2024

With the current dividends declared the Snowball will earn £8,913.00 thus achieving the fcast of 8k and the target of 9k (when SUPR pay their dividend in Nov).

Further dividends are projected for December but may be received in 2025 which would be a positive start for the 2025 fcast of income of £9,120.00.

Real Estate Credit Investments Limited (the “Company”)

Ordinary Dividend for RECI LN (Ordinary shares)

Real Estate Credit Investments Limited announces today that it has declared a first interim dividend of 3.0 pence per Ordinary Share for the year ending 31 March 2025. The dividend is to be paid on 18 October 2024 to Ordinary Shareholders on the register at the close of business on 27 September 2024. The ex-dividend date is 26 September 2024.

UK REITs: a rare passive income opportunity right now© Provided by The Motley Fool

by Zaven Boyrazian, MSc

REITs open the door to investing in national infrastructure like logistics, energy, hospitals, retail outlets, and even car parks. And thanks to higher interest rates, these shares are currently trading at dirt cheap valuations, resulting in mouth-watering dividend yields.

However, time might be ticking to capitalise on this rare opportunity. The FTSE 350 Real Estate Investment Trust (FTSE 350 REIT) index still trades firmly below pre-inflation levels. Yet over the last 12 months, it’s up almost 20%. That suggests the real estate market cycle is slowly ramping back up, and with it, the chance to lock in enormous yields might be going with it.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice

Investigating opportunities

nside my income portfolio, I’ve already snapped up four REITs: Safestore Holdings (LSE:SAFE), Warehouse REIT, Londonmetric Property, and Greencoat UK Wind. And thanks to dividend hikes since my initial investments, these companies are now generating yields as high as 7%. Yet, this might be just the beginning.

Each firm sits on a multi-year streak of dividend hikes, with Safestore leading the charge at 14 years in a row. And since each owns a portfolio of critical economic assets from warehouses to wind farms, the long-term demand isn’t likely to disappear in my opinion. That means there is plenty of future cash flow to fund passive income.

Let’s zoom in on Safestore. As the UK’s largest self-storage operator, the firm leases its facilities to individuals and businesses alike. Renting out a storage facility doesn’t sound like a lucrative endeavour. Yet, this business’s track record of dividend growth and market dominance speaks for itself.

Right now, management’s trying to replicate its success across Europe. The self-storage market in countries like Belgium and Germany is still in its infancy compared to Britain. But by investing early, the group’s attempting to give itself a first-mover advantage. And if management’s strategy works out, then the enormous dividend growth seen to date could just be the tip of the iceberg.

No reward without risk

These companies are not the only REIT opportunities British investors can capitalise on today. But while I’m bullish on the overall sector, I cannot ignore the abundant risks facing the industry.

An international expansion is expensive, especially when chasing an underdeveloped market. Suppose European demand for self-storage solutions fails to materialise or grow sufficiently in the long run? In that case, Safestore’s proactive investment could backfire spectacularly, potentially compromising its balance sheet.

Zooming out to macroeconomic risks, REITs are highly sensitive to interest rates. With the bulk of rental income being paid out as shareholder dividends, these firms are almost entirely dependent on debt financing. So when rates go up, besides dragging down the market value of their asset portfolio, interest expenses can often surge through the roof.

With that in mind, it’s no surprise that the FTSE 350 REIT index was almost slashed in half between 2022 and October 2024. But assuming we’ve reached the bottom of the cycle, considering an investment today, while risky, could unlock tremendous long-term passive income, in my opinion.

The post UK REITs: a rare passive income opportunity right now appeared first on The Motley Fool UK.

To be ready for the next market crash, there will be one the timing is the unknown. We need to re-visit the last crash (Covid), as always a picture saves a thousand words.

U knew that LWDB was a dividend hero, if u didn’t u do now.

From the chart u buy the yield, of course there was no way of knowing if the price would continue to fall but u are happy with the yield.

Your knowledge rewarded u and then simply re-invest the dividends back into the Trust.

Today, u could take out your stake and re-invest in a higher yielder, also u could take out some profit and re-invest in another higher yielder.

The dividends from LWDB are now free u have achieved the holy grail of investing that u have a share that pays u regular income and sits in your account at nothing, zero, zilch.

Your yield on your initial investment would now be around 20%.

Everything crossed for another market crash ?

Secure and growing income

·    12% increase in annualised passing rent to £113.1 million, reflecting:

o  4% average like-for-like rental uplift

o  Accretive acquisitions in the year

·    100% occupancy and 100% rent collection since IPO

o  75% of rental income from Tesco and Sainsbury’s

·    4.4% increase in adjusted EPS to 6.08 pence driven by rental growth and accretive acquisitions

·    Fully covered FY24 dividend

·    FY25 target dividend increased to 6.12 pence per share

Alexander Ohlsson, Chair of Foresight Solar, said:

“Foresight Solar has delivered resilient performance, once again proving solar power’s effectiveness and, as an asset class, showing its stability against a complex macroeconomic backdrop.

“During the period, we faced some of the worst weather conditions in the fund’s history in addition to falling power prices. Despite this challenging environment, Foresight Solar closed the six months to 30 June 2024 only moderately behind expectations and on track to deliver its 8.00 pence per share dividend target for the year.

When I fcast the future earnings for the Snowball, I never plot any future dividend growth, because it’s tiny and I use any increase in dividends as a buffer for any dividends that disappoint. KISS.

Note: the yield for RGL has not caught up with events, yet.

If u want to do your own calculations for your plan, u do have a plan ? the above is from the calculatorsite.com

Note the calculation is for the dividend compound growth and doesn’t include any share growth or buying Trusts with a higher yield and as the price rises the yield falls and u flipped into another high yielder, subject to the market at the time.

When cometh the day when there are no ‘safe’ Trusts to re-invest the Snowball’s dividends in around 7%, remembering no Trusts dividends are completely safe but some Trusts dividends are safer than others. Normally the market is ahead of u there and the yields will be lower.

One option would be to re-invest the earned dividends into a world tracker, knowing that if u can choose when to sell u will not lose any of your hard earned. No guarantee that u will make 7% and u need to have the ability to sit thru the ETF flatlining for multi years. Also when the ETF falls u may print a loss on your investment with no income to re-invest.

I don’t think the ‘cometh’ day will be anytime soon.

Discount Watch

The number of investment companies hitting 52-week high discounts reached double digits last week – the first time that’s happened in over three months. But which sector contributed a third of the names on the list?

By Frank Buhagiar

We estimate there to be 12 investment companies that saw their share prices trade at 52-week high discounts over the course of the week ended Friday 13 September 2024 – three more than the previous week’s nine.

Four of this week’s 12 herald from the renewables sector. It has been a while since that happened. Back in Q1 2024, renewable investment companies were regular contributors to the 52-week high discount list. That was when the higher-for-longer interest rate narrative dominated market sentiment – as well as making financing more expensive, higher interest rates lead to higher discounts rates which are used to value a company’s assets. Higher discount rates equal lower valuations.

So, with interest rates now coming down in the UK and Europe and with the first cut expected possibly this week in the U.S. why the sudden jump in renewable 52-week high discounters? Might be down to news this week from Aquila European Renewables (AERS) that its long-running strategic review failed to find a buyer willing to pay an acceptable price for the company. AERS will now hold a continuation vote at the next AGM which could lead to the fund being wound up.

The AERS news, which was released on 12 September, good for a slight narrowing in the fund’s share price discount. Not for the likes of Atrato Onsite Energy (ROOF),  Ecofin US Renewables Infrastructure (RNEW) and HydrogenOne Capital Growth (HGEN) though, the share prices of which all set new year-high discounts the next day. Could it be a size issue?  AERS already on the small side with a market cap of £260 million (total assets of over £500 million), so too Gore Street Energy Storage (GSF) on £288 million (total assets of over £500 million), but the other three all have sub-£100 million market caps and total assets of between £100 – £200 million. Are they just too small to register on the radar of larger peers – not big enough to move the needle and all that

And don’t forget it was only on 9 September that RNEW announced its own strategic review had failed to find a buyer for its assets and that it too would be proposing a managed wind down of its own. Looks like some sub-scale funds might just be too small to be of interest to the big players. And if that’s what the market thinks then share prices could lose any potential bid froth they may have once had baked in. Take away any takeover excitement/potential and share prices may well lose a prop and discounts could widen. Now, having just said that, what price a renewables takeover announcement hitting the screens in the next few days to blow this theory out of the water ?

The top five

Fund	Discount	Sector
Ceiba Investments CBA	-69.64%	Property
HydrogenOne Capital Growth HGEN	-63.13%	Renewables
Life Science REIT LABS	-60.63%	Property
Schroder Capital Global Innovation INOV	-53.63%	Growth Capital
JPEL Private Equity JPEL	-50.34%	Private Equity

The full list

Fund	Discount	Sector
JPMorgan Emerging Markets JMG	13.17%	Emerging Markets
European Opportunities EOT	12.18%	Europe
Schroder Capital Global Innovation INOV	53.63%	Growth Capital
JPEL Private Equity JPEL	50.34%	Private Equity
Life Science REIT LABS	60.63%	Property
Ceiba Investments CBA	69.64%	Property
Atrato Onsite Energy ROOF	28.97%	Renewables
Ecofin US Renewables RNEW	45.92%	Renewables
HydrogenOne Capital Growth HGEN	63.13%	Renewables
Gore Street Energy Storage GSF	45.27%	Renewables
JPMorgan American JAM	-5.79%	U.S.
Vietnam Enterprise VEIL	22.84%	Vietnam