Real Estate Credit Investments (RECI) H1 2025 earnings summary

Executive summary

• Delivered stable NAV of £1.45 per share and maintained a consistent quarterly dividend of 3 pence per share for the six months ended 30 September 2024.

• Net profit for the period was £12.9m, down from £15.6m in the same period last year, reflecting a resilient but challenging market.

• Portfolio focused on defensive, senior secured credit in UK and Western Europe, with 87.4% in senior loans and bonds.

• Continued share buyback programme reduced share price discount to NAV to 11.8% at period end.

Financial highlights

• Net assets stood at £321.8m (31 March 2024: £326.4m); total assets increased to £412.1m (31 March 2024: £352.3m).

• Operating income for the half year was £18.4m (2023: £20.6m); earnings per share were 5.8p (2023: 6.8p).

• Annualised total NAV return was 9.0% (2023: 9.4%); annualised dividend yield was 9.4%.

• Dividends declared for the period totaled 6.0p per share, unchanged from the prior year.

• Leverage increased to 24.7% of NAV (31 March 2024: 7.3%).

Outlook and guidance

• Macroeconomic uncertainty around inflation and interest rates expected to persist; focus remains on high-quality assets and resilient portfolio.

• Scheduled portfolio repayments in H1 2025 will boost cash for potential reinvestment and further buybacks.

• Board remains committed to attractive, stable dividends and prudent capital deployment.