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RECI Real Estate Credit Investments Limited

128.00
0.00 (0.00%)
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
  0.00 0.00% 128.00 86,779 16:35:13
Bid Price Offer Price High Price Low Price Open Price
127.50 128.00 128.50 127.50 128.50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Unit Inv Tr, Closed-end Mgmt 31.36M 21.86M 0.0970 13.25 288.3M
Last Trade Time Trade Type Trade Size Trade Price Currency
16:35:13 UT 3,447 128.00 GBX

Real Estate Credit Inves... (RECI) Latest News

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Date Time Title Posts
03/7/202510:34Real Estate Credit Investments2,905

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Real Estate Credit Inves... (RECI) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2025-07-09 15:35:13128.003,4474,412.16UT
2025-07-09 14:18:22128.501,4661,883.81AT
2025-07-09 14:18:22128.502,0002,570.00AT
2025-07-09 14:18:10128.507,81710,044.85O
2025-07-09 14:13:20128.5011.29O

Real Estate Credit Inves... (RECI) Top Chat Posts

Top Posts
Posted at 09/7/2025 09:20 by Real Estate Credit Inves... Daily Update
Real Estate Credit Investments Limited is listed in the Unit Inv Tr, Closed-end Mgmt sector of the London Stock Exchange with ticker RECI. The last closing price for Real Estate Credit Inves... was 128p.
Real Estate Credit Inves... currently has 225,237,478 shares in issue. The market capitalisation of Real Estate Credit Inves... is £289,430,159.
Real Estate Credit Inves... has a price to earnings ratio (PE ratio) of 13.25.
This morning RECI shares opened at 128.50p
Posted at 03/7/2025 09:33 by bucky lasted when the RECI share price was 128.50p.
Citywire-
Real Estate Credit Investment (RECI)
Performance

The portfolio of subordinated tranches of asset-backed securities grew its NAV by 7.7% over the year to the end of March, bolstered by a 12p dividend.

However, in its annual results published last Wednesday, the board noted the dividend remains uncovered at just 0.8 times earnings.

Cheyne Capital Management’s Ravi Stickney, who manages the trust, are hoping to improve dividend cover by shifting into higher rate investments.

Portfolio activity

The £290m fund continued to migrate to an all-senior loans book, which make up 90% of the book versus 86% last year. While the average life of the loans has been increasing, it is currently 0.8 years and this means there will be significant turnover in the coming year.

Chair Andreas Tatuscher said the deal pipeline is creating opportunities to lend at returns over 10%, which should enhance portfolio returns and dividend cover.

There were no additional challenged loans declared over the year, with the fund already battling two Parisian offices and one retail position.

The fund invested £139.8m back into existing investments over the year, versus £95.2m in the previous year. RECI also received cash repayments and interest of £113.6 million over the period, which compares to £134.2m the year before.

What the chair says

Tautscher said easing inflation should result in further interest rate cuts, albeit at a slower rate than was previously expected, particularly in the UK.

‘Nonetheless, a gradual shift towards a lower interest rate environment, even if it does not reach the ultra-low levels of recent years, should prove supportive for RECI as it continues to provide investors with a highly attractive and sustainable yield,’ he said.

RECI currently yields 9%.
Posted at 07/6/2025 13:12 by papy02
As someone (possibly hpcg?) said on one of the BB's (my wording): "I've no idea why people think the BoE bank rate is the same thing as the rate investors demand to lend to the UK government for 5yrs, 10yrs or 30 yrs)".

And the weighted average Gilt rate for the appropriate duration is what affects RECI's business model more than short term bank rate.

(My answer btw would be - yes, but they both respond to anticipated future inflation, so while they are clearly not the same thing, and they often move short-term in opposite directions (as recently), they should be more correlated in the medium term).

BTW, a friend recently invested in RECI, on my suggestion, so I do agree about potential discount-closing, and the great yield while we wait !
Posted at 19/5/2025 08:08 by spangle93
ref 2864
If we look at the latest factsheet, the NAV peaked at 155p in mid-2021, and has drifted downwards in a sawtooth manner since, with gains in two months offset by distributions in the third.

Assuming Fx is essentially self-balancing over long periods, is this drift primarily because income received doesn't cover the outgoings of 3.6p/quarter (3p dividend + 0.2p/mth charges)

Or is there something more fundamental in the macro-environment over the last 4 years.

It would certainly help the share price if the wide discount that's opened up over the period were to close. Any substantive closure would dwarf the NAV drift

Interesting that Hardman in its broker summary this morning has the same slow drift continuing in 2026, though I'm not sure why interest and operating income both rise by 50% in the 2026 forecast.
Posted at 07/5/2025 18:00 by simon gordon
Hi Wilwak,

This is what Perplexity AI had to say on your question - be interested to know if this is the correct reasoning:

Real Estate Credit Investments Ltd (RECI) has not fully recovered its NAV post-COVID due to structural market shifts and conservative valuation practices:

1. COVID-19 Impact:

The initial NAV drop (to £1.47/share in March 2020) stemmed from unrealized bond portfolio losses during market turmoil. While NAV rebounded to £1.51 by March 2021, subsequent pressures emerged.

2. Challenges:

Office Sector Weakness: Post-COVID remote work trends reduced demand for office space, particularly in RECI’s French loans. A Paris office development loan was marked down by 1.6p/share in late 2023 due to leasing struggles.

Legacy Loans: Some pre-2020 loans (e.g., UK retail) remain impaired, with one £17.5m commitment now valued at £2.7m. These legacy assets drag on NAV recovery.

3. Valuation Policy:

RECI’s NAV reflects fair-value adjustments for loans facing prolonged stress, even if losses are unrealized. For example, the French office loan’s markdown was precautionary, reflecting long-term occupancy risks rather than immediate defaults.

4. Market Realities:

Post-COVID real estate debt markets face higher rates and lower transaction volumes, complicating asset revaluations. RECI’s NAV stability (144.2p in Dec 2023) suggests managed risk but no broad recovery to pre-pandemic levels due to sector-specific headwinds.

In short: COVID-era unrealized losses were compounded by lasting sectoral shifts (e.g., office demand), and RECI’s conservative accounting locks in impairments until market conditions improve.
Posted at 10/4/2025 17:10 by mwj1959
I was focusing on RECI specifically here, but it's very much a tilt i.e. some downside rather than all out bearish on the sector. I just struggle to see any real share price upside in the near term against a backdrop of heightened economic risk / uncertainty, both from lower growth and higher inflation. Never a great environment for RE related stocks. So, I'm happy to take a bit of risk off the table here for now.
Posted at 12/11/2024 08:53 by davebowler
Mkt Cap £284m | Share price 128p | Prem/(disc) -12.3% | Div yield 9.4%EventRECI's NAV per share as of 31st October 2024 was 146.0p representing a +0.7% NAV total return MoM. The change in the NAV for the month largely relates to +1.2p of interest income, -0.1p in asset valuations and +0.1p in fx movements, offset by -0.3p of expenses.The portfolio comprises 26 positions with an aggregate value of £313.9m. The weighted average LTV is reported at 59.6%. RECI had available cash of £9.9m at the month end. Cash held as collateral totalled -£1.0m. Net effective leverage has increased 2.9ppts to 22.7% as RECI continued to use cash to invest in loans and performed share buy backs. We note that RECI recently re-invested £18.5m, refinancing an existing portfolio of four-star hotels anticipating a levered yield of 15%+.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.Panmure Liberum viewWe expect recent news of reinvestment at a projected mid-double-digit yield was taken positively by the market. We believe the market has been waiting for evidence of capital recycling to evidence future growth prospects.  The opportunity set for new investments is very strong in this environment and the current c.9.4% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs. We see scope for dividend and earnings growth as capital is recycled. RECI's portfolio LTVs (59.6%) provide a comfortable cushion against asset write-downs and has underpinned asset recoverability. We expect the company to continue rotating its bond portfolio (GAV of c.£8.2m remaining) into senior loans as it views senior loans as offering better risk-adjusted returns. The gross fair value of the bond portfolio is now £8.2m (2.6% of NAV).
Posted at 11/9/2024 10:25 by davebowler
Real Estate Credit Investments

Continued momentum with a +0.7% m/m NAV total return
Analyst: Bjorn Zietsman


Mkt Cap £285m | Share price 128.5p | Prem/(disc) -12.9% | Div yield 9.3%

Event

RECI’s NAV per share as of 31st August 2024 was 147.5p representing a +0.7% NAV total return MoM. The change in the NAV for the month largely relates to +1.2p of interest income, +0.1p from share buybacks and +0.1p in fx movements, offset by -0.3p of expenses.

The portfolio comprises 26 positions with an aggregate value of £301.8m. The weighted average LTV is reported at 59.7%. RECI had available cash of £24.2m at the month end. Cash held as collateral totalled £1.3m. Net effective leverage has increased 1.2ppts to 17.9% as RECI continued to use cash to invest in loans and performed share buybacks. We note that RECI recently re-invested £18.5m, refinancing an existing portfolio of four-star hotels anticipating a levered yield of 15%+.

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

We expect news of reinvestment at a projected mid-double digit yield to be taken positively by the market. We expect the market has been waiting for evidence of capital recycling to evidence future growth prospects. The opportunity set for new investments is very strong in this environment and the current c.9% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs. We see scope for dividend and earnings growth as capital is recycled. RECI’s portfolio LTVs (59.7%) provide a comfortable cushion against asset write-downs and has underpinned asset recoverability. We expect the company to continue rotating its bond portfolio (GAV of £8m remaining) into senior loans as it views senior loans as offering better risk-adjusted returns. The gross fair value of the bond portfolio is now £7.8m (2.6% of NAV).
Posted at 12/1/2024 12:26 by davebowler
Liberum-
NAV -0.6% MoM, conservative mark down of French office development loan
Analyst: Bjorn Zietsman

Mkt Cap £288m | Share price 126.0p | Prem/(disc) -12.6% | Div yield 9.5%

Event
RECI’s NAV per share as at 31st December 2023 was 144.2p representing a -0.6% NAV total return MoM (+5.7% YTD). The change in the NAV for the month largely relates to 0.9p of interest income, 0.1p in FX, offset by an unrealised write down of -1.6p (see below), expenses of -0.3p and the impact of the dividend paid of -3p.

RECI has taken the decision to mark down a position which has had a slight negative impact on asset valuations. The French real estate market experienced a difficult year in 2023, with investment volume at its lowest since the Global Financial Crisis. Changes in working patterns since Covid has also reduced office demand. RECI has therefore conservatively taken an unrealised mark down of one of its positions, reporting (but not realising) a small loss equivalent to 1.6p per share against the NAV. The asset is a senior loan to a development of a prime Grade A Paris office.

The portfolio comprises 34 positions with an aggregate value of £318.7m. The weighted average LTV is reported at 60.7%. RECI had available cash of £12.1m at the month end. Cash held as collateral totalled £4.9m

RECI’s latest investor presentation showed: (i) Cash reserves are targeted at between 5 and 10% of the NAV (December’s total cash levels are c.5.1% of the NAV); (ii) 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. RECI announced a share re-purchase on the 25th October 2023, and has subsequently repurchased 500,000 shares at an average price of 129.5p.

Liberum view

December’s performance is in line with expectations. The opportunity set for new investments is very strong in this environment and the current 9.4% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs. Despite wider market challenges in December, RECI successfully realised £9.2m being fully repaid at par its position in a dully let, grade A office block. RECI continues to use its cash to invest in its existing commitments in accretive, wider opportunities in senior mortgage lending
Posted at 11/12/2023 09:02 by davebowler
Liberum-: Bjorn ZietsmanMkt Cap £297m | Share price 127.0p | Prem/(disc) -14.2% | Div yield 9.4%EventRECI's NAV per share as at 30 November 2023 was 148.1p, representing a -0.2% NAV total return MoM (+5.7% YTD). The change in the NAV for the month largely relates to 1.0p of interest income, -1.1p decrease in asset valuations (see below), 0.1p in FX offset by expenses of -0.3p.RECI has taken the decision to mark down a position which has had a slight negative impact on asset valuations (-1.1p). Due to severe disruption in the German real estate and banking market from the collapse of Signa, RECI has reassessed the recovery valuation on a legacy mezzanine position exposed to a Berlin asset. RECI has therefore conservatively marked this asset down, reporting (but not realising) a small loss equivalent to 1.1p per share against the NAV.The portfolio comprises 35 positions with an aggregate value of £322.6m. The weighted average LTV is reported at 60.6%. RECI had cash of £16.9m at the month end.RECI's latest investor presentation showed: (i) Cash reserves are targeted at between 5 and 10% of the NAV (November's cash levels are c.5.7% of the NAV); (ii) 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. RECI announced a share re-purchase on the 25th October 2023, and has subsequently repurchased 500,000 shares at an average price of 129.5p.Liberum viewThe opportunity set for new investments is very strong in this environment and the current 9.4% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs. RECI's portfolio LTVs (60.1%) provide a comfortable cushion against asset write downs and has underpinned asset recoverability. We view the write-down of the mezzanine position exposed to the Berlin asset as conservative and note that RECI's impairment testing policy is asset specific. We expect the company to continue rotating its bond portfolio into senior loans as it views senior loans as offering better risk adjusted returns. The gross fair value of the bond portfolio is now £7.5m (1.9% of GAV).
Posted at 31/8/2023 09:37 by davebowler
Liberum-
Initiation of share buyback programme
Analyst: Joachim Klement and Shonil Chande

Mkt Cap £291m | Share price 127.0p | Prem/(disc) -14.4% | Div yield 9.4%

Event

RECI has announced its intention to initiate a share buyback programme, beginning today and extending to 31 March 2024. The maximum purchase amount will be £5m (1.5% of last reported NAV of £339.9m), within RECI’s general authority to purchase a maximum of 34.4m shares (15% of outstanding shares).

Under the terms of the programme, the maximum price payable per share must not exceed the higher of:

105% of the average middle market quotations for the previous five business days
the higher of the last independent trade and the highest current independent bid on the LSE
Liberum view

This morning’s announcement will come as good news to investors and is in response to RECI’s current 14% discount to NAV. The short duration of RECI’s loan and bond portfolio (less than 2 years) means that capital can be recycled into both buying back shares and/or new loans with very attractive IRRs. The buyback programme only makes RECI more attractive, in our view, with the shares yielding 9.4% and the return outlook further improved by the new higher interest rate environment. The addition of the buyback, assuming full utilisation, implies a total yield (buyback yield + dividend yield) of c.11%.

The weighted average LTV of 60% provides significant downside protection and all of the loans continue to perform in line with expectations. We expect the share price to respond positively to this morning’s announcement.

Addition of a marginal buyer should complement volumes that have held well

Not all share price discounts are created equal and in this environment, the addition of a significant buyer can have a material impact. Compared to many alternative funds, where volumes have declined significantly this year, volumes and liquidity have held up well in RECI’s case, without repurchasing shares. RECI is one of the top 10 highest-yielding funds within the AIC universe, on a NAV basis, and one that remains attractively positioned given the floating rate short-duration focus.



There are several ways to evaluate the impact of share repurchases. These include the impact on the share price, the impact on the discount, the impact on discount volatility, NAV accretion, and impact on the bid/ask spread. Based on our tracking across these metrics for alternative funds, given RECI’s portfolio characteristics and liquidity profile, there is a good chance that the buyback programme will have a material impact on the discount. Useful case studies YTD include Fair Oaks Income and Sequoia Economic Infrastructure, which share some of the relatively higher-yielding and floating rate exposure characteristics. The impact on NAV accretion will be relatively more modest given the initial size and the fact that RECI’s discount is not especially high, compared to many alternative funds.
Real Estate Credit Inves... share price data is direct from the London Stock Exchange

Real Estate Credit Inves... Frequently Asked Questions (FAQ)

What is the current Real Estate Credit Inves... share price?
The current share price of Real Estate Credit Inves... is 128.00p
How many Real Estate Credit Inves... shares are in issue?
Real Estate Credit Inves... has 225,237,478 shares in issue
What is the market cap of Real Estate Credit Inves...?
The market capitalisation of Real Estate Credit Inves... is GBP 288.3M
What is the 1 year trading range for Real Estate Credit Inves... share price?
Real Estate Credit Inves... has traded in the range of 118.00p to 131.50p during the past year
What is the PE ratio of Real Estate Credit Inves...?
The price to earnings ratio of Real Estate Credit Inves... is 13.25
What is the cash to sales ratio of Real Estate Credit Inves...?
The cash to sales ratio of Real Estate Credit Inves... is 9.23
What is the reporting currency for Real Estate Credit Inves...?
Real Estate Credit Inves... reports financial results in GBP
What is the latest annual turnover for Real Estate Credit Inves...?
The latest annual turnover of Real Estate Credit Inves... is GBP 31.36M
What is the latest annual profit for Real Estate Credit Inves...?
The latest annual profit of Real Estate Credit Inves... is GBP 21.86M
What is the registered address of Real Estate Credit Inves...?
The registered address for Real Estate Credit Inves... is EAST WING, TRAFALGAR COURT, LES BANQUES, GUERNSEY, GY1 3PP
What is the Real Estate Credit Inves... website address?
The website address for Real Estate Credit Inves... is www.realestatecreditinvestments.com
Which industry sector does Real Estate Credit Inves... operate in?
Real Estate Credit Inves... operates in the UNIT INV TR, CLOSED-END MGMT sector

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