RECI Q1 9.5% high yield dividend shares thriving on strong loan demand

Real Estate Credit Investments Ltd (LON:RECI), a stable quarterly paying high yield dividend UK share, has announced that the Investment Manager’s Q1 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: Q1 Investor Presentation Extract

Key Quarter Updates

•    Portfolio

–     Total NAV Return for the quarter: +2.0%
–     No defaults in the portfolio
–     Rotation of market bond portfolio into strong senior loans with attractive returns
–     During the quarter, two UK loans and one Portuguese loan fully repaid, realising net proceeds of £28.2m, and providing headroom to invest in new deals at enhanced IRRs

•    Cash

–     Cash reserves remain targeted at between 5% to 10% of NAV
–     As at 30 June 2023, cash was £27.8m.

•    Dividend

–     Dividends maintained at 3p per quarter, 9.5% yield, based on share price, as at 30 June 2023
–     Dividend predominantly covered by interest income

•    Opportunities

–     The present macroeconomic backdrop is set to continue through 2023, 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

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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