RECI remains a reliable high dividend income stock with 8.9% yield at 30 September 2022

Real Estate Credit Investments

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 30 September 2022 is now available below:

DirectorsTalk caught-up with RECI’s broker Liberum to assess September’s performance and outlook. Liberum commented:

“September’s performance are in line with expectations. The short duration portfolio generates a high level of cash repayments, providing scope to reinvest capital at higher rates (current unlevered yields for the portfolio are 9.2% for loans and 8% for bonds). The opportunity set for new investments is very strong in this environment and the current 8.9% dividend yield represents attractive relative value, particularly given the focus on senior loans at low LTVs.”

The highlights of the monthly update are provided below:

•     NAV as at 30 September 2022 was £1.483 per share, representing an increase of 0.5p per share from the 31 August 2022 NAV of 1.478 per share.

•     The change in NAV per share was due to:-

•     1.0p of interest income; and

•     0.5p of negative mark-to-market (‘MTM’) adjustments across the bond portfolio, due to volatility in bond markets, in particular the GILT markets, has resulted in persistent forced selling across all fixed income instruments, including CMBS. The selling has resulted in significant mark to market movements across the Company’s CMBS portfolio.

•     The Company expects to deploy its currently available cash resources in near term commitments and continues to see a growing pipeline of new attractive opportunities.

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