RECI : RECI expands loan portfolio
Real Estate Credit Investments has announced its interim results for the six months that ended on 30 September 2014. The net asset value rose by 3.2% to 159p. They are paying a dividend of 2.7p for the quarter.
They have been expanding the portfolio, making six new loans worth £31m in the half year and they say the manager has a further £32m of loans in the documentation stage. In August 2014, a performing loan secured against a multifamily residential portfolio across North Rhine Westphalia, Germany was successfully restructured, and increased to fund additional asset purchases on more favourable commercial terms from £6.1m to £12.5m. They also made a £6.1m commitment to a new investment loan to a purchaser and developer of distribution assets in core UK logistic locations. The Company also funded a new £7.2m mezzanine loan to assist in the acquisition of a major German residential development company.
They say the average loan portfolio LTV exposure as at 30 September 2014 was 71.7% and the portfolio provides risk-adjusted returns with a weighted average yield of 13.2% per annum.