Real Estate Credit Investments Limited (LON:RECI), a non-cellular company incorporated in Guernsey, has announced that its Investment Manager’s monthly Fact Sheet as at 31 December 2023 is now available on the Company’s website and below:
As at 31 December 2023, Real Estate Credit Investments was invested in a diversified portfolio of 34 investments with a valuation of £322.0m.
The second interim dividend of 3p per share went ex-dividend (reducing the NAV) on 7 December 2023.
The French real estate market experienced a difficult year in 2023, with investments volume at its lowest since the Global Financial Crisis of 2007/8. In addition, with changes in working patterns since COVID, office demand has been scarce and leasing much slower than expected. Following a careful analysis of market conditions, RECI has conservatively taken an unrealised mark down on one of its positions, reporting (but not realising) a decrease of 1.6p on NAV on its senior loan to a development of a prime Grade A Paris office. The development was concluded on time and on budget, and Cheyne will continue to work actively with the borrower and a selected asset manager to expedite leasing the asset, in order to secure early repayment of the principal as well as all accrued interest.
Cheyne continues to monitor all of its positions and remains confident in the overall quality of its portfolio; a more detailed analysis of all of the positions will be included in the next quarterly update to be released in the first week of February 2024.
During the month, RECI was fully repaid at par its position in a fully let grade A office block located in Hoxton, London. RECI received £9.4m (net of financing).
Real Estate Credit Investments Limited continues to use its cash to invest in its existing commitments in highly accretive wider opportunities in senior mortgage lending.
Cash Balance as at 31 December 2023 was £12.1m.
A full attribution of changes in the NAV per share is presented in the table:
| November NAV | 148.1p |
| Interest income | 1.0p |
| Asset valuations | (1.6)p |
| FX | 0.1p |
| Expenses | (0.2)p |
| Dividend | (3.0)p |
| December NAV | 144.2p |
