Real Estate Credit Investments plc (LON:RECI) is the topic of conversation when Mark Thomas, Analyst at Hardman & Co joins DirectorsTalk. Mark explains talks us through his report entitled ‘Customer repayments show strength of franchise’, explains why he said its defensive to COViD-19 and other recessionary risks, the £100m in cash received, why new business is being priced at better margins and with improved security and reminds us of the dividend.
The investment objective of Real Estate Credit Investments is to provide Ord Shareholders with attractive and stable returns, primarily in the form of quarterly dividends, by exposure to a diversified portfolio of real estate credit investments, predominantly comprising real estate loans and bonds. The Company invests and will continue to invest in real estate credit secured by commercial or residential properties in the UK and Western Europe. The Company may take different forms: (i) secured real estate loans, debentures or any other forms of debt instruments. Individual Secured Debt investments will have a weighted average life profile ranging from six months to 15 years. Investments in Secured Debt will also be directly or indirectly secured by one or more commercial or residential properties; (ii) listed debt securities and securitised tranches of real estate related debt securities; (iii) other direct or indirect opportunities, including equity participations in real estate.