Market Update

20 March 2020

Real Estate Credit Investments Limited

Market Update

The Board of Real Estate Credit Investments Limited ("RECI" or "Company") wishes to update investors given the recent volatility in financial and credit markets in light of COVID-19.

As noted in the 29 February factsheet:

· The Company is strongly collateralised with an investment portfolio of £411m, plus a robust cash position of approximately £60m, providing robust asset cover over the Company's liabilities;

· The Company's liabilities, financing secured by the more liquid end of the bond portfolio, is approximately £97m; and

· The investment portfolio is focussed on senior lending, with a weighted average loan-to-value of approximately 65 per cent. and a short duration.

The Investment Manager has been actively monitoring the entire investment portfolio and is carrying out analysis on the impact of financial and credit markets on each individual asset, including the impact on forecast cash flows in both the short and full term of each investment.

The Investment Manager is monitoring its leverage position closely and as at 19 March 2020:

· There has been no change in the leverage quantum as a percentage of NAV since month end;

· The Company has experienced some margin calls, due to pricing adjustments and FX rates, and these have all been comfortably met from the Company's robust cash balance;

· The Company's financing has an average maturity of three months, and is spread over many financing counterparties. The Investment Manager has not received any notice from any of its financing counterparties that they intend to withdraw their financing;

· Whilst the Investment Manager continues to monitor the position closely, it expects any further margin calls on financing and FX to remain manageable. This belief is based on the Company having a strong cash position (holding approximately £60m at 29 February), the ability to sell bonds, and the relatively defensive nature of the £411m portfolio, i.e. senior lending and bonds with strong coupon and short duration.

This announcement has been prepared by, and is the sole responsibility of, Real Estate Credit Investments Limited. This announcement has been released by Chris Copperwaite of Aztec Financial Services (Guernsey) Limited, Secretary of the Company.

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