Real Estate Credit Investments (RECI) H1 2026 earnings summary

Executive summary

• Delivered stable NAV and maintained a consistent quarterly dividend of 3.0 pence per share, with total dividends of 6.0 pence for the half year ended 30 September 2025.

• Net profit for the period was £9.2m, down from £12.9m year-over-year, mainly due to fair value adjustments on two Paris office loans.

• Portfolio comprised 23 positions valued at £390.1m, with a weighted average levered yield of 10.6% and average LTV of 64.1%.

• Share buyback programme announced, with up to £10m allocated, aiming to reduce the share price discount to NAV.

Financial highlights

• Net assets stood at £314.0m (31 March 2025: £318.4m); NAV per share was £1.42 (31 March 2025: £1.43).

• Total assets increased to £431.5m from £391.7m at the previous year-end.

• Annualised total NAV return for the half year was 5.9%, compared to 9.0% in the prior year period.

• Dividend yield (annualised) was 9.6% (31 March 2025: 9.8%).

• Shares traded at an average discount to NAV of 12.7% during the period, closing at 11.4%.

• Earnings per share were 4.2p, down from 5.8p year-over-year.

Outlook and guidance

• Ongoing macroeconomic uncertainty, especially regarding inflation and interest rates, is expected to persist.

• Management remains confident in the ability to deploy capital into higher-yielding opportunities and maintain attractive dividends.

• The buyback programme will be reviewed at year-end, with a focus on long-term dividend delivery and portfolio resilience.