] 06/7/2020 17:20

Well thats me back in today

[skyship] 04/7/2020 08:44

Agreed. Went XD on Thursday of course; but now on a 10% yield and again looking good value.