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UPDATED: Real Estate Credit Investments profit slips

By BFN News | 08:17 AM | Wednesday 27 November, 2013

Real Estate Credit Investments' total H1 net profit was £2.9m, from £10.7m a year ago. Interest income was £7.1m, from £7.8m. The total results comprised figures from both RECI Core and the ERII Cell. The board remained confident of RECI's ability to continue to deliver superior risk-adjusted total returns, thanks to the investment manager's pipeline and access to new investments and the benefits of the company's enhanced scale, the company said. Meantime, the company booked a total net loss on financial assets of £0.5m, from a total net gain on financial assets of £6.2m in the prior same period. On Oct. 16, the board declared a dividend of 3.4p a share on RECI ordinary shares for the period Jul. 1 to Sept. 30, and to cover the period from Oct. 1 to the date of admission of the new shares. The increase in dividend was due to a £50m capital raise that RECI completed on Nov. 12. The directors intended to announce a full quarter's dividend for the three months to end-December alongside the interim management statement, which is slated for February 2014. The board would thereafter increase its target annualised dividend yield, to a minimum of 7% of the placing price of £1.522 a share, up from the previous target of 6% of NAV. This increase reflected its confidence in RECI's ability to continue delivering strong returns from real estate debt investments combined with the reduction in the expenses per ordinary share resulting from the placing.

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