(Alliance News) - Real Estate Credit Investments Ltd said on Friday its net asset value per share increased in its fourth quarter, and expects low-risk senior loans to increase in popularity this year as the present macroeconomic climate continues.

The Guernsey-based closed-ended investment company reported an NAV total return of 1.2% in its fourth quarter, ended March 31. NAV return for the half year ended September 30 was 2.9%.

Real Estate Credit Investments said its NAV per share at April 30 was GBP1.480, up from GBP1.469 at March 31. NAV per share at September 30 was GBP1.48.

The company did not declare a dividend for the fourth quarter. It had declared a 3.0p interim dividend for the third, unchanged quarter-on-quarter, on February 17.

Real Estate Credit Investments said it maintained a strong pipeline of floating rate senior loans. It said its high yielding portfolio minimised its exposure to yield widening and would allow it to redeploy quickly at higher rates.

The company's cash balance was GBP17.0 million at March 31.

Real Estate Credit Investments expects the current macroeconomic backdrop to continue through 2023. It anticipates further constraints in bank lending and other sources of capital as a result, allowing further opportunities to provide senior loans at low risk points for higher margins.

Shares in Real Estate Credit Investments were up 0.8% at 127.06p in London on Friday.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.