News Column

Real Estate Credit Investments Profit Down On Lower Investment Gains

June 12, 2014

Anthony Tshibangu

LONDON (Alliance News) - Real Estate Credit Investments PCC Limited Thursday reported a fall in profit for the full year, after the previous year's results were boosted by large gains on investment properties.

The specialist investor in European residential and commercial credit markets, posted net profit of GBP8.1 million for the year ended March 31, down from GBP19.0 million a year earlier. The company made a GBP1.0 million gain on investment properties compared with GBP12.3 million a year earlier, with both gains the result of a significant rally in the commercial mortgage-backed securities and the residential mortgage-backed security markets, it said.

Operating income rose to GBP13.7 million for the year ended March 31, from GBP12.9 million in the previous year

In November the company raised GBP50 million through a share placing which has been invested in a combination of bonds and loans.

Real Estate Credit Investments said its loan portfolio has grown to GBP51.0 million from GBP20.0 million a year earlier, while the bond portfolio has increased to GBP85.8 million from GBP75.4 million.

The net asset value per share in the year rose to GBP1.54, from GBP1.50 a year earlier.

On the back of its performance, the company increased its dividend to 2.7 pence per share, up from 2.2 pence a year earlier.

Real Estate Credit Investments shares were quoted down 0.1% at 160.30 pence Thursday morning.

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Source: Alliance News

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