Real Estate Credit Inves... Share Discussion Threads

[cwa1] 29/8/2023 17:52

Half a million went through at 127.25p, a decent sized slug at a fair price(relatively speaking).

[cwa1] 25/8/2023 17:17

Some decent volume today

[growthinvestor2001] 22/8/2023 14:51

many thanks

[cwa1] 22/8/2023 09:57

Much obliged, thanks k_t

[killing_time] 22/8/2023 09:47

Dividend declaration 22nd June, RNS

EDIT:

First XD 21/9/23 Paid 13/10/23
Second XD 7/12/23 Paid 5/1/24
Third XD 14/3/24 Paid 5/4/24
Fourth XD 4/7/24 Paid 26/7/24

[mcunliffe1] 22/8/2023 09:44

I'd guess here:

Paid on Friday 13th October - apparently. Not the best choice of day

UPDATE: Work on killing_time's dates rather than my link.

[killing_time] 22/8/2023 09:43

Hi CWA1

RECI released all the next 3 dividend dates not long ago, I will have a search and get back to you.

[cwa1] 22/8/2023 09:34

Hi killing-time

Thanks for those dividend dates. If I may ask, where did you get them from? Thanks

[killing_time] 22/8/2023 09:08

XD 21st September, paid 13th October.

[growthinvestor2001] 22/8/2023 09:05

Hi - any ideas when the next dividend is declared / ex and paid? Last year its was ex-div 18th August so would have expected to hear something by now?

Thanks in advance

[mwj1959] 15/8/2023 17:25

All seems fine here, albeit the NAV discount remains frustrating, but don't expect it to disappear anytime soon given ongoing concerns around RE in general. 120 - 140p range over past 12m and expect share price to continue to remain there, and more likely in the lower half, for the foreseeable future. Happy to continue to clip the dividend coupon.

[spangle93] 14/8/2023 09:57

I thought Liberum would have some insights, rather then just precis the fact sheet and refer to the previous commentary

[davebowler] 14/8/2023 08:59

Liberum -
NAV TR +0.9% MoM
Analyst: Bjorn Zietsman

Mkt Cap £287m | Share price 125p | Prem/(disc) -15.8% | Div yield 9.6%

Event
RECI’s NAV per share of 148.4p, as at 31 July 2023, represented a 0.9% NAV total return MoM (+7.1% over the last 12 months). The change in the NAV for the month largely relates to 1.0p of interest income, +0.6p increase in asset valuations, offset by the dividend payment of 3p.

The portfolio comprises 45 positions with an aggregate value of £318.5m. The weighted average LTV has increased to 60.1% (+0.1% for the month). RECI had cash of £16.5m at the month end. The gross and net leverage ratios were 17.4% and 13.3%, respectively, at the end of July.

RECI’s latest investor presentation showed: (i) The portfolio experienced no defaults; (ii) Cash reserves are targeted at between 5% and 10% of the NAV (July’s cash levels are c.5% of the NAV); (iii) The outlook is positive, guiding for a growing opportunity set as bank lending becomes more constrained. RECI stated they have a strong pipeline of floating-rate senior loans.

Liberum view

July’s performance is in line with expectations. The opportunity set for new investments is very strong in this environment and the current 9.6% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs. We expect the company to continue rotating its bond portfolio into senior loans as it views senior loans as offering better risk adjusted returns

[aishah] 14/8/2023 08:48

@HardmanandCo

$RECI #REALESTATECREDITINVESTMENTS July Factsheet Londonstockexchange.com/news-article/R… Interest income +1.0p, Asset valuations +0.6p, FX +0.1p, Expenses (0.2)p, Dividend payment (3.0)p =>July NAV 148.4p vs share price 125p

[chucko1] 10/8/2023 12:13

Now being bought at the offered side of 125.5p. this one is the best risk/reward I have considering all RE-related stocks I own. Or know of.

[cwa1] 09/8/2023 13:41

Volume chugging along today too. Something cooking/overhangs clearing?

Would be nice but will believe it when I see it!

Decent volume on the bid at 123.5p and 123p FWIW

[yachtmaster2] 09/8/2023 13:36

Indeed. Topped up this am with my NG divi.

[rimau1] 09/8/2023 12:35

Finally read the investors presentation and i am very comfortable. 12p annual dividend is covered by income, granular detail given on the portfolio top 10 which all sound excellent - the Spanish property developer which was the one amber flag loan for me last quarter turns out is actually cliff top/sea front luxury villas in Ibiza which are 80% forward sold. Overall 1.8 year yield to maturity on the portfolio means we recycle and respond quickly to the market, i really can’t see a bear argument to counter my buy case at these levels.

[cwa1] 08/8/2023 13:35

5 decent slugs of 500K appear to have gone through, just before 1pm at 123p. The 3 last trades were time stamped identically at 12:51:59...

[speedsgh] 08/8/2023 13:17

Some interesting commentary on pg 9 of the presentation:

Positioned for the Current Macroeconomic Backdrop
• Current market conditions reflect the unravelling of a decade of low interest rates and low inflation
• Expectation is for base rates in the UK and Europe to retrench from current higher levels but remain elevated
– Entrenched higher base rates translate into higher yields on real estate
• Recessionary pressure over the next 1-3 years will challenge rental growth assumptions
• Commercial property valuation declines are expected across the board; albeit declines to be more pronounced in
– (a) asset classes exposed to operational demand softening; and
– (b) assets underwritten to significant rental growth and tight exit yields
• Resilient asset classes include affordable multifamily and single family homes (PRS), student housing, industrial and
prime offices (with the highest ESG credentials)
• Exposed asset classes include shopping centres, logistics and secondary offices
• With valuation declines, we believe that higher levered and thin capital structures are particularly exposed to losses –
equity, preferred equity, mezzanine and whole loans – especially so in the exposed asset classes above. Also, a lack of
governance removes the ability to work through any crisis
• RECI’s book is dominated by senior bilateral loans and resilient asset classes

[catch007] 08/8/2023 11:06

The continued move towards senior loans is a very sensible strategy for the portfolio. new business origination 100% senior loans now. No defaults in the last QTR. Agree with CWA1 its a steady course of action in a turbulent market place.

[mcunliffe1] 08/8/2023 10:37

well said CWA1.

Would the (two) 'thumbs downer(s)' care to grow a pair and disclose their name(s)?

[cwa1] 08/8/2023 07:39

Sounds like "steady as she goes"-whilst seeing decent prospects going forward.

Have a thumbs up from me to counteract the early lunatic but, to be fair, consistent and persistent thumbs downer who will mark everything down no matter how sensible or anodyne it is :-)