Real Estate Credit Investments Q2 presentation highlights attractive senior loan returns

Real Estate Credit Investments

Real Estate Credit Investments Limited (LON:RECI) has announced that the Investment Manager’s Q2 Investor Presentation is now available:

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

Appendix: Q2 Investor Presentation Extract

Key Quarter Updates

•    Portfolio
Total NAV Return for the quarter: +0.5% / Total NAV Return for H1 2023: +3.8%
No defaults in the portfolio
During the quarter, one French loan fully repaid, realising net proceeds of £2.4m, and providing headroom to invest in new deals at enhanced IRRs
Rotation of market bond portfolio into strong senior loans with attractive returns 
•    Cash
Cash reserves remain targeted at between 5% to 10% of NAV
As at 30 September 2023, cash was £14.9m / 4.3% of NAV 
•    Dividend
Dividends maintained at 3p per quarter, annualised 9.1% yield, based on share price, as at 30 September 2023
Dividends predominantly covered by net interest income generated from RECI’s assets. The aim is for dividend cover from net interest income 
•    Opportunities
The present macroeconomic backdrop is set to continue through 2023/2024, 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 evident
The Company expects to deploy its currently available cash resources to its near term commitments and towards a compelling emerging opportunity set in senior loans 
•    Post Quarter Update – Market Bonds
RECI has exited 8 market bond positions since 30 September 2023, realising proceeds (net of repo financing) of £5.9m. The fund now only has 7 market bond positions, with a notional value of £11.9m / 3.5% of NAV 
•    Citywire Investment Trust Awards 2023
RECI won the Best Performance award for Specialist Debt at Citywire’s London-listed Investment Companies awards held on 01 November 2023. The performance awards are given to investment companies judged to have delivered the best underlying return in terms of growth in NAV in the three years to 31 August 2023

Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.

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