Real Est.cred Share Price (RECI)

Another 3% buyback announced. This should push the sp nearer to 140p. I am happy to continue holding these.

It was the stated aim last year to narrow the discount between share price and NAV, with buybacks. The discount has narrowed somewhat and cuts in interest rates will help further. Until that happens there won't be a cut in divi and perhaps profit will continue to rise thus avoiding a cut altogether. Of course we have no idea what sp the RECI board deems acceptable.

Overall I was happy with the report.

For anyone invested in RECI, can I recommend reading the report issued today? Specifically the Investment Manager's Report authored by Ravi Stickney, Portfolio Manager, Cheyne Real Estate. There's obviously tension between the RECI Board and the investment manager (Cheyne) wrt the dividend buyback strategy vs reinvestment of received funds in what Cheyne perceive to be very good investment opportunities. The tension isn't necessarily a bad thing, indeed you could argue it's very positive in some ways, but interesting to get an insight nonetheless.

The other significant issue for me is the dividend. Whilst EPS has increased from 9.0p to 9.6p, it still strikes me that the dividend at 12p currently is unsustainable. A reduction from 3.0p to 2.5p per quarter would seem prudent, but I don't think it will happen. We'll see at the end of the current quarter.

Just baffling. I've scoured the latest updates, IMHO under 1% NAV is toast and tops 5% is dodgy. So ~20% discount?!? AYS EOY in UK tax sells? Or just free-floating LSE paranoia?

CD1. I've got a broad spread of ITs in my ISA all heading in the same direction at the moment. Year end tax considerations? In isolation and without director buying I would be more concerned. Window of opportunity perhaps?