REG - Real Est Crd InvsLtd - Further Buyback Programme

Real Estate Credit InvestmentsAnnouncement

27/09/2024 07:00

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RNS Number : 8848F  Real Estate Credit Investments Ltd  27 September 2024

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JURISDICTION.

This announcement contains inside information as defined under the Market
Abuse Regulation. (EU) No. 596/2014 as it forms part of UK Domestic Law by
virtue of the European Union (Withdrawal) Act 2018. This announcement has been
prepared by, and is the sole responsibility of, Real Estate Credit Investments
Limited. This announcement has been released by Lucy McDowall of Aztec
Financial Services (Guernsey) Limited, Secretary of the Company.

 27 September 2024

Real Estate Credit Investments Limited

("RECI" or the "Company")

Further Buyback Programme

The Board of Directors of Real Estate Credit Investments Limited announces
that, having reviewed the current circumstances and assessed the Company's
level and allocation of cash available for deployment, it intends to undertake
a further buyback programme (the "Programme") which will run to 31 March 2025.
The aggregate purchase price of all shares acquired under the Programme will
be no greater than £10.0 million.  The Company's buyback programme announced
on 28 March 2024 will expire on 30 September 2024.

 

The Company's initial buyback programme was announced on 31 August 2023, with
an aggregate purchase price of all shares purchased of no more than £5.0
million. Pursuant to that programme, a total of 4,095,000 ordinary shares of
no par value each ("Ordinary Shares") were purchased for treasury for an
aggregate amount of £5.0 million. Ordinary Shares were repurchased under the
initial programme at an average discount to net asset value per share of
16.2%, with the Company's Ordinary Shares trading at an average discount of
14.1% from 31 August 2023 to 25 March 2024 (the date of the last share
repurchase under the programme). The Company's successor buyback programme was
announced on 28 March 2024, with an aggregate purchase price of all shares
purchased of no more than £10.0 million. Pursuant to that programme, a total
of 3,343,474 Ordinary Shares were purchased for treasury for an aggregate
amount of £4,148,809. Ordinary Shares were repurchased under that programme
at an average discount to net asset value per share of 15.5%, with the
Company's Ordinary Shares trading at an average discount of 17.0% from 1 April
2024 to 25 September 2024 (the latest practicable date).

 

As announced in its recent annual report, the Company considers all options
when deciding on the appropriate allocation of the Company's available cash
resources, including implementing share buybacks such as the current and
future up to £10 million programmes and investment in attractive high
yielding opportunities to enhance RECI's returns, such as the new investment
announced on 16 July 2024. In the period from the announcement of the current
buyback programme to 25 September 2024 the Company's NAV increased from 144.5p
(as at 31 March 2024) to 147.5p (31 August 2024) and the share price increased
from 114.5p to 130.0p. This has resulted in a significant reduction in the
share price discount to 11.9% from 21.9% at the outset. As a result of these
factors and reflecting third party investor appetite to acquire the Company's
shares, Panmure Liberum Limited ("Panmure Liberum") on behalf of the Company
has not deployed the full amount of capital available under the programme.
Nevertheless, the Company remains committed to considering the ongoing
deployment of available cash resources to share buybacks as confirmed by the
introduction of this successor programme of up to £10 million for a further
six months.

 

The Programme will occur within the limitations of RECI's existing general
authority to purchase no more than 33,491,382 Ordinary Shares as granted by
shareholders at the Company's annual general meeting held on 18 September
2024.

The Company has appointed Panmure Liberum to make market purchases of Ordinary
Shares in respect of the Programme. Panmure Liberum will purchase the Ordinary
Shares as principal (and not as agent) and sell them on to the Company. The
Company intends that any Ordinary Shares purchased by the Company will be held
in treasury.

Any share purchases will be made in accordance with certain pre-set parameters
set out in the terms of Panmure Liberum's engagement, the general authority of
the Company to repurchase shares granted by shareholders at the Company's 2024
annual general meeting; and the EU Market Abuse Regulation (596/2014) as it
forms part of domestic law by virtue of section 3 of the European Union
(Withdrawal) Act 2018 (as amended); and Chapter 9 of the Financial Conduct
Authority's UK Listing Rules.

The maximum price payable per share (exclusive of expenses) must not exceed
the higher of: (i) 105% of the average middle market quotations for the five
business days preceding the date of purchase; and (ii) the higher of the last
independent trade and the highest current independent bid on the London Stock
Exchange.

A buy-back of Ordinary Shares on any trading day may represent a significant
proportion of the daily trading volume in the Ordinary Shares on the Exchange
(and could exceed the 25% limit of the average daily trading volume of the
preceding 20 business days as referred to in the Commission Delegated
Regulation (EU) No. 2016/1052 on buy-back programmes (as it forms part of UK
law by virtue of the European Union (Withdrawal) Act 2018)).

Any purchase of Ordinary Shares by the Company will be notified through an RIS
announcement by no later than 7.30 a.m. on the following business day.
Shareholders should note that whether a buyback of Ordinary Shares is made is
based on a number of factors and, accordingly, no expectation or reliance
should be placed on Panmure Liberum exercising such discretion on any one or
more occasions. There is no guarantee that the Programme will be implemented
in full or that any Ordinary Shares will be repurchased by the Company.

 

Enquiries:

 Cheyne Capital Management (UK) LLP (Investment Manager)     +44 (0) 20 7968 7450
 RECIIR@cheynecapital.com (mailto:RECIIR@cheynecapital.com)

 Panmure Liberum (Corporate Broker)                          +44 (0) 20 3100 2222
 Darren Vickers/Alex Collins

 

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