Real Estate Credit Investments (RECI) Corporate presentation summary

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 London, Berlin, Paris, and Madrid.

• 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

• Maintains a granular portfolio of 26 positions in loans and bonds, diversified by sector and geography, with a weighted average LTV of 66.8% and average yield of 11.5%.

• Net leverage stands at 38.7% (with £24.6m cash), below the 40% limit, providing financial flexibility.

• Total NAV return for the year was 5.0%, with quarterly dividends maintained at 3p per share, yielding 10.4% on share price.

• Strong loan repayments enabled full exit from 4 loans (£105.5m proceeds, 8.4% IRR) and redeployment into 8 new loans and one bond (£134.1m commitments).

• Portfolio includes 21 bilateral loans (£395.7m gross) and 5 market bonds (£9.3m gross), with a short weighted average life of 1.5 years.

Risk management and leverage

• Assets are marked at fair value monthly, with risk ratings applied: 20 positions are performing, 2 defaulted with no expected NAV loss, and 2 defaulted with possible NAV loss.

• Defaulted positions include office and mixed-use assets in Paris and Berlin, with ongoing recovery strategies.

• Net effective leverage is 31.6% of NAV, using a mix of structured term funding and REPO financing to maintain conservative leverage.

• Structured asset-level funding and prudent leverage support returns optimization and risk control.