Investment Manager's Q3 Investor Presentation

RNS Number : 7679Z

Real Estate Credit Investments Ltd

27 January 2022

 

27 January 2022

Real Estate Credit Investments Limited

Investment Manager's Q3 Investor Presentation

Real Estate Credit Investments Limited ("RECI" or "the Company") is pleased to announce that the Investment Manager's Q3 Investor Presentation is now available on the Company's website at:

https://www.recreditinvest.com/investors/results-reports-and-presentations/#currentPage=1

An extract from the Summary section of the presentation is set out for investors in the Appendix to this announcement.

For further information, please contact:

Broker:   Richard Crawley / Darren Vickers (Liberum Capital)  [phone]

Investment Manager:               Richard Lang (Cheyne)                                                     [phone]

Appendix: Q3 Investor Presentation Extract

ü Attractive returns from low LTV credit exposure to UK and European commercial real estate assets

• Weighted Average LTV of 62.6% as at 31 December 2021

• Predominantly large, well capitalised, and experienced institutional borrowers

ü Quarterly dividends delivered consistently since October 2013

• The Company has consistently sought to pay a stable quarterly dividend

• This has led to a stable annualised dividend of around 7% of NAV

ü Highly granular book

• 64 positions

ü Transparent and conservative leverage

• Net effective leverage 10.7% (with £66.9m cash) as at 31 December 2021

ü Access to established real estate investment team at Cheyne, which manages over $4bn AUM

ü Access to pipeline of enhanced return investment opportunities identified by Cheyne

ü Robust mitigation against a rising rates environment

• A high yielding portfolio, combined with a short weighted average life of under 2 years, ensures minimal exposure to yield widening and the ability to redeploy quickly at higher rates

Key Quarter Updates

• Portfolio

-  No defaults in the portfolio

-  Migration of portfolio to senior lending in keeping with the compelling opportunity set therein

-  11 new deals  completed (£152m of commitments) since 31 March 2021, showing strength of opportunity post the initial impact of Covid

• Cash

-  Cash reserves remain robust

• Term matched financing

-  Successful conclusion of term matched financing on a senior loan deal

• Opportunities

-  Bank lending remains constrained across Europe and high barriers to entry secures a continued compelling investment landscape, especially in senior lending.

-  The Company expects to deploy its currently available cash resources to its near term commitments and the new deals in the Cheyne pipeline

-  Cheyne's pipeline includes a mix of UK, French and Spanish opportunities, which all offer attractive yields

Summary: Structural Strength - Positioned to Capitalise on Opportunities

• Having successfully navigated through the challenges posed by the COVID-19 pandemic, RECI is well positioned to address future market uncertainty, with a strong portfolio profile and modest leverage comprising,

-  Senior loans and bonds equal to 80% of NAV

-  Weighted average LTV of 62.6%

-  The portfolio is concentrated on credits to large, well capitalised and experienced institutional borrowers

-  Leverage of 1.30x gross (1.11x net of cash held) as at 31 December 2021

-  Started to introduce term financing on senior loan investments

-  Cash on balance sheet of £66.9m

• The Company has good visibility on its liquidity and income profile for the next financial year ending March 2022, and beyond

• The Company is positioned to take advantage of a new pipeline of opportunities from a position of strength:

-  Cheyne's real estate business' current pipeline comprises £1.3 billion across 13 deals

 

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