Real Estate Credit Investments (RECI) H2 2025 earnings summary

Executive summary

• Delivered a net profit of £22.8m for the year ended 31 March 2025, up from £21.9m year-over-year, with stable quarterly dividends of 3.0p per share maintained despite market volatility.

• Total assets increased to £391.7m (from £352.3m), while net assets declined slightly to £318.4m (from £326.4m), reflecting share buybacks and dividend payments.

• The portfolio remains focused on defensive, senior secured real estate credit in the UK and Western Europe, with a weighted average levered yield of 11.4% and average LTV of 66%.

• The company continued to trade at a discount to NAV, averaging 15.4% during the year, and executed multiple share buyback programmes to address this.

Financial highlights

• Operating income rose to £34.2m (from £31.4m), with net profit at £22.8m (from £21.9m).

• NAV per share was £1.43 (down from £1.45), and share price at year-end was £1.22 (up from £1.15).

• Total NAV return annualised at 7.7% (up from 7.0%).

• Dividend yield was 9.8%, with total dividends paid of £26.7m (12.0p per share, unchanged year-over-year).

• Leverage increased to 22.3% of NAV (from 7.3%).

Outlook and guidance

• Management expects a gradual reduction in interest rates, supporting continued attractive yields.

• The company is positioned to redeploy capital into higher-yielding opportunities as repayments occur, with a strong origination pipeline.

• Dividend stability remains a core focus, with the board confident in maintaining the current payout.