Real Estate Credit Investments (RECI) H2 2024 earnings summary

Executive summary

• Delivered net profit of £21.9m for the year ended 31 March 2024, up from £20.6m year-over-year.

• Maintained stable quarterly dividends of 3 pence per share, totaling £27.4m paid.

• Net asset value (NAV) per share was £1.45, slightly down from £1.47 year-over-year.

• Total assets decreased to £352.3m from £419.0m year-over-year.

• Share buyback programs initiated, repurchasing 4.1 million shares for £5.0m.

Financial highlights

• Operating income: £31.4m (2023: £30.7m).

• Net profit: £21.9m (2023: £20.6m).

• Dividend yield: 10.4% (2023: 9.0%).

• Total NAV return: 7.0% (2023: 6.2%).

• Earnings per share: 9.6p (2023: 9.0p).

• Share price at year-end: £1.15, trading at a 20.7% discount to NAV.

Outlook and guidance

• Board expects lower interest rates in 2024–2025 to benefit real estate credit markets.

• Pipeline of new senior loan opportunities with target yields over 10%.

• Scheduled portfolio repayments will provide cash for new investments and buybacks.

• Company remains focused on stable dividends and NAV preservation.