Real Estate Credit Investments generating an above-average dividend yield

In previous notes, we have reviewed why we believe Real Estate Credit Investments Limited (LON:RECI) has procedures and practices that limit downside losses to help ensure the resilience of the NAV. In this note, we explore further how portfolio management helps optimise risk/reward with a dynamic approach to bond portfolio allocation, leverage, top 10 concentrations, geographical sectors, and duration. RECI’s portfolio is not a static, long-duration, totally illiquid book. It is actively managed to the latest market opportunities, with an average loan life of 1.5 years, which is likely to be shortened further by early repayments. RECI’s NAV performance was recognised in the recent Citywire award.

Citywire award: The fund won the best performance award for Specialist Debt at Citywire’s London-listed Investment Companies awards (November 2023). The award is given to the investment companies judged to have delivered the best underlying return, in terms of growth in NAV, in the three years to 31 August 2023.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Hardman & Co

More articles like this

The evolving landscape of Real Estate Credit

The real estate credit sector has been a cornerstone of financial growth and stability, bridging the gap between property investment and accessible financing. In recent years, this segment of the market has evolved significantly, driven by

Positive outlook for European Real Estate financing

European commercial real estate issuers, particularly those on the brink of investment grade or in high-yield categories, continue to face obstacles in securing financing. While debt markets are gradually reopening, investor confidence remains subdued compared to

A positive outlook for Real Estate Credit opportunities

Over the past two and a half years, rising interest rates have created higher yields for commercial real estate (CRE) credit investments. Banks, which have traditionally been the largest lenders in this sector globally, have reduced

Real Estate Credit Investments: Resilience and Growth

The real estate credit sector has been demonstrating strong resilience and adaptability amidst recent global economic fluctuations, with lending trends reflecting a continued demand for property financing. Despite interest rate hikes in major markets, the appetite

Mark Thompson joins board of Real Estate Credit Investments as a NED

In line with the Board’s succession planning and following the appointment of an independent recruitment firm and a comprehensive search process, Real Estate Credit Investments Limited (LON:RECI) has announced that Mark Thompson has been appointed, with effect from

The appeal of Real Estate Credit in today’s investment market

On October 24, 2024, Benefits and Pension Monitor, in collaboration with Fiera Capital, hosted a webinar featuring industry experts to discuss the rising appeal of private real estate credit as an alternative to traditional fixed-income investments.

Understanding Real Estate Credit

Through the years, the advantages of investing in Private Real Estate Credit (high-yield debt) have essentially remained the same: Attractive relative value, equity cushion to absorb asset stress due to unexpected events, real asset collateral to

Private real estate credit emerges as a strong investment alternative

Investors are increasingly favouring private real estate credit over traditional fixed-income investments, and it’s easy to see why. Offering higher yields, greater portfolio diversification, and enhanced resilience compared to fixed-income products, this emerging asset class is

Opportunity in the Commercial Real Estate market

The uncertainty surrounding the future of commercial real estate is reflected in the frequent announcements of wind-ups or mergers related to UK commercial property investment trusts. The sale of iconic buildings at prices that offer a

Real estate investment trends for 2024

The real estate investment industry is in a state of constant flux, and 2024 presents both challenges and opportunities for investors. The traditional real estate model has significantly changed, shaped by shifts in user behaviour and

How global megatrends are shaping the future of Commercial Real Estate

The evolving landscape of commercial real estate (CRE) requires long-term investment strategies that take into account significant global forces that can reshape economies and property markets. These forces, often referred to as megatrends, drive technological innovations,