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1. General Information
Real Estate Credit Investments Limited (\u201cRECI\u201d or the
\u201cCompany\u201d) was incorporated in Guernsey on 6 September
2005 with registered number CMP43634. The Company
commenced its operations on 8 December 2005.
The Company\u2019s shares are currently listed and traded on
the Main Market of the London Stock Exchange.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-2": { "value": "Real Estate Credit Investments Limited", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-130": { "value": "Real Estate Credit Investments Limited", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-129": { "value": "\u201cRECI\u201d or the \u201cCompany\u201d", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-3": { "value": " Guernsey", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-131": { "value": "Guernsey", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-137": { "value": "2. Material Accounting Policies Statement of Compliance The financial statements of the Company have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (\u201cIFRS Accounting Standards\u201d), and the Disclosure Guidance and Transparency Rules Sourcebook of the United Kingdom\u2019s FCA, the Listing Rules of the LSE and applicable legal and regulatory requirements. The same accounting policies, presentation, and methods of computation have been followed in these financial statements as were applied in the preparation of the Company\u2019s audited financial statements for the year ended 31 March 2025. New Standards, Amendments and Interpretations Issued and Effective for the Financial Year Beginning 1 April 2025 The Company has applied the following standards and amendments for the first time for its reporting year commencing 1 April 2025: \u2022 Amendments to IAS 21 \u2013 Lack of Exchangeability The amendments listed above have no material impact on the financial statements of the Company. New Standards, Amendments and Interpretations Issued but not Effective for the Financial Year Beginning 1 April 2025 and not Early Adopted The following standards will become effective in future accounting periods and have not been early adopted by the Company. Management is still assessing the potential impact of these standards on the Company\u2019s financial statements: \u2022 Amendments to the Classification and Measurement of Financial Instruments \u2013 Amendments to IFRS 9 and IFRS 7 (1 January 2026) \u2022 IFRS 19 Subsidiaries without Public Accountability: Disclosures (1 January 2027) \u2022 IFRS 18 Presentation and Disclosure in Financial Statements (1 January 2027)
Basis of Preparation
The financial statements of the Company are prepared under
IFRS Accounting Standards on the historical cost or amortised
cost basis except for financial assets and liabilities classified
at fair value through profit or loss which have been measured
at fair value.
The financial assets at fair value through profit or loss include
the related interest receivable to reflect the measurement
of the Company\u2019s investments as a single unit of account,
which includes all cash flows associated with the asset.
The functional and presentation currency of the Company
is British Pounds (\u201cGBP\u201d or \u201c\u00a3\u201d), which the Board considers
best represents the economic environment in which the
Company operates.
Going Concern
The Directors believe it is appropriate to adopt the going
concern basis in preparing the financial statements as, after
due consideration, they consider that the Company has
adequate resources to continue in operational existence for
a period of at least 12 months from the date of signing the
audited financial statements. In making this assessment, the
Directors have taken account of the matters set out below.
The Investment Manager performs a granular analysis of the
Company\u2019s future liquidity profile based on detailed cash flow
modelling of each investment, incorporating the probability
of delays in repayments. On a quarterly basis the Board
reviews projected cash flows arising from the loan and bond
portfolio over the lifetime of the underlying investments
including interest income, realisation proceeds, short-term
finance obligations and dividend cover.
The Board reviews stress testing performed by the Investment
Manager on projected cash flows under a number of adverse
scenarios, including delays in repayments from loans on the
watch list, reduced cash flows from the investment portfolio,
the inability to refinance repurchase agreements secured
against market bonds and a combination of these events.
These scenarios are designed to assess the impact of
adverse developments affecting the underlying assets,
borrower credit quality and the timing and amount of cash
recoveries from the loan portfolio. In the scenario where
repurchase facilities cannot be refinanced, it is assumed that
the underlying market bonds are sold in an orderly manner
to repay the associated borrowings, thereby removing the
refinancing risk associated with those facilities.
Taking account of the updated forecasting, the Directors
consider that the cash and cash equivalents as at 31 March
2026 of \u00a318.5 million, the liquidity of the market bond portfolio
and the financing available through activities such as
repurchase agreements and off-balance sheet financing as
disclosed in Note 12 are sufficient to cover normal operational
costs, the funding of borrower loan commitments and current
liabilities as they fall due for a period of at least 12 months
from the date of signing the audited financial statements.
The Directors note that a key assumption adopted in the
going concern analysis is that leverage through repurchase
agreements for bilateral loans and bonds is not withdrawn.
Net debt (leverage minus cash) as at 31 March 2026
was 32.9%.
Notwithstanding the Directors\u2019 belief that this assumption
remains justifiable, the Directors have also determined
a number of mitigations to address a scenario where all
outstanding repurchase agreements are required to be
settled as they fall due. Whilst there would be a number of
competing strategic factors to consider before implementation
of such options, the Directors believe that these are credible
and can generate sufficient liquidity to enable the Company
to meet its obligations as they fall due. Such strategies
include cessation or delay of any future dividends, obtaining
longer-term and non-recourse financing, and further sales
of assets within the bond portfolio.
As disclosed in Note 17, as at 31 March 2026, the Company had
committed \u00a3492.8 million into the loan and bond portfolio
of which \u00a3435.7 million had been funded. The Investment
Manager models these expected commitments and only
commits further funds if the borrowers meet specific business
plan milestones.
Financial Assets at Fair Value Through Profit or Loss
The Company classifies its investments based on both the
Company\u2019s business model for managing those financial
assets and the contractual cash flow characteristics of the
financial assets. The portfolio of financial assets is managed,
and performance is evaluated on a fair value basis. The
Company is primarily focused on fair value information and
uses that information to assess the assets\u2019 performance and
to make decisions. The Company has not taken the option to
irrevocably designate any equity participation loans at fair
value through other comprehensive income. The contractual
cash flows of the Company\u2019s debt securities are not solely
principal and interest. The collection of contractual cash flows
is only incidental to achieving the Company\u2019s business model\u2019s
objective. Consequently, all investments are measured at fair
value through profit or loss. The gain or loss on reassessment
of fair value is recognised immediately in the Statement of
Comprehensive Income.
The interest receivable from loans and bonds are reported
as part of financial assets at fair value through profit or loss.
The related interest income is included under interest
income in the Statement of Comprehensive Income.
Financial Liabilities at Fair Value Through Profit or Loss
Financing agreements entered into for the purpose of efficient
portfolio management are designated and measured at fair
value through profit or loss. The gain or loss on reassessment
of fair value is required to be split into the amount of change
in fair value attributable to changes in credit risk of the
company for each of its relevant liability, presented in other
comprehensive income, and the remaining amount presented
in profit or loss. The Company\u2019s gain or loss on reassessment
of fair value is recognised immediately in the Statement of
Comprehensive Income.
Financial Assets at Amortised Cost
A financial asset is measured at amortised cost if it is held
within a business model whose objective is to hold financial
assets in order to collect contractual cash flows and its
contractual terms give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding. This includes cash and cash
equivalents, cash collateral held at broker and other assets.
Financial Liabilities at Amortised Cost
Financial liabilities at amortised cost include all other
liabilities not measured at fair value through profit or loss. This
includes cash collateral due to broker and other liabilities.
Initial Measurement
Financial assets and liabilities at fair value through profit or
loss are measured initially at fair value, with transaction costs
for such financial assets and liabilities being recognised
directly in profit or loss within the Statement of
Comprehensive Income.
Financial assets and liabilities are measured initially at their
fair value plus/minus any directly attributable incremental
costs of acquisitions or issue.
Purchases and sales of financial assets and liabilities at fair
value through profit or loss are accounted for at trade date.
Subsequent Measurement
Following initial recognition, financial assets and financial
liabilities classified as fair value through profit or loss are
measured at fair value.
Following initial recognition, financial assets classified as
measured at amortised cost are subsequently measured at
amortised cost using the effective interest method, less any
expected credit losses. Financial liabilities classified as
measured at amortised cost are subsequently measured at
amortised cost using the effective interest method.
Derecognition
The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset, and the transfer
qualifies for derecognition in accordance with IFRS 9.
The Company derecognises a financial liability when the
obligation specified in the contract is discharged, cancelled
or has expired.
Realised gain/(loss) on disposals of financial assets
and liabilities is calculated using the first-in, first-out
(\u201cFIFO\u201d) method.
Investment Entity for Unconsolidated Structures/Entities
The Directors have determined that the Company meets the
definition of an investment entity as set out in IFRS 10
Consolidated Financial Statements, on the basis that
the Company:
a) Obtains funds from one or more investors for the purpose
of providing those investors with investment management
services in respect of real estate credit investments;
b) Has committed to its investors that its business purpose
is to invest funds solely with a view to generating returns
through capital appreciation, investment income
(principally interest income from its loan and bond
portfolio), or both; and
c) Measures and evaluates the performance of substantially
all of its investments including its bilateral loans, bonds
and interests in structured entities \u2014 on a fair value basis.
In accordance with the investment entity exception under
IFRS 10, the Company does not consolidate the entities in
which it invests. Instead, the Company recognises its interests
in such entities (including the unconsolidated structured
entities disclosed in Note 11, such as RELF and the Cheyne
French Funding Sub-Funds) as investments measured at
fair value through profit or loss in accordance with IFRS 9.
Cash and Cash Equivalents
Cash and cash equivalents includes amounts held in interest
bearing accounts with original maturities of less than three
months and are used for cash management purposes.
Derivative Financial Instruments
Derivative financial instruments used by the Company
to manage its exposure to foreign exchange arising from
operational, financing and investment activities are
accounted for as financial assets or liabilities at fair value
through profit or loss.
Subsequent to initial recognition, derivative financial instruments are stated at fair value. The change in value is recorded in net gains/(losses) on financial assets and liabilities through profit or loss in the Statement of Comprehensive Income. Derivative financial assets and derivative financial liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Fair Value All financial assets carried at fair value are initially recognised at fair value which is equivalent to cost and subsequently re-measured at fair value. If independent prices are unavailable, the fair value of the financial asset is estimated by reference to market information which includes, but is not limited to, broker marks, prices of comparable assets and using pricing models incorporating discounted cash flow techniques and valuation techniques such as modelling. These pricing models apply assumptions regarding asset specific factors and economic conditions generally, including delinquency rates, severity rates, prepayment rates, default rates, maturity profiles, interest rates and other factors that may be relevant to each financial asset. The objective of a fair value measurement is to determine the price at which an orderly transaction would take place between market participants on the measurement date, rather than the price arrived at in a forced liquidation or distressed sale. Where the Company has considered all available information and there is evidence that the transaction was forced, it will not use such a transaction price as being determinative of fair value. Note 3 provides specific information regarding the determination of fair value for the Company\u2019s bonds and loans. Foreign Currency Transactions Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are translated to GBP at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in net gains/(losses) on foreign currency translation in the Statement of Comprehensive Income. Foreign currency denominated non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to GBP at foreign exchange rates ruling at the reporting date. Differences arising on translation of these non-monetary assets and liabilities between valuation points are recognised in the Statement of Comprehensive Income. Interest Income Interest income from financial assets at fair value through profit or loss are recognised within interest income in the Statement of Comprehensive Income using the effective interest method. Dividends Dividend distributions due to the Company\u2019s Shareholders are recognised as liabilities in the Company\u2019s financial statements and disclosed in the Statement of Changes in Equity in the period in which the dividends are approved by the Board. Expenses All expenses are included in the Statement of Comprehensive Income on an accrual basis. Taxation The Company is a tax-exempt Guernsey limited company and accordingly, no provision for tax is made. Equity Instruments The only equity instruments are the Company\u2019s Ordinary Shares. Treasury Shares Shares that are reacquired (Treasury Shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue, or cancellation of the Company\u2019s shares. Treasury Shares are not entitled to dividends, and, thus, they are also not included in the calculation of earnings per share. Off-Balance Sheet Financing Arrangements The Company maintained off-balance sheet financing agreements. These facilities are structured using off- balance sheet entities and are secured against specific loans. This financing does not encumber other Company assets, except for a limited recourse loss guarantee (between 25% and 55% subject to the finance provider and the granularity of the collateral) of the borrowed amounts. ", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-138": { "value": "
Statement of Compliance
The financial statements of the Company have been
prepared in accordance with IFRS Accounting Standards
as issued by the International Accounting Standards Board
(\u201cIFRS Accounting Standards\u201d), and the Disclosure
Guidance and Transparency Rules Sourcebook of the
United Kingdom\u2019s FCA, the Listing Rules of the LSE and
applicable legal and regulatory requirements. The same
accounting policies, presentation, and methods of
computation have been followed in these financial
statements as were applied in the preparation of the
Company\u2019s audited financial statements for the year ended
31 March 2025.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-171": { "value": "
New Standards, Amendments and Interpretations Issued
and Effective for the Financial Year Beginning 1 April 2025
The Company has applied the following standards and
amendments for the first time for its reporting year
commencing 1 April 2025:
\u2022 Amendments to IAS 21 \u2013 Lack of Exchangeability
The amendments listed above have no material impact on
the financial statements of the Company.
", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-142": { "value": "New Standards, Amendments and Interpretations Issued and Effective for the Financial Year Beginning 1 April 2025 The Company has applied the following standards and amendments for the first time for its reporting year commencing 1 April 2025: \u2022 Amendments to IAS 21 \u2013 Lack of Exchangeability The amendments listed above have no material impact on the financial statements of the Company. New Standards, Amendments and Interpretations Issued but not Effective for the Financial Year Beginning 1 April 2025 and not Early Adopted The following standards will become effective in future accounting periods and have not been early adopted by the Company. Management is still assessing the potential impact of these standards on the Company\u2019s financial statements: \u2022 Amendments to the Classification and Measurement of Financial Instruments \u2013 Amendments to IFRS 9 and IFRS 7 (1 January 2026) \u2022 IFRS 19 Subsidiaries without Public Accountability: Disclosures (1 January 2027) \u2022 IFRS 18 Presentation and Disclosure in Financial Statements (1 January 2027) ", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-172": { "value": "
New Standards, Amendments and Interpretations Issued
but not Effective for the Financial Year Beginning 1 April
2025 and not Early Adopted
The following standards will become effective in future
accounting periods and have not been early adopted by the
Company. Management is still assessing the potential impact
of these standards on the Company\u2019s financial statements:
\u2022 Amendments to the Classification and Measurement
of Financial Instruments \u2013 Amendments to IFRS 9 and
IFRS 7 (1 January 2026)
\u2022 IFRS 19 Subsidiaries without Public Accountability:
Disclosures (1 January 2027)
\u2022 IFRS 18 Presentation and Disclosure in Financial
Statements (1 January 2027)
", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-141": { "value": "Basis of Preparation The financial statements of the Company are prepared under IFRS Accounting Standards on the historical cost or amortised cost basis except for financial assets and liabilities classified at fair value through profit or loss which have been measured at fair value. The financial assets at fair value through profit or loss include the related interest receivable to reflect the measurement of the Company\u2019s investments as a single unit of account, which includes all cash flows associated with the asset. The functional and presentation currency of the Company is British Pounds (\u201cGBP\u201d or \u201c\u00a3\u201d), which the Board considers best represents the economic environment in which the Company operates. ", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-173": { "value": "The functional and presentation currency of the Company is British Pounds (\u201cGBP\u201d or \u201c\u00a3\u201d), which the Board considers best represents the economic environment in which the Company operates. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-140": { "value": "Going Concern The Directors believe it is appropriate to adopt the going concern basis in preparing the financial statements as, after due consideration, they consider that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing the audited financial statements. In making this assessment, the Directors have taken account of the matters set out below. The Investment Manager performs a granular analysis of the Company\u2019s future liquidity profile based on detailed cash flow modelling of each investment, incorporating the probability of delays in repayments. On a quarterly basis the Board reviews projected cash flows arising from the loan and bond portfolio over the lifetime of the underlying investments including interest income, realisation proceeds, short-term finance obligations and dividend cover. The Board reviews stress testing performed by the Investment Manager on projected cash flows under a number of adverse scenarios, including delays in repayments from loans on the watch list, reduced cash flows from the investment portfolio, the inability to refinance repurchase agreements secured against market bonds and a combination of these events. These scenarios are designed to assess the impact of adverse developments affecting the underlying assets, borrower credit quality and the timing and amount of cash recoveries from the loan portfolio. In the scenario where repurchase facilities cannot be refinanced, it is assumed that the underlying market bonds are sold in an orderly manner to repay the associated borrowings, thereby removing the refinancing risk associated with those facilities. Taking account of the updated forecasting, the Directors consider that the cash and cash equivalents as at 31 March 2026 of \u00a318.5 million, the liquidity of the market bond portfolio and the financing available through activities such as repurchase agreements and off-balance sheet financing as disclosed in Note 12 are sufficient to cover normal operational costs, the funding of borrower loan commitments and current liabilities as they fall due for a period of at least 12 months from the date of signing the audited financial statements. The Directors note that a key assumption adopted in the going concern analysis is that leverage through repurchase agreements for bilateral loans and bonds is not withdrawn. Net debt (leverage minus cash) as at 31 March 2026 was 32.9%. Notwithstanding the Directors\u2019 belief that this assumption remains justifiable, the Directors have also determined a number of mitigations to address a scenario where all outstanding repurchase agreements are required to be settled as they fall due. Whilst there would be a number of competing strategic factors to consider before implementation of such options, the Directors believe that these are credible and can generate sufficient liquidity to enable the Company to meet its obligations as they fall due. Such strategies include cessation or delay of any future dividends, obtaining longer-term and non-recourse financing, and further sales of assets within the bond portfolio. As disclosed in Note 17, as at 31 March 2026, the Company had committed \u00a3492.8 million into the loan and bond portfolio of which \u00a3435.7 million had been funded. The Investment Manager models these expected commitments and only commits further funds if the borrowers meet specific business plan milestones. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-174": { "value": "Financial Assets at Fair Value Through Profit or Loss The Company classifies its investments based on both the Company\u2019s business model for managing those financial assets and the contractual cash flow characteristics of the financial assets. The portfolio of financial assets is managed, and performance is evaluated on a fair value basis. The Company is primarily focused on fair value information and uses that information to assess the assets\u2019 performance and to make decisions. The Company has not taken the option to irrevocably designate any equity participation loans at fair value through other comprehensive income. The contractual cash flows of the Company\u2019s debt securities are not solely principal and interest. The collection of contractual cash flows is only incidental to achieving the Company\u2019s business model\u2019s objective. Consequently, all investments are measured at fair value through profit or loss. The gain or loss on reassessment of fair value is recognised immediately in the Statement of Comprehensive Income. The interest receivable from loans and bonds are reported as part of financial assets at fair value through profit or loss. The related interest income is included under interest income in the Statement of Comprehensive Income. Financial Liabilities at Fair Value Through Profit or Loss Financing agreements entered into for the purpose of efficient portfolio management are designated and measured at fair value through profit or loss. The gain or loss on reassessment of fair value is required to be split into the amount of change in fair value attributable to changes in credit risk of the company for each of its relevant liability, presented in other comprehensive income, and the remaining amount presented in profit or loss. The Company\u2019s gain or loss on reassessment of fair value is recognised immediately in the Statement of Comprehensive Income. Initial Measurement Financial assets and liabilities at fair value through profit or loss are measured initially at fair value, with transaction costs for such financial assets and liabilities being recognised directly in profit or loss within the Statement of Comprehensive Income. Financial assets and liabilities are measured initially at their fair value plus/minus any directly attributable incremental costs of acquisitions or issue. Purchases and sales of financial assets and liabilities at fair value through profit or loss are accounted for at trade date. Subsequent Measurement Following initial recognition, financial assets and financial liabilities classified as fair value through profit or loss are measured at fair value. Following initial recognition, financial assets classified as measured at amortised cost are subsequently measured at amortised cost using the effective interest method, less any expected credit losses. Financial liabilities classified as measured at amortised cost are subsequently measured at amortised cost using the effective interest method. Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset, and the transfer qualifies for derecognition in accordance with IFRS 9. The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or has expired. Realised gain/(loss) on disposals of financial assets and liabilities is calculated using the first-in, first-out (\u201cFIFO\u201d) method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-143": { "value": "Financial Assets at Fair Value Through Profit or Loss The Company classifies its investments based on both the Company\u2019s business model for managing those financial assets and the contractual cash flow characteristics of the financial assets. The portfolio of financial assets is managed, and performance is evaluated on a fair value basis. The Company is primarily focused on fair value information and uses that information to assess the assets\u2019 performance and to make decisions. The Company has not taken the option to irrevocably designate any equity participation loans at fair value through other comprehensive income. The contractual cash flows of the Company\u2019s debt securities are not solely principal and interest. The collection of contractual cash flows is only incidental to achieving the Company\u2019s business model\u2019s objective. Consequently, all investments are measured at fair value through profit or loss. The gain or loss on reassessment of fair value is recognised immediately in the Statement of Comprehensive Income. The interest receivable from loans and bonds are reported as part of financial assets at fair value through profit or loss. The related interest income is included under interest income in the Statement of Comprehensive Income. Financial Liabilities at Fair Value Through Profit or Loss Financing agreements entered into for the purpose of efficient portfolio management are designated and measured at fair value through profit or loss. The gain or loss on reassessment of fair value is required to be split into the amount of change in fair value attributable to changes in credit risk of the company for each of its relevant liability, presented in other comprehensive income, and the remaining amount presented in profit or loss. The Company\u2019s gain or loss on reassessment of fair value is recognised immediately in the Statement of Comprehensive Income. Financial Assets at Amortised Cost A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. This includes cash and cash equivalents, cash collateral held at broker and other assets. Financial Liabilities at Amortised Cost Financial liabilities at amortised cost include all other liabilities not measured at fair value through profit or loss. This includes cash collateral due to broker and other liabilities. Initial Measurement Financial assets and liabilities at fair value through profit or loss are measured initially at fair value, with transaction costs for such financial assets and liabilities being recognised directly in profit or loss within the Statement of Comprehensive Income. Financial assets and liabilities are measured initially at their fair value plus/minus any directly attributable incremental costs of acquisitions or issue. Purchases and sales of financial assets and liabilities at fair value through profit or loss are accounted for at trade date. Subsequent Measurement Following initial recognition, financial assets and financial liabilities classified as fair value through profit or loss are measured at fair value. Following initial recognition, financial assets classified as measured at amortised cost are subsequently measured at amortised cost using the effective interest method, less any expected credit losses. Financial liabilities classified as measured at amortised cost are subsequently measured at amortised cost using the effective interest method. Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset, and the transfer qualifies for derecognition in accordance with IFRS 9. The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or has expired. Realised gain/(loss) on disposals of financial assets and liabilities is calculated using the first-in, first-out (\u201cFIFO\u201d) method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-190": { "value": "Financial Assets at Fair Value Through Profit or Loss The Company classifies its investments based on both the Company\u2019s business model for managing those financial assets and the contractual cash flow characteristics of the financial assets. The portfolio of financial assets is managed, and performance is evaluated on a fair value basis. The Company is primarily focused on fair value information and uses that information to assess the assets\u2019 performance and to make decisions. The Company has not taken the option to irrevocably designate any equity participation loans at fair value through other comprehensive income. The contractual cash flows of the Company\u2019s debt securities are not solely principal and interest. The collection of contractual cash flows is only incidental to achieving the Company\u2019s business model\u2019s objective. Consequently, all investments are measured at fair value through profit or loss. The gain or loss on reassessment of fair value is recognised immediately in the Statement of Comprehensive Income. The interest receivable from loans and bonds are reported as part of financial assets at fair value through profit or loss. The related interest income is included under interest income in the Statement of Comprehensive Income. Financial Assets at Amortised Cost A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. This includes cash and cash equivalents, cash collateral held at broker and other assets. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-189": { "value": "Financial Liabilities at Fair Value Through Profit or Loss Financing agreements entered into for the purpose of efficient portfolio management are designated and measured at fair value through profit or loss. The gain or loss on reassessment of fair value is required to be split into the amount of change in fair value attributable to changes in credit risk of the company for each of its relevant liability, presented in other comprehensive income, and the remaining amount presented in profit or loss. The Company\u2019s gain or loss on reassessment of fair value is recognised immediately in the Statement of Comprehensive Income. Financial Liabilities at Amortised Cost Financial liabilities at amortised cost include all other liabilities not measured at fair value through profit or loss. This includes cash collateral due to broker and other liabilities. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-191": { "value": "Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset, and the transfer qualifies for derecognition in accordance with IFRS 9. The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or has expired. Realised gain/(loss) on disposals of financial assets and liabilities is calculated using the first-in, first-out (\u201cFIFO\u201d) method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-148": { "value": "Investment Entity for Unconsolidated Structures/Entities The Directors have determined that the Company meets the definition of an investment entity as set out in IFRS 10 Consolidated Financial Statements, on the basis that the Company: a) Obtains funds from one or more investors for the purpose of providing those investors with investment management services in respect of real estate credit investments; b) Has committed to its investors that its business purpose is to invest funds solely with a view to generating returns through capital appreciation, investment income (principally interest income from its loan and bond portfolio), or both; and c) Measures and evaluates the performance of substantially all of its investments including its bilateral loans, bonds and interests in structured entities \u2014 on a fair value basis. In accordance with the investment entity exception under IFRS 10, the Company does not consolidate the entities in which it invests. Instead, the Company recognises its interests in such entities (including the unconsolidated structured entities disclosed in Note 11, such as RELF and the Cheyne French Funding Sub-Funds) as investments measured at fair value through profit or loss in accordance with IFRS 9. ", "dimensions": { "concept": "reci:DescriptionOfAccountingPolicyForInvestmentEntityForUnconsolidatedStructuresEntities", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-144": { "value": "Cash and Cash Equivalents Cash and cash equivalents includes amounts held in interest bearing accounts with original maturities of less than three months and are used for cash management purposes. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-146": { "value": "Derivative Financial Instruments Derivative financial instruments used by the Company to manage its exposure to foreign exchange arising from operational, financing and investment activities are accounted for as financial assets or liabilities at fair value through profit or loss.
Subsequent to initial recognition, derivative financial
instruments are stated at fair value. The change in value
is recorded in net gains/(losses) on financial assets and
liabilities through profit or loss in the Statement of
Comprehensive Income. Derivative financial assets and
derivative financial liabilities are offset and the net amount
reported in the Statement of Financial Position when there
is a legally enforceable right to offset the recognised amounts
and there is an intention to settle on a net basis or realise
the asset and settle the liability simultaneously.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-145": { "value": "
Fair Value
All financial assets carried at fair value are initially recognised
at fair value which is equivalent to cost and subsequently
re-measured at fair value. If independent prices are
unavailable, the fair value of the financial asset is estimated
by reference to market information which includes, but is
not limited to, broker marks, prices of comparable assets and
using pricing models incorporating discounted cash flow
techniques and valuation techniques such as modelling.
These pricing models apply assumptions regarding asset
specific factors and economic conditions generally, including
delinquency rates, severity rates, prepayment rates, default
rates, maturity profiles, interest rates and other factors that
may be relevant to each financial asset.
The objective of a fair value measurement is to determine
the price at which an orderly transaction would take place
between market participants on the measurement date,
rather than the price arrived at in a forced liquidation or
distressed sale. Where the Company has considered all
available information and there is evidence that the transaction
was forced, it will not use such a transaction price as being
determinative of fair value.
Note 3 provides specific information regarding the
determination of fair value for the Company\u2019s bonds
and loans.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-147": { "value": "
Foreign Currency Transactions
Transactions in foreign currencies are translated at the
foreign exchange rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign
currencies at the Statement of Financial Position date are
translated to GBP at the foreign exchange rate ruling at
that date.
Foreign exchange differences arising on translation are
recognised in net gains/(losses) on foreign currency
translation in the Statement of Comprehensive Income.
Foreign currency denominated non-monetary assets and
liabilities that are measured in terms of historical cost in a
foreign currency are translated using the exchange rate at
the date of transaction.
Non-monetary assets and liabilities denominated in foreign
currencies that are stated at fair value are translated to GBP
at foreign exchange rates ruling at the reporting date.
Differences arising on translation of these non-monetary
assets and liabilities between valuation points are recognised
in the Statement of Comprehensive Income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-150": { "value": "
Interest Income
Interest income from financial assets at fair value through
profit or loss are recognised within interest income in the
Statement of Comprehensive Income using the effective
interest method.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-175": { "value": "Interest Income Interest income from financial assets at fair value through profit or loss are recognised within interest income in the Statement of Comprehensive Income using the effective interest method. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-154": { "value": "
Dividends
Dividend distributions due to the Company\u2019s Shareholders
are recognised as liabilities in the Company\u2019s financial
statements and disclosed in the Statement of Changes in
Equity in the period in which the dividends are approved by
the Board.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-149": { "value": "
Expenses
All expenses are included in the Statement of Comprehensive
Income on an accrual basis.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-151": { "value": "
Taxation
The Company is a tax-exempt Guernsey limited company
and accordingly, no provision for tax is made.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-156": { "value": "
Equity Instruments
The only equity instruments are the Company\u2019s Ordinary Shares.
", "dimensions": { "concept": "reci:DescriptionOfAccountingPolicyForEquityInstruments", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-152": { "value": "
Treasury Shares
Shares that are reacquired (Treasury Shares) are recognised
at cost and deducted from equity. No gain or loss is
recognised in profit or loss on the purchase, sale, issue, or
cancellation of the Company\u2019s shares. Treasury Shares are
not entitled to dividends, and, thus, they are also not included
in the calculation of earnings per share.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-155": { "value": "
Off-Balance Sheet Financing Arrangements
The Company maintained off-balance sheet financing
agreements. These facilities are structured using off-
balance sheet entities and are secured against specific
loans. This financing does not encumber other Company
assets, except for a limited recourse loss guarantee
(between 25% and 55% subject to the finance provider and
the granularity of the collateral) of the borrowed amounts.
", "dimensions": { "concept": "reci:DescriptionOfAccountingPolicyForOffBalanceSheetFinancingArrangements", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-153": { "value": "
3. Critical Accounting Judgements and Key Sources
of Estimation Uncertainty
In the process of applying the Company\u2019s accounting
policies (described in Note 2), the Company has determined
that the following judgements and estimates have the
most significant effect on the amounts recognised in the
financial statements:
Critical Accounting Judgements
Classification of Bilateral Loan and Bond and Equity
Participation Loans as Financial Assets at Fair Value Through
Profit or Loss
As described on pages 72 to 73, classification and
measurement of financial assets under IFRS 9 are driven
by the entity\u2019s business model for managing financial
assets and the contractual cash flow characteristics of
those financial assets.
In making the judgement regarding ENIV S.\u00e0 r.l. and Real
Estate Loan Funding (\u201cRELF\u201d), the Directors have considered
the power the Company has to influence the investment
decisions of the Special Purpose Vehicle (\u201cSPV\u201d) housing the
underlying loans and where the Company holds the majority
interest it has been determined that the contractual cash
flow characteristics for a basic lending arrangement would
not be met. However, IFRS 9 also requires an assessment
of the business model within which assets are held. In the
case of the Company\u2019s loan investments the Directors
have determined that they monitor and evaluate business
performance, manage risk and compensate the Investment
Manager based on fair value measures. The business model
is therefore not solely for holding and collecting contractual
cash flows to maturity and requires all loan investments to
be measured at fair value through profit or loss.
The Company\u2019s bond investments are classified and
measured at fair value through profit or loss in accordance
with the above fact pattern.
Were it to be determined that the business model for managing
financial assets and the contractual cash flow characteristics
of those financial assets were not as described above, these
assets would be classified and measured at amortised cost
with provisions made for expected credit losses and changes
to expected credit losses at each reporting date.
As further described on page 72, the contractual cash flow
characteristics for loan investments are not solely payments
of principal and interest. For the loans held via ENIV S.\u00e0 r.l. and
RELF, the Company receives the return for each underlying
loan net of expenses and so it is not considered to be a basic
lending arrangement under the standard. As such, these loan
investments are required to be measured at fair value through
profit or loss. The loans held via ENIV S.\u00e0 r.l. are listed and
considered bonds.
Key Sources of Estimation Uncertainty
Valuation of Bilateral Loan and Bond and Equity
Participation Loans at Fair Value Through Profit or Loss
The Company has invested in loans and bonds which are not
traded in an active market and there are no independent
quotes available for these loans. The fair values of these
investments are determined using valuation techniques such
as discounted cash flows models. The rate used to discount
future cash flows represents key source of estimation
uncertainty that has material impact on the valuation of the
investment portfolio.
In the absence of market observable inputs, this uncertainty
translates into a wide range of appropriate discount rates.
The Investment Manager believes that the loan or bond\u2019s
own effective yield represents the most appropriate point
estimate within that range.
The Investment Manager has considered relevant geopolitical
and macroeconomic factors including the development of
market interest rate and continues to believe that this key
judgement remains appropriate due to the bespoke nature
of the investment portfolio and the dislocation between the
yield of these assets and the market interest rate. The fair
value of these loans is linked directly to the value of the
real estate loans in the underlying structure the Company
invests in, which are determined based on modelled expected
cash flows (drawdown principal and interest repayments,
and maturity dates) with effective yields ranging from 7.7%
to 14.0% (31 March 2025: 7.1% to 11.7%).
Adjustments in the fair value of the real estate loans are
considered in light of changes in the credit quality of the
borrower and underlying property collateral. On origination
of the loan, the Investment Manager performs due diligence
on the borrower and related security/property. This includes
obtaining a valuation of the underlying property (to assess
LTV of the investment). In most instances, the terms of the
loan require periodic revaluation of the underlying property
to check against LTV covenants.
The valuation policy for contingent fees and potential profit
participations provided for in contractual arrangements is
to mark them at fair value. The profit participation features
will initially be valued at cost, with subsequent revaluations
triggered by specific threshold or development events.
To determine the exit value, a third-party valuation of the
underlying assets will be typically used, or an accepted sale
price if available.
The Company has been closely monitoring this and indeed
all other material macro sources of uncertainty-related
developments, such as increased interest rates, heightened
inflation, supply chain disruption, and the effects of climate
change, and less direct impact factors such as the continuing
impact of conflicts around the world and cyber security, to
ensure that these updated assumptions and any potential
impact have been reflected in the valuation of financial
assets at fair value through profit or loss as at 31 March 2026.
Future valuation might change significantly in the future.
Further details relating to the Company\u2019s valuation of bilateral
loans and bonds and sensitivity analysis is disclosed in
Notes 14(a) and 14(d).
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-176": { "value": "Key Sources of Estimation Uncertainty Valuation of Bilateral Loan and Bond and Equity Participation Loans at Fair Value Through Profit or Loss The Company has invested in loans and bonds which are not traded in an active market and there are no independent quotes available for these loans. The fair values of these investments are determined using valuation techniques such as discounted cash flows models. The rate used to discount future cash flows represents key source of estimation uncertainty that has material impact on the valuation of the investment portfolio. In the absence of market observable inputs, this uncertainty translates into a wide range of appropriate discount rates. The Investment Manager believes that the loan or bond\u2019s own effective yield represents the most appropriate point estimate within that range. The Investment Manager has considered relevant geopolitical and macroeconomic factors including the development of market interest rate and continues to believe that this key judgement remains appropriate due to the bespoke nature of the investment portfolio and the dislocation between the yield of these assets and the market interest rate. The fair value of these loans is linked directly to the value of the real estate loans in the underlying structure the Company invests in, which are determined based on modelled expected cash flows (drawdown principal and interest repayments, and maturity dates) with effective yields ranging from 7.7% to 14.0% (31 March 2025: 7.1% to 11.7%). Adjustments in the fair value of the real estate loans are considered in light of changes in the credit quality of the borrower and underlying property collateral. On origination of the loan, the Investment Manager performs due diligence on the borrower and related security/property. This includes obtaining a valuation of the underlying property (to assess LTV of the investment). In most instances, the terms of the loan require periodic revaluation of the underlying property to check against LTV covenants. The valuation policy for contingent fees and potential profit participations provided for in contractual arrangements is to mark them at fair value. The profit participation features will initially be valued at cost, with subsequent revaluations triggered by specific threshold or development events. To determine the exit value, a third-party valuation of the underlying assets will be typically used, or an accepted sale price if available. The Company has been closely monitoring this and indeed all other material macro sources of uncertainty-related developments, such as increased interest rates, heightened inflation, supply chain disruption, and the effects of climate change, and less direct impact factors such as the continuing impact of conflicts around the world and cyber security, to ensure that these updated assumptions and any potential impact have been reflected in the valuation of financial assets at fair value through profit or loss as at 31 March 2026. Future valuation might change significantly in the future. Further details relating to the Company\u2019s valuation of bilateral loans and bonds and sensitivity analysis is disclosed in Notes 14(a) and 14(d).", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-157": { "value": "
4. Net (Losses)/Gains on Financial Assets and Liabilities at Fair Value through Profit or Loss
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Net gains/(losses)
Net gains on market bond portfolio
532
1,026
Net losses on bilateral loan and bond portfolio
(2,722)
(5,511)
Net (losses)/gains on equity participation loans
(2,167)
3,460
Net (losses)/gains on forward foreign exchange contracts
(2,813)
4,655
Net (losses)/gains on financial assets and liabilities at fair value through profit or loss
(7,170)
3,630
9. Categories of Financial Instruments The following table details the categories of financial assets and liabilities held by the Company at the year end date.
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Assets
Financial assets at fair value through profit or loss:
Real Estate Credit Investments \u2013 market bond portfolio
9,371
6,812
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
379,061
344,857
Real Estate Credit Investments \u2013 equity participation loans
16,043
17,809
Financial assets at fair value through profit or loss
404,475
369,478
Financial assets at amortised cost:
Cash and cash equivalents
18,513
19,295
Cash collateral held at broker
2,250
2,866
Interest receivable
117
\u2013
Other assets
9
72
Total assets
425,364
391,711
Liabilities
Financial liabilities at fair value through profit or loss:
Financing agreements
118,436
70,850
Derivative financial liabilities:
Forward foreign exchange contracts
348
213
Financial liabilities at amortised cost:
Other liabilities
692
2,292
Total liabilities
119,476
73,355
The value of the market bond portfolio was \u00a39.3 million as at 31 March 2026, excluding accrued interest of \u00a30.08 million (31 March 2025: \u00a36.7 million, excluding accrued interest of \u00a30.1 million); and the value of the bilateral loan and bond portfolios were \u00a3366.6 million as at 31 March 2026, excluding accrued interest of \u00a312.5 million (31 March 2025: \u00a3334.0 million, excluding accrued interest of \u00a310.9 million). See Note 14 for a summary of the movement in fair value in the Company\u2019s investments for the year.
14. Financial Instruments and Associated Risks
The Company\u2019s investment activities expose it to various types of risk which are associated with the financial instruments and
markets in which it invests. The Company\u2019s risk management policies seek to minimise the potential adverse effects of these
risks on the Company\u2019s financial performance.
The financial risks to which the Company is exposed include market risks (including foreign currency risk and interest rate risk),
credit risk, liquidity risk and prepayment and re-investment risks. In certain instances, as described more fully below, the Company
enters into derivative transactions in order to help mitigate particular types of risk.
(a) Market Risks
Market risk is the risk that the fair value and future cash flows of a financial instrument will fluctuate because of changes in market
factors. Market risk comprises foreign currency risk, interest rate risk and other price risk.
The Company\u2019s strategy on the management of market risk is driven by the Company\u2019s investment objectives which in respect
of the Company is to invest primarily in debt secured by commercial or residential properties in the United Kingdom and
Western Europe.
The Company\u2019s market risk is managed on a daily basis by the Investment Manager in accordance with policies and procedures
detailed below.
The sensitivity analysis below is based on a change in one variable while holding all other variables constant. In practice, this
is unlikely to occur, and changes in some of the assumptions may be correlated \u2013 for example, change in foreign currency rate
and change in market values. In addition, as the sensitivity analysis uses historical data as a basis for determining future events,
it does not encompass all possible scenarios, particularly those that are of an extreme nature. The sensitivity analyses are based
on the Investment Manager\u2019s best estimate of reasonably possible changes in interest rates and foreign currency rates. In practice
the actual trading results may differ from the sensitivity analyses in the following pages and the differences may be material.
(i) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates.
The primary purpose of the Company\u2019s foreign currency economic hedging activities is to protect against the volatility associated
with investments denominated in foreign currencies and other financial assets and liabilities created in the normal course
of business.
The Company is exposed to risks that the exchange rate of its currency relative to other foreign currencies may change in a
manner that has an adverse effect on the value of that portion of the Company\u2019s financial assets or liabilities denominated in
currencies other than GBP.
The Company manages its foreign exchange exposure with forward foreign exchange contracts with the objective of keeping
its residual foreign currency exposure to a minimum.
The currency profile of the Company, including derivatives at fair value, at the year end date was as follows:
As at 31 March 2026:
Forward Foreign
Net
Monetary
Monetary
Exchange
currency
Assets
Liabilities
Contracts
exposure
Currency
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP
267,550
(73,099)
112,983
307,434
EUR
157,811
(46,029)
(113,331)
(1,549)
USD
3
\u2013
\u2013
3
425,364
(119,128)
(348)
305,888
As at 31 March 2025:
Forward Foreign
Net
Monetary
Monetary
Exchange
currency
Assets
Liabilities
Contracts
exposure
Currency
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP
277,508
(65,257)
110,467
322,718
EUR
114,196
(7,885)
(110,680)
(4,369)
USD
7
\u2013
\u2013
7
391,711
(73,142)
(213)
318,356
The notional amounts of the forward foreign exchange contracts outstanding were \u00a3117.7 million (31 March 2025: \u00a3123.3 million). As at 31 March 2026, if the GBP strengthened by 5% or 10% in relation to all currency exposures of the Company, with all other variables held constant, the equity of the Company and the net profit/(loss) per the Statement of Comprehensive Income would have changed by the amounts shown below. The analysis was performed on the same basis for 2025.
31 Mar 2026
31 Mar 2025
By 5%
GBP\u2019000
GBP\u2019000
EUR
(77)
(218)
Total
(77)
(218)
31 Mar 2026
31 Mar 2025
By 10%
GBP\u2019000
GBP\u2019000
EUR
(155)
(437)
USD
\u2013
1
Total
(155)
(436)
A 5% or 10% weakening of the GBP against the above currencies would have resulted in an equal but opposite effect on the equity of the Company and net profit/(loss) per the Statement of Comprehensive Income to the amounts shown above, on the basis that all other variables remained constant. The sensitivity analysis reflects how the equity of the Company would have been affected by changes in the relevant risk variable that were reasonably possible at the reporting date. Management has determined that a fluctuation of 5% in foreign exchange rates is reasonably possible, considering the environment in which the Company operates. (ii) Interest Rate Risk Interest rate risk is the risk that the fair value and future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company\u2019s interest rate risk is managed by the Investment Manager in accordance with policies and procedures detailed below. The Company invests in fixed and floating rate real estate related debt assets (which includes loans and bonds). Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest rates on the fair value of financial assets and liabilities and future cash flow. A fundamental principle of bond investing is that market interest rates and bond prices generally move in opposite directions. When market interest rates rise, prices of fixed-rate bonds fall. However, as explained under the key sources of estimation uncertainty in Note 3, the Board believes that for bilateral loans and bonds, the instrument\u2019s own effective yield represents the most appropriate rate to discount future cash flows. The use of this judgement limits the impact of the fluctuations in market interest rates on the valuation of the bilateral bonds and loans portfolio. The Board in conjunction with the Investment Manager has considered relevant geopolitical and macroeconomic factors including the development of market interest rates during the year and continues to believe that this key judgement remains appropriate due to the bespoke nature of the investment portfolio, the short-term nature of the investments \u2014 characterised by their near-term maturity dates and limited exposure to long-duration interest rate risk \u2014 and the dislocation between the yield of these assets and the market interest rates. Had movement in market interest rates been fully reflected in the valuation of fixed-rate assets held by the Company, the estimated impact of a rise of 1% (100 basis points) or 5% (500 basis points) (31 March 2025: 1% (100 basis points) or 5% (500 basis points)) on the NAV of the Company would be a decrease of \u00a31.0 million or \u00a35.1 million (31 March 2025: \u00a34.8 million or \u00a324.0 million), respectively. A decrease in interest rates by 1% (100 basis points) or 5% (500 basis points) is estimated to result in an increase in the NAV of the Company by a similar amount. These estimates are calculated based on the fair value of the fixed-rate securities, including accrued interest held by the Company as at 31 March 2026 and 31 March 2025, and their weighted average lives. This analysis excludes variable rate instruments, as market interest rate movements are inherently captured in their valuations. For the floating rate portion of the portfolio, which represents 53% (31 March 2025: 27%) of total investments, a 1% (100 basis points) increase in interest rates would increase annual income by approximately \u00a30.5 million (31 March 2025: \u00a31.9 million), while a 1% (100 basis points) decrease would reduce annual income by approximately \u00a30.5 million (31 March 2025: \u00a31.9 million). This analysis assumes all other variables remain constant and is based on the floating rate exposure at the reporting date. The interest rate profile of the Company as at 31 March 2026 was as follows:
Non-interest
Fixed
Floating
bearing
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
163,030
212,824
28,621
1
404,475
Cash and cash equivalents
\u2013
18,513
\u2013
18,513
Cash collateral held at broker
\u2013
2,250
\u2013
2,250
Interest receivable
\u2013
\u2013
117
117
Other assets
\u2013
\u2013
9
9
Financing agreements
\u2013
(117,616)
(820)
2
(118,436)
Derivative financial liabilities \u2013
forward foreign exchange contracts
\u2013
\u2013
(348)
(348)
Other liabilities
\u2013
\u2013
(692)
(692)
Total
163,030
115,971
26,887
305,888
1 Accrued interest and equity participation loans related to financial assets at fair value through profit or loss. 2 Interest payable related to financing agreements. The maturity profile of the Company as at 31 March 2026 was as follows:
Within
One to
Over
one year
five years
five years
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
78,885
317,350
8,240
404,475
Cash and cash equivalents
18,513
\u2013
\u2013
18,513
Cash collateral held at broker
2,250
\u2013
\u2013
2,250
Interest receivable
117
\u2013
\u2013
117
Other assets
9
\u2013
\u2013
9
Financing agreements
(70,717)
(47,719)
\u2013
(118,436)
Derivative financial liabilities \u2013
forward foreign exchange contracts
(348)
\u2013
\u2013
(348)
Other liabilities
(692)
\u2013
\u2013
(692)
Net assets
28,017
269,631
8,240
305,888
The interest rate profile of the Company as at 31 March 2025 was as follows:
Non-interest
Fixed
Floating
bearing
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
240,375
100,323
28,780
1
369,478
Cash and cash equivalents
\u2013
19,295
\u2013
19,295
Cash collateral held at broker
\u2013
2,866
\u2013
2,866
Other assets
\u2013
\u2013
72
72
Financing agreements
\u2013
(69,931)
(919)
2
(70,850)
Derivative financial liabilities \u2013
forward foreign exchange contracts
\u2013
\u2013
(213)
(213)
Other liabilities
\u2013
\u2013
(2,292)
(2,292)
Total
240,375
52,553
25,428
318,356
1
Accrued interest and equity participation loans related to financial assets at fair value through profit or loss.
2
Interest payable related to financing agreements.
The maturity profile of the Company as at 31 March 2025 was as follows:
Within
One to
Over
one year
five years
five years
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
183,567
184,244
1,667
369,478
Cash and cash equivalents
19,295
\u2013
\u2013
19,295
Cash collateral held at broker
2,866
\u2013
\u2013
2,866
Other assets
72
\u2013
\u2013
72
Financing agreements
(70,850)
\u2013
\u2013
(70,850)
Derivative financial liabilities \u2013
forward foreign exchange contracts
(213)
\u2013
\u2013
(213)
Other liabilities
(2,292)
\u2013
\u2013
(2,292)
Net assets
132,445
184,244
1,667
318,356
The value of the asset-backed securities will fluctuate as a result of changes in market prices (other than those arising from
foreign currency risk or interest rate risk), whether caused by factors specific to an individual investment, its issuer or all factors
affecting all instruments traded in the market. The loans in the Company are recorded at fair value on initial recognition and
subsequent measurement.
(b) Credit Risk
Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has
entered into with the Company.
The Board manages credit risk associated with its investments in bonds by investing primarily in senior real estate debt related
securities backed by real estate in the United Kingdom and Europe. There is credit risk that the assets collateralising the investments
do not perform as expected and accordingly the underlying loans are not, or only partially, repaid. The Investment Manager
evaluates changes in actual performance on a regular basis.
The Company has credit exposure in relation to its financial assets with The Bank of New York Mellon (International) Limited with
the credit quality of AA- (31 March 2025: AA-) according to Standard and Poor\u2019s long-term senior debt rating. The Company\u2019s
cash and cash equivalents are held with The Bank of New York Mellon (International) Limited.
The Company also has credit exposure to JPMorgan Chase Bank N.A. in relation to cash collateral held, which has a credit rating
of AA- (31 March 2025: AA-) according to Standard and Poor\u2019s.
The Company measures credit risk and expected credit losses using probability of default, exposure at default and loss given
default. The Board considers both historical analysis and forward-looking information in determining any expected credit loss.
The Board considers the probability of default to be close to zero as these instruments have a low risk of default and the
counterparties have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been
recognised based on 12-month expected credit losses as any such impairment would be wholly insignificant to the Company.
The expected credit losses on cash and cash equivalents, cash collateral held at broker, and interest receivable have also been
assessed under IFRS 9 and are considered immaterial due to the high credit quality of the counterparties and the short-term
nature of these instruments. Accordingly, no loss allowance has been recognised for these financial assets.
The Company\u2019s maximum exposure to credit risk for financial assets is as follows:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Instrument
Real Estate Credit Investments \u2013 market bond portfolio
9,371
6,812
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
1
455,459
451,861
Real Estate Credit Investments \u2013 equity participation loans
1
16,651
16,790
Cash and cash equivalents
18,513
19,295
Cash collateral held at broker
2,250
2,866
Interest receivable
117
\u2013
Total
502,361
497,624
1
Includes undrawn commitments.
The following tables set out the Company\u2019s credit exposure by geography and financial instrument type as at 31 March 2026
and 31 March 2025:
Market bond
Bilateral loan and
Equity
portfolio
bond portfolio
participation loans
Total
% of
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
net assets
France
\u2013
70,878
9,208
80,086
26.18%
Germany
\u2013
3,243
\u2013
3,243
1.06%
Italy
1,051
23,154
\u2013
24,205
7.91%
Spain
\u2013
46,965
\u2013
46,965
15.35%
United Kingdom
8,320
234,821
6,835
249,976
81.73%
Total
9,371
379,061
16,043
404,475
132.23%
Market bond
Bilateral loan and
Equity
portfolio
bond portfolio
participation loans
Total
% of
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
net assets
France
\u2013
77,913
10,023
87,936
27.62%
Germany
\u2013
2,868
\u2013
2,868
0.90%
Italy
1,688
\u2013
\u2013
1,688
0.53%
Luxembourg
\u2013
12
\u2013
12
0.00%
Spain
\u2013
9,936
\u2013
9,936
3.12%
United Kingdom
5,124
254,128
7,786
267,038
83.89%
Total
6,812
344,857
17,809
369,478
116.06%
The following table sets out the Company\u2019s credit exposure by sector as at 31 March 2026 and 31 March 2025:
31 Mar 2026 % of 31 Mar 2025 % of
Sector GBP\u2019000 net assets GBP\u2019000 net assets
Co-living
37,994
12.42%
33,502
10.52%
Hotel
151,572
49.55%
113,483
35.65%
Office
46,503
15.20%
35,128
11.03%
Residential
34,056
11.13%
30,736
9.65%
Student accommodation
66,963
21.89%
58,517
18.38%
Others
67,387
22.03%
98,112
30.82%
Total
404,475
132.23%
369,478
116.06%
Market Bond Portfolio
The Company is exposed to credit risk arising from investments in asset-backed securities. The value of these instruments may
be adversely affected by defaults by issuers or other events impacting the credit quality of the underlying assets. The Board
manages this risk through ongoing monitoring of its investment portfolio and regular review of the credit quality of counterparties
on at least a monthly basis.
Bilateral Loan and Bond Portfolio
The Company is exposed to credit risk arising from its investments in loans and bonds. Borrowers may default on their obligations
or experience events which adversely affect the value of these instruments. Default may arise from non-payment of principal
or interest, or from breaches of loan covenants. In the event of default, the Company may incur a loss of principal and accrued
interest, which could have a material adverse effect on its investments.
The Board seeks to mitigate this risk through due diligence at the time of investment and ongoing monitoring of its portfolio,
including assessment of borrower credit quality, underlying asset performance, and compliance with loan and bond covenants.
This monitoring is performed on at least a quarterly basis.
The Company\u2019s total investment in the bilateral loan and bond portfolio as at 31 March 2026 amounted to \u00a3379.1 million (31 March
2025: \u00a3344.9 million) which includes accrued interest on loans and bonds of \u00a312.5 million (31 March 2025: \u00a310.9 million) at this date.
The Company\u2019s total credit risk exposure includes an additional \u00a32.9 million (31 March 2025: \u00a39.3 million) relating to partial
guarantee provided for off-balance sheet loan financing arrangements. These contingent obligations, while not recognised on
the Statement of Financial Position, represent potential credit risk exposure that supplements our reported risk position. The
Board has assessed the probability of outflows under these guarantees as remote and accordingly no provision has been
recognised in the financial statements.
Derivative Contracts
Transactions involving derivative instruments are usually with counterparties with whom the Company has signed master netting
agreements. Master netting agreements provide for the net settlement of contracts with the same counterparty in the event of
default. The impact of the master netting agreements is to reduce credit risk from the amounts shown as derivative financial assets
in the Statement of Financial Position. The credit risk associated with derivative financial assets subject to a master netting
arrangement is eliminated only to the extent that financial liabilities due to the same counterparty will be settled after the assets
are realised.
The exposure to credit risk reduced by master netting arrangements may change significantly within a short period of time as a
result of transactions subject to the arrangement. The corresponding assets and liabilities have not been offset in the Statement
of Financial Position.
Custody
The Company monitors its credit risk by monitoring the credit quality of The Bank of New York Mellon (International) Limited,
as reported by Standard and Poor\u2019s or Moody\u2019s.
If the credit quality or the financial position of The Bank of New York Mellon (International) Limited were to deteriorate significantly,
the Investment Manager will seek to move the Company\u2019s assets to another bank. The Bank of New York Mellon (International)
Limited is a Trust Company with a credit quality of Aa1 at the reporting date (31 March 2025: Aa1) according to Moody\u2019s.
(c) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities.
The Company\u2019s policy and the Investment Manager\u2019s approach to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due, under both normal and stress conditions, without incurring
unacceptable losses or risking damage to the Company\u2019s reputation.
In managing the Company\u2019s assets, therefore, the Investment Manager seeks to ensure that the Company holds at all times a
sufficient portfolio of assets listed on recognised investment exchanges to enable it to discharge its payment obligations. The
Investment Manager monitors the Company\u2019s liquidity position on a daily basis. Where needed, the Investment Manager will
liquidate positions to increase cash or reduce leverage.
The market for subordinated asset-backed securities including real estate loans into which the Company is invested, is illiquid.
In addition, investments that the Company purchases in privately negotiated (also called \u201cover-the-counter\u201d or \u201cOTC\u201d) transactions
may not be registered under relevant securities laws or otherwise may not be freely tradable, resulting in restrictions on their
transfer, sale, pledge or other disposition except in a transaction that is exempt from the registration requirements of, or is
otherwise in accordance with, those laws. As a result of this illiquidity, the Company\u2019s ability to vary its portfolio in a timely fashion
and to receive a fair price in response to changes in economic and other conditions may be limited.
Furthermore, where the Company acquires investments for which there is not a readily available market, the Company\u2019s ability
to deal in any such investment or obtain reliable information about the value of such investment or risks to which such investment
is exposed may be limited.
The Company manages liquidity risk arising from off-balance sheet financing arrangements by seeking to align the maturity of
such arrangements with the maturity profile of the underlying loans. Repurchase arrangements are managed separately. The
contractual maturity for repurchase arrangements relating to market bond positions is typically six months, with the expectation
that such financing will be rolled over. For bilateral positions, the maturity period is generally determined by the earlier of the
maturity of the underlying loan and the maturity of the Company\u2019s committed repo facility although in certain circumstances
financing may extend beyond the maturity of the committed facility in order to better align with the maturity of the underlying
asset. The Company\u2019s committed repo facility matures on 30 September 2026 and renewal is subject to negotiation, although
the Directors currently expect the facility to be renewed.
The following tables detail the current and long-term financial liabilities of the Company at the year end date:
Less than
3 months
Greater than
1 month
1-3 months
to 1 year
1 year
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial liabilities excluding derivatives
Financing agreements
\u2013
41,329
29,388
47,719
Other liabilities
\u2013
692
\u2013
\u2013
\u2013
42,021
29,388
47,719
Less than
3 months
Greater than
1 month
1-3 months
to 1 year
1 year
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial liabilities excluding derivatives
Financing agreements
51,376
18,655
819
\u2013
Other liabilities
\u2013
2,292
\u2013
\u2013
51,376
20,947
819
\u2013
(d) Valuation of Financial Instruments
IFRS 13 Fair Value Measurement requires disclosures surrounding the level in the fair value hierarchy in which fair value measurement
inputs are categorised for financial assets and liabilities measured in the Statement of Financial Position. The determination of the
fair value for financial assets and liabilities for which there is no observable market price requires the use of valuation techniques
as described in Note 2, Material accounting policies and in Note 3, Critical accounting judgements and key sources of estimation
uncertainty. For financial instruments that trade infrequently and have little price transparency, fair value is less objective.
The Company categorises investments using the following hierarchy as defined by IFRS 13: Level 1 \u2013 Quoted market prices in an active market for an identical instrument; Level 2 \u2013 Valuation techniques based on observable inputs. This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data; and Level 3 \u2013 Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs could have a significant impact on the instrument\u2019s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments. The following tables analyse within the fair value hierarchy of the Company\u2019s financial assets and liabilities measured at fair value at the year end date:
Level 1
Level 2
Level 3
Total
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Non-current assets
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
\u2013
9,281
9,281
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
301,292
301,292
Real Estate Credit Investments \u2013
equity participation loans
\u2013
\u2013
15,017
15,017
Total non-current assets
\u2013
\u2013
325,590
325,590
Current assets
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
\u2013
90
90
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
77,769
77,769
Real Estate Credit Investments \u2013
equity participation loans
\u2013
\u2013
1,026
1,026
Total current assets
\u2013
\u2013
78,885
78,885
Non-current liabilities
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 bilateral loan and bond portfolio
\u2013
(47,719)
1
\u2013
(47,719)
Total non-current liabilities
\u2013
(47,719)
\u2013
(47,719)
Current liabilities
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 market bond portfolio
\u2013
(6,726)
1
\u2013
(6,726)
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 bilateral loan and bond portfolio
\u2013
(63,991)
1
\u2013
(63,991)
Forward foreign exchange contracts
\u2013
(348)
\u2013
(348)
Total current liabilities
\u2013
(71,065)
\u2013
(71,065)
\u2013
(118,784)
404,475
285,691
1 Includes repurchase agreements related to Level 3 investments.
Level 1
Level 2
Level 3
Total
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Non-current assets
1
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
66
6,746
6,812
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
344,857
344,857
Real Estate Credit Investments \u2013 equity
participation loans
\u2013
\u2013
17,809
17,809
Total non-current assets
\u2013
66
369,412
369,478
Current liabilities
1
Real Estate Credit Investments \u2013
repurchase agreements
\u2013
(70,850)
2
\u2013
(70,850)
Forward foreign exchange contracts
\u2013
(213)
\u2013
(213)
Total current liabilities
\u2013
(71,063)
\u2013
(71,063)
\u2013
(70,997)
369,412
298,415
1 As at 31 March 2026, the investments and repurchase agreements are grouped into current and non-current based on their contractual maturity dates. This presentation provides more relevant information to users of the financial statements by aligning with the Company\u2019s liquidity management approach. This change was not applied retrospectively to the 31 March 2025 comparative figures as the impact is not considered qualitatively material to users of the financial statements and has no effect on the Company\u2019s key metrics including revenue, net profit and net assets. As at 31 March 2025, \u00a3183.6 million of the investments and \u00a323.8 million of the repurchase agreements had a maturity within 12 months; the remainder had a maturity of over 12 months. 2 Includes repurchase agreements related to Level 3 investments. The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of market bonds that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. These include investment-grade corporate bonds. For market bonds where there is not an active market or where no observable prices are available, fair value is determined from prices provided by a third-party pricing vendor who may make use of unobservable inputs in their pricing evaluation. The Company\u2019s bilateral loans and bonds are not traded in an active market and there are no independent quotes available for these loans. Such holdings are classified as Level 3 investments. The fair value of these loans and bonds are linked directly to the value of the real estate loans that the underlying structures invests in, which are determined based on modelled expected cash flows (drawdown principal and interest repayments, and maturity dates) with effective yields ranging from 7.7% to 14.0% (31 March 2025: 7.1% to 11.7%) (the unobservable input). The fair value of the real estate loans is adjusted for changes in the credit quality of both the borrower and the underlying property collateral, and changes in the market rate on similar instruments where changes are material. No material movements on the fair value of the real estate loans have been identified and the carrying value of the loans was used. On origination of the loan, the Investment Manager performs due diligence on the borrower and related security/property. This includes obtaining a valuation of the underlying property (to assess LTV of the investment). In most instances, the terms of the loan require periodic revaluation of the underlying property to check against LTV covenants. All the fees associated with the investments (arrangement fees, exit fees, etc.) are paid directly to the Company and not paid to the Investment Manager. The fair values of the repurchase agreements discount the future cash flows of the instruments at interest rates based primarily on observable market rates. The Company has exercised judgement in determining that these liabilities should be classified in Level 2 of the fair value hierarchy. The fair value of forward foreign exchange contracts is the difference between the contracts price and reported market prices of the underlying contract variables. These are included in Level 2 of the fair value hierarchy.
The following tables set out information about significant unobservable inputs used as at 31 March 2026 and 31 March 2025 in
measuring financial assets categorised as Level 3:
Fair value
Valuation
Unobservable
As at 31 March 2026:
GBP\u2019000
technique
input
Market bond portfolio
9,371
Priced via external pricing source
Comparable set used
Bilateral loan and bond portfolio
379,061
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Equity participation loans
16,043
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Fair value
Valuation
Unobservable
As at 31 March 2025:
GBP\u2019000
technique
input
Market bond portfolio
6,746
Priced via external pricing source
Comparable set used
Bilateral loan and bond portfolio
344,857
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Equity participation loans
17,809
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Although the Board believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions
could lead to different measurements of fair value. Changes in unobservable inputs, such as discount rates used in loans and bonds
valuation and sector-based yields used in collateral valuation can have a negative or positive impact on fair value. Sensitivities
around the discount rates are discussed in detail in the interest rate risk note while sensitivity around expected future cash flows
including collateral valuation is explained below. For Level 3 fair value measurements, sensitivities applied to external valuations
range from 10% to 20% for valuations dated prior to 30 September 2025 (31 March 2025: 10% to 15%), and from 5% to 10% for
valuations dated thereafter (31 March 2025: 5% to 10%). This represents the Board\u2019s assessment of a reasonable possible change
and would have a negative impact of \u00a37.4 million (31 March 2025: \u00a33.6 million) or positive impact of \u00a37.4 million (31 March 2025:
\u00a33.8 million) on the fair value measurements for the Level 3 assets.
Since 2017, the majority of the Company\u2019s investments are made through Luxembourg-based entities, ENIV S.\u00e0 r.l. and RELF via
separate note instruments. As and when market information, such as market prices from recognised financial data providers
becomes available, the Company will assess the impact on its portfolio of loans and whether there should be any transfers
between levels in the fair value hierarchy.
As at 31 March 2026, the Investment Manager has taken into account movements in market rates, any indications of impairment,
significant credit events or significant negative performance of the underlying property structures, which might affect the fair
value of the loans and bonds. Please refer to pages 82 to 83 for the effects of movement in market rates.
Level 3 Reconciliation
The following table shows a reconciliation of all movements in the fair value of financial instruments categorised within Level 3
between the beginning and the end of the financial year:
Level 3
Level 3
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
Opening balance
369,412
329,268
Total losses recognised in the Statement of Comprehensive Income for the year
(4,357)
(1,025)
Purchases
1
185,611
139,847
Sales
(147,863)
(100,588)
Increase in interest receivable
1,672
1,910
Closing balance
404,475
369,412
Unrealised (losses)/gains on investments classified as Level 3 at year end
(7,108)
187
1
Includes capitalised interest amounting to \u00a318,492 (31 March 2025: \u00a312,567).
(e) Prepayment and Re-Investment Risks
The Company\u2019s real estate loans have the facility for prepayment. The Company\u2019s exposure to real estate debt securities also has
exposure to potential prepayment risk which may have an impact on the value of the Company\u2019s portfolio. Prepayment rates are
influenced by changes in interest rates and a variety of economic, geographic, and other factors beyond the Company\u2019s control
and consequently cannot be predicted with certainty.
The level and timing of prepayments made by borrowers in respect of the mortgage loans that collateralise certain of the
Company\u2019s investments may have an adverse impact on the income earned by the Company from those investments.
Early prepayments also give rise to increased re-investment risk. If the Company is unable to reinvest such cash in a new
investment with an expected rate of return at least equal to that of the loan repaid, the Company\u2019s net income will be lower
and, consequently, could have an adverse impact on the Company\u2019s ability to pay dividends.
The Investment Manager reviews the prepayment assumptions each quarter and will update as required. These assumptions
are considered through a review of the underlying loan performance information of the securitisations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-206": { "value": "4. Net (Losses)/Gains on Financial Assets and Liabilities at Fair Value through Profit or Loss
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Net gains/(losses)
Net gains on market bond portfolio
532
1,026
Net losses on bilateral loan and bond portfolio
(2,722)
(5,511)
Net (losses)/gains on equity participation loans
(2,167)
3,460
Net (losses)/gains on forward foreign exchange contracts
(2,813)
4,655
Net (losses)/gains on financial assets and liabilities at fair value through profit or loss
(7,170)
3,630
9. Categories of Financial Instruments The following table details the categories of financial assets and liabilities held by the Company at the year end date.
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Assets
Financial assets at fair value through profit or loss:
Real Estate Credit Investments \u2013 market bond portfolio
9,371
6,812
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
379,061
344,857
Real Estate Credit Investments \u2013 equity participation loans
16,043
17,809
Financial assets at fair value through profit or loss
404,475
369,478
Financial assets at amortised cost:
Cash and cash equivalents
18,513
19,295
Cash collateral held at broker
2,250
2,866
Interest receivable
117
\u2013
Other assets
9
72
Total assets
425,364
391,711
Liabilities
Financial liabilities at fair value through profit or loss:
Financing agreements
118,436
70,850
Derivative financial liabilities:
Forward foreign exchange contracts
348
213
Financial liabilities at amortised cost:
Other liabilities
692
2,292
Total liabilities
119,476
73,355
The value of the market bond portfolio was \u00a39.3 million as at 31 March 2026, excluding accrued interest of \u00a30.08 million (31 March 2025: \u00a36.7 million, excluding accrued interest of \u00a30.1 million); and the value of the bilateral loan and bond portfolios were \u00a3366.6 million as at 31 March 2026, excluding accrued interest of \u00a312.5 million (31 March 2025: \u00a3334.0 million, excluding accrued interest of \u00a310.9 million). See Note 14 for a summary of the movement in fair value in the Company\u2019s investments for the year. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-201": { "value": "4. Net (Losses)/Gains on Financial Assets and Liabilities at Fair Value through Profit or Loss
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Net gains/(losses)
Net gains on market bond portfolio
532
1,026
Net losses on bilateral loan and bond portfolio
(2,722)
(5,511)
Net (losses)/gains on equity participation loans
(2,167)
3,460
Net (losses)/gains on forward foreign exchange contracts
(2,813)
4,655
Net (losses)/gains on financial assets and liabilities at fair value through profit or loss
(7,170)
3,630
9. Categories of Financial Instruments The following table details the categories of financial assets and liabilities held by the Company at the year end date.
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Assets
Financial assets at fair value through profit or loss:
Real Estate Credit Investments \u2013 market bond portfolio
9,371
6,812
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
379,061
344,857
Real Estate Credit Investments \u2013 equity participation loans
16,043
17,809
Financial assets at fair value through profit or loss
404,475
369,478
Financial assets at amortised cost:
Cash and cash equivalents
18,513
19,295
Cash collateral held at broker
2,250
2,866
Interest receivable
117
\u2013
Other assets
9
72
Total assets
425,364
391,711
Liabilities
Financial liabilities at fair value through profit or loss:
Financing agreements
118,436
70,850
Derivative financial liabilities:
Forward foreign exchange contracts
348
213
Financial liabilities at amortised cost:
Other liabilities
692
2,292
Total liabilities
119,476
73,355
The value of the market bond portfolio was \u00a39.3 million as at 31 March 2026, excluding accrued interest of \u00a30.08 million (31 March 2025: \u00a36.7 million, excluding accrued interest of \u00a30.1 million); and the value of the bilateral loan and bond portfolios were \u00a3366.6 million as at 31 March 2026, excluding accrued interest of \u00a312.5 million (31 March 2025: \u00a3334.0 million, excluding accrued interest of \u00a310.9 million). See Note 14 for a summary of the movement in fair value in the Company\u2019s investments for the year. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-192": { "value": "4. Net (Losses)/Gains on Financial Assets and Liabilities at Fair Value through Profit or Loss
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Net gains/(losses)
Net gains on market bond portfolio
532
1,026
Net losses on bilateral loan and bond portfolio
(2,722)
(5,511)
Net (losses)/gains on equity participation loans
(2,167)
3,460
Net (losses)/gains on forward foreign exchange contracts
(2,813)
4,655
Net (losses)/gains on financial assets and liabilities at fair value through profit or loss
(7,170)
3,630
(d) Valuation of Financial Instruments IFRS 13 Fair Value Measurement requires disclosures surrounding the level in the fair value hierarchy in which fair value measurement inputs are categorised for financial assets and liabilities measured in the Statement of Financial Position. The determination of the fair value for financial assets and liabilities for which there is no observable market price requires the use of valuation techniques as described in Note 2, Material accounting policies and in Note 3, Critical accounting judgements and key sources of estimation uncertainty. For financial instruments that trade infrequently and have little price transparency, fair value is less objective. The Company categorises investments using the following hierarchy as defined by IFRS 13: Level 1 \u2013 Quoted market prices in an active market for an identical instrument; Level 2 \u2013 Valuation techniques based on observable inputs. This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data; and Level 3 \u2013 Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs could have a significant impact on the instrument\u2019s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments. The following tables analyse within the fair value hierarchy of the Company\u2019s financial assets and liabilities measured at fair value at the year end date:
Level 1
Level 2
Level 3
Total
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Non-current assets
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
\u2013
9,281
9,281
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
301,292
301,292
Real Estate Credit Investments \u2013
equity participation loans
\u2013
\u2013
15,017
15,017
Total non-current assets
\u2013
\u2013
325,590
325,590
Current assets
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
\u2013
90
90
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
77,769
77,769
Real Estate Credit Investments \u2013
equity participation loans
\u2013
\u2013
1,026
1,026
Total current assets
\u2013
\u2013
78,885
78,885
Non-current liabilities
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 bilateral loan and bond portfolio
\u2013
(47,719)
1
\u2013
(47,719)
Total non-current liabilities
\u2013
(47,719)
\u2013
(47,719)
Current liabilities
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 market bond portfolio
\u2013
(6,726)
1
\u2013
(6,726)
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 bilateral loan and bond portfolio
\u2013
(63,991)
1
\u2013
(63,991)
Forward foreign exchange contracts
\u2013
(348)
\u2013
(348)
Total current liabilities
\u2013
(71,065)
\u2013
(71,065)
\u2013
(118,784)
404,475
285,691
1 Includes repurchase agreements related to Level 3 investments.
Level 1
Level 2
Level 3
Total
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Non-current assets
1
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
66
6,746
6,812
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
344,857
344,857
Real Estate Credit Investments \u2013 equity
participation loans
\u2013
\u2013
17,809
17,809
Total non-current assets
\u2013
66
369,412
369,478
Current liabilities
1
Real Estate Credit Investments \u2013
repurchase agreements
\u2013
(70,850)
2
\u2013
(70,850)
Forward foreign exchange contracts
\u2013
(213)
\u2013
(213)
Total current liabilities
\u2013
(71,063)
\u2013
(71,063)
\u2013
(70,997)
369,412
298,415
1 As at 31 March 2026, the investments and repurchase agreements are grouped into current and non-current based on their contractual maturity dates. This presentation provides more relevant information to users of the financial statements by aligning with the Company\u2019s liquidity management approach. This change was not applied retrospectively to the 31 March 2025 comparative figures as the impact is not considered qualitatively material to users of the financial statements and has no effect on the Company\u2019s key metrics including revenue, net profit and net assets. As at 31 March 2025, \u00a3183.6 million of the investments and \u00a323.8 million of the repurchase agreements had a maturity within 12 months; the remainder had a maturity of over 12 months. 2 Includes repurchase agreements related to Level 3 investments. The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of market bonds that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. These include investment-grade corporate bonds. For market bonds where there is not an active market or where no observable prices are available, fair value is determined from prices provided by a third-party pricing vendor who may make use of unobservable inputs in their pricing evaluation. The Company\u2019s bilateral loans and bonds are not traded in an active market and there are no independent quotes available for these loans. Such holdings are classified as Level 3 investments. The fair value of these loans and bonds are linked directly to the value of the real estate loans that the underlying structures invests in, which are determined based on modelled expected cash flows (drawdown principal and interest repayments, and maturity dates) with effective yields ranging from 7.7% to 14.0% (31 March 2025: 7.1% to 11.7%) (the unobservable input). The fair value of the real estate loans is adjusted for changes in the credit quality of both the borrower and the underlying property collateral, and changes in the market rate on similar instruments where changes are material. No material movements on the fair value of the real estate loans have been identified and the carrying value of the loans was used. On origination of the loan, the Investment Manager performs due diligence on the borrower and related security/property. This includes obtaining a valuation of the underlying property (to assess LTV of the investment). In most instances, the terms of the loan require periodic revaluation of the underlying property to check against LTV covenants. All the fees associated with the investments (arrangement fees, exit fees, etc.) are paid directly to the Company and not paid to the Investment Manager. The fair values of the repurchase agreements discount the future cash flows of the instruments at interest rates based primarily on observable market rates. The Company has exercised judgement in determining that these liabilities should be classified in Level 2 of the fair value hierarchy. The fair value of forward foreign exchange contracts is the difference between the contracts price and reported market prices of the underlying contract variables. These are included in Level 2 of the fair value hierarchy. The following tables set out information about significant unobservable inputs used as at 31 March 2026 and 31 March 2025 in measuring financial assets categorised as Level 3:
Fair value
Valuation
Unobservable
As at 31 March 2026:
GBP\u2019000
technique
input
Market bond portfolio
9,371
Priced via external pricing source
Comparable set used
Bilateral loan and bond portfolio
379,061
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Equity participation loans
16,043
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Fair value
Valuation
Unobservable
As at 31 March 2025:
GBP\u2019000
technique
input
Market bond portfolio
6,746
Priced via external pricing source
Comparable set used
Bilateral loan and bond portfolio
344,857
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Equity participation loans
17,809
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Although the Board believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. Changes in unobservable inputs, such as discount rates used in loans and bonds valuation and sector-based yields used in collateral valuation can have a negative or positive impact on fair value. Sensitivities around the discount rates are discussed in detail in the interest rate risk note while sensitivity around expected future cash flows including collateral valuation is explained below. For Level 3 fair value measurements, sensitivities applied to external valuations range from 10% to 20% for valuations dated prior to 30 September 2025 (31 March 2025: 10% to 15%), and from 5% to 10% for valuations dated thereafter (31 March 2025: 5% to 10%). This represents the Board\u2019s assessment of a reasonable possible change and would have a negative impact of \u00a37.4 million (31 March 2025: \u00a33.6 million) or positive impact of \u00a37.4 million (31 March 2025: \u00a33.8 million) on the fair value measurements for the Level 3 assets. Since 2017, the majority of the Company\u2019s investments are made through Luxembourg-based entities, ENIV S.\u00e0 r.l. and RELF via separate note instruments. As and when market information, such as market prices from recognised financial data providers becomes available, the Company will assess the impact on its portfolio of loans and whether there should be any transfers between levels in the fair value hierarchy. As at 31 March 2026, the Investment Manager has taken into account movements in market rates, any indications of impairment, significant credit events or significant negative performance of the underlying property structures, which might affect the fair value of the loans and bonds. Please refer to pages 82 to 83 for the effects of movement in market rates. Level 3 Reconciliation The following table shows a reconciliation of all movements in the fair value of financial instruments categorised within Level 3 between the beginning and the end of the financial year:
Level 3
Level 3
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
Opening balance
369,412
329,268
Total losses recognised in the Statement of Comprehensive Income for the year
(4,357)
(1,025)
Purchases
1
185,611
139,847
Sales
(147,863)
(100,588)
Increase in interest receivable
1,672
1,910
Closing balance
404,475
369,412
Unrealised (losses)/gains on investments classified as Level 3 at year end
(7,108)
187
1 Includes capitalised interest amounting to \u00a318,492 (31 March 2025: \u00a312,567). (e) Prepayment and Re-Investment Risks The Company\u2019s real estate loans have the facility for prepayment. The Company\u2019s exposure to real estate debt securities also has exposure to potential prepayment risk which may have an impact on the value of the Company\u2019s portfolio. Prepayment rates are influenced by changes in interest rates and a variety of economic, geographic, and other factors beyond the Company\u2019s control and consequently cannot be predicted with certainty. The level and timing of prepayments made by borrowers in respect of the mortgage loans that collateralise certain of the Company\u2019s investments may have an adverse impact on the income earned by the Company from those investments. Early prepayments also give rise to increased re-investment risk. If the Company is unable to reinvest such cash in a new investment with an expected rate of return at least equal to that of the loan repaid, the Company\u2019s net income will be lower and, consequently, could have an adverse impact on the Company\u2019s ability to pay dividends. The Investment Manager reviews the prepayment assumptions each quarter and will update as required. These assumptions are considered through a review of the underlying loan performance information of the securitisations.", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-177": { "value": "4. Net (Losses)/Gains on Financial Assets and Liabilities at Fair Value through Profit or Loss
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Net gains/(losses)
Net gains on market bond portfolio
532
1,026
Net losses on bilateral loan and bond portfolio
(2,722)
(5,511)
Net (losses)/gains on equity participation loans
(2,167)
3,460
Net (losses)/gains on forward foreign exchange contracts
(2,813)
4,655
Net (losses)/gains on financial assets and liabilities at fair value through profit or loss
(7,170)
3,630
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Assets
Financial assets at fair value through profit or loss:
Real Estate Credit Investments \u2013 market bond portfolio
9,371
6,812
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
379,061
344,857
Real Estate Credit Investments \u2013 equity participation loans
16,043
17,809
Financial assets at fair value through profit or loss
404,475
369,478
Financial assets at amortised cost:
Cash and cash equivalents
18,513
19,295
Cash collateral held at broker
2,250
2,866
Interest receivable
117
\u2013
Other assets
9
72
Total assets
425,364
391,711
Liabilities
Financial liabilities at fair value through profit or loss:
Financing agreements
118,436
70,850
Derivative financial liabilities:
Forward foreign exchange contracts
348
213
Financial liabilities at amortised cost:
Other liabilities
692
2,292
Total liabilities
119,476
73,355
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-158": { "value": "
5. Operating Expenses
31 Mar 2026
31 Mar 2025
Note
GBP\u2019000
GBP\u2019000
Investment management, administration and depositary fees
Investment management fees
16
3,956
4,096
Administration fees
16
275
286
Depositary fees
16
57
42
4,288
4,424
Other operating expenses
Directors\u2019 fees
16
253
260
Audit fees
175
167
Fees to auditor for non-audit services
61
45
Deal and underwriting expenses
46
743
Legal fees
\u2013
195
Other operating expenses
(821)
765
(286)
2,175
Total operating expenses
4,002
6,599
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-202": { "value": "5. Operating Expenses
31 Mar 2026
31 Mar 2025
Note
GBP\u2019000
GBP\u2019000
Investment management, administration and depositary fees
Investment management fees
16
3,956
4,096
Administration fees
16
275
286
Depositary fees
16
57
42
4,288
4,424
Other operating expenses
Directors\u2019 fees
16
253
260
Audit fees
175
167
Fees to auditor for non-audit services
61
45
Deal and underwriting expenses
46
743
Legal fees
\u2013
195
Other operating expenses
(821)
765
(286)
2,175
Total operating expenses
4,002
6,599
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-193": { "value": "5. Operating Expenses
31 Mar 2026
31 Mar 2025
Note
GBP\u2019000
GBP\u2019000
Investment management, administration and depositary fees
Investment management fees
16
3,956
4,096
Administration fees
16
275
286
Depositary fees
16
57
42
4,288
4,424
Other operating expenses
Directors\u2019 fees
16
253
260
Audit fees
175
167
Fees to auditor for non-audit services
61
45
Deal and underwriting expenses
46
743
Legal fees
\u2013
195
Other operating expenses
(821)
765
(286)
2,175
Total operating expenses
4,002
6,599
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-178": { "value": "31 Mar 2026 31 Mar 2025 Note GBP\u2019000 GBP\u2019000 Investment management, administration and depositary fees Investment management fees 16 3,956 4,096 Administration fees 16 275 286 Depositary fees 16 57 42 4,288 4,424 ", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-179": { "value": "Other operating expenses Directors\u2019 fees 16 253 260 Audit fees 175 167 Fees to auditor for non-audit services 61 45 Deal and underwriting expenses 46 743 Legal fees \u2013 195 Other operating expenses (821) 765 (286) 2,175 Total operating expenses 4,002 6,599", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-159": { "value": "
6. Interest Income and Finance Costs
The following table details interest income and finance costs from financial assets and liabilities for the year:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Interest income on financial assets at fair value through profit or loss
Real Estate Credit Investments \u2013 market bond portfolio
710
754
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
31,901
28,050
32,611
28,804
Interest income on financial assets at amortised cost
Cash and cash equivalents and cash collateral held at broker
675
716
Total interest income
33,286
29,520
Finance costs
Cost of financing agreements
(6,256)
(4,782)
Total finance costs
(6,256)
(4,782)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-208": { "value": "6. Interest Income and Finance Costs The following table details interest income and finance costs from financial assets and liabilities for the year:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Interest income on financial assets at fair value through profit or loss
Real Estate Credit Investments \u2013 market bond portfolio
710
754
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
31,901
28,050
32,611
28,804
Interest income on financial assets at amortised cost
Cash and cash equivalents and cash collateral held at broker
675
716
Total interest income
33,286
29,520
Finance costs
Cost of financing agreements
(6,256)
(4,782)
Total finance costs
(6,256)
(4,782)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-207": { "value": "6. Interest Income and Finance Costs The following table details interest income and finance costs from financial assets and liabilities for the year:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Interest income on financial assets at fair value through profit or loss
Real Estate Credit Investments \u2013 market bond portfolio
710
754
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
31,901
28,050
32,611
28,804
Interest income on financial assets at amortised cost
Cash and cash equivalents and cash collateral held at broker
675
716
Total interest income
33,286
29,520
Finance costs
Cost of financing agreements
(6,256)
(4,782)
Total finance costs
(6,256)
(4,782)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-203": { "value": "6. Interest Income and Finance Costs The following table details interest income and finance costs from financial assets and liabilities for the year:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Interest income on financial assets at fair value through profit or loss
Real Estate Credit Investments \u2013 market bond portfolio
710
754
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
31,901
28,050
32,611
28,804
Interest income on financial assets at amortised cost
Cash and cash equivalents and cash collateral held at broker
675
716
Total interest income
33,286
29,520
Finance costs
Cost of financing agreements
(6,256)
(4,782)
Total finance costs
(6,256)
(4,782)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-194": { "value": "6. Interest Income and Finance Costs The following table details interest income and finance costs from financial assets and liabilities for the year:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Interest income on financial assets at fair value through profit or loss
Real Estate Credit Investments \u2013 market bond portfolio
710
754
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
31,901
28,050
32,611
28,804
Interest income on financial assets at amortised cost
Cash and cash equivalents and cash collateral held at broker
675
716
Total interest income
33,286
29,520
Finance costs
Cost of financing agreements
(6,256)
(4,782)
Total finance costs
(6,256)
(4,782)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-180": { "value": "6. Interest Income and Finance Costs The following table details interest income and finance costs from financial assets and liabilities for the year:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Interest income on financial assets at fair value through profit or loss
Real Estate Credit Investments \u2013 market bond portfolio
710
754
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
31,901
28,050
32,611
28,804
Interest income on financial assets at amortised cost
Cash and cash equivalents and cash collateral held at broker
675
716
Total interest income
33,286
29,520
Finance costs
Cost of financing agreements
(6,256)
(4,782)
Total finance costs
(6,256)
(4,782)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-160": { "value": "
7. Dividends
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Share dividends
Fourth dividend for the year ended 31 March 2025/31 March 2024
6,651
6,702
First dividend for the year ended 31 March 2026/31 March 2025
6,651
6,657
Second dividend for the year ended 31 March 2026/31 March 2025
6,651
6,657
Third dividend for the year ended 31 March 2026/31 March 2025
6,638
6,657
Dividends paid to Shareholders
26,591
26,673
The total dividends paid during the financial year ended 31 March 2026 amounted to 12.0 pence per share (31 March 2025:
12.0 pence per share).
Under Guernsey Law, companies can pay dividends provided they satisfy the solvency test prescribed under the Companies
(Guernsey) Law, 2008 (as amended), which considers whether a company is able to pay its debts when they become due and
whether the value of a company\u2019s assets is greater than its liabilities.
The Directors considered that the Company satisfied the solvency test for all dividends approved.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-181": { "value": "0.12", "decimals": 3, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00", "unit": "iso4217:GBP/xbrli:shares" } }, "fact-182": { "value": "0.12", "decimals": 3, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2024-04-01T00:00:00/2025-04-01T00:00:00", "unit": "iso4217:GBP/xbrli:shares" } }, "fact-161": { "value": "
8. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
31 Mar 2026
31 Mar 2025
Net profit attributable to shares (GBP\u2019000)
15,189
22,817
Weighted average number of shares for the purposes of basic and diluted earnings per share
1
221,662,497
222,881,212
Earnings per share
Basic and diluted (pence)
6.9
10.2
1
The weighted average number of shares takes into account the weighted average effect of changes in treasury shares during the year.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-162": { "value": "
10. Other Liabilities
31 Mar 2026
31 Mar 2025
Note
GBP\u2019000
GBP\u2019000
Investment management fees payable
16
325
338
Directors\u2019 fees payable
16
63
61
Deal and underwriting expenses payable
60
177
Administration fees payable
16
58
40
Depositary fees payable
16
6
20
Other operating payables
180
1,656
Total other liabilities
692
2,292
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-183": { "value": "10. Other Liabilities
31 Mar 2026
31 Mar 2025
Note
GBP\u2019000
GBP\u2019000
Investment management fees payable
16
325
338
Directors\u2019 fees payable
16
63
61
Deal and underwriting expenses payable
60
177
Administration fees payable
16
58
40
Depositary fees payable
16
6
20
Other operating payables
180
1,656
Total other liabilities
692
2,292
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-163": { "value": "
11. Structured Entities Not Consolidated
The Company has concluded that the unlisted entities in which it invests, but does not consolidate, meet the definition of
structured entities. The Company recognises its interests in structured entities as investments at fair value through profit or loss
in accordance with IFRS 10 Consolidated Financial Statements and therefore there is no requirement to consolidate in full.
However, in line with IFRS 12 Disclosure of Interest in Other Entities, the details of the interests in the unconsolidated structured
entities are presented in the following tables. The maximum exposure to loss is the carrying amount of the financial assets held
which is equal to the fair value of loans and units in funds plus the limited recourse loss guarantee of the borrowed amounts on
the underlying loan.
31 March 2026
Fair value of loans
1
Undrawn commitment Carrying value
Name GBP\u2019000 GBP\u2019000
GBP\u2019000
Nature and purpose of the entity
Location
RELF
2
Fulton Road
13,796
489
9,461
To invest in Fulton Road real estate United Kingdom
Cheyne French
8,183
4,455
8,183
To invest in Cheyne French
France
Funding Sub-Fund 3 Funding Sub-Fund 3 real estate
Cheyne French
14,477
5,301
14,477
To invest in Cheyne French
France
Funding Sub-Fund 8 Funding Sub-Fund 8 real estate
1
This amount excludes interest receivables.
2
The total loan exposure on the RELF will not equal the carrying value disclosed above due to financing within the RELF structure.
31 March 2025
Fair value of loans
1
Undrawn commitment Carrying value
Name GBP\u2019000 GBP\u2019000
GBP\u2019000
Nature and purpose of the entity
Location
RELF
2
Fulton Road
30,036
2,689
15,754
To invest in Fulton Road real estate United Kingdom
Kensington
3
15,682
236
7,947
To invest in Kensington real estate United Kingdom
Sabina
3
19,688
8,142
9,935
To invest in Sabina real estate
Luxembourg
Cheyne French
8,881
512
8,881
To invest in Cheyne French
France
Funding Sub-Fund 3 Funding Sub-Fund 3 real estate
Cheyne French
19,781
\u2013
19,781
To invest in Cheyne French
France
Funding Sub-Fund 8 Funding Sub-Fund 8 real estate
1
This amount excludes interest receivables.
2
The total loan exposure on the RELF will not equal the carrying value disclosed above due to financing within the RELF structure.
3
The Company ended its interest in these entities during the year ended 31 March 2026. As at 31 March 2026, the Company no longer holds any involvement in these structured entities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-184": { "value": "11. Structured Entities Not Consolidated The Company has concluded that the unlisted entities in which it invests, but does not consolidate, meet the definition of structured entities. The Company recognises its interests in structured entities as investments at fair value through profit or loss in accordance with IFRS 10 Consolidated Financial Statements and therefore there is no requirement to consolidate in full. However, in line with IFRS 12 Disclosure of Interest in Other Entities, the details of the interests in the unconsolidated structured entities are presented in the following tables. The maximum exposure to loss is the carrying amount of the financial assets held which is equal to the fair value of loans and units in funds plus the limited recourse loss guarantee of the borrowed amounts on the underlying loan. 31 March 2026
Fair value of loans
1
Undrawn commitment Carrying value
Name GBP\u2019000 GBP\u2019000
GBP\u2019000
Nature and purpose of the entity
Location
RELF
2
Fulton Road
13,796
489
9,461
To invest in Fulton Road real estate United Kingdom
Cheyne French
8,183
4,455
8,183
To invest in Cheyne French
France
Funding Sub-Fund 3 Funding Sub-Fund 3 real estate
Cheyne French
14,477
5,301
14,477
To invest in Cheyne French
France
Funding Sub-Fund 8 Funding Sub-Fund 8 real estate
1 This amount excludes interest receivables. 2 The total loan exposure on the RELF will not equal the carrying value disclosed above due to financing within the RELF structure. 31 March 2025
Fair value of loans
1
Undrawn commitment Carrying value
Name GBP\u2019000 GBP\u2019000
GBP\u2019000
Nature and purpose of the entity
Location
RELF
2
Fulton Road
30,036
2,689
15,754
To invest in Fulton Road real estate United Kingdom
Kensington
3
15,682
236
7,947
To invest in Kensington real estate United Kingdom
Sabina
3
19,688
8,142
9,935
To invest in Sabina real estate
Luxembourg
Cheyne French
8,881
512
8,881
To invest in Cheyne French
France
Funding Sub-Fund 3 Funding Sub-Fund 3 real estate
Cheyne French
19,781
\u2013
19,781
To invest in Cheyne French
France
Funding Sub-Fund 8 Funding Sub-Fund 8 real estate
1 This amount excludes interest receivables. 2 The total loan exposure on the RELF will not equal the carrying value disclosed above due to financing within the RELF structure. 3 The Company ended its interest in these entities during the year ended 31 March 2026. As at 31 March 2026, the Company no longer holds any involvement in these structured entities.", "dimensions": { "concept": "ifrs-full:DisclosureOfUnconsolidatedStructuredEntitiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-164": { "value": "
12. Financing Agreements
The Company engages in repurchase agreements (\u201crepos\u201d) with bank lenders to manage its portfolio efficiently. Securities
financed through these repos are valued at fair market value, with financing costs and advance rates varying according to the
lender\u2019s discretion. Under the terms of a repo agreement, the lender takes custody of the purchased securities and values them
daily to safeguard against the Company\u2019s failure to repurchase. If the market value of the underlying securities falls below the
face value of the repos plus accrued interest, the Company will provide additional collateral. In case of a default on the repurchase
obligation, the lender has the right to liquidate the collateral to satisfy the debt. If the counterparty defaults or declares bankruptcy,
the realisation or retention of the collateral or proceeds may be subject to legal proceedings.
The Company enters into repos with several banks. This financing is collateralised against the Company\u2019s market bond and
bilateral bond portfolio with a fair value totalling \u00a3182.2 million (31 March 2025: \u00a3100.2 million) and has a weighted average cost
of 5.80% (31 March 2025: 7.50%) per annum. The contractual maturity period for repos is six months (where possible) for market
bond positions. For bilateral bonds, the repo maturity is either the underlying loan\u2019s maturity or the maturity of the Company\u2019s
committed repo facility, which is typically extended on an annual basis.
The movement in financing agreements amounting to \u00a347.6 million (31 March 2025: \u00a346.3 million) and finance costs paid
amounting to \u00a36.4 million (31 March 2025: \u00a34.0 million) are shown as financing activities in the Statement of Cash Flows.
The following table summarises movements under financing agreements for the years ended 31 March 2026 and 31 March 2025.
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Balance as at 1 April
70,850
23,790
Payments under financing agreements
(175,832)
(192,749)
Proceeds under financing agreements
222,329
239,269
Foreign currency losses/(gains)
1,188
(257)
Finance costs
6,256
4,782
Finance costs paid
(6,355)
(3,985)
118,436
70,850
During the financial year ended 31 March 2026, the Company maintained off-balance sheet financing agreements. These facilities
are structured using off-balance sheet entities and are secured against specific loans. This financing does not encumber other
Company assets, except for a limited recourse loss guarantee (between 25% and 55% subject to the finance provider and the
granularity of the collateral) of the borrowed amounts. As at 31 March 2026, the total off-balance sheet loans amounted to
\u00a35.5 million (31 March 2025: \u00a331.2 million). The maximum exposure under the limited recourse guarantees was \u00a32.9 million
(31 March 2025: \u00a39.3 million). As at 31 March 2026 and 31 March 2025, no additional collateralisation was required in respect of
these guarantees. The Company has assessed the probability of outflows under these guarantees as remote and accordingly
no provision has been recognised in the financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRepurchaseAndReverseRepurchaseAgreementsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-165": { "value": "
13. Share Capital and Reserves
The issued share capital of the Company consists of Ordinary Shares, being the sole share class. The Company has taken
advantage of the provisions of the Companies (Guernsey) Law 2008 to amalgamate into a single distributable reserve the
net proceeds from the issue of shares and all retained profits. The Company does not have any externally-imposed capital
requirements. As at 31 March 2026, the Company had equity of \u00a3305.9 million (31 March 2025: \u00a3318.4 million).
31 Mar 2026
31 Mar 2025
Number of Shares
Number of Shares
Authorised Share Capital
Shares of no par value each
Unlimited
Unlimited
Shares issued and fully paid
229,332,478
229,332,478
Shares outstanding
Shares at the start of the year
221,894,004
225,237,478
Shares repurchased and held in treasury
(850,000)
(3,343,474)
Shares at the end of the year
221,044,004
221,894,004
Treasury Shares
Shares repurchased and held in treasury at the start of the year
7,438,474
4,095,000
Shares repurchased and held in treasury
850,000
3,343,474
Shares repurchased and held in treasury at the end of the year
8,288,474
7,438,474
Pursuant to the share buyback authority approved by the Company\u2019s Shareholders at the Annual General Meeting (\u201cAGM\u201d) on
17 September 2025, the Board has been granted authority to repurchase up to 14.99% of the Company\u2019s issued share capital
(excluding treasury shares) until the 2026 AGM, subject to preagreed parameters.
The Company purchased 0.9 million (31 March 2025: 3.3 million) shares in the market during the year. The total amount paid to
purchase the shares was \u00a31.1 million (31 March 2025: \u00a34.2 million).
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to
Shareholders. The Company is a closed-ended listed investment company and, as such, Shareholders in the Company have
no right to redeem their shares. Any redemption offered to Shareholders shall be at the discretion of the Directors of the Company.
There were no changes in the policies and procedures during the year ended 31 March 2026 with respect to the Company\u2019s
approach to its share capital management.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-185": { "value": "13. Share Capital and Reserves The issued share capital of the Company consists of Ordinary Shares, being the sole share class. The Company has taken advantage of the provisions of the Companies (Guernsey) Law 2008 to amalgamate into a single distributable reserve the net proceeds from the issue of shares and all retained profits. The Company does not have any externally-imposed capital requirements. As at 31 March 2026, the Company had equity of \u00a3305.9 million (31 March 2025: \u00a3318.4 million).
31 Mar 2026
31 Mar 2025
Number of Shares
Number of Shares
Authorised Share Capital
Shares of no par value each
Unlimited
Unlimited
Shares issued and fully paid
229,332,478
229,332,478
Shares outstanding
Shares at the start of the year
221,894,004
225,237,478
Shares repurchased and held in treasury
(850,000)
(3,343,474)
Shares at the end of the year
221,044,004
221,894,004
Treasury Shares
Shares repurchased and held in treasury at the start of the year
7,438,474
4,095,000
Shares repurchased and held in treasury
850,000
3,343,474
Shares repurchased and held in treasury at the end of the year
8,288,474
7,438,474
Pursuant to the share buyback authority approved by the Company\u2019s Shareholders at the Annual General Meeting (\u201cAGM\u201d) on 17 September 2025, the Board has been granted authority to repurchase up to 14.99% of the Company\u2019s issued share capital (excluding treasury shares) until the 2026 AGM, subject to preagreed parameters. The Company purchased 0.9 million (31 March 2025: 3.3 million) shares in the market during the year. The total amount paid to purchase the shares was \u00a31.1 million (31 March 2025: \u00a34.2 million). The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to Shareholders. The Company is a closed-ended listed investment company and, as such, Shareholders in the Company have no right to redeem their shares. Any redemption offered to Shareholders shall be at the discretion of the Directors of the Company. There were no changes in the policies and procedures during the year ended 31 March 2026 with respect to the Company\u2019s approach to its share capital management.", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-195": { "value": "Treasury Shares Shares repurchased and held in treasury at the start of the year 7,438,474 4,095,000 Shares repurchased and held in treasury 850,000 3,343,474 Shares repurchased and held in treasury at the end of the year 8,288,474 7,438,474 Pursuant to the share buyback authority approved by the Company\u2019s Shareholders at the Annual General Meeting (\u201cAGM\u201d) on 17 September 2025, the Board has been granted authority to repurchase up to 14.99% of the Company\u2019s issued share capital (excluding treasury shares) until the 2026 AGM, subject to preagreed parameters. The Company purchased 0.9 million (31 March 2025: 3.3 million) shares in the market during the year. The total amount paid to purchase the shares was \u00a31.1 million (31 March 2025: \u00a34.2 million). The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to Shareholders. The Company is a closed-ended listed investment company and, as such, Shareholders in the Company have no right to redeem their shares. Any redemption offered to Shareholders shall be at the discretion of the Directors of the Company. There were no changes in the policies and procedures during the year ended 31 March 2026 with respect to the Company\u2019s approach to its share capital management.", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-186": { "value": "14. Financial Instruments and Associated Risks The Company\u2019s investment activities expose it to various types of risk which are associated with the financial instruments and markets in which it invests. The Company\u2019s risk management policies seek to minimise the potential adverse effects of these risks on the Company\u2019s financial performance. The financial risks to which the Company is exposed include market risks (including foreign currency risk and interest rate risk), credit risk, liquidity risk and prepayment and re-investment risks. In certain instances, as described more fully below, the Company enters into derivative transactions in order to help mitigate particular types of risk. (a) Market Risks Market risk is the risk that the fair value and future cash flows of a financial instrument will fluctuate because of changes in market factors. Market risk comprises foreign currency risk, interest rate risk and other price risk. The Company\u2019s strategy on the management of market risk is driven by the Company\u2019s investment objectives which in respect of the Company is to invest primarily in debt secured by commercial or residential properties in the United Kingdom and Western Europe. The Company\u2019s market risk is managed on a daily basis by the Investment Manager in accordance with policies and procedures detailed below. The sensitivity analysis below is based on a change in one variable while holding all other variables constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated \u2013 for example, change in foreign currency rate and change in market values. In addition, as the sensitivity analysis uses historical data as a basis for determining future events, it does not encompass all possible scenarios, particularly those that are of an extreme nature. The sensitivity analyses are based on the Investment Manager\u2019s best estimate of reasonably possible changes in interest rates and foreign currency rates. In practice the actual trading results may differ from the sensitivity analyses in the following pages and the differences may be material. (i) Foreign Currency Risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The primary purpose of the Company\u2019s foreign currency economic hedging activities is to protect against the volatility associated with investments denominated in foreign currencies and other financial assets and liabilities created in the normal course of business. The Company is exposed to risks that the exchange rate of its currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the Company\u2019s financial assets or liabilities denominated in currencies other than GBP. The Company manages its foreign exchange exposure with forward foreign exchange contracts with the objective of keeping its residual foreign currency exposure to a minimum. The currency profile of the Company, including derivatives at fair value, at the year end date was as follows: As at 31 March 2026:
Forward Foreign
Net
Monetary
Monetary
Exchange
currency
Assets
Liabilities
Contracts
exposure
Currency
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP
267,550
(73,099)
112,983
307,434
EUR
157,811
(46,029)
(113,331)
(1,549)
USD
3
\u2013
\u2013
3
425,364
(119,128)
(348)
305,888
As at 31 March 2025:
Forward Foreign
Net
Monetary
Monetary
Exchange
currency
Assets
Liabilities
Contracts
exposure
Currency
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP
277,508
(65,257)
110,467
322,718
EUR
114,196
(7,885)
(110,680)
(4,369)
USD
7
\u2013
\u2013
7
391,711
(73,142)
(213)
318,356
The notional amounts of the forward foreign exchange contracts outstanding were \u00a3117.7 million (31 March 2025: \u00a3123.3 million).
As at 31 March 2026, if the GBP strengthened by 5% or 10% in relation to all currency exposures of the Company, with all other
variables held constant, the equity of the Company and the net profit/(loss) per the Statement of Comprehensive Income would
have changed by the amounts shown below. The analysis was performed on the same basis for 2025.
31 Mar 2026
31 Mar 2025
By 5%
GBP\u2019000
GBP\u2019000
EUR
(77)
(218)
Total
(77)
(218)
31 Mar 2026
31 Mar 2025
By 10%
GBP\u2019000
GBP\u2019000
EUR
(155)
(437)
USD
\u2013
1
Total
(155)
(436)
A 5% or 10% weakening of the GBP against the above currencies would have resulted in an equal but opposite effect on the equity
of the Company and net profit/(loss) per the Statement of Comprehensive Income to the amounts shown above, on the basis
that all other variables remained constant.
The sensitivity analysis reflects how the equity of the Company would have been affected by changes in the relevant risk variable
that were reasonably possible at the reporting date. Management has determined that a fluctuation of 5% in foreign exchange
rates is reasonably possible, considering the environment in which the Company operates.
(ii) Interest Rate Risk
Interest rate risk is the risk that the fair value and future cash flows of a financial instrument will fluctuate because of changes
in market interest rates.
The Company\u2019s interest rate risk is managed by the Investment Manager in accordance with policies and procedures
detailed below.
The Company invests in fixed and floating rate real estate related debt assets (which includes loans and bonds). Interest rate risk
arises from the effects of fluctuations in the prevailing levels of market interest rates on the fair value of financial assets and
liabilities and future cash flow.
A fundamental principle of bond investing is that market interest rates and bond prices generally move in opposite directions.
When market interest rates rise, prices of fixed-rate bonds fall. However, as explained under the key sources of estimation uncertainty
in Note 3, the Board believes that for bilateral loans and bonds, the instrument\u2019s own effective yield represents the most
appropriate rate to discount future cash flows. The use of this judgement limits the impact of the fluctuations in market interest
rates on the valuation of the bilateral bonds and loans portfolio.
The Board in conjunction with the Investment Manager has considered relevant geopolitical and macroeconomic factors including
the development of market interest rates during the year and continues to believe that this key judgement remains appropriate
due to the bespoke nature of the investment portfolio, the short-term nature of the investments \u2014 characterised by their near-term
maturity dates and limited exposure to long-duration interest rate risk \u2014 and the dislocation between the yield of these assets
and the market interest rates.
Had movement in market interest rates been fully reflected in the valuation of fixed-rate assets held by the Company, the estimated impact of a rise of 1% (100 basis points) or 5% (500 basis points) (31 March 2025: 1% (100 basis points) or 5% (500 basis points)) on the NAV of the Company would be a decrease of \u00a31.0 million or \u00a35.1 million (31 March 2025: \u00a34.8 million or \u00a324.0 million), respectively. A decrease in interest rates by 1% (100 basis points) or 5% (500 basis points) is estimated to result in an increase in the NAV of the Company by a similar amount. These estimates are calculated based on the fair value of the fixed-rate securities, including accrued interest held by the Company as at 31 March 2026 and 31 March 2025, and their weighted average lives. This analysis excludes variable rate instruments, as market interest rate movements are inherently captured in their valuations. For the floating rate portion of the portfolio, which represents 53% (31 March 2025: 27%) of total investments, a 1% (100 basis points) increase in interest rates would increase annual income by approximately \u00a30.5 million (31 March 2025: \u00a31.9 million), while a 1% (100 basis points) decrease would reduce annual income by approximately \u00a30.5 million (31 March 2025: \u00a31.9 million). This analysis assumes all other variables remain constant and is based on the floating rate exposure at the reporting date. The interest rate profile of the Company as at 31 March 2026 was as follows:
Non-interest
Fixed
Floating
bearing
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
163,030
212,824
28,621
1
404,475
Cash and cash equivalents
\u2013
18,513
\u2013
18,513
Cash collateral held at broker
\u2013
2,250
\u2013
2,250
Interest receivable
\u2013
\u2013
117
117
Other assets
\u2013
\u2013
9
9
Financing agreements
\u2013
(117,616)
(820)
2
(118,436)
Derivative financial liabilities \u2013
forward foreign exchange contracts
\u2013
\u2013
(348)
(348)
Other liabilities
\u2013
\u2013
(692)
(692)
Total
163,030
115,971
26,887
305,888
1 Accrued interest and equity participation loans related to financial assets at fair value through profit or loss. 2 Interest payable related to financing agreements. The maturity profile of the Company as at 31 March 2026 was as follows:
Within
One to
Over
one year
five years
five years
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
78,885
317,350
8,240
404,475
Cash and cash equivalents
18,513
\u2013
\u2013
18,513
Cash collateral held at broker
2,250
\u2013
\u2013
2,250
Interest receivable
117
\u2013
\u2013
117
Other assets
9
\u2013
\u2013
9
Financing agreements
(70,717)
(47,719)
\u2013
(118,436)
Derivative financial liabilities \u2013
forward foreign exchange contracts
(348)
\u2013
\u2013
(348)
Other liabilities
(692)
\u2013
\u2013
(692)
Net assets
28,017
269,631
8,240
305,888
The interest rate profile of the Company as at 31 March 2025 was as follows:
Non-interest
Fixed
Floating
bearing
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
240,375
100,323
28,780
1
369,478
Cash and cash equivalents
\u2013
19,295
\u2013
19,295
Cash collateral held at broker
\u2013
2,866
\u2013
2,866
Other assets
\u2013
\u2013
72
72
Financing agreements
\u2013
(69,931)
(919)
2
(70,850)
Derivative financial liabilities \u2013
forward foreign exchange contracts
\u2013
\u2013
(213)
(213)
Other liabilities
\u2013
\u2013
(2,292)
(2,292)
Total
240,375
52,553
25,428
318,356
1 Accrued interest and equity participation loans related to financial assets at fair value through profit or loss. 2 Interest payable related to financing agreements. The maturity profile of the Company as at 31 March 2025 was as follows:
Within
One to
Over
one year
five years
five years
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
183,567
184,244
1,667
369,478
Cash and cash equivalents
19,295
\u2013
\u2013
19,295
Cash collateral held at broker
2,866
\u2013
\u2013
2,866
Other assets
72
\u2013
\u2013
72
Financing agreements
(70,850)
\u2013
\u2013
(70,850)
Derivative financial liabilities \u2013
forward foreign exchange contracts
(213)
\u2013
\u2013
(213)
Other liabilities
(2,292)
\u2013
\u2013
(2,292)
Net assets
132,445
184,244
1,667
318,356
The value of the asset-backed securities will fluctuate as a result of changes in market prices (other than those arising from foreign currency risk or interest rate risk), whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market. The loans in the Company are recorded at fair value on initial recognition and subsequent measurement. (b) Credit Risk Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company. The Board manages credit risk associated with its investments in bonds by investing primarily in senior real estate debt related securities backed by real estate in the United Kingdom and Europe. There is credit risk that the assets collateralising the investments do not perform as expected and accordingly the underlying loans are not, or only partially, repaid. The Investment Manager evaluates changes in actual performance on a regular basis. The Company has credit exposure in relation to its financial assets with The Bank of New York Mellon (International) Limited with the credit quality of AA- (31 March 2025: AA-) according to Standard and Poor\u2019s long-term senior debt rating. The Company\u2019s cash and cash equivalents are held with The Bank of New York Mellon (International) Limited. The Company also has credit exposure to JPMorgan Chase Bank N.A. in relation to cash collateral held, which has a credit rating of AA- (31 March 2025: AA-) according to Standard and Poor\u2019s. The Company measures credit risk and expected credit losses using probability of default, exposure at default and loss given default. The Board considers both historical analysis and forward-looking information in determining any expected credit loss. The Board considers the probability of default to be close to zero as these instruments have a low risk of default and the counterparties have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised based on 12-month expected credit losses as any such impairment would be wholly insignificant to the Company. The expected credit losses on cash and cash equivalents, cash collateral held at broker, and interest receivable have also been assessed under IFRS 9 and are considered immaterial due to the high credit quality of the counterparties and the short-term nature of these instruments. Accordingly, no loss allowance has been recognised for these financial assets. The Company\u2019s maximum exposure to credit risk for financial assets is as follows:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Instrument
Real Estate Credit Investments \u2013 market bond portfolio
9,371
6,812
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
1
455,459
451,861
Real Estate Credit Investments \u2013 equity participation loans
1
16,651
16,790
Cash and cash equivalents
18,513
19,295
Cash collateral held at broker
2,250
2,866
Interest receivable
117
\u2013
Total
502,361
497,624
1 Includes undrawn commitments. The following tables set out the Company\u2019s credit exposure by geography and financial instrument type as at 31 March 2026 and 31 March 2025:
Market bond
Bilateral loan and
Equity
portfolio
bond portfolio
participation loans
Total
% of
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
net assets
France
\u2013
70,878
9,208
80,086
26.18%
Germany
\u2013
3,243
\u2013
3,243
1.06%
Italy
1,051
23,154
\u2013
24,205
7.91%
Spain
\u2013
46,965
\u2013
46,965
15.35%
United Kingdom
8,320
234,821
6,835
249,976
81.73%
Total
9,371
379,061
16,043
404,475
132.23%
Market bond
Bilateral loan and
Equity
portfolio
bond portfolio
participation loans
Total
% of
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
net assets
France
\u2013
77,913
10,023
87,936
27.62%
Germany
\u2013
2,868
\u2013
2,868
0.90%
Italy
1,688
\u2013
\u2013
1,688
0.53%
Luxembourg
\u2013
12
\u2013
12
0.00%
Spain
\u2013
9,936
\u2013
9,936
3.12%
United Kingdom
5,124
254,128
7,786
267,038
83.89%
Total
6,812
344,857
17,809
369,478
116.06%
The following table sets out the Company\u2019s credit exposure by sector as at 31 March 2026 and 31 March 2025:
31 Mar 2026 % of 31 Mar 2025 % of
Sector GBP\u2019000 net assets GBP\u2019000 net assets
Co-living
37,994
12.42%
33,502
10.52%
Hotel
151,572
49.55%
113,483
35.65%
Office
46,503
15.20%
35,128
11.03%
Residential
34,056
11.13%
30,736
9.65%
Student accommodation
66,963
21.89%
58,517
18.38%
Others
67,387
22.03%
98,112
30.82%
Total
404,475
132.23%
369,478
116.06%
Market Bond Portfolio The Company is exposed to credit risk arising from investments in asset-backed securities. The value of these instruments may be adversely affected by defaults by issuers or other events impacting the credit quality of the underlying assets. The Board manages this risk through ongoing monitoring of its investment portfolio and regular review of the credit quality of counterparties on at least a monthly basis. Bilateral Loan and Bond Portfolio The Company is exposed to credit risk arising from its investments in loans and bonds. Borrowers may default on their obligations or experience events which adversely affect the value of these instruments. Default may arise from non-payment of principal or interest, or from breaches of loan covenants. In the event of default, the Company may incur a loss of principal and accrued interest, which could have a material adverse effect on its investments. The Board seeks to mitigate this risk through due diligence at the time of investment and ongoing monitoring of its portfolio, including assessment of borrower credit quality, underlying asset performance, and compliance with loan and bond covenants. This monitoring is performed on at least a quarterly basis. The Company\u2019s total investment in the bilateral loan and bond portfolio as at 31 March 2026 amounted to \u00a3379.1 million (31 March 2025: \u00a3344.9 million) which includes accrued interest on loans and bonds of \u00a312.5 million (31 March 2025: \u00a310.9 million) at this date. The Company\u2019s total credit risk exposure includes an additional \u00a32.9 million (31 March 2025: \u00a39.3 million) relating to partial guarantee provided for off-balance sheet loan financing arrangements. These contingent obligations, while not recognised on the Statement of Financial Position, represent potential credit risk exposure that supplements our reported risk position. The Board has assessed the probability of outflows under these guarantees as remote and accordingly no provision has been recognised in the financial statements. Derivative Contracts Transactions involving derivative instruments are usually with counterparties with whom the Company has signed master netting agreements. Master netting agreements provide for the net settlement of contracts with the same counterparty in the event of default. The impact of the master netting agreements is to reduce credit risk from the amounts shown as derivative financial assets in the Statement of Financial Position. The credit risk associated with derivative financial assets subject to a master netting arrangement is eliminated only to the extent that financial liabilities due to the same counterparty will be settled after the assets are realised. The exposure to credit risk reduced by master netting arrangements may change significantly within a short period of time as a result of transactions subject to the arrangement. The corresponding assets and liabilities have not been offset in the Statement of Financial Position. Custody The Company monitors its credit risk by monitoring the credit quality of The Bank of New York Mellon (International) Limited, as reported by Standard and Poor\u2019s or Moody\u2019s. If the credit quality or the financial position of The Bank of New York Mellon (International) Limited were to deteriorate significantly, the Investment Manager will seek to move the Company\u2019s assets to another bank. The Bank of New York Mellon (International) Limited is a Trust Company with a credit quality of Aa1 at the reporting date (31 March 2025: Aa1) according to Moody\u2019s. (c) Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company\u2019s policy and the Investment Manager\u2019s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stress conditions, without incurring unacceptable losses or risking damage to the Company\u2019s reputation. In managing the Company\u2019s assets, therefore, the Investment Manager seeks to ensure that the Company holds at all times a sufficient portfolio of assets listed on recognised investment exchanges to enable it to discharge its payment obligations. The Investment Manager monitors the Company\u2019s liquidity position on a daily basis. Where needed, the Investment Manager will liquidate positions to increase cash or reduce leverage. The market for subordinated asset-backed securities including real estate loans into which the Company is invested, is illiquid. In addition, investments that the Company purchases in privately negotiated (also called \u201cover-the-counter\u201d or \u201cOTC\u201d) transactions may not be registered under relevant securities laws or otherwise may not be freely tradable, resulting in restrictions on their transfer, sale, pledge or other disposition except in a transaction that is exempt from the registration requirements of, or is otherwise in accordance with, those laws. As a result of this illiquidity, the Company\u2019s ability to vary its portfolio in a timely fashion and to receive a fair price in response to changes in economic and other conditions may be limited. Furthermore, where the Company acquires investments for which there is not a readily available market, the Company\u2019s ability to deal in any such investment or obtain reliable information about the value of such investment or risks to which such investment is exposed may be limited. The Company manages liquidity risk arising from off-balance sheet financing arrangements by seeking to align the maturity of such arrangements with the maturity profile of the underlying loans. Repurchase arrangements are managed separately. The contractual maturity for repurchase arrangements relating to market bond positions is typically six months, with the expectation that such financing will be rolled over. For bilateral positions, the maturity period is generally determined by the earlier of the maturity of the underlying loan and the maturity of the Company\u2019s committed repo facility although in certain circumstances financing may extend beyond the maturity of the committed facility in order to better align with the maturity of the underlying asset. The Company\u2019s committed repo facility matures on 30 September 2026 and renewal is subject to negotiation, although the Directors currently expect the facility to be renewed. The following tables detail the current and long-term financial liabilities of the Company at the year end date:
Less than
3 months
Greater than
1 month
1-3 months
to 1 year
1 year
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial liabilities excluding derivatives
Financing agreements
\u2013
41,329
29,388
47,719
Other liabilities
\u2013
692
\u2013
\u2013
\u2013
42,021
29,388
47,719
Less than
3 months
Greater than
1 month
1-3 months
to 1 year
1 year
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial liabilities excluding derivatives
Financing agreements
51,376
18,655
819
\u2013
Other liabilities
\u2013
2,292
\u2013
\u2013
51,376
20,947
819
\u2013
(d) Valuation of Financial Instruments IFRS 13 Fair Value Measurement requires disclosures surrounding the level in the fair value hierarchy in which fair value measurement inputs are categorised for financial assets and liabilities measured in the Statement of Financial Position. The determination of the fair value for financial assets and liabilities for which there is no observable market price requires the use of valuation techniques as described in Note 2, Material accounting policies and in Note 3, Critical accounting judgements and key sources of estimation uncertainty. For financial instruments that trade infrequently and have little price transparency, fair value is less objective. The Company categorises investments using the following hierarchy as defined by IFRS 13: Level 1 \u2013 Quoted market prices in an active market for an identical instrument; Level 2 \u2013 Valuation techniques based on observable inputs. This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data; and Level 3 \u2013 Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs could have a significant impact on the instrument\u2019s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments. The following tables analyse within the fair value hierarchy of the Company\u2019s financial assets and liabilities measured at fair value at the year end date:
Level 1
Level 2
Level 3
Total
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Non-current assets
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
\u2013
9,281
9,281
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
301,292
301,292
Real Estate Credit Investments \u2013
equity participation loans
\u2013
\u2013
15,017
15,017
Total non-current assets
\u2013
\u2013
325,590
325,590
Current assets
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
\u2013
90
90
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
77,769
77,769
Real Estate Credit Investments \u2013
equity participation loans
\u2013
\u2013
1,026
1,026
Total current assets
\u2013
\u2013
78,885
78,885
Non-current liabilities
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 bilateral loan and bond portfolio
\u2013
(47,719)
1
\u2013
(47,719)
Total non-current liabilities
\u2013
(47,719)
\u2013
(47,719)
Current liabilities
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 market bond portfolio
\u2013
(6,726)
1
\u2013
(6,726)
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 bilateral loan and bond portfolio
\u2013
(63,991)
1
\u2013
(63,991)
Forward foreign exchange contracts
\u2013
(348)
\u2013
(348)
Total current liabilities
\u2013
(71,065)
\u2013
(71,065)
\u2013
(118,784)
404,475
285,691
1 Includes repurchase agreements related to Level 3 investments.
Level 1
Level 2
Level 3
Total
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Non-current assets
1
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
66
6,746
6,812
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
344,857
344,857
Real Estate Credit Investments \u2013 equity
participation loans
\u2013
\u2013
17,809
17,809
Total non-current assets
\u2013
66
369,412
369,478
Current liabilities
1
Real Estate Credit Investments \u2013
repurchase agreements
\u2013
(70,850)
2
\u2013
(70,850)
Forward foreign exchange contracts
\u2013
(213)
\u2013
(213)
Total current liabilities
\u2013
(71,063)
\u2013
(71,063)
\u2013
(70,997)
369,412
298,415
1 As at 31 March 2026, the investments and repurchase agreements are grouped into current and non-current based on their contractual maturity dates. This presentation provides more relevant information to users of the financial statements by aligning with the Company\u2019s liquidity management approach. This change was not applied retrospectively to the 31 March 2025 comparative figures as the impact is not considered qualitatively material to users of the financial statements and has no effect on the Company\u2019s key metrics including revenue, net profit and net assets. As at 31 March 2025, \u00a3183.6 million of the investments and \u00a323.8 million of the repurchase agreements had a maturity within 12 months; the remainder had a maturity of over 12 months. 2 Includes repurchase agreements related to Level 3 investments. The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value of market bonds that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. These include investment-grade corporate bonds. For market bonds where there is not an active market or where no observable prices are available, fair value is determined from prices provided by a third-party pricing vendor who may make use of unobservable inputs in their pricing evaluation. The Company\u2019s bilateral loans and bonds are not traded in an active market and there are no independent quotes available for these loans. Such holdings are classified as Level 3 investments. The fair value of these loans and bonds are linked directly to the value of the real estate loans that the underlying structures invests in, which are determined based on modelled expected cash flows (drawdown principal and interest repayments, and maturity dates) with effective yields ranging from 7.7% to 14.0% (31 March 2025: 7.1% to 11.7%) (the unobservable input). The fair value of the real estate loans is adjusted for changes in the credit quality of both the borrower and the underlying property collateral, and changes in the market rate on similar instruments where changes are material. No material movements on the fair value of the real estate loans have been identified and the carrying value of the loans was used. On origination of the loan, the Investment Manager performs due diligence on the borrower and related security/property. This includes obtaining a valuation of the underlying property (to assess LTV of the investment). In most instances, the terms of the loan require periodic revaluation of the underlying property to check against LTV covenants. All the fees associated with the investments (arrangement fees, exit fees, etc.) are paid directly to the Company and not paid to the Investment Manager. The fair values of the repurchase agreements discount the future cash flows of the instruments at interest rates based primarily on observable market rates. The Company has exercised judgement in determining that these liabilities should be classified in Level 2 of the fair value hierarchy. The fair value of forward foreign exchange contracts is the difference between the contracts price and reported market prices of the underlying contract variables. These are included in Level 2 of the fair value hierarchy. The following tables set out information about significant unobservable inputs used as at 31 March 2026 and 31 March 2025 in measuring financial assets categorised as Level 3:
Fair value
Valuation
Unobservable
As at 31 March 2026:
GBP\u2019000
technique
input
Market bond portfolio
9,371
Priced via external pricing source
Comparable set used
Bilateral loan and bond portfolio
379,061
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Equity participation loans
16,043
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Fair value
Valuation
Unobservable
As at 31 March 2025:
GBP\u2019000
technique
input
Market bond portfolio
6,746
Priced via external pricing source
Comparable set used
Bilateral loan and bond portfolio
344,857
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Equity participation loans
17,809
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Although the Board believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. Changes in unobservable inputs, such as discount rates used in loans and bonds valuation and sector-based yields used in collateral valuation can have a negative or positive impact on fair value. Sensitivities around the discount rates are discussed in detail in the interest rate risk note while sensitivity around expected future cash flows including collateral valuation is explained below. For Level 3 fair value measurements, sensitivities applied to external valuations range from 10% to 20% for valuations dated prior to 30 September 2025 (31 March 2025: 10% to 15%), and from 5% to 10% for valuations dated thereafter (31 March 2025: 5% to 10%). This represents the Board\u2019s assessment of a reasonable possible change and would have a negative impact of \u00a37.4 million (31 March 2025: \u00a33.6 million) or positive impact of \u00a37.4 million (31 March 2025: \u00a33.8 million) on the fair value measurements for the Level 3 assets. Since 2017, the majority of the Company\u2019s investments are made through Luxembourg-based entities, ENIV S.\u00e0 r.l. and RELF via separate note instruments. As and when market information, such as market prices from recognised financial data providers becomes available, the Company will assess the impact on its portfolio of loans and whether there should be any transfers between levels in the fair value hierarchy. As at 31 March 2026, the Investment Manager has taken into account movements in market rates, any indications of impairment, significant credit events or significant negative performance of the underlying property structures, which might affect the fair value of the loans and bonds. Please refer to pages 82 to 83 for the effects of movement in market rates. Level 3 Reconciliation The following table shows a reconciliation of all movements in the fair value of financial instruments categorised within Level 3 between the beginning and the end of the financial year:
Level 3
Level 3
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
Opening balance
369,412
329,268
Total losses recognised in the Statement of Comprehensive Income for the year
(4,357)
(1,025)
Purchases
1
185,611
139,847
Sales
(147,863)
(100,588)
Increase in interest receivable
1,672
1,910
Closing balance
404,475
369,412
Unrealised (losses)/gains on investments classified as Level 3 at year end
(7,108)
187
1 Includes capitalised interest amounting to \u00a318,492 (31 March 2025: \u00a312,567). (e) Prepayment and Re-Investment Risks The Company\u2019s real estate loans have the facility for prepayment. The Company\u2019s exposure to real estate debt securities also has exposure to potential prepayment risk which may have an impact on the value of the Company\u2019s portfolio. Prepayment rates are influenced by changes in interest rates and a variety of economic, geographic, and other factors beyond the Company\u2019s control and consequently cannot be predicted with certainty. The level and timing of prepayments made by borrowers in respect of the mortgage loans that collateralise certain of the Company\u2019s investments may have an adverse impact on the income earned by the Company from those investments. Early prepayments also give rise to increased re-investment risk. If the Company is unable to reinvest such cash in a new investment with an expected rate of return at least equal to that of the loan repaid, the Company\u2019s net income will be lower and, consequently, could have an adverse impact on the Company\u2019s ability to pay dividends. The Investment Manager reviews the prepayment assumptions each quarter and will update as required. These assumptions are considered through a review of the underlying loan performance information of the securitisations.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-196": { "value": "(a) Market Risks Market risk is the risk that the fair value and future cash flows of a financial instrument will fluctuate because of changes in market factors. Market risk comprises foreign currency risk, interest rate risk and other price risk. The Company\u2019s strategy on the management of market risk is driven by the Company\u2019s investment objectives which in respect of the Company is to invest primarily in debt secured by commercial or residential properties in the United Kingdom and Western Europe. The Company\u2019s market risk is managed on a daily basis by the Investment Manager in accordance with policies and procedures detailed below. The sensitivity analysis below is based on a change in one variable while holding all other variables constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated \u2013 for example, change in foreign currency rate and change in market values. In addition, as the sensitivity analysis uses historical data as a basis for determining future events, it does not encompass all possible scenarios, particularly those that are of an extreme nature. The sensitivity analyses are based on the Investment Manager\u2019s best estimate of reasonably possible changes in interest rates and foreign currency rates. In practice the actual trading results may differ from the sensitivity analyses in the following pages and the differences may be material. (i) Foreign Currency Risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The primary purpose of the Company\u2019s foreign currency economic hedging activities is to protect against the volatility associated with investments denominated in foreign currencies and other financial assets and liabilities created in the normal course of business. The Company is exposed to risks that the exchange rate of its currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the Company\u2019s financial assets or liabilities denominated in currencies other than GBP. The Company manages its foreign exchange exposure with forward foreign exchange contracts with the objective of keeping its residual foreign currency exposure to a minimum. The currency profile of the Company, including derivatives at fair value, at the year end date was as follows: As at 31 March 2026:
Forward Foreign
Net
Monetary
Monetary
Exchange
currency
Assets
Liabilities
Contracts
exposure
Currency
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP
267,550
(73,099)
112,983
307,434
EUR
157,811
(46,029)
(113,331)
(1,549)
USD
3
\u2013
\u2013
3
425,364
(119,128)
(348)
305,888
As at 31 March 2025:
Forward Foreign
Net
Monetary
Monetary
Exchange
currency
Assets
Liabilities
Contracts
exposure
Currency
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP
277,508
(65,257)
110,467
322,718
EUR
114,196
(7,885)
(110,680)
(4,369)
USD
7
\u2013
\u2013
7
391,711
(73,142)
(213)
318,356
The notional amounts of the forward foreign exchange contracts outstanding were \u00a3117.7 million (31 March 2025: \u00a3123.3 million). As at 31 March 2026, if the GBP strengthened by 5% or 10% in relation to all currency exposures of the Company, with all other variables held constant, the equity of the Company and the net profit/(loss) per the Statement of Comprehensive Income would have changed by the amounts shown below. The analysis was performed on the same basis for 2025.
31 Mar 2026
31 Mar 2025
By 5%
GBP\u2019000
GBP\u2019000
EUR
(77)
(218)
Total
(77)
(218)
31 Mar 2026
31 Mar 2025
By 10%
GBP\u2019000
GBP\u2019000
EUR
(155)
(437)
USD
\u2013
1
Total
(155)
(436)
A 5% or 10% weakening of the GBP against the above currencies would have resulted in an equal but opposite effect on the equity of the Company and net profit/(loss) per the Statement of Comprehensive Income to the amounts shown above, on the basis that all other variables remained constant. The sensitivity analysis reflects how the equity of the Company would have been affected by changes in the relevant risk variable that were reasonably possible at the reporting date. Management has determined that a fluctuation of 5% in foreign exchange rates is reasonably possible, considering the environment in which the Company operates. (ii) Interest Rate Risk Interest rate risk is the risk that the fair value and future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company\u2019s interest rate risk is managed by the Investment Manager in accordance with policies and procedures detailed below. The Company invests in fixed and floating rate real estate related debt assets (which includes loans and bonds). Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest rates on the fair value of financial assets and liabilities and future cash flow. A fundamental principle of bond investing is that market interest rates and bond prices generally move in opposite directions. When market interest rates rise, prices of fixed-rate bonds fall. However, as explained under the key sources of estimation uncertainty in Note 3, the Board believes that for bilateral loans and bonds, the instrument\u2019s own effective yield represents the most appropriate rate to discount future cash flows. The use of this judgement limits the impact of the fluctuations in market interest rates on the valuation of the bilateral bonds and loans portfolio. The Board in conjunction with the Investment Manager has considered relevant geopolitical and macroeconomic factors including the development of market interest rates during the year and continues to believe that this key judgement remains appropriate due to the bespoke nature of the investment portfolio, the short-term nature of the investments \u2014 characterised by their near-term maturity dates and limited exposure to long-duration interest rate risk \u2014 and the dislocation between the yield of these assets and the market interest rates.
Had movement in market interest rates been fully reflected in the valuation of fixed-rate assets held by the Company, the estimated
impact of a rise of 1% (100 basis points) or 5% (500 basis points) (31 March 2025: 1% (100 basis points) or 5% (500 basis points))
on the NAV of the Company would be a decrease of \u00a31.0 million or \u00a35.1 million (31 March 2025: \u00a34.8 million or \u00a324.0 million),
respectively. A decrease in interest rates by 1% (100 basis points) or 5% (500 basis points) is estimated to result in an increase in
the NAV of the Company by a similar amount. These estimates are calculated based on the fair value of the fixed-rate securities,
including accrued interest held by the Company as at 31 March 2026 and 31 March 2025, and their weighted average lives.
This analysis excludes variable rate instruments, as market interest rate movements are inherently captured in their valuations.
For the floating rate portion of the portfolio, which represents 53% (31 March 2025: 27%) of total investments, a 1% (100 basis points)
increase in interest rates would increase annual income by approximately \u00a30.5 million (31 March 2025: \u00a31.9 million), while a 1%
(100 basis points) decrease would reduce annual income by approximately \u00a30.5 million (31 March 2025: \u00a31.9 million). This
analysis assumes all other variables remain constant and is based on the floating rate exposure at the reporting date.
The interest rate profile of the Company as at 31 March 2026 was as follows:
Non-interest
Fixed
Floating
bearing
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
163,030
212,824
28,621
1
404,475
Cash and cash equivalents
\u2013
18,513
\u2013
18,513
Cash collateral held at broker
\u2013
2,250
\u2013
2,250
Interest receivable
\u2013
\u2013
117
117
Other assets
\u2013
\u2013
9
9
Financing agreements
\u2013
(117,616)
(820)
2
(118,436)
Derivative financial liabilities \u2013
forward foreign exchange contracts
\u2013
\u2013
(348)
(348)
Other liabilities
\u2013
\u2013
(692)
(692)
Total
163,030
115,971
26,887
305,888
1
Accrued interest and equity participation loans related to financial assets at fair value through profit or loss.
2
Interest payable related to financing agreements.
The maturity profile of the Company as at 31 March 2026 was as follows:
Within
One to
Over
one year
five years
five years
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
78,885
317,350
8,240
404,475
Cash and cash equivalents
18,513
\u2013
\u2013
18,513
Cash collateral held at broker
2,250
\u2013
\u2013
2,250
Interest receivable
117
\u2013
\u2013
117
Other assets
9
\u2013
\u2013
9
Financing agreements
(70,717)
(47,719)
\u2013
(118,436)
Derivative financial liabilities \u2013
forward foreign exchange contracts
(348)
\u2013
\u2013
(348)
Other liabilities
(692)
\u2013
\u2013
(692)
Net assets
28,017
269,631
8,240
305,888
The interest rate profile of the Company as at 31 March 2025 was as follows:
Non-interest
Fixed
Floating
bearing
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
240,375
100,323
28,780
1
369,478
Cash and cash equivalents
\u2013
19,295
\u2013
19,295
Cash collateral held at broker
\u2013
2,866
\u2013
2,866
Other assets
\u2013
\u2013
72
72
Financing agreements
\u2013
(69,931)
(919)
2
(70,850)
Derivative financial liabilities \u2013
forward foreign exchange contracts
\u2013
\u2013
(213)
(213)
Other liabilities
\u2013
\u2013
(2,292)
(2,292)
Total
240,375
52,553
25,428
318,356
1 Accrued interest and equity participation loans related to financial assets at fair value through profit or loss. 2 Interest payable related to financing agreements. The maturity profile of the Company as at 31 March 2025 was as follows:
Within
One to
Over
one year
five years
five years
Total
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
183,567
184,244
1,667
369,478
Cash and cash equivalents
19,295
\u2013
\u2013
19,295
Cash collateral held at broker
2,866
\u2013
\u2013
2,866
Other assets
72
\u2013
\u2013
72
Financing agreements
(70,850)
\u2013
\u2013
(70,850)
Derivative financial liabilities \u2013
forward foreign exchange contracts
(213)
\u2013
\u2013
(213)
Other liabilities
(2,292)
\u2013
\u2013
(2,292)
Net assets
132,445
184,244
1,667
318,356
The value of the asset-backed securities will fluctuate as a result of changes in market prices (other than those arising from foreign currency risk or interest rate risk), whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market. The loans in the Company are recorded at fair value on initial recognition and subsequent measurement. ", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-197": { "value": "(b) Credit Risk Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company. The Board manages credit risk associated with its investments in bonds by investing primarily in senior real estate debt related securities backed by real estate in the United Kingdom and Europe. There is credit risk that the assets collateralising the investments do not perform as expected and accordingly the underlying loans are not, or only partially, repaid. The Investment Manager evaluates changes in actual performance on a regular basis. The Company has credit exposure in relation to its financial assets with The Bank of New York Mellon (International) Limited with the credit quality of AA- (31 March 2025: AA-) according to Standard and Poor\u2019s long-term senior debt rating. The Company\u2019s cash and cash equivalents are held with The Bank of New York Mellon (International) Limited. The Company also has credit exposure to JPMorgan Chase Bank N.A. in relation to cash collateral held, which has a credit rating of AA- (31 March 2025: AA-) according to Standard and Poor\u2019s. The Company measures credit risk and expected credit losses using probability of default, exposure at default and loss given default. The Board considers both historical analysis and forward-looking information in determining any expected credit loss. The Board considers the probability of default to be close to zero as these instruments have a low risk of default and the counterparties have a strong capacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised based on 12-month expected credit losses as any such impairment would be wholly insignificant to the Company. The expected credit losses on cash and cash equivalents, cash collateral held at broker, and interest receivable have also been assessed under IFRS 9 and are considered immaterial due to the high credit quality of the counterparties and the short-term nature of these instruments. Accordingly, no loss allowance has been recognised for these financial assets. The Company\u2019s maximum exposure to credit risk for financial assets is as follows:
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Instrument
Real Estate Credit Investments \u2013 market bond portfolio
9,371
6,812
Real Estate Credit Investments \u2013 bilateral loan and bond portfolio
1
455,459
451,861
Real Estate Credit Investments \u2013 equity participation loans
1
16,651
16,790
Cash and cash equivalents
18,513
19,295
Cash collateral held at broker
2,250
2,866
Interest receivable
117
\u2013
Total
502,361
497,624
1 Includes undrawn commitments. The following tables set out the Company\u2019s credit exposure by geography and financial instrument type as at 31 March 2026 and 31 March 2025:
Market bond
Bilateral loan and
Equity
portfolio
bond portfolio
participation loans
Total
% of
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
net assets
France
\u2013
70,878
9,208
80,086
26.18%
Germany
\u2013
3,243
\u2013
3,243
1.06%
Italy
1,051
23,154
\u2013
24,205
7.91%
Spain
\u2013
46,965
\u2013
46,965
15.35%
United Kingdom
8,320
234,821
6,835
249,976
81.73%
Total
9,371
379,061
16,043
404,475
132.23%
Market bond
Bilateral loan and
Equity
portfolio
bond portfolio
participation loans
Total
% of
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
net assets
France
\u2013
77,913
10,023
87,936
27.62%
Germany
\u2013
2,868
\u2013
2,868
0.90%
Italy
1,688
\u2013
\u2013
1,688
0.53%
Luxembourg
\u2013
12
\u2013
12
0.00%
Spain
\u2013
9,936
\u2013
9,936
3.12%
United Kingdom
5,124
254,128
7,786
267,038
83.89%
Total
6,812
344,857
17,809
369,478
116.06%
The following table sets out the Company\u2019s credit exposure by sector as at 31 March 2026 and 31 March 2025:
31 Mar 2026 % of 31 Mar 2025 % of
Sector GBP\u2019000 net assets GBP\u2019000 net assets
Co-living
37,994
12.42%
33,502
10.52%
Hotel
151,572
49.55%
113,483
35.65%
Office
46,503
15.20%
35,128
11.03%
Residential
34,056
11.13%
30,736
9.65%
Student accommodation
66,963
21.89%
58,517
18.38%
Others
67,387
22.03%
98,112
30.82%
Total
404,475
132.23%
369,478
116.06%
Market Bond Portfolio The Company is exposed to credit risk arising from investments in asset-backed securities. The value of these instruments may be adversely affected by defaults by issuers or other events impacting the credit quality of the underlying assets. The Board manages this risk through ongoing monitoring of its investment portfolio and regular review of the credit quality of counterparties on at least a monthly basis. Bilateral Loan and Bond Portfolio The Company is exposed to credit risk arising from its investments in loans and bonds. Borrowers may default on their obligations or experience events which adversely affect the value of these instruments. Default may arise from non-payment of principal or interest, or from breaches of loan covenants. In the event of default, the Company may incur a loss of principal and accrued interest, which could have a material adverse effect on its investments. The Board seeks to mitigate this risk through due diligence at the time of investment and ongoing monitoring of its portfolio, including assessment of borrower credit quality, underlying asset performance, and compliance with loan and bond covenants. This monitoring is performed on at least a quarterly basis. The Company\u2019s total investment in the bilateral loan and bond portfolio as at 31 March 2026 amounted to \u00a3379.1 million (31 March 2025: \u00a3344.9 million) which includes accrued interest on loans and bonds of \u00a312.5 million (31 March 2025: \u00a310.9 million) at this date. The Company\u2019s total credit risk exposure includes an additional \u00a32.9 million (31 March 2025: \u00a39.3 million) relating to partial guarantee provided for off-balance sheet loan financing arrangements. These contingent obligations, while not recognised on the Statement of Financial Position, represent potential credit risk exposure that supplements our reported risk position. The Board has assessed the probability of outflows under these guarantees as remote and accordingly no provision has been recognised in the financial statements. Derivative Contracts Transactions involving derivative instruments are usually with counterparties with whom the Company has signed master netting agreements. Master netting agreements provide for the net settlement of contracts with the same counterparty in the event of default. The impact of the master netting agreements is to reduce credit risk from the amounts shown as derivative financial assets in the Statement of Financial Position. The credit risk associated with derivative financial assets subject to a master netting arrangement is eliminated only to the extent that financial liabilities due to the same counterparty will be settled after the assets are realised. The exposure to credit risk reduced by master netting arrangements may change significantly within a short period of time as a result of transactions subject to the arrangement. The corresponding assets and liabilities have not been offset in the Statement of Financial Position. Custody The Company monitors its credit risk by monitoring the credit quality of The Bank of New York Mellon (International) Limited, as reported by Standard and Poor\u2019s or Moody\u2019s. If the credit quality or the financial position of The Bank of New York Mellon (International) Limited were to deteriorate significantly, the Investment Manager will seek to move the Company\u2019s assets to another bank. The Bank of New York Mellon (International) Limited is a Trust Company with a credit quality of Aa1 at the reporting date (31 March 2025: Aa1) according to Moody\u2019s. ", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-198": { "value": "(c) Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company\u2019s policy and the Investment Manager\u2019s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stress conditions, without incurring unacceptable losses or risking damage to the Company\u2019s reputation. In managing the Company\u2019s assets, therefore, the Investment Manager seeks to ensure that the Company holds at all times a sufficient portfolio of assets listed on recognised investment exchanges to enable it to discharge its payment obligations. The Investment Manager monitors the Company\u2019s liquidity position on a daily basis. Where needed, the Investment Manager will liquidate positions to increase cash or reduce leverage. The market for subordinated asset-backed securities including real estate loans into which the Company is invested, is illiquid. In addition, investments that the Company purchases in privately negotiated (also called \u201cover-the-counter\u201d or \u201cOTC\u201d) transactions may not be registered under relevant securities laws or otherwise may not be freely tradable, resulting in restrictions on their transfer, sale, pledge or other disposition except in a transaction that is exempt from the registration requirements of, or is otherwise in accordance with, those laws. As a result of this illiquidity, the Company\u2019s ability to vary its portfolio in a timely fashion and to receive a fair price in response to changes in economic and other conditions may be limited. Furthermore, where the Company acquires investments for which there is not a readily available market, the Company\u2019s ability to deal in any such investment or obtain reliable information about the value of such investment or risks to which such investment is exposed may be limited. The Company manages liquidity risk arising from off-balance sheet financing arrangements by seeking to align the maturity of such arrangements with the maturity profile of the underlying loans. Repurchase arrangements are managed separately. The contractual maturity for repurchase arrangements relating to market bond positions is typically six months, with the expectation that such financing will be rolled over. For bilateral positions, the maturity period is generally determined by the earlier of the maturity of the underlying loan and the maturity of the Company\u2019s committed repo facility although in certain circumstances financing may extend beyond the maturity of the committed facility in order to better align with the maturity of the underlying asset. The Company\u2019s committed repo facility matures on 30 September 2026 and renewal is subject to negotiation, although the Directors currently expect the facility to be renewed. The following tables detail the current and long-term financial liabilities of the Company at the year end date:
Less than
3 months
Greater than
1 month
1-3 months
to 1 year
1 year
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial liabilities excluding derivatives
Financing agreements
\u2013
41,329
29,388
47,719
Other liabilities
\u2013
692
\u2013
\u2013
\u2013
42,021
29,388
47,719
Less than
3 months
Greater than
1 month
1-3 months
to 1 year
1 year
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Financial liabilities excluding derivatives
Financing agreements
51,376
18,655
819
\u2013
Other liabilities
\u2013
2,292
\u2013
\u2013
51,376
20,947
819
\u2013
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-204": { "value": "(d) Valuation of Financial Instruments IFRS 13 Fair Value Measurement requires disclosures surrounding the level in the fair value hierarchy in which fair value measurement inputs are categorised for financial assets and liabilities measured in the Statement of Financial Position. The determination of the fair value for financial assets and liabilities for which there is no observable market price requires the use of valuation techniques as described in Note 2, Material accounting policies and in Note 3, Critical accounting judgements and key sources of estimation uncertainty. For financial instruments that trade infrequently and have little price transparency, fair value is less objective.
The Company categorises investments using the following hierarchy as defined by IFRS 13:
Level 1 \u2013 Quoted market prices in an active market for an identical instrument;
Level 2 \u2013 Valuation techniques based on observable inputs. This category includes instruments valued using: quoted market
prices in active markets for similar instruments; quoted prices for similar instruments in markets that are considered less than
active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data; and
Level 3 \u2013 Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation
technique includes inputs not based on observable data and the unobservable inputs could have a significant impact on the
instrument\u2019s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where
significant unobservable adjustments or assumptions are required to reflect differences between the instruments.
The following tables analyse within the fair value hierarchy of the Company\u2019s financial assets and liabilities measured at fair value
at the year end date:
Level 1
Level 2
Level 3
Total
As at 31 March 2026:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Non-current assets
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
\u2013
9,281
9,281
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
301,292
301,292
Real Estate Credit Investments \u2013
equity participation loans
\u2013
\u2013
15,017
15,017
Total non-current assets
\u2013
\u2013
325,590
325,590
Current assets
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
\u2013
90
90
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
77,769
77,769
Real Estate Credit Investments \u2013
equity participation loans
\u2013
\u2013
1,026
1,026
Total current assets
\u2013
\u2013
78,885
78,885
Non-current liabilities
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 bilateral loan and bond portfolio
\u2013
(47,719)
1
\u2013
(47,719)
Total non-current liabilities
\u2013
(47,719)
\u2013
(47,719)
Current liabilities
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 market bond portfolio
\u2013
(6,726)
1
\u2013
(6,726)
Real Estate Credit Investments \u2013 repurchase
agreements \u2013 bilateral loan and bond portfolio
\u2013
(63,991)
1
\u2013
(63,991)
Forward foreign exchange contracts
\u2013
(348)
\u2013
(348)
Total current liabilities
\u2013
(71,065)
\u2013
(71,065)
\u2013
(118,784)
404,475
285,691
1
Includes repurchase agreements related to Level 3 investments.
Level 1
Level 2
Level 3
Total
As at 31 March 2025:
GBP\u2019000
GBP\u2019000
GBP\u2019000
GBP\u2019000
Non-current assets
1
Real Estate Credit Investments \u2013
market bond portfolio
\u2013
66
6,746
6,812
Real Estate Credit Investments \u2013
bilateral loan and bond portfolio
\u2013
\u2013
344,857
344,857
Real Estate Credit Investments \u2013 equity
participation loans
\u2013
\u2013
17,809
17,809
Total non-current assets
\u2013
66
369,412
369,478
Current liabilities
1
Real Estate Credit Investments \u2013
repurchase agreements
\u2013
(70,850)
2
\u2013
(70,850)
Forward foreign exchange contracts
\u2013
(213)
\u2013
(213)
Total current liabilities
\u2013
(71,063)
\u2013
(71,063)
\u2013
(70,997)
369,412
298,415
1
As at 31 March 2026, the investments and repurchase agreements are grouped into current and non-current based on their contractual maturity dates. This presentation provides more relevant
information to users of the financial statements by aligning with the Company\u2019s liquidity management approach. This change was not applied retrospectively to the 31 March 2025 comparative
figures as the impact is not considered qualitatively material to users of the financial statements and has no effect on the Company\u2019s key metrics including revenue, net profit and net assets.
As at 31 March 2025, \u00a3183.6 million of the investments and \u00a323.8 million of the repurchase agreements had a maturity within 12 months; the remainder had a maturity of over 12 months.
2
Includes repurchase agreements related to Level 3 investments.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined based
on the lowest level input that is significant to the fair value measurement in its entirety.
The fair value of market bonds that trade in markets that are not considered to be active but are valued based on quoted market
prices, dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2. These include
investment-grade corporate bonds.
For market bonds where there is not an active market or where no observable prices are available, fair value is determined from
prices provided by a third-party pricing vendor who may make use of unobservable inputs in their pricing evaluation.
The Company\u2019s bilateral loans and bonds are not traded in an active market and there are no independent quotes available for
these loans. Such holdings are classified as Level 3 investments. The fair value of these loans and bonds are linked directly to the
value of the real estate loans that the underlying structures invests in, which are determined based on modelled expected cash
flows (drawdown principal and interest repayments, and maturity dates) with effective yields ranging from 7.7% to 14.0% (31 March
2025: 7.1% to 11.7%) (the unobservable input).
The fair value of the real estate loans is adjusted for changes in the credit quality of both the borrower and the underlying property
collateral, and changes in the market rate on similar instruments where changes are material. No material movements on the fair
value of the real estate loans have been identified and the carrying value of the loans was used. On origination of the loan, the
Investment Manager performs due diligence on the borrower and related security/property. This includes obtaining a valuation
of the underlying property (to assess LTV of the investment). In most instances, the terms of the loan require periodic revaluation
of the underlying property to check against LTV covenants. All the fees associated with the investments (arrangement fees, exit
fees, etc.) are paid directly to the Company and not paid to the Investment Manager.
The fair values of the repurchase agreements discount the future cash flows of the instruments at interest rates based primarily
on observable market rates. The Company has exercised judgement in determining that these liabilities should be classified in
Level 2 of the fair value hierarchy.
The fair value of forward foreign exchange contracts is the difference between the contracts price and reported market prices
of the underlying contract variables. These are included in Level 2 of the fair value hierarchy.
The following tables set out information about significant unobservable inputs used as at 31 March 2026 and 31 March 2025 in measuring financial assets categorised as Level 3:
Fair value
Valuation
Unobservable
As at 31 March 2026:
GBP\u2019000
technique
input
Market bond portfolio
9,371
Priced via external pricing source
Comparable set used
Bilateral loan and bond portfolio
379,061
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Equity participation loans
16,043
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Fair value
Valuation
Unobservable
As at 31 March 2025:
GBP\u2019000
technique
input
Market bond portfolio
6,746
Priced via external pricing source
Comparable set used
Bilateral loan and bond portfolio
344,857
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Equity participation loans
17,809
Discounted cash flow
Risk-adjusted discount rate
and sector-based yields
Although the Board believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different measurements of fair value. Changes in unobservable inputs, such as discount rates used in loans and bonds valuation and sector-based yields used in collateral valuation can have a negative or positive impact on fair value. Sensitivities around the discount rates are discussed in detail in the interest rate risk note while sensitivity around expected future cash flows including collateral valuation is explained below. For Level 3 fair value measurements, sensitivities applied to external valuations range from 10% to 20% for valuations dated prior to 30 September 2025 (31 March 2025: 10% to 15%), and from 5% to 10% for valuations dated thereafter (31 March 2025: 5% to 10%). This represents the Board\u2019s assessment of a reasonable possible change and would have a negative impact of \u00a37.4 million (31 March 2025: \u00a33.6 million) or positive impact of \u00a37.4 million (31 March 2025: \u00a33.8 million) on the fair value measurements for the Level 3 assets. Since 2017, the majority of the Company\u2019s investments are made through Luxembourg-based entities, ENIV S.\u00e0 r.l. and RELF via separate note instruments. As and when market information, such as market prices from recognised financial data providers becomes available, the Company will assess the impact on its portfolio of loans and whether there should be any transfers between levels in the fair value hierarchy. As at 31 March 2026, the Investment Manager has taken into account movements in market rates, any indications of impairment, significant credit events or significant negative performance of the underlying property structures, which might affect the fair value of the loans and bonds. Please refer to pages 82 to 83 for the effects of movement in market rates. Level 3 Reconciliation The following table shows a reconciliation of all movements in the fair value of financial instruments categorised within Level 3 between the beginning and the end of the financial year:
Level 3
Level 3
31 Mar 2026
31 Mar 2025
GBP\u2019000
GBP\u2019000
Financial assets at fair value through profit or loss
Opening balance
369,412
329,268
Total losses recognised in the Statement of Comprehensive Income for the year
(4,357)
(1,025)
Purchases
1
185,611
139,847
Sales
(147,863)
(100,588)
Increase in interest receivable
1,672
1,910
Closing balance
404,475
369,412
Unrealised (losses)/gains on investments classified as Level 3 at year end
(7,108)
187
1 Includes capitalised interest amounting to \u00a318,492 (31 March 2025: \u00a312,567). ", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-166": { "value": "
15. Cash Collateral
The Company manages some of its financial risks through the use of financial derivative instruments and repurchase agreements
which are subject to collateral requirements. As at 31 March 2026, a total of \u00a32.3 million (31 March 2025: \u00a32.9 million) was due
from JPMorgan Chase Bank, N.A. under the terms of the relevant arrangements. This cash held at brokers is restricted and is
shown as Cash collateral held at broker in the Statement of Financial Position.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-167": { "value": "
16. Material Agreements and Related Party Transactions
Loan Investments
Since 2017, the majority of the Company\u2019s investments are made through Luxembourg-based entities, ENIV S.\u00e0 r.l. and RELF,
via separate note instruments. These entities have separate compartments for each loan deal which effectively ringfences each
loan deal. Other funds managed by the Investment Manager may invest pari passu in these compartments.
Investment Manager
The Company is party to an Investment Management Agreement with the Investment Manager, dated 23 February 2017, pursuant
to which the Company has appointed the Investment Manager to manage its assets on a day-to-day basis in accordance with
its investment objectives and policies, subject to the overall supervision and direction of the Board of Directors.
The Company pays the Investment Manager a Management Fee and a Performance Fee.
Management Fee
Under the terms of the Investment Management Agreement, the Investment Manager is entitled to receive from the Company
an annual Management Fee of 1.25% on an adjusted NAV, being the NAV of the shares.
During the year ended 31 March 2026, the Management Fee totalled \u00a34.0 million (31 March 2025: \u00a34.1 million), of which
\u00a30.3 million (31 March 2025: \u00a30.3 million) was outstanding at the year end.
Performance Fee
Under the terms of the Investment Management Agreement, the Investment Manager is entitled to receive from the Company
a Performance Fee calculated as ((A-B) x 20% x C) where:
A = the Adjusted Performance NAV per share, as defined in the Prospectus.
B = the NAV per share as at the first business day of the Performance Period increased by a simple annual rate of return of 7%
over the Performance Period or, if no Performance Fee was payable in the previous Performance Period, the NAV per share on
the first business day of the Performance Period immediately following the last Performance Period in which a Performance
Fee was paid (the \u201cStarting Date\u201d) increased by a simple annual rate of return of 7% over the period since the Starting Date
(\u201cHurdle Assets\u201d).
C = the time weighted average number of shares in issue in the period since the Starting Date.
On 1 October 2025, the Company entered a new Performance Period which is expected to run until the end date of the quarter
in which the next continuation resolution is passed. As no Performance Fee was payable in the previous Performance Period,
the NAV on which the Hurdle Assets will be determined in accordance with the above formula was the NAV per share of \u00a31.63
as at 2 October 2017 (being the Starting Date of the Performance Period immediately following the last Performance Period in
which a Performance Fee was paid).
During the years ended 31 March 2026 and 31 March 2025, there were no performance fees paid or accrued.
Directors\u2019 Fee
The Remuneration Committee determines the Company\u2019s Remuneration Policy within the limits set by the Articles of Incorporation
which currently state that the remuneration paid to each Director by way of fees shall not exceed \u20ac160,000 in any financial year.
Additionally, they provide that if any Director performs any special duties, or renders services, outside of the ordinary duties of
a Director, that Director shall be paid such reasonable additional remuneration as the Board may determine.
The Committee is authorised by the Board to seek, subject to a financial limit, such independent advice as it may deem necessary
in the discharge of its responsibilities.
During the year ended 31 March 2026, the Directors\u2019 fee totalled \u00a30.3 million (31 March 2025: \u00a30.3 million), of which \u00a30.06 million
(31 March 2025: \u00a30.06 million) was outstanding at the year end.
Administration Fee
Under the terms of the Administration Agreement, the Administrator is entitled to receive from the Company a monthly
administration fee based on the prior month gross assets of the Company adjusted for current month subscriptions and
redemptions of the Company at the relevant basis points per annum rate, subject always to a minimum monthly fee of \u00a310,000.
During the year ended 31 March 2026, the Administration fee totalled \u00a30.3 million (31 March 2025: \u00a30.3 million), of which
\u00a30.06 million (31 March 2025: \u00a30.04 million) was outstanding at the year end.
Depositary Fee
Under the terms of the Depositary Agreement, the Depositary is entitled to receive from the Company an annual Depositary fee
of 0.02% (31 March 2025: 0.02%) of the NAV of the Company. During the year ended 31 March 2026, the Depositary fee totalled
\u00a30.06 million (31 March 2025: \u00a30.04 million). The Company owed \u00a36,287 (31 March 2025: \u00a320,101) to the Depositary at the
year end.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-187": { "value": "16. Material Agreements and Related Party Transactions Loan Investments Since 2017, the majority of the Company\u2019s investments are made through Luxembourg-based entities, ENIV S.\u00e0 r.l. and RELF, via separate note instruments. These entities have separate compartments for each loan deal which effectively ringfences each loan deal. Other funds managed by the Investment Manager may invest pari passu in these compartments. Investment Manager The Company is party to an Investment Management Agreement with the Investment Manager, dated 23 February 2017, pursuant to which the Company has appointed the Investment Manager to manage its assets on a day-to-day basis in accordance with its investment objectives and policies, subject to the overall supervision and direction of the Board of Directors. The Company pays the Investment Manager a Management Fee and a Performance Fee. Management Fee Under the terms of the Investment Management Agreement, the Investment Manager is entitled to receive from the Company an annual Management Fee of 1.25% on an adjusted NAV, being the NAV of the shares. During the year ended 31 March 2026, the Management Fee totalled \u00a34.0 million (31 March 2025: \u00a34.1 million), of which \u00a30.3 million (31 March 2025: \u00a30.3 million) was outstanding at the year end. Performance Fee Under the terms of the Investment Management Agreement, the Investment Manager is entitled to receive from the Company a Performance Fee calculated as ((A-B) x 20% x C) where: A = the Adjusted Performance NAV per share, as defined in the Prospectus. B = the NAV per share as at the first business day of the Performance Period increased by a simple annual rate of return of 7% over the Performance Period or, if no Performance Fee was payable in the previous Performance Period, the NAV per share on the first business day of the Performance Period immediately following the last Performance Period in which a Performance Fee was paid (the \u201cStarting Date\u201d) increased by a simple annual rate of return of 7% over the period since the Starting Date (\u201cHurdle Assets\u201d). C = the time weighted average number of shares in issue in the period since the Starting Date. On 1 October 2025, the Company entered a new Performance Period which is expected to run until the end date of the quarter in which the next continuation resolution is passed. As no Performance Fee was payable in the previous Performance Period, the NAV on which the Hurdle Assets will be determined in accordance with the above formula was the NAV per share of \u00a31.63 as at 2 October 2017 (being the Starting Date of the Performance Period immediately following the last Performance Period in which a Performance Fee was paid). During the years ended 31 March 2026 and 31 March 2025, there were no performance fees paid or accrued. Directors\u2019 Fee The Remuneration Committee determines the Company\u2019s Remuneration Policy within the limits set by the Articles of Incorporation which currently state that the remuneration paid to each Director by way of fees shall not exceed \u20ac160,000 in any financial year. Additionally, they provide that if any Director performs any special duties, or renders services, outside of the ordinary duties of a Director, that Director shall be paid such reasonable additional remuneration as the Board may determine. The Committee is authorised by the Board to seek, subject to a financial limit, such independent advice as it may deem necessary in the discharge of its responsibilities. During the year ended 31 March 2026, the Directors\u2019 fee totalled \u00a30.3 million (31 March 2025: \u00a30.3 million), of which \u00a30.06 million (31 March 2025: \u00a30.06 million) was outstanding at the year end. Administration Fee Under the terms of the Administration Agreement, the Administrator is entitled to receive from the Company a monthly administration fee based on the prior month gross assets of the Company adjusted for current month subscriptions and redemptions of the Company at the relevant basis points per annum rate, subject always to a minimum monthly fee of \u00a310,000. During the year ended 31 March 2026, the Administration fee totalled \u00a30.3 million (31 March 2025: \u00a30.3 million), of which \u00a30.06 million (31 March 2025: \u00a30.04 million) was outstanding at the year end. Depositary Fee Under the terms of the Depositary Agreement, the Depositary is entitled to receive from the Company an annual Depositary fee of 0.02% (31 March 2025: 0.02%) of the NAV of the Company. During the year ended 31 March 2026, the Depositary fee totalled \u00a30.06 million (31 March 2025: \u00a30.04 million). The Company owed \u00a36,287 (31 March 2025: \u00a320,101) to the Depositary at the year end.", "dimensions": { "concept": "ifrs-full:DisclosureOfTransactionsBetweenRelatedPartiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-199": { "value": "Management Fee Under the terms of the Investment Management Agreement, the Investment Manager is entitled to receive from the Company an annual Management Fee of 1.25% on an adjusted NAV, being the NAV of the shares. During the year ended 31 March 2026, the Management Fee totalled \u00a34.0 million (31 March 2025: \u00a34.1 million), of which \u00a30.3 million (31 March 2025: \u00a30.3 million) was outstanding at the year end. Performance Fee Under the terms of the Investment Management Agreement, the Investment Manager is entitled to receive from the Company a Performance Fee calculated as ((A-B) x 20% x C) where: A = the Adjusted Performance NAV per share, as defined in the Prospectus. B = the NAV per share as at the first business day of the Performance Period increased by a simple annual rate of return of 7% over the Performance Period or, if no Performance Fee was payable in the previous Performance Period, the NAV per share on the first business day of the Performance Period immediately following the last Performance Period in which a Performance Fee was paid (the \u201cStarting Date\u201d) increased by a simple annual rate of return of 7% over the period since the Starting Date (\u201cHurdle Assets\u201d). C = the time weighted average number of shares in issue in the period since the Starting Date. On 1 October 2025, the Company entered a new Performance Period which is expected to run until the end date of the quarter in which the next continuation resolution is passed. As no Performance Fee was payable in the previous Performance Period, the NAV on which the Hurdle Assets will be determined in accordance with the above formula was the NAV per share of \u00a31.63 as at 2 October 2017 (being the Starting Date of the Performance Period immediately following the last Performance Period in which a Performance Fee was paid). During the years ended 31 March 2026 and 31 March 2025, there were no performance fees paid or accrued. Directors\u2019 Fee The Remuneration Committee determines the Company\u2019s Remuneration Policy within the limits set by the Articles of Incorporation which currently state that the remuneration paid to each Director by way of fees shall not exceed \u20ac160,000 in any financial year. Additionally, they provide that if any Director performs any special duties, or renders services, outside of the ordinary duties of a Director, that Director shall be paid such reasonable additional remuneration as the Board may determine. The Committee is authorised by the Board to seek, subject to a financial limit, such independent advice as it may deem necessary in the discharge of its responsibilities. During the year ended 31 March 2026, the Directors\u2019 fee totalled \u00a30.3 million (31 March 2025: \u00a30.3 million), of which \u00a30.06 million (31 March 2025: \u00a30.06 million) was outstanding at the year end. Administration Fee Under the terms of the Administration Agreement, the Administrator is entitled to receive from the Company a monthly administration fee based on the prior month gross assets of the Company adjusted for current month subscriptions and redemptions of the Company at the relevant basis points per annum rate, subject always to a minimum monthly fee of \u00a310,000. During the year ended 31 March 2026, the Administration fee totalled \u00a30.3 million (31 March 2025: \u00a30.3 million), of which \u00a30.06 million (31 March 2025: \u00a30.04 million) was outstanding at the year end. Depositary Fee Under the terms of the Depositary Agreement, the Depositary is entitled to receive from the Company an annual Depositary fee of 0.02% (31 March 2025: 0.02%) of the NAV of the Company. During the year ended 31 March 2026, the Depositary fee totalled \u00a30.06 million (31 March 2025: \u00a30.04 million). The Company owed \u00a36,287 (31 March 2025: \u00a320,101) to the Depositary at the year end.", "dimensions": { "concept": "ifrs-full:DisclosureOfFeeAndCommissionIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-169": { "value": "
17. Contingencies and Commitments
As at 31 March 2026, the Company had committed \u00a3492.8 million into loan and bond portfolio of which \u00a3435.7 million had been
funded (31 March 2025: \u00a3486.3 million into the loan and bond portfolio of which \u00a3438.4 million had been funded).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-205": { "value": "17. Contingencies and Commitments As at 31 March 2026, the Company had committed \u00a3492.8 million into loan and bond portfolio of which \u00a3435.7 million had been funded (31 March 2025: \u00a3486.3 million into the loan and bond portfolio of which \u00a3438.4 million had been funded).", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-200": { "value": "17. Contingencies and Commitments As at 31 March 2026, the Company had committed \u00a3492.8 million into loan and bond portfolio of which \u00a3435.7 million had been funded (31 March 2025: \u00a3486.3 million into the loan and bond portfolio of which \u00a3438.4 million had been funded).", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-188": { "value": "17. Contingencies and Commitments As at 31 March 2026, the Company had committed \u00a3492.8 million into loan and bond portfolio of which \u00a3435.7 million had been funded (31 March 2025: \u00a3486.3 million into the loan and bond portfolio of which \u00a3438.4 million had been funded).", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-170": { "value": "
18. Subsequent Events
The Directors approved a dividend of 3.0 pence per share on 24 June 2026.
There have been no other significant events affecting the Company since the year end date that require amendment to or
disclosure in the financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-168": { "value": "
19. Approval of the Financial Statements
The Annual Report and audited financial statements of the Company were approved by the Directors on 24 June 2026.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-132": { "value": "East Wing Trafalgar Court Les Banques, St. Peter Port Guernsey, GY1 3PP", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } }, "fact-4": { "value": "East Wing Trafalgar Court Les Banques, St. Peter Port Guernsey, GY1 3PP", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:549300QRGEEMB5OOLX86", "period": "2025-04-01T00:00:00/2026-04-01T00:00:00" } } } }