Real Estate Credit Investments (RECI) investor relations material

Company overview and strategy

• Focuses on originating and investing in real estate debt secured by commercial properties in Western Europe, mainly the UK, France, and Spain.

• Managed by Cheyne Capital, with $7.5bn AUM and 33 investment professionals across four European offices.

• Aims to deliver stable quarterly dividends with minimal volatility through levered exposure to real estate credit.

• Portfolio consists of self-originated bilateral senior loans and market bonds, emphasizing defensive entry points and strong risk/return profiles.

• Access to Cheyne’s large lending business enables participation in attractive new opportunities.

Portfolio performance and composition

• Maintained a stable annualized dividend of around 7% of NAV, with ongoing quarterly dividends since August 2011.

• As of 31 March 2026, the portfolio included 26 positions with a weighted average LTV of 66.8% and an average yield of 11.5%.

• Net leverage stood at 38.7%, with £24.6m in cash, below the 40% leverage limit.

• Loan repayments were strong, with four exits totaling £105.5m at a weighted average IRR of 8.4%.

• New investments included eight loans and one bond, totaling £134.1m in gross commitments, primarily in first-position secured loans.

Risk management and leverage

• Portfolio risk ratings as of March 2026: 20 positions performing, two defaulted with no expected NAV loss, and two defaulted with possible NAV loss.

• Defaulted positions include office and mixed-use assets in France and Germany, with conservative recovery estimates.

• Net effective leverage was 31.6% of NAV, with a prudent mix of structured term funding and REPO financing.

• Structured asset-level funding and limited recourse financing optimize returns while maintaining conservative leverage.