Listed debt fund Real Estate Credit Investments (RECI) recorded a 10% increase in net asset value per share to £1.10 for the first quarter of 2012, which then rose to £1.12 per share as of 15 May.
RECI’s real estate loans increased to £4m, or 5% of the investment portfolio, during the period, while the value of the real estate bond portfolio grew by 7.4% to £82.2m.
The company sold bonds in the first and second quarters of the year in order to manage risk, but began to increase bond exposure in Q4 to benefit from an uptick in market conditions.
RECI chairman Tom Chandos said: “RECI ends this financial year on a firm financial footing and with scope to grow.
The company has realigned itself to focus on real estate debt markets, a strategy that is delivering positive results for shareholders. RECI sees further attractive buying opportunities, as banks reduce lending and sell off real estate debt assets and the price dislocation in European real estate securities continues.”
Sophia.furber@estatesgazette.com
