RECI

Real Estate Credit Investments Limited

123.50
-1.25 (-1.0%)
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
  -1.25 -1.0% 123.50 282,850 16:26:06
Bid Price Offer Price High Price Low Price Open Price
123.00 123.50 124.00 123.50 124.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Unit Inv Tr, Closed-end Mgmt 32.37 24.57 10.70 11.41 283.23
Last Trade Time Trade Type Trade Size Trade Price Currency
16:35:15 UT 29,584 123.50 GBX

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

Real Estate Credit Inves... (RECI) Discussions and Chat

Real Estate Credit Inves... Forums and Chat

Date Time Title Posts
31/5/202316:32Real Estate Credit Investments2,180

Add a New Thread

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

Trade Time Trade Price Trade Size Trade Value Trade Type
2023-05-31 15:35:15123.5029,58436,536.24UT
2023-05-31 15:28:05123.052,0002,461.10O
2023-05-31 15:27:26123.5092113.62O
2023-05-31 15:26:11123.502,0002,469.90O
2023-05-31 15:26:07123.058,22710,123.73O

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

Top Posts
Posted at 12/5/2023 13:36 by spangle93
Thanks folks

With a 9.5% yield on a 12p dividend, and at a discount only matched in post- 1st Covid lockdown and transient-Truss times, I'm hoping that there's more upside potential than downside risk at these share price levels

Posted at 12/5/2023 10:01 by davebowler
Liberum-
Attractive yield and good deployment prospects
Analyst: Bjorn Zietsman

Mkt Cap £289m | Share price 126.0p | Prem/(disc) -14.9% | Div yield 9.5%

Event

RECI’s NAV per share at 30th April 2023 was 148.0p, representing a 0.7% NAV increase MoM (+6.4% NAV TR over the last 12 months). The change in the NAV for the month largely relates to 1.1p of interest income. The company states that it has continued its rotation of the market bond portfolio into strong senior loans with attractive returns.

The portfolio comprises 47 positions with an aggregate value of £307.4m. The weighted average LTV has increased to 60.2% (+1% for the month). The Company expects to deploy its currently available cash resources in near-term commitments and continue to see growth in its pipeline of new opportunities at attractive floating rates. RECI had cash of £26.7m at the month end. The gross and net leverage ratios were 17.6% and 10.8% respectively at the end of April.

RECI has also released its Q423 investor presentation. Key takeaways are: (i) The portfolio experienced no defaults; (ii) Cash reserves are targeted at between 5 and 10% of the NAV (April’s cash levels are c.8% of the NAV); (iii) The outlook is positive, guiding for a growing opportunity set as bank lending becomes more constrained. RECI states they have a strong pipeline of floating-rate senior loans.


Liberum view

April’s performance is in line with expectations. The opportunity set for new investments is very strong in this environment and the current 9.5% 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.

Posted at 26/4/2023 08:25 by cc2014
500k of the 543k was some form of cross trade between the same party imho.

I saw 2 lots of 100k left on the ask at 129p last night.

We seem to now be following a pattern where whoever is selling spends most of the day trying to get the best price they can they accelerates the selling into the close and moving the price down to encourage buyers.

tbh the the share price looks decent enough value to me, although I'm not buying as I like to buy super cheap and in addition the FTSE is just unreasonably high imho.

I cannot work out whether there's some bad news on the way and the market knows way before us PI's or wehther it's just a seller that wants out.

Posted at 22/4/2023 07:53 by santos123
Hi, Cerrito.
Interesting post.

Hi, Manfrommoyse.
I have used primarybid in the past.
Some good outcomes, some not so good.
Tights issues, as you know every company asks their shareholders give away their statutory rights at the AGM vote.
I do not understand why any shareholder would give away a statutory right.
Seems to me incredible that a shareholder would do this.
But, they do.
You are correct about reaching par at expiry.

Hi, My Retirement Fund.
Of course I have heard of reinvesting the divi.
But in the case of R.E.C.I., I would not advise this investing style.
As the share price needs to be rising year on year, or at the very least to be stable.
The share price at R.E.C.I. is down over:-
1 year.
2 years.
5 years.
10 years
You can check this very easily on most investing sites.
That's why I say you must be careful, and not be afraid to trade this share.

Please do not get me wrong, I hold shares in R.E.C.I. so want the company to be well run, and profitable.
As do the majority of readers and contributors on this site.

Posted at 15/4/2023 07:53 by santos123
Hi Spoole5.

I would be surprised if RECI increased the divi.

What usually happens is when the share price goes above the N.A.V., the company issues shares directly to its biggest investors, at a discount.
This dilutes the ordinary shares investors, thus causing the shares to go back below N.A.V.

This has happened many times in the past.

Be careful with this share, and don't be afraid to buy and sell.
I'm usually a buy and hold guy.

But, I make an exception with R.E.C.I.

Stay prosperous.
Santos123.

Posted at 10/4/2023 09:49 by norricorp
I was looking at google share price over the maximum period and back in 2006 this was priced at over £3. And base rate was "normal" back then, probably about the same as now. Not suggesting for a minute that RECI will ever get to those dizzy heights.
Be interesting to know what the dividend was back then.
Meanwhile RECI has never recovered from the pandemic drop. Wonder how it ever does?

Posted at 09/2/2023 09:53 by davebowler
Liberum;
Real Estate Credit Investments

NAV increases 0.9% in January

Mkt Cap £322m | Share price 140.5p | Prem/(disc) -6.0% | Div yield 8.5%

Event

RECI’s NAV per share at 31 January 202E was 149.5p representing a +0.9% NAV increase MoM (6.6% over the last 12 months). The increase in the NAV for the month largely relates to 1.1p of interest income and 0.2p of mark-to-market gains.

The portfolio comprises 60 positions with an aggregate value of £437.8m. The weighted average LTV has increased to 56.9% (+0.6% for the month). The Company expects to deploy its currently available cash resources in near-term commitments and continue to see growth in its pipeline of new opportunities. RECI had cash of £33.7m at the month end. The gross and net leverage ratios were 33.7% and 23.8% respectively at the end of January.

Liberum view

January’s performance is in line with expectations. The short-duration portfolio generates a high level of cash repayments, providing scope to reinvest capital at higher rates (current unlevered yields for the portfolio are 9.6% for loans and 9.5% for bonds). The opportunity set for new investments is very strong in this environment and the current 8.8% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs.

Posted at 01/2/2023 09:17 by davebowler
30 January 2023

Real Estate Credit Investments Limited

Investment Manager's Q3 Investor Presentation

Real Estate Credit Investments Limited ("RECI" or "the Company") is pleased to announce that the Investment Manager's Q3 Investor Presentation is now available on the Company's website at:

RECI | Results, reports and presentations (realestatecreditinvestments.com)

An extract from the Summary section of the presentation is set out for investors in the Appendix to this announcement.

For further information, please contact:

Broker: Richard Crawley / Darren Vickers (Liberum Capital) +44 (0)20 3100 2222

Investment Manager: Richard Lang (Cheyne) +44 (0)20 7968 7328

Appendix: Q3 Investor Presentation Extract

Key Quarter Updates

-- Portfolio
- 1 new deal completed (GBP45.2m of commitments) since 30 September 2022
- No defaults in the portfolio
- Continued migration of portfolio to senior lending
- During December, three French loans fully repaid, lowering the WA LTV of the overall portfolio,and providing headroom to invest in new deals at enhanced IRRs

-- Cash
- Cash reserves remain targeted at between 5% to 10% of NAV
-- Dividend
- Dividends maintained at 3p per quarter, 9.0% yield, based on share price, as at 31 December 2022

-- Financing
- A mix of flexible, short-dated financing employed, alongside term-matched structured financing on selected high-quality senior loan deals

-- Opportunities
- The present crisis is set to continue through 2023, resulting in further constraints in bank lending and alternative sources of capital. The opportunity to provide senior loans at low risk points, for higher margins, is increasingly compelling

- The core European CMBS markets are experiencing market price declines due to increasing indiscriminate selling, presenting opportunities in the market

- The Company expects to deploy its currently available cash resources to its near term commitments and to build cash resources towards a very compelling emerging opportunity set in both senior loans and bonds

ü Attractive returns from defensive , Senior, low LTV credit exposure to UK and European commercial real estate assets

-- A focus on senior, 1(st) lien loans:
ü Senior, 1(st) lien loans now account for 89% of the book by value

ü Mezzanine loans have reduced to 11%

ü Top 10 positions are 100% Senior Loans

ü New origination is 100% Senior

-- Weighted Average LTV on underlying investments of 56.3% as at 31 December 2022
-- Predominantly large, well capitalised, and experienced institutional borrowers
-- Minimal exposure to shopping centres (<2% of GAV), secondary offices (0% of GAV) and logistics (3% of GAV)

-- RECI retains absolute governance, covenants and control, afforded by senior ranking and bilateral singular lending relationships

-- Portfolio has withstood COVID19 and is well place to withstand the current revaluations in real estate

ü Quarterly dividends delivered consistently since October 2013

-- The Company has consistently sought to pay a stable quarterly dividend from its distributable profits

-- This has led to a stable annualised dividend of around 7% of NAV
ü Highly granular book

-- 60 positions
ü Transparent and conservative leverage

-- Net leverage 25.0% (with GBP24.0m cash) as at 31 December 2022 versus a leverage limit of 40%

-- Non-recourse and limited-recourse, term, structured finance provides returns optimisation and financial flexibility on senior loans

ü Access to established real estate investment team at Cheyne, which manages c$5bn AUM

ü Access to pipeline of enhanced return investment opportunities identified by Cheyne

ü Robust mitigation against a rising rates environment

-- A high yielding portfolio, combined with a short weighted average life of 2 years, ensures minimal exposure to yield widening and the ability to redeploy quickly at higher rates

-- Pipeline is 100% floating rate senior loans

Posted at 12/1/2023 09:53 by davebowler
Liberum;
December’s performance is in line with expectations

Mkt Cap £323m | Share price 141.0p | Prem/(disc) -6.1% | Div yield 8.5%

Event

Real Estate Credit Investments’ NAV per share at 31st December 2022 was 148.2p representing a 2p decrease in the month and a +0.7% NAV total return (+5.9% over the last 12 months). The NAV movement in December was a result of payment of the Q4 dividend (-3.0p) and interest income of +1.0p.

The portfolio comprises 60 positions with an aggregate value of £433.6m. The weighted average LTV has fallen to 56.3% (-4.1% for the quarter). During December, three loans were fully repaid, which includes:

A Paris prime residential/retail building (c.5% exit IRR)
A portfolio of six freehold French hotels (c.8% exit IRR)
A hotel in the southeast of France (c.7% exit IRR)
A new loan-on-loan lending facility has been signed, and guidance is that this will increase portfolio returns and dividend cover. RECI expects to deploy its available cash resources in near-term commitments and continues to see growth in its pipeline of new opportunities. RECI had cash of £24m at the month end. The gross and net leverage ratios were 32% and 25%, respectively at the end of December.


Liberum view

December’s performance is in line with expectations. The Paris prime residential/retail loan that repaid in the month was RECI’s second-largest position at the end of November (£49.4m commitment) and its full repayment represents a good result for the company. Repayments in the month resulted in a reduction in gearing from 34% to 25% in December. The weighted average LTV on the loan book also declined c.3% to 59%. We expect proceeds to be redeployed quickly into higher-yielding, floating-rate senior loans, which will be accretive to dividend cover and future NAV growth. The opportunity set for new investments is very strong in this environment and the current 9% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs.

Posted at 09/11/2022 09:10 by davebowler
Liberum;
Recycling capital into attractive opportunities

Mkt Cap £296m | Share price 129.0p | Prem/(disc) -13.4% | Div yield 9.3%

Event

Real Estate Credit Investment’s NAV per share at 31 October 2022 was 149.0p, representing a 0.5% NAV total return for the month (6.2% over the last 12 months). NAV performance was driven by net interest income of 1.0p (in line with expectations), slightly offset by -0.2p negative mark-to-market adjustments across the bond portfolio and -0.1p of operating costs.

In October, RECI made a £45.2m commitment to a senior development loan to support the development of a student accommodation facility in London. The loan is floating rate, has an expected yield of 10.6%, an entry LTV of 55% and an expected exit date of December 2025. The portfolio now comprises 63 positions, with an aggregate value of £466.9m. The weighted average LTV remains relatively low at 58.8%. At the end of October, RECI had cash of £22m and the gross and net leverage ratios were 39.3% and 32.8% respectively. The company expects to deploy its current available cash resources in near term commitments and continues to see growth in its pipeline of senior loans at attractive floating rates.

Liberum view

October’s performance is in line with expectations. The loan commitment made in the month continues RECI’s focus on floating, senior secured debt. The floating rate element, as well as the low LTV of 55%, should protect its value in a rising rate environment. The weighted portfolio LTV of 58.8% is at the lower end of RECI’s historic range and will provide further protection against potential falls in the values of the underlying properties. The short duration portfolio generates a high level of cash repayments, providing scope to reinvest capital at higher rates (current unlevered yields for the portfolio are 8.8% for loans and 8.7% for bonds). The opportunity set for new investments is very strong in this environment and the current 9.3% dividend yield and 13% discount represents attractive relative value, particularly given the focus on senior loans at low LTVs.

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