Real Estate Credit Investments Limited (LON:RECI) won Best Specialist Debt Investment fund 2024 in Citywire’s 2024 Investment Company awards.
RECI is a stable quarterly-paying high returns dividend stock that specialises in European real estate credit markets. RECI’s investment team is Cheyne Capital who have won the award as fund managers two years a row.
This category represents the best investment companies drawn from each Deutsche Numis debt sub-sector. Investment companies are ranked by their three-year Sharpe ratio – measuring risk-adjusted return. Citywire looked at which funds had generated the best return against cash. Those with less than £25m, three years’ manager performance history or in potential or actual wind-down have been removed.
In Hardman’s latest October research note, they noted that the discount has halved over the past six months. Hardman notes management has been proactive in changing the asset mix (into lower-risk senior loans, away from development loans, reducing bond holdings), commencing an active share buyback programme and improving disclosure. Some real-estate market concerns have also moderated.
In terms of the outlook for RECI, Hardman states that the benefits from RECI’s risk reduction should improve the balance of investors’ risk/reward. The share buyback has recently been renewed at the higher (up to £10m) level. The initial programme was just £5m. Deal activity in the property sector shows participants’ confidence in that market. Read the full research note here.
