Month: January 2024 (Page 14 of 20)

If u go to the beach the tide is either going out or coming

in but u do not which it is.

If u draw a line in the sand, u will, after a short time recognise

the direction.

U take profits when it drops out of the box.

U have a line in the sand, in case u want to buyback but

in this example u didn’t yet.

No trend visible apart from it may continue down, so although a 7.5%

yield a Trust to keep an eye on for it’s day in the sun.

Current cash to re-invest £967.00

Real Estate Credit Investments Limited

Investment Manager Fact Sheet

Real Estate Credit Investments Limited (the “Company”), a non-cellular company incorporated in Guernsey, is pleased to announce that its Investment Manager’s monthly Fact Sheet as at 31 December 2023 is now available on the Company’s website at:

As at 31 December 2023, the Company was invested in a diversified portfolio of 34 investments with a valuation of £322.0m.

The second interim dividend of 3p per share went ex-dividend (reducing the NAV) on 7 December 2023.

The French real estate market experienced a difficult year in 2023, with investments volume at its lowest since the Global Financial Crisis of 2007/8. In addition, with changes in working patterns since COVID, office demand has been scarce and leasing much slower than expected. Following a careful analysis of market conditions, RECI has conservatively taken an unrealised mark down on one of its positions, reporting (but not realising) a decrease of 1.6p on NAV on its senior loan to a development of a prime Grade A Paris office. The development was concluded on time and on budget, and Cheyne will continue to work actively with the borrower and a selected asset manager to expedite leasing the asset, in order to secure early repayment of the principal as well as all accrued interest.

Cheyne continues to monitor all of its positions and remains confident in the overall quality of its portfolio; a more detailed analysis of all of the positions will be included in the next quarterly update to be released in the first week of February 2024.

During the month, RECI was fully repaid at par its position in a fully let grade A office block located in Hoxton, London. RECI received £9.4m (net of financing).

RECI continues to use its cash to invest in its existing commitments in highly accretive wider opportunities in senior mortgage lending.

Cash Balance as at 31 December 2023 was £12.1m.

A full attribution of changes in the NAV per share is presented in the table:

Sold AIE for a profit of £153 as there is still a lot of uncertainty

in the market and it might be too early to buy an equity based

Trust.

Bought back ADIG after their results stated there was no change

to the intention wind down the Trust.

11,121 shares for 9k.

PROPERTY PORTFOLIO VALUATION

Schroder European Real Estate Investment Trust plc (“SERE” or the “Company”), the company investing in real estate in European growth cities, today provides an update on the independent valuation of the property portfolio as at 31 December 2023:   

–   The direct property portfolio was independently valued at €210.2 million. The like-for-like decrease over the quarter of -1.8%, or -€3.9 million,¹ was driven by continued outward yield movement, particularly for offices and select industrial.

–      The portfolio office assets (33%²) witnessed a valuation decline of -€2.1 million, or -2.5%. The St Cloud, Paris office saw a yield decline of 15 basis points, whilst Hamburg and Stuttgart declined c.13 basis points and 10 basis points respectively.

–     The portfolio industrial assets (30%²) witnessed a valuation decline of -€0.9 million or -1.2%, driven by c.15-25 basis points of outward yield shift across the French logistics portfolio and select Dutch investments.

–      The German retail portfolio (17%²) valuation remained unchanged with both DIY and grocery seeing strong investor demand. 

–   Valuations for the two alternative investments (9%²) witnessed a valuation decline of €1.0 million, or -4.3%, as a result of 25-50 basis points of outward yield shift.

–     Based on 31 December 2023 values and following the recent St Cloud office loan refinancing and de-leveraging, the portfolio LTV is approximately 33% based on gross asset value and 24% net of cash (30 September 2023 LTV 33% gross and 24% net of cash).

–    The Company remains well positioned with significant cash reserves and is continuing to review select sustainability-led capex initiatives in the portfolio, which should optimise earnings growth and asset liquidity.

(1)       In addition, the Company has a 50% interest in a joint venture in Seville which continues to be recognised at nil value

(2)       Including available cash

ROOF

Dividends

During the year the Board declared four quarterly dividends totalling 5 pence per share.

As a result, the Company achieved its 5 pence per share IPO target for the dividend in respect of the year to 30 September 2023. After the year end, the Company declared a further dividend of 1.26 pence per share in respect of the quarter ended 30 September 2023. The annualised dividend is 15.3% cash covered by the current portfolio, after fund costs.

The Company will target an annualised dividend target of 5.5 pence per share for the financial year ending 30 September 2024, an increase of 10% from the prior year.

The Motley Fool

5 Steps to earning an extra £500 monthly passive income in 2024

It’s a brand new year, and many investors are looking to start building or expanding their passive income streams as part of a New Year’s resolution. That’s hardly surprising, given that making money without having to work for it is arguably one of the best ways to achieve financial freedom.

There are a lot of different ways to go about this. My personal favourite is capitalising on the potential offered by the stock market. After all, it doesn’t take that much capital to get the ball rolling and is far less time-consuming than managing rental property or running a business.

With that in mind, let’s go over the five main steps to earning an extra £500 each month.

1. Start saving
Like anything in life, investors need money to make money. Depending on the company, a share price can range from a few pence to hundreds of pounds. But there are also trading fees to take into consideration. Even with commission-free investment platforms, hidden fees can quickly eat into capital if not properly managed.

Therefore, it’s prudent for long-term investors to save spare money from a salary each month inside an interest-bearing savings account. Once a lump sum of around £300-£500 has been accumulated, then it’s time to start putting this cash to work.

2. Investigate like a detective
While saving, investors shouldn’t sit idle. Picking stocks successfully requires detailed analysis and research. And investors can use the time in between trades to find promising and potentially lucrative opportunities in the stock market.

Executing this due diligence is by far the most important step. And, sadly, it’s also the most time-consuming, especially for newer investors who have to learn what to look for in a company that makes it investment-worthy. Fortunately, our Share Advisor Premium Service can help make this process far easier.

3. Determine the end goal
With money at hand and top-notch stocks identified, it’s important for investors to outline what their objectives are. If the main one is to earn a passive income, then how much monthly income is desired?

Knowing this enables building a timeline to keep expectations in check. For example, if I’m targeting an extra £500 a month, I need to earn £6,000 from my stock portfolio each year.

On average, UK shares offer a dividend yield of around 4%. By being more selective, it’s not unrealistic to push this to 6% a year without taking on too much additional risk. However, even at 6%, I’d still need a portfolio worth £100,000 to achieve my goal.

4. Invest!
Needless to say, £100k isn’t exactly pocket change. But don’t forget this is the destination, not the starting point. Given time, regularly investing £500 each month at a 10% annualised return would let me surpass this threshold within 10 years.

Of course, nothing’s guaranteed. The world of investing is rife with risk and uncertainty. And a poorly constructed portfolio may even destroy wealth instead of creating it. That’s why investors need to carefully consider the risks against the potential reward before making any investment.

5. Repeat
After adding the first top-notch stock to a portfolio, the final step is to start again. Regularly saving up money for investment allows for a steady drip-feed of capital into a portfolio, accelerating compounding and pushing investors closer to their passive income goals.