Investment Manager's Q2 Investor Presentation

27 October 2022

Real Estate Credit Investments Limited

Investment Manager's Q2 Investor Presentation

Real Estate Credit Investments Limited ("RECI" or "the Company") is pleased to announce that the Investment Manager's Q2 Investor Presentation is now available on the Company's website at:

https://www.recreditinvest.com/investors/results-reports-and-presentations/#currentPage=1

An extract from the Summary section of the presentation is set out for investors in the Appendix to this announcement.

For further information, please contact:

Broker:                                    Richard Crawley / Darren Vickers (Liberum Capital)        +44 (0)20 3100 2222

Investment Manager:              Richard Lang (Cheyne)                                                    +44 (0)20 7968 7328

Appendix: Q2 Investor Presentation Extract

Key Quarter Updates

•     Portfolio

-    1 new deal completed (£18.7m of commitments) since 30 June 2022

-    No defaults in the portfolio

-    Continued migration of portfolio to senior lending

•     Cash

-    Cash reserves remain targeted at between 5% to 10% of NAV

•     Dividend

-    Dividends maintained at 3p per quarter, 8.9% yield, based on share price, as at 30 September 2022

•     Financing

-    Employs a mix of flexible, short-dated financing alongside term-matched structured financing on selected high-quality senior loan deals

•     Opportunities

-    The present crisis is set to continue through 2023, resulting in further constraints in bank lending and alternative sources of capital. The opportunity to provide senior loans at low risk points, for higher margins, is increasingly compelling

-    The core European CMBS markets are experiencing market price declines due to increasing indiscriminate selling, presenting opportunities in the market

-    The Company expects to deploy its currently available cash resources to its near term commitments and to build cash resources towards a very compelling emerging opportunity set in both senior loans and bonds

ü Attractive returns from defensive, Senior, low LTV credit exposure to UK and European commercial real estate assets  

•     A focus on Senior, 1^st lien loans : Senior, 1^st Lien, Loans now account for 87% of the book by value. This is anticipated to be 89% as mezzanine loans repay. Top 10 positions are 100% Senior Loans. New origination is 100% Senior

•     Weighted Average LTV on underlying investments of 60.4% as at 30 September 2022

•     Predominantly large, well capitalised, and experienced institutional borrowers

•     Minimal exposure to Shopping Centers (<2% of GAV), Secondary Offices (0% of GAV) and Logistics (3% of GAV)

•     RECI retains absolute governance, covenants and control, afforded by Senior ranking and bilateral singular lending relationships

•     Portfolio has withstood COVID19 and is well place to withstand the current revaluations in real estate

ü Quarterly dividends delivered consistently since October 2013

•     The Company has consistently sought to pay a stable quarterly dividend from its distributable profits

•     This has led to a stable annualised dividend of around 7% of NAV

ü Highly granular book

•     62 positions

ü Transparent and conservative leverage

•     Net leverage 26.9% (with £27.4m cash) as at 30 September 2022 versus a leverage limit of 40%

•     Non-recourse and limited-recourse, term, structured finance provides returns optimisation and financial flexibility on senior loans

•     Access to established real estate investment team at Cheyne, which manages c$5bn AUM

ü Access to pipeline of enhanced return investment opportunities identified by Cheyne

ü Robust mitigation against a rising rates environment

•     A high yielding portfolio, combined with a short weighted average life of under 2 years, ensures minimal exposure to yield widening and the ability to redeploy quickly at higher rates

•     Pipeline is 100% floating rate senior loans