Investment Manager's Q1 Investor Presentation

RNS Number : 5131G
Real Estate Credit Investments Ltd
27 July 2021
 

27 July 2021

 

Real Estate Credit Investments Limited

 

Investment Manager's Q1 Investor Presentation

 

Real Estate Credit Investments Limited ("RECI" or "the Company") is pleased to announce 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.

 

For further information, please contact:

 

Broker:  Richard Crawley / Darren Vickers (Liberum Capital) +44 (0)20 3100 2222

Investment Manager:   Richard Lang (Cheyne)  +44 (0)20 7968 7328

 

 

 

Appendix: Q1 Investor Presentation Extract

 

Summary: The Investment Opportunity

 

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

Weighted Average LTV of 65.0% as at 30 June 2021

Predominantly large, well-capitalised, and experienced institutional borrowers

 

· 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

Maintained dividend policy for March 2021 year end as announced in May 2020

 

· Highly granular book

61 positions

Top position: 13.8% of NAV (by commitment) as at 30 June 2021

 

· Transparent and conservative leverage

Net leverage 16.0% (with £45.4m cash) as at 30 June 2021

 

· Access to established real estate investment team at Cheyne, which manages over $4bn AUM

 

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

 

· 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

 

Key Quarter Updates

 

· Portfolio

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

9 new deals completed (£117m of commitments) since 31 March 2020, showing strength of opportunity post the initial impact of Covid

A further 4 deals have repaid (or partially repaid) since 31 March 2021, with cash received since then of £62m

 

· Cash

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

 

· Dividend

Dividends maintained at 3p per quarter, 8.2% yield, based on share price, as at 30 June 2021

Dividend cover from net profits 1.09x

 

· Term matched financing

Successful conclusion of 1st term matched financing on a senior loan deal

 

· Share Price Discount to NAV

Reduction in the discount - which as at 26 July 2021 was 2.3%

 

· Opportunities

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

 

Summary: Structural Strength - Positioned to Capitalise on Opportunities

 

·   Having successfully navigated through the challenges posed by the COVID-19 pandemic, RECI is well positioned to     address future market uncertainty, with a strong portfolio profile and modest leverage comprising:

Senior loans and bonds equal to 82% of NAV

Weighted average LTV of 65.0%

The portfolio is concentrated on credits to large, well-capitalised and experienced institutional borrowers

Leverage of 1.29x gross (1.16x net of cash held) as at 30 June 2021

Started to introduce term financing on senior loan investments

Cash on balance sheet of £45.4m

 

· The Company has good visibility on its liquidity and income profile for the next financial year ending March 2022, and beyond

 

· The Company is positioned to take advantage of a new pipeline of opportunities from a position of strength:

Cheyne's real estate business' current pipeline comprises £0.9 billion across 17 deals

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UPDQQLFLFDLLBBE
UK 100

Latest directors dealings