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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 Shares Traded Last Trade
  -0.50 -0.42% 119.50 146,933 14:44:48
Bid Price Offer Price High Price Low Price Open Price
119.00 120.00 122.00 118.50 120.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 19.23 13.10 9.1 274
Last Trade Time Trade Type Trade Size Trade Price Currency
14:53:10 O 20,000 119.50 GBX

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Date Time Title Posts
09/7/202015:42Real Estate Credit Investments1,643

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13:53:11119.5020,00023,900.00O
13:46:05119.279061,080.59O
13:44:45119.5089106.36AT
13:44:41119.0091108.29AT
13:44:38118.503,3413,959.09AT
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DateSubject
14/7/2020
09:20
Real Estate Credit Inves... Daily Update: Real Estate Credit Investments Limited is listed in the General Financial sector of the London Stock Exchange with ticker RECI. The last closing price for Real Estate Credit Inves... was 120p.
Real Estate Credit Investments Limited has a 4 week average price of 118p and a 12 week average price of 94.40p.
The 1 year high share price is 173.50p while the 1 year low share price is currently 90.20p.
There are currently 229,332,478 shares in issue and the average daily traded volume is 234,027 shares. The market capitalisation of Real Estate Credit Investments Limited is £274,052,311.21.
07/7/2020
08:58
davebowler: 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.
05/6/2020
08:54
davebowler: Liberum; Event Real Estate Credit Investments' NAV per share at 31 May 2020 was 149.1p, reflecting a NAV total return of 1.0% in the month. NAV performance benefited from mark-to-market gains on the bond portfolio (0.9p) in addition to interest income (0.6p). Investment activity was limited during the month with £0.7m of drawdowns to fund existing loan commitments. Gross leverage has remained broadly unchanged at £53.1m (15.5% of NAV). Cash on the balance sheet at the end of the month was £28.5m, resulting in a net debt to equity ratio of 7.2%. RECI’s £359m portfolio has been assembled with a focus on capital preservation and is diversified across 48 positions. The portfolio now has a weighted average LTV of 63% and the weighted average unlevered yield is 9.2% (10.2% levered). Liberum view RECI's share price has recovered strongly since the company presentation in mid-May. We believe the shares still offer upside from current levels given the defensive positioning in senior loans. The average LTV across the portfolio offers substantial downside protection against weakness in valuations. The company's intention to maintain the dividend payout at the current level for the next 12 months is reassuring and indicates the manager has considerable confidence in the quality of the underlying loan collateral and borrowers. The uplift in the bond portfolio represents a small recovery against the 8.9p of mark-to-market losses in March and April. At 30 April, the bonds were valued at a 17.3% discount to par. The bonds are primarily senior secured with relatively conservative LTVs (56.2% LTV). The underlying collateral largely comprises income-producing core assets owned by large institutional borrowers.
30/5/2020
10:04
robow: here it is in full Questor: this fund is less risky than it looks and its 10pc yield gives our income a nice boost Questor Income Portfolio: we’ve had to go back to property but this investment trust invests cannily in debt rather than bricks and mortar By Richard Evans The managers of Real Estate Credit Investments are working with borrowers to limit Covid damage Last week we took the reluctant decision to sell Next. We felt we could not afford to own shares in a company that had suspended its dividend at a time when our portfolio’s overall income was below target. And, as we said in one of our mini-podcasts to the Questor WhatsApp group, we should judge the portfolio’s estimated income for the year, £23,500, against an inflation-adjusted figure rather than the headline £25,000 – the figure derived from our target yield of 5pc on the £500,000 notionally invested at the outset in 2016. Our true income target this year, if we are to keep pace with the rise in the cost of living, is £27,500. This leaves the £23,500 figure 15pc short. Getting some income from the £11,340 realised from the sale of Next (we invested £10,000 in January 2017) would go some way to closing the gap. In choosing a home for this money, we seek a high yield alongside good prospects for income security. The latter is in short supply at the moment: hundreds of companies have cut or suspended their dividends as a result of the pandemic. We have had to fall back once more on the sector in which a large proportion of this portfolio is already invested: property. This time, however, in an attempt to get some diversification, we are choosing a property debt fund This means that, rather than owning buildings and receiving rent, the fund, Real Estate Credit Investments, lends to property-related firms such as housebuilders, hotel chains and owners of student housing. Hold on, you say: surely those are some of the very sectors most severely affected by the lockdown? Is there not a huge risk that such borrowers will be unable to make their loan repayments to the fund because their own income has dried up? At first sight, perhaps – and certainly some investors take that view, to judge by the 10pc that this trust now yields. But a closer look at how its investments are actually managed, and how they are performing now, in the midst of the closure of most of the retail and hospitality sectors, paints a different picture. When we first tipped this trust, in October 2017 for our Investment Trust Bargain format, we described the management team’s experience and nous in finding pockets of value in parts of the commercial property market no longer served by traditional lenders such as banks. The circumstances may have changed but the investment team behind the trust, which numbers 32 people at Cheyne Capital, the management firm, still have the expertise and agility to navigate the Covid-19 crisis not just so that damage is limited but with an eye to opportunities thrown up by dislocation in the markets, Questor believes. An update that Cheyne published earlier this month included much to reassure investors. It has already written off one asset that it believes to be at risk, at a cost of 1.6p per share, while a loan to a housebuilder has been reduced in value by 58pc, or 5.5p a share, on the trust’s books. A 9.7pc reduction in the value of its bond portfolio accounts for another 8.9p per share. All these losses are notional, as the assets concerned have not actually been sold, but sales that have taken place account for a 2.1p per share loss. All told, the fall in value is 18.1p a share. The current net asset value is 147.6p a share. The manager also set out in detail how it was seeking to preserve its income in the long term by working with its borrowers to see them through the crisis. These plans are all well and good but the proof of the pudding is in the dividend. Reassuringly, the trust announced, alongside its update, a quarterly divi of 3p a share. It reiterated its intention “to pay a stable quarterly dividend” and said the “cash forecasting and stress scenarios” outlined in the update “give us the confidence that the company can maintain its dividend cash coverage”. A quarterly divi of 3p means an annual total of 12p. At the current share price of 120p that represents a 10pc yield. Questor sees that as more than adequate recompense for the risks involved. At that rate, the fund will pay us £1,134 a year, which will take the portfolio’s estimated total to £24,634 or 90pc of our inflation-adjusted target. Questor says: buy Ticker: RECI Share price at close: 120p
02/3/2020
21:14
nk104: 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.
25/2/2020
11:53
santos123: 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.
18/2/2020
13:43
santos123: Hi Westcountryboy. Yes...Most investors hold R.E.C.I. for the yield. They certainly don't hold R.E.C.I. For capital appreciation. Hi Graham. I'm not so sure about minimal risk Graham, I mentioned the shares had gone up 5P OVER 2 YEARS, as of last Friday that had reduced to 2p. So I think personally there is a big risk. The company clearly will issue share that dilute the economic interests of existing shareholders. This must effect the share price, and the risk of capital loss. Hi Cerrito. I have not written to to the company, as surely they understand the consequences to existing investors of what they are doing. But, do not think it is relevant. I will sell the shares in near future, there are a couple of companies I,m taking an interest in. Stay Prosperous. Santos123
14/2/2020
12:16
santos123: Another dilution of value to existing small shareholders. The share price has gone up by 5p over 2 years, probably all down to the dilution of all these discounted shares being put into the large institutions, nothing going to existing shareholders. You have to wonder about the point of having non executive directors. When they allow existing small shareholders to treated in this abysmal way. Santos123
05/7/2018
10:29
holts: Net Assets1 £228.1m Shares Outstanding 139.4m NAV (pence per share)1 £1.637 Share Price (pence per share) £1.650 Premium/(Discount) 0.8% Dividend Yield2 7.3% Market Capitalisation £230.0m
29/3/2018
12:09
skyship: Certainly been a weak market recently; Kenny called this right it would seem. Still, I think the earnings are safe as they obviously had a good story to sell at the last placing @ 167p only 3 months ago: https://uk.advfn.com/stock-market/london/real-est-cred-RECI/share-news/Real-Estate-Credit-Investments-Ltd-Close-of-Issue/76308298 I expect the factsheet for March will confirm no problem. It is likely to have been a single fund selling down; and as they close out their position the share price will recover.
15/12/2017
16:09
kenny: 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.
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