REG - Real Estate Credit - Further Buyback Programme

Real Estate Credit InvestmentsAnnouncement

31/03/2025 15:30

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RNS Number : 9769C  Real Estate Credit Investments Ltd  31 March 2025

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, TO ANY US PERSONS OR INTO, THE UNITED STATES, AUSTRALIA, CANADA,
SOUTH AFRICA OR JAPAN, OR ANY OTHER JURISDICTION, OR TO ANY PERSON, WHERE
DOING SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
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.

 31 March 2025

Real Estate Credit Investments Limited

("RECI" or the "Company")

Further Buyback Programme

The Board of Directors of the Company 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 30 September 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 27 September
2024 will expire on 31 March 2025.

 

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. The Company announced a successor buyback
programme on 28 March 2024, with an aggregate purchase price of all shares
purchased of no more than £10.0 million, pursuant to which a total of
3,343,474 Ordinary Shares were purchased for treasury for an aggregate amount
of £4,148,809. A further buyback programme was then announced on 27 September
2024 for £10.0 million, which has not been utilised.

 

As previously announced, the Company considers all options when deciding on
the appropriate allocation of the Company's available cash resources,
including implementing share buybacks and investment in attractive high
yielding opportunities to enhance RECI's returns. Since the commencement of
the previous buyback programme, the Company's Ordinary Shares have traded at
an average discount to net asset value of 13.9%, which is in line with the
average share price discount since the Company last bought back shares of
13.7%.

 

The Company's principal focus has been on new and existing investment
opportunities that can deliver an attractive yield to shareholders,
particularly in the context of an improved discount position since the
commencement of the buyback programme, and the authority to make share
buybacks has not been utilised during the last buyback programme.
Nevertheless, the Company remains committed to considering the ongoing
deployment of available cash resources to share buybacks and has accordingly
introduced a successor programme of up to £10.0 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, which is expected to be extended at the Company's annual general meeting
in 2025.

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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