Real Est.cred Regulatory News (RECI)

Broker:

Richard Crawley / Edward Mansfield (Liberum Capital)

+44 (0)20 3100 2222

Investment Manager

Richard Lang (Cheyne)

+44 (0)20 7968 7328

? Portfolio

-

Total NAV Return for the quarter: +0.5% / Total NAV Return for H1 2023: +3.8%

-

No defaults in the portfolio

-

During the quarter, one French loan fully repaid, realising net proceeds of £2.4m, and providing headroom to invest in new deals at enhanced IRRs

-

Rotation of market bond portfolio into strong senior loans with attractive returns

? Cash

-

Cash reserves remain targeted at between 5% to 10% of NAV

-

As at 30 September 2023, cash was £14.9m / 4.3% of NAV

? Dividend

-

Dividends maintained at 3p per quarter, annualised 9.1% yield, based on share price, as at 30 September 2023

-

Dividends predominantly covered by net interest income generated from RECI's assets. The aim is for dividend cover from net interest income

? Opportunities

-

The present macroeconomic backdrop is set to continue through 2023/2024, resulting in further constraints in bank lending and alternative sources of capital. The opportunity to provide senior loans at low risk points, for higher margins, is increasingly evident

-

The Company expects to deploy its currently available cash resources to its near term commitments and towards a compelling emerging opportunity set in senior loans

? Post Quarter Update - Market Bonds

-

RECI has exited 8 market bond positions since 30 September 2023, realising proceeds (net of repo financing) of £5.9m. The fund now only has 7 market bond positions, with a notional value of £11.9m / 3.5% of NAV

? Citywire Investment Trust Awards 2023

-

RECI won the Best Performance award for Specialist Debt at Citywire's London-listed Investment Companies awards held on 01 November 2023. The performance awards are given to investment companies judged to have delivered the best underlying return in terms of growth in NAV in the three years to 31 August 2023