25th Jun 2019 14:35
(Alliance News) - Real Estate Credit Investments Ltd said Tuesday its net assets increased in its financial year despite continued global macroeconomic uncertainty.
At March 31, the western European-focused real estate debt investor's net asset value per share stood at 165.0 pence compared to 164.0p at the same point a year earlier, a slight increase of 0.6%. Real Estate Credit Investments issued about 167.0 million shares during the period.
The fair value of the company's loans decreased 5.9% over the twelve month period, standing at GBP139.4 million at March 31.
However, the fair value of Real Estate Credit Investments' bonds increased 68% in the same period to GBP163.1 million.
As a result, the company net assets increased 11% to GBP253.2 million from GBP228.5 million. Real Estate Credit Investments suffered a GBP100.1 million financing charge in the period.
For the twelve months to March 31, Real Estate Credit Investments declared a dividend of 12.0p, flat on the year before.
The investment company's NAV total return for the period was 8.0%.
"Once again, I am writing to you against a background of ongoing Brexit and associated political uncertainties, which are augmented by global economic challenges. Inevitably, these macro factors have impacted upon the credit and property markets in which your company participates," said Chair Bob Cowdell. "Accordingly, I am pleased to report an increased year end NAV, building upon the consistency of the previous four years."
The company's investment manager, Cheyne Capital, added: "2018 saw the continuation of global macroeconomic uncertainty. Brexit has been joined by European elections, trade 'wars' and low growth on a list of themes to cause concern. Most asset classes suffered negative returns in 2018. Cheyne remains cautious in its investment approach, to reflect these conditions, and continues its revised focus on senior loans and bonds at the expense of deeply subordinated mezzanine positions."
Shares in Real Estate Credit Investments were up 0.3% Tuesday at 170.00 pence each.
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