Real Estate Credit Investments Ltd — Fact Sheet Announcement

RECI’s September NAV fell to 135.1p, with leverage at 30.3% and a new £5m loan committed.

What the company is saying

Real Estate Credit Investments Limited presents a factual monthly update as at 30 September 2026, highlighting a diversified portfolio of 24 investments valued at £283.6m. The company reports available cash of £11.2m and £8.3m held in cash equivalents. Net effective leverage stands at 30.3%. RECI emphasizes its commitment of £5.0m to a senior development loan for a flex-living scheme in Spain, scheduled for funding in November 2026. The announcement details the NAV movement, attributing the primary cause to the widening yield on senior loan positions with equity upside participation notes. The company explains that these notes are sensitive to market conditions and independent asset yield assumptions. The tone is neutral and focused on transparency, with no promotional language or forward-looking performance claims.

What the data suggests

The disclosed figures show a portfolio of 24 investments valued at £283.6m, with £11.2m in available cash and £8.3m in money market funds. Net effective leverage is 30.3%, indicating moderate use of debt relative to assets. NAV declined from 138.8p in August to 135.1p in September, a drop of 3.7p. This movement is broken down as +1.0p from interest income, -1.6p from asset valuations, +0.1p from FX, -0.2p from expenses, and -3.0p from dividend payments. The company attributes the negative valuation impact to widening yields on certain senior loans with equity participation, but does not quantify the effect of this driver. The £5.0m senior loan commitment in Spain is disclosed as a near-term funding event, not a speculative or long-dated project. Overall, the data is detailed for headline portfolio and NAV metrics, but lacks granularity on asset-level valuation changes.

Analysis

The announcement is a routine monthly fact sheet with a neutral tone, providing a factual snapshot of portfolio composition, cash, leverage, and NAV movements as at 30 September 2026. Most claims are realised and supported by explicit numerical data, including portfolio size, valuation, cash, leverage, and NAV breakdown. The only forward-looking elements are the scheduled funding of a £5.0m loan in November 2026 and a general statement about equity participation notes moving with market conditions. There is no promotional or exaggerated language; the narrative is proportionate to the evidence. The capital intensity flag is set to true due to the new £5.0m loan commitment, but this is disclosed factually and the funding is imminent (November 2026), not long-term or speculative. No claims are made about future performance or outsized benefits. The gap between narrative and evidence is minimal.

Risk flags

• ●NAV declined by 3.7p month-on-month, driven mainly by negative asset revaluations and dividend payments, indicating short-term pressure on returns.
• ●The company’s explanation for NAV movement relies on qualitative attribution to widening yields and equity participation notes, but does not provide quantitative breakdowns, limiting transparency on underlying asset risk.
• ●Net effective leverage of 30.3% increases sensitivity to further asset valuation declines or market volatility, which could amplify NAV swings if adverse conditions persist.

Bottom line

This update signals a modest deterioration in RECI’s NAV, with asset revaluations and dividends outweighing income for the month. The portfolio remains diversified and moderately leveraged, but the lack of granular attribution for the negative valuation impact leaves some uncertainty about underlying asset quality. The imminent £5.0m loan funding in Spain is a tangible near-term deployment of capital, not a speculative commitment. Investors should focus on future disclosures for more detailed breakdowns of valuation drivers and monitor whether leverage amplifies NAV volatility if market conditions worsen. The key takeaway is that while headline metrics are transparent, deeper insight into asset-level risks would improve confidence.

Announcement summary

(LSE:RECI) Real Estate Credit Investments Limited (RECI) reported that as at 30 September 2026, the Company was invested in a diversified portfolio of 24 investments with a total valuation of £283.6m. The Company’s available cash at that date was £11.2m. Net effective leverage stood at 30.3%. RECI had £8.3m invested in Cash Equivalents (MMF). During the month, RECI committed £5.0m to a senior development loan for a flex-living scheme in Spain, with funding scheduled for November 2026. The primary cause for NAV movement during the month was the widening yield applied to senior loan positions that have equity upside participation notes. These equity participation notes are subject to equity valuations and will move with market conditions, including asset net initial yield assumptions from independent valuers. The August NAV was 138.8p. Interest income contributed 1.0p to NAV. Asset valuations reduced NAV by (1.6)p. Foreign exchange movements added 0.1p. Expenses reduced NAV by (0.2)p. A dividend of (3.0)p was paid. The September NAV was 135.1p. The Company is a non-cellular company incorporated in Guernsey. The Investment Manager's monthly Fact Sheet as at 30 September 2026 is available on the Company's website. The Company’s broker is Investec Bank plc, with contacts David Yovichic and Tom Skinner.

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