Capital Raising Services

Posts Tagged ‘Share’

Real Estate Credit Investments NAV rises to EUR1.69 per ordinary share

Real Estate Credit Investments, the Cheyne Capital managed investment company formerly known as Queen’s Walk, has reported an increase in net asset value from EUR1.59 to EUR1.69 per ordinary share since its recent fundraising.

The company’s net profit was EUR3.1m for the quarter ended 30 September 2010, compared to a net profit of EUR2.8m for the quarter ended 30 June 2010. This represents the fifth consecutive quarter the company has recorded a profit.

The investment portfolio generated gross cash flows of EUR4.5m in the quarter compared with an estimate of EUR3.5m and EUR6.1m received in the previous quarter.

Subsequent to the extraordinary dividend of 14.5 cents per share already paid for the period 1 April 2010 to 15 September 2010, the company has not declared an ordinary dividend for the second quarter. The company has announced a preference dividend of 2.3p for the period 16 September 2010 to 31 December 2010 and currently intends to declare a second interim ordinary dividend in due course.

RECI is delivering on the objectives it laid out in September 2010. The EUR26.6m capital raising that was completed on 15 September 2010 has put the company in a position to invest in undervalued real estate debt.

As at 30 September, the real estate debt portfolio was valued at EUR37.4m, or 37 per cent of the investment portfolio, up from 31 per cent three months earlier.

RECI made EUR9.8m of new bond purchases in the three months to 30 September. From 1 October to 15 November 2010, the company has purchased a further EUR15.4m of bonds, increasing the overall fair value of the real estate debt portfolio to EUR52.9m or 45 per cent of the investment portfolio.  

Tom Chandos, chairman of Real Estate Credit Investments, says: “It is a sign of the growing strength of Real Estate Credit Investments that it has delivered a fifth consecutive quarter of profit while laying the foundations for future growth with fresh investments in the real estate debt portfolio.”

Managed Accounts Share Trading Investment Notification ? Purchase Of Nab

Good afternoon,

Yesterday we purchased shares in National Australia Bank (NAB) to the value of 15% of the portfolio for the MDAs.

The purchase follows a 20% fall in the share price of NAB from recent highs, caused by an overall fall in the financial sector, coupled with a proposed capital raising to fund the acquisition of AXA Australia.

The banking sector as a whole will do very well this year. With results out from Commonwealth Bank two weeks ago, it is clear that profits will be almost back to normal after a terrible 18 months. NAB should be no different. After the share price fall, NAB is trading on a forward PE ratio of 10 times, and this is without any possible surprises to the upside. This compares with between PEs of 10.8 and 12.8 for the other big banks.

Our expectation is for a rise of .60 or 10% on our purchase price within two months to .80. Once a rally begins in the sector, our share price target should be reached within two weeks, however the rally could of course take a month to materialize depending on what happens overseas. Being contrarian is an important part of our share trading strategy.

We are now around 37% invested, leaving 63% in cash awaiting further opportunities. We would look to deploy these funds should the market fall exposing new opportunities to purchase stocks at what we consider value prices.

Managed Accounts Share Trading Investment Notification – Purchase Of Nab

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