If you had bought after the Covid crash and simply re-invested the dividends, you are near to achieving the holy grail of investing in that you will be able to take out your stake and re-invest in another high yielder.

Current yield on RECI 9.7%, if you re-invested the capital in another Trust (for comparison purposes only) of 10.3% your yield on invested capital would be 20%.

Long term investing and if you look at the start of the chart, a good reason for booking profits and re-investing to spread the risk.

Again a simple do nothing strategy, apart from re-investing the dividends.

Is the dividend secure ?

The fcast is to flatline at the current yield of 9.7% based on todays price.

What do they do ?

Real Estate Credit Investments Limited (RECI) is a closed-ended investment company which originates and invests in real estate debt secured by commercial or residential properties in the United Kingdom and Western Europe.

RECI is externally managed by Cheyne Capital’s real estate business  was formed in 2008 and currently manages $6.5bn via private funds and managed accounts. Its investments span the entire spectrum of real estate risk from senior loans, mezzanine loans, special situations to direct asset development and management.

RECI’s aim is to deliver a stable quarterly dividend with minimal portfolio volatility, across economic and credit cycles, through a levered exposure to real estate credit investments.

Investments may take different forms but are principally in:

  • Self-Originated Deals: predominantly bilateral senior real estate loans and bonds
  • Market Bonds: listed real estate debt securities such as Commercial Mortgage Backed Securities (CMBS) bonds.

Loan arranger, higher risk but loans secured on property provides some security.

Not that one though.

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 third interim dividend of 3.0 pence per Ordinary Share for the year ending 31 March 2025. The dividend is to be paid on 4 April 2025 to Ordinary Shareholders on the register at the close of business on 14 March 2025. The ex-dividend date is 13 March 2025.