Real Estate Credit Investments shares attractive at 17.1% discount to NAV (LON:RECI)

Real Estate Credit Investments

Real Estate Credit Investments Limited (LON:RECI), a non-cellular company incorporated in Guernsey, has today announced that its Investment Manager’s monthly Fact Sheet as at 31 May 2023 is now available:

The highlights of the monthly update are provided below:

·   NAV as at 31 May 2023 was ÂŁ1.490 per share, representing an increase of 1.0p per share from the 30 April 2023 NAV of ÂŁ1.480 per share. The change in NAV per share was primarily due to receipt of net interest income.
·   The Company intends to continue the rotation of the market bond portfolio into the funding of existing strong senior loans with attractive returns. As at 31 May the gross value of the bond portfolio was ÂŁ33.4 million (30 April: ÂŁ33.8 million). The Company expects to have closed out its bond position by the calendar year end.
·   At 31 May 2023, the Company’s balance sheet leverage net of cash was 9.0% (30 April: 9.7%) and net effective leverage, including contingent liabilities being the partial recourse guarantees provided to certain asset level structured finance counterparties, was 10.0% (30 April: 10.8%).  Contingent liabilities represent 25% of asset level borrowings subject to partial recourse. At 31 May contingent liabilities were ÂŁ3.6m (30 April: ÂŁ3.6m).
·   The Company expects to deploy its currently available cash resources in near term commitments and continues to see a growing pipeline of senior loans at attractive floating rates.

Real Estate Credit Investments (RECI) is a closed-ended investment company which originates and invests in real estate debt secured by commercial or residential properties in the United Kingdom and Western Europe. The Company’s aim is to deliver a stable quarterly dividend with minimal volatility, across economic and credit cycles, through a levered exposure to real estate credit investments. Investments are predominantly in:

  • Self Originated Deals: predominantly bilateral senior real estate loans
  • Market Bonds: listed real estate debt securities such as Commercial Mortgage Backed Securities (CMBS) bonds

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