DJ Hardman & Co Research on Real Estate Credit Investments (RECI): Why CRE equity worries should not apply to RECI
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/
If you are interested in meeting the company, you can register your interest by clicking on the above link
To contact us:
Hardman & Co Contact:
1 Frederick's Place
Mark Thomas
London mt@hardmanandco.com
Mike Foster mf@hardmanandco.com
EC2R 8AE
www.hardmanandco.com
Follow us on Twitter @HardmanandCo
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.
-----------------------------------------------------------------------------------------------------------------------
1715213 30-Aug-2023
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1715213&application_name=news
(END) Dow Jones Newswires
August 30, 2023 08:55 ET (12:55 GMT)
