RECI 8% high dividend yield proves stable passive income investment

Real Estate Credit Investments Limited (LON:RECI) has announced that the Investment Manager’s Q1 Investor Presentation is now available on the Company’s website at:

https://www.recreditinvest.com/investors/results-reports-and-presentations/#currentPage=1

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

–    6 new deals completed (£63.5m of commitments) since 31 March 2022, showing strength of opportunity post the initial impact of Covid

–    No defaults in the portfolio

–    Successful and favourable completion on the last remaining hotel loan restructuring

–    Migration of portfolio to senior lending in keeping with the compelling opportunity set therein

•     Cash

–    Cash reserves remain robust, targeted at between 5% to 10% of NAV

•     Dividend

–    Dividends maintained at 3p per quarter, 8.1% yield, based on share price, as at 30 June 2022

•     Employs term matched financing, alongside flexible short dated financing

–    Successful term matching financing on selected senior loan deals

•     Opportunities

–    Bank lending remains constrained across Europe and high barriers to entry secures a continued compelling investment landscape, especially in senior lending

–    The Company expects to deploy its currently available cash resources to its near term commitments, and if cash resources permit, in some of the potential new deals in the Cheyne pipeline

–    Cheyne’s pipeline includes a mix of UK, French and Spanish opportunities, which all offer attractive yields

Summary : Investment Opportunity

ü Attractive returns from low LTV credit exposure to UK and European commercial real estate assets

•     Weighted Average LTV on underlying investments of 59.8% as at 30 June 2022

•     Predominantly large, well capitalised, and experienced institutional borrowers

ü Quarterly dividends delivered consistently since October 2013

•     The Company has consistently sought to pay a stable quarterly dividend

•     This has led to a stable annualised dividend of around 7% of NAV

ü Highly granular book

•     62 positions

ü Transparent and conservative leverage

•     Net leverage 17.8% (with £37.6m cash) as at 30 June 2022 versus a leverage limit of 40%

ü Access to established real estate investment team at Cheyne, which manages c$5bn AUM

ü Access to pipeline of enhanced return investment opportunities identified by Cheyne

ü Robust mitigation against a rising rates environment

•     A high yielding portfolio, combined with a short weighted average life of under 2 years, ensures minimal exposure to yield widening and the ability to redeploy quickly at higher rates

Real Estate Credit Investments Limited (LON: RECI) is a closed-ended investment company which originates and invests in real estate debt secured by commercial or residential properties in Western Europe, focusing primarily on the United Kingdom, France and Germany.

RECI is externally managed by Cheyne Capital’s real estate business which was formed in 2008 and currently manages over $3bn via private funds and managed accounts. Its investments span the entire spectrum of real estate risk from senior loans, mezzanine loans, special situations to direct asset development and management.

RECI’s aim is to deliver a stable quarterly dividend with minimal portfolio volatility, across economic and credit cycles, through a levered exposure to real estate credit investments.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

More articles like this

Government’s energy package helps housing market

The Government’s action to limit the impact of energy price rises has helped pull the housing market back from the cliff-edge, a leading property association told City A.M. this morning. But the National Association of Property Buyers’ (NAPB) does stress

House sales peak in July

More homes were sold in the UK in July than in any other month this year, official figures show. Cost-of-living pressures were leading some to negotiate harder for a lower price, agents said. A total of 110,970 properties

UK House Price Index for June 2022

The June data shows: monthly house prices rose by 1% since May 2022 an annual price increase of 7.8% which takes the average property value in the UK to £286,397 England In England the June data shows, on

Why now is the time to jump into the housing market

If you’ve been paying attention to the headlines lately, you’ve probably heard echoes of “it’s a bad time to buy a house” and “it’s the perfect time to buy a house.” But which is it? Here, we’ll go

Real Estate Investment Fund RECI August fact sheet

Real Estate Credit Investments Ltd (LON:RECI), a non-cellular company incorporated in Guernsey, has announced that its Investment Manager’s monthly Fact Sheet as at 31 July 2022 is now available: The highlights of the monthly update are provided below:

Europe’s best destinations to buy a second home

In the past year, Europe’s prime real estate market has grown 5.6% amid continued demand, according to new research from international real estate agency Knight Frank. Meanwhile, rental returns in the region’s most in-demand vacation destinations continue to

French property market is booming

he French property market is booming at the moment, and with more and more foreign buyers looking to buy in upcoming areas, many with a view to move to or retire to France one day, choosing the right location is everything. So,

UK property asking prices rise 9.3% on year

Asking prices for British homes advertised for sale this month were 9.3% higher than a year earlier, down from a 9.7% rise in June as mortgage costs rise sharply for first-time buyers, property website Rightmove said on Monday.

Britons could be sitting on property goldmines

House prices are among a long list of consumer goods that have sky-rocketed in recent months. New data has charted the rise of these prices in 50 cities around the UK, with millions of Britons potentially sitting on a

Average UK house prices hit a new record high in June

The average UK house price hit a new record high in June but there are “tentative signs of a slowdown”, according to an index. Prices were up by 10.7% in June, slowing from 11.2% in May, Nationwide Building

No more posts to show