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Hardman & Co Research
Hardman & Co Research on Real Estate Credit Investments (RECI): Why CRE equity worries should not apply to RECI

30-Aug-2023 / 13:55 GMT/BST
The issuer is solely responsible for the content of this announcement.


Hardman & Co Research on Real Estate Credit Investments (RECI):

Why CRE equity worries should not apply to RECI
 

RECI’s current discount to NAV (15%) suggests to us that some investors could be concerned that potential issues with commercial real estate (CRE) will dramatically affect the trust’s assets. In our view, the key reasons why they should not lie in RECI’s management of its position as a debt provider and in its asset selection. We note i) CRE equity holders take first losses (with a 60% LTV, RECI has a big cushion), ii) when accounts have got into difficulties, RECI has typically seen more funds injected by the equity backers, iii) CRE equity holders suffer from rising rates, as value transfers from equity holders to debt providers, and iv) RECI has limited office exposure (none in the US) – the sector most exposed to working from home.

Please click on the link below for the full report:

https://hardmanandco.com/research/corporate-research/why-cre-equity-worries-should-not-apply-to-reci/

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EC2R 8AE

www.hardmanandco.com

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Contact:

Mark Thomas

Mike Foster

 

 

mt@hardmanandco.com
mf@hardmanandco.com
 

Hardman & Co Research can still be accessed for free after MiFID II. Please click here to read the statement.

About Hardman & Co: Hardman Research Ltd, trading as Hardman & Co, is an appointed representative of Capital Markets Strategy Ltd and is authorised and regulated by the Financial Conduct Authority; our FCA registration number is 600843. Hardman Research Ltd is registered at Companies House with number 8256259. Attention is drawn to the important disclaimers at the end of the report.



Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


End of Announcement - EQS News Service

1715213  30-Aug-2023 

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