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Real Estate Credit Investments Ltd on Thursday said net asset value per share dropped slightly with the interim dividend held steady. RECI, an investor in European real estate credit markets, said its NAV per share stood at £1.42 per share on September 30, down 0.7% from £1.43 per share at March 31. The company said this resulted in a reduction in the share price discount to 11.4% from 14.9% at the beginning of the period. The NAV total return fell to 5.9% from 9.0% in the same period a year ago. Net profit fell 29% to £9.2 million from £12.9 million, driven by a swing to a loss from a gain in derivatives and a rise in FX losses. ‘The biggest challenge that RECI continues to experience is its size. The relatively small size of the vehicle slows the ability to build a large diverse book of credit,’ said Ravi Stickney, the portfolio manager. ‘The lack of diversity in the loan book does lead to NAV volatility and also less efficient income production.’ RECI declared a second interim dividend of 3.0p per share, which was flat year-on-year. This brings the total interim dividend per share to 6.0p, unchanged from a year ago. The company‘s main activities are carried out by its investment manager Cheyne Capital Management (UK) LLP. Looking ahead, Chair Andreas Tautscher said: ‘The board is confident that Cheyne’s management expertise and focus on only lending in respect of high-quality assets, in their preferred sectors and contracting with substantial quality sponsors, will position RECI well to withstand the broader challenges and steer a course through difficult market conditions.’ Tautscher noted ‘continued uncertainty as to the future level of inflaton.’ Stickney added: ‘We will continue to work towards the aims of (a) protecting the NAV of the current loan book, (b) shepherding the legacy loan book towards their timely exits and (c) recycling proceeds quickly into higher earning senior loans.’ Shares in RECI rose 0.9% to 123.09 pence on Thursday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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