Real Estate Credit Investments (LON:RECI) is capitalising on elevated returns in European real estate debt while maintaining a disciplined approach to risk. In this investor session, hosted by Hardman & Co Analyst Mark Thomas, RECI Chairman Andreas Tautscher and Cheyne Capital’s CIO Ravi Stickney explain how the fund is achieving a 10.6% weighted average yield while protecting capital and sustaining a strong dividend profile.
RECI’s credit portfolio — currently £390.1m in gross assets — is built around senior secured loans, largely backed by UK and European residential and commercial real estate. Ravi Stickney, Managing Partner and CIO at Cheyne Capital, outlines how RECI is recycling recent large repayments into a robust pipeline of new loans, including deals across logistics, hospitality, and healthcare, all underpinned by prudent LTVs.
The conversation goes deeper into the risk management process, including how underperforming loans are monitored and disclosed, and why RECI’s 34% leverage ratio compares favourably to similar funds using multiples more. Dividend sustainability and discount-to-NAV are also addressed head-on — with clear priorities laid out.
Key Moments
- 00:11 – Mark Thomas (Hardman & Co): Introduction and session overview
- 00:31 – Andreas Tautscher welcomes investors, introduces RECI
- 01:08 – Ravi Stickney: Cheyne Capital’s role and RECI’s strategy
- 03:06 – Portfolio structure: senior secured lending, conservative LTVs
- 04:09 – Returns: current NAV, yield, leverage and loan book overview
- 05:48 – Dividend yield (9.5%) and NAV discount discussion
- 06:45 – Top 10 positions and sector focus (housing, student, healthcare)
- 07:46 – Risk transparency: traffic light matrix and defaulted loans
- 09:23 – Strategic priorities: credit preservation, dividend sustainability, closing the NAV gap
The accompanying Investor Presentation can be viewed / downloaded below:
RECI is a London-listed investment company focused on senior loans and selected bonds secured against real estate assets in Western Europe and the UK. Cheyne Capital, its manager, originates and actively manages these credit investments.
