Real Est Crd InvsLtd - Investment Manager’s Q1 Investor Presentation

Real Estate Credit Investments

29/07/2022 07:00

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RNS Number : 1653U  Real Estate Credit Investments Ltd  29 July 2022

29 July 2022

 

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
(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

 

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

 

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