12 Jan 2024 07:00
Real Estate Credit Investments Limited
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Investment Manager Fact Sheet
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Real Estate Credit Investments Limited (the "Company"), a non-cellular company incorporated in Guernsey, is pleased to announce that its Investment Manager's monthly Fact Sheet as at 31 December 2023 is now available on the Company's website at:
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https://realestatecreditinvestments.com/investors/fact-sheets/#currentPage=1
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As at 31 December 2023, the Company was invested in a diversified portfolio of 34 investments with a valuation of £322.0m.
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The second interim dividend of 3p per share went ex-dividend (reducing the NAV) on 7 December 2023.
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The French real estate market experienced a difficult year in 2023, with investments volume at its lowest since the Global Financial Crisis of 2007/8. In addition, with changes in working patterns since COVID, office demand has been scarce and leasing much slower than expected. Following a careful analysis of market conditions, RECI has conservatively taken an unrealised mark down on one of its positions, reporting (but not realising) a decrease of 1.6p on NAV on its senior loan to a development of a prime Grade A Paris office. The development was concluded on time and on budget, and Cheyne will continue to work actively with the borrower and a selected asset manager to expedite leasing the asset, in order to secure early repayment of the principal as well as all accrued interest.
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Cheyne continues to monitor all of its positions and remains confident in the overall quality of its portfolio; a more detailed analysis of all of the positions will be included in the next quarterly update to be released in the first week of February 2024.
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During the month, RECI was fully repaid at par its position in a fully let grade A office block located in Hoxton, London. RECI received £9.4m (net of financing).
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RECI continues to use its cash to invest in its existing commitments in highly accretive wider opportunities in senior mortgage lending.
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Cash Balance as at 31 December 2023 was £12.1m.
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A full attribution of changes in the NAV per share is presented in the table:
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November NAV | 148.1p |
Interest income | 1.0p |
Asset valuations | (1.6)p |
FX | 0.1p |
Expenses | (0.2)p |
Dividend | (3.0)p |
December NAV | 144.2p |
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For further information please contact:
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Broker: | Richard Crawley / Edward Mansfield (Liberum Capital) | +44 (0)20 3100 2222 |
Investment Manager: | Richard Lang (Cheyne) | +44 (0)20 7968 7328 |
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