Real Estate Credit Investments has published results for the year ended 31 March 2015. Over this period they generated a return on net assets of 12.3% as the NAV rose from 154.1p to 162.3p.
They expanded their real estate loan portfolio considerably, from £51m to £89m, making nine new commitments totalling £60m – currently they have £98.5m drawn and £106m committed. In October 2014, they sold a mezzanine loan secured against a boutique hotel at King’s Cross at par plus all accrued interest and fees. This investment returned an annualised yield in excess of 15%. Another position, previously an investment backed by German multi-family properties which had received an in specie transfer of publicly quoted shares, was successfully exited. This investment returned an annualised yield in excess of 25%.
Since the year end they committed to a £10.2m whole loan secured on a 220 unit presold residential scheme in London. The senior element of this loan is being sold down reducing RECI’s commitment by 50% and drawn loan balance to £4m which will increase the reduced loan return to in excess of 15%.
In addition they have a real estate bond portfolio valued at £59.8m at the year end. They had paid an average price of 72.3% of face value for these bonds and they were valued at 86.3% of face value. The portfolio had a weighted average life of 5.3 years and yield to maturity of 6.3% at 31 March 2015.
RECI : Real Estate Credit makes 12% return