REG - Real Estate Investrs - Half-year Report
Tue 07:00
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RNS Number : 3290A Real Estate Investors PLC 23 September 2025
Real Estate Investors Plc
("REI", the "Company" or the "Group")
Half Year Results
For the six months ended 30 June 2025
STRATEGIC FOCUS IN A CHALLENGING MARKET
TO POSITION BUSINESS FOR DEBT CLEARANCE AND CAPITAL RETURNS
Real Estate Investors Plc (AIM: RLE), the UK's only Midlands-focused Real
Estate Investment Trust (REIT) with a portfolio of commercial property across
all sectors, is pleased to report its unaudited half year results for the
six-month period ended 30 June 2025 ("H1 2025").
FINANCIAL PERFORMANCE
· REVENUE: H1 2025 revenue was £4.8 million (H1 2024: £5.6
million) due to sales
· PROFIT: Underlying profit before tax* stood at £1.5 million (H1
2024: £1.8 million); with a profit before tax of £0.3 million (H1 2024:
£3.2 million loss), largely driven by a non-cash revaluation loss of £0.8
million (H1 2024: £4.9 million loss)
· EPRA MEASUREMENTS: EPRA** Net Tangible Assets ("NTA") per share
of 50.6p (FY 2024: 51.3p) and EPRA** EPS of 0.85p (H1 2024: 1.04p)
· FULLY COVERED DIVIDEND: Q2 2025 fully covered dividend payment of
0.4p per share (Q2 2024: 0.5p per share) reflecting a yield of 5% based on a
mid-market opening price of 32.00p on 22 September 2025
· SHAREHOLDER VALUE: Since inception in 2012, total dividends
paid/announced amount to £55.3 million
DISPOSALS, DEBT REPAYMENT & BANKING
· DISPOSALS: Contracted or completed on disposals of £2.4 million
(before costs) in H1 2025 and a further £5.3 million since the period end,
totalling £7.7 million year to date at 95.93% of December 2024 valuations (on
an aggregate basis). Additional sales of £3.9 million in pipeline legals as
REI continues to target the private investor market and owner occupier demand
· DEBT REDUCTION: £1.3 million of debt repayment in H1 2025,
reducing total borrowings to £37.9 million (FY 2024: £39.2 million) and a
further £3 million repaid since the period end, with total debt now at £34.9
million
· HEDGE CLOSURE: Hedge facility closed in March 2025, at a cost of
£25,000 in the period, with a total liability of £174,000. All debt now on
variable rates
· REDUCED DEBT COSTS: Current cost of debt is 6.0% (FY 2024:
6.5%)
· CONSERVATIVE GEARING: Loan to value (net of cash) is 26.6% (FY
2024: 26.4%)
· CASH AT BANK: £6.1 million cash at bank - the Company is
maximising returns on cash reserves, with monies on deposit earning an average
of 3.5% on instant access
OPERATIONAL STABILITY
· PORTFOLIO RESILIENCE: Rent collection for H1 2025 stood at 99.75%
(H1 2024: 99.6%) with contracted rental income of £8.9 million p.a. (FY 2024:
£9.0 million p.a.) and occupancy at 82.25% (FY 2024: 82.04%). WAULT*** at 30
June 2025 was 5.65 years to break and 6.95 years to expiry (FY 2024: 5.76
years/6.99 years)
· ACTIVITY: 14 lease events completed, offsetting income loss
associated with H1 2025 disposals
· STABLE VALUATIONS: £121.8 million gross portfolio valuation (FY
2024: £124.6 million). Like-for-like, the portfolio valuation has reduced by
0.63% to £119.4 million (FY 2024: £120.1 million)
POST PERIOD STRATEGY PROGRESS
· STABLE OCCUPANCY: Occupancy of 81.20%
· WAULT & INCOME: WAULT now sits at 6.12 years to break and
7.64 years to expiry and contracted rental income is at £8.4 million p.a,
reflecting loss of income from recent disposals
· ASSET MANAGEMENT: Letting legal pipeline of £127,800 p.a
(£107,800 p.a of new income to the portfolio) reduced since August trading
update as lettings complete
· FURTHER DISPOSALS: £5.3 million completed/contracted sales since
30 June 2025, bringing total year-to-date contracted/completed disposals to
£7.7 million
· REDUCING DEBT: Further £3.0 million of debt repaid since the
period end, with total debt now at £34.9 million
· SALES PIPELINE: £3.9 million of sales in pipeline legals
· ON THE MARKET: The remainder of our private investor stock of
£13.6 million is on the open market (based on Dec 24 year end valuations)
· PREPARED FOR SALE: £54.0 million of larger assets prepared for
disposal in 2026, offering a clear path to full debt repayment and enabling
future capital returns to shareholders (based on Dec 24 year end valuations)
· BALANCE OF PORTFOLIO: Subject to ongoing asset management
initiatives to maximise disposal value
PAUL BASSI, CHIEF EXECUTIVE, COMMENTED:
"As anticipated, H1 2025 presented challenging conditions, which has dictated
the pace of our disposals. Whilst we have refrained from placing larger
assets on the market until more suitable buyers emerge, our diverse portfolio
and the ongoing demand from smaller private investors has delivered completed
and contracted disposals of £7.7 million year to date, reducing debt by £4.3
million, while preserving rental income and occupancy.
In addition to £3.9 million in our disposal legal pipeline, we have the
remainder of our private investor stock of £13.6 million on the open market
and a further £54.0 million of our larger assets primed for sale in 2026.
Recent UK government borrowing cost increases and the uncertainty around the
forthcoming budget in November are dampening sentiment and we expect some
paralysis in the property market until the year end. However, the interest
rate reductions year to date and the relaxation in bank lending criteria
provides a more favourable environment for small, private investor demand.
We will look to initiate capital returns, the timing and method of which will
be announced once our debt has been fully repaid.
We are at a crucial midway point in our three-year orderly sales programme and
we remain resolutely focused on delivering on our strategy whilst continuing
with covered dividend payments, subject to the pace of sales.
We will also continue to evaluate portfolio and corporate options that align
with shareholder interests."
FINANCIAL & OPERATIONAL RESULTS
30 June 2025 30 June 2024
Revenue £4.8 million £5.6 million
Underlying profit before tax* £1.5 million £1.8 million
Contracted rental income £8.9 million £10.3 million
EPRA EPS** 0.85p 1.04p
Pre-tax profit/(loss) £0.3 million (£3.2 million)
Dividend per share 0.80p 1.00p
Average cost of debt 6.5% 6.5%
Like-for-like rental income £8.9 million £9.5 million
30 June 2025 31 December 2024
Gross property assets £121.8 million £124.6 million
EPRA NTA per share** 50.6p 51.3p
Like-for-like capital value psf £117.32 psf £118.06 psf
Like-for-like valuation £119.4 million £120.1 million
Tenants 122 132
WAULT to break*** 5.65 years 5.76 years
Total ownership (sq ft) 1.02 million sq ft 1.04 million sq ft
Net assets £88.4 million £89.5 million
Loan to value 31.7% 32.0%
Loan to value (net of cash) 26.6% 26.4%
Definitions
* Underlying profit before tax excludes profit/loss on revaluation,
sale of properties, interest rate swaps and Short-Term Incentive Plan (STIP)
provision
** EPRA = European Public Real Estate Association
*** WAULT = Weighted Average Unexpired Lease Term
Enquiries:
Real Estate Investors Plc +44 (0)121 212 3446
Paul Bassi/Marcus Daly
Cavendish Capital Markets Limited (Nominated Adviser) +44 (0)20 7220 0500
Katy Birkin/Ben Jeynes
Panmure Liberum Limited (Broker) +44 (0)20 3100 2000
Jamie Richards/William King
About Real Estate Investors Plc
Real Estate Investors Plc is a publicly quoted, internally managed property
investment company and REIT with a portfolio of mixed-use commercial property,
managed by a highly-experienced property team with over 100 years of combined
experience of operating in the Midlands property market across all sectors.
The portfolio has no material reliance on a single asset or occupier. On 1st
January 2015, the Company converted to a REIT. Real Estate Investment Trusts
are listed property investment companies or groups not liable to corporation
tax on their rental income or capital gains from their qualifying
activities. The Company announced in January 2024 that it would be
undertaking an orderly strategic sale of the Company's portfolio over three
years, disposing of assets individually or collectively, at or above book
value, to optimise returns to shareholders. The pace of the disposal
programme will be dictated by market conditions, with an initial focus on
repaying the Company's debt. In the meantime, it is the Board's intention to
continue paying a fully covered quarterly dividend. Further information on the
Company can be found at www.reiplc.com (http://www.reiplc.com) .
CHAIRMAN'S & CHIEF EXECUTIVE'S STATEMENT
As we have become accustomed to over the last few years, 2025 so far has been
marked by subdued sentiment as the property market reacts to wider economic,
political and global headwinds. Overall investment activity is below recent
levels with UK commercial real estate transactions for H1 2025 totalling
£21.9 billion, representing a 18% reduction on the same period last year
(CBRE).
As stated in our recent trading update, despite these conditions, we continue
to benefit from the robust regional economy in which our assets are located.
Regional office markets recorded their strongest first half since 2019, with
take-up of 3.7m sq ft, 6% above the 10-year average. While the office
investment market and valuations continue to face pressure, retail and other
sectors are seeing renewed investor interest, supported by positive occupier
demand and rental growth. According to new research from JLL, Birmingham
leads the UK's Big Six cities in housing growth, with new build apartment
prices rising 5.6% and rents climbing 6% in the year to June 2025, outpacing
the overall average of 1.7% and supported by a pipeline of more than 14,000
build-to-rent homes.
Whilst reflecting our strategy to maximise shareholder value and also being
mindful of market sentiment and the absence of the larger institutional
investors and funds, we have refrained from placing larger assets on the open
market during H1 2025. Marketing such assets at an inappropriate time would
be detrimental and counterproductive to our ongoing strategy. Instead, we
have focused on the private investor and owner-occupier market, where demand
remains positive and to which we can more easily promote our smaller assets.
The downside of this type of portfolio disposal method is the slow pace at
which these transactions progress through pipeline to completion due to the
nature of the buyers and the due diligence involved. The benefit however, is
that we can steadily achieve sales in an otherwise dormant market and in some
cases, retain income post exchange of contracts to support our ongoing
dividend payments, until such time that the purchaser is able to complete.
Employing this method, during H1 2025, we contracted and completed sales of
£2.4 million. Combining this with the contracted and completed sales
achieved post 30 June 2025 of £5.3 million (namely Kingston House), takes our
total disposals to £7.7 million year-to-date. These sales, once fully
completed, represent 95.93% of our December 2024 valuations, on an aggregated
basis.
Proceeds from sales that have legally completed in the year to date have been
used to repay £4.3 million of debt, reducing total borrowings to £34.9
million (FY 2024: £39.2 million). Once contractually deferred sales complete,
these receipts will be used to reduce debt further and bring us closer to
becoming debt free.
In line with its cost reduction strategy, in March 2025, the Company closed
out its hedge facility at a total cost of £174,000, resulting in all debt
moving to variable rates. This has allowed us to benefit from falling
interest costs in H1 2025, with the cost of debt now at 6.0% (FY 2024: 6.5%).
The Company remains multi-banked and compliant with all covenants and is
conservatively geared with a Loan to Value (net of cash) of 26.6% (FY 2024:
26.4%), a slight increase in the half year, due to a 0.63% portfolio valuation
decline.
The portfolio has continued to perform well operationally, with rent
collection of 99.75% in H1 2025. At the period end, contracted rental income
stood at £8.9 million per annum, occupancy was 82.25%, and WAULT was 5.65
years to break and 6.95 years to expiry.
Our asset management team completed 14 lease events during the period,
securing £188,726 p.a. of additional annual income. These lettings have
helped to offset the income lost through disposals and lease events.
Numerous asset management initiatives remain underway to support occupancy,
income, and capital values ahead of future sales.
As a result of the ongoing rigorous asset management activity, our remaining
assets have proven resilient with a gross portfolio valuation of £121.8
million (FY 2024: £124.6 million). Like-for-like, the portfolio valuation
has reduced by 0.63% to £119.4 million (FY 2024: £120.1 million).
Revenue for H1 2025 was £4.8 million (H1 2024: £5.6 million), with
underlying profit before tax of £1.5 million (H1 2024: £1.8 million). The
Company recorded a pre-tax profit of £0.3 million (H1 2024: £3.2 million
loss), primarily due to a 0.63% non-cash revaluation adjustment of £0.8
million (H1 2024: £4.9 million loss). Our portfolio void costs have reduced
by a further £250,000 p.a. since the period end, predominantly due to the
sale of Kingston House.
A provision of £0.2 million (H1 2024: £0.3 million) has been made in respect
of the STIP announced in January 2024, with payment deferred until completion
in line with the STIP scheme rules.
Despite the loss of income associated with sales during the period, the
performance of the business resulted in an uninterrupted, fully covered
dividend of 0.4p per share for Q2 2025. A total of £55.3 million has been
paid/declared to shareholders since the commencement of the dividend policy in
2012.
The recent rise in UK government borrowing costs and the upcoming budget
delayed until late November is likely to cause paralysis across the property
market. However, our priority will continue to be the stated strategy. To
support this further, with £3.9 million of sales in our legal pipeline and
£13.6 million on the open market, we now have £54.0 million of larger assets
prepared for disposal in 2026, an increase from our recent trading update,
providing a clear path to full repayment of borrowings which will, in turn,
enable the commencement of capital returns to shareholders.
Management remain committed to paying a fully-covered quarterly dividend to
shareholders, throughout the disposal programme, subject to the pace of the
disposals.
BUSINESS PERFORMANCE/RESULTS
Profit before tax of £0.3 million (H1 2024: £3.2 million loss) includes a
£0.8 million loss on property revaluations (non-cash item) representing a
0.63% portfolio valuation decline (H1 2024: £4.9 million loss), a £160,000
loss on sale of investment property (H1 2024: £80,000 loss) and a £25,000
deficit on the close out of the hedge position (H1 2024: £271,000 surplus).
Underlying profit for the period was £1.5 million (H1 2024: £1.8 million),
the reduction being due to the fall in income of £0.8 million due to
strategic sales, offset by the decrease of £0.4 million in finance costs, as
a result of repayment of bank loans.
Administrative expenses for the period were £1.2 million (H1 2024: £1.3
million) and include a provision of £0.2 million (H1 2024: £0.3 million) for
the Company's STIP which was approved following a comprehensive review and in
line with the strategic programme. No STIP payment will be due until
completion of the corporate strategy, consistent with the rules of the plan.
BANKING & FINANCING
Following completed contracted sales of £2.4 million in H1 2025 and with
management committed to lowering gearing levels through debt repayment, £1.3
million of debt was repaid utilising proceeds from asset disposals during H1
2025. As at 30 June 2025, total drawn debt reduced to £37.9 million (H1 2024:
£48.0 million), with £6.1 million cash at bank earning an average of 3.5%.
Post period end, an additional £5.3 million of sales have contracted or
completed and subsequent receipts were used to pay down an additional £3
million of debt, reducing total drawn debt to £34.9 million.
2021 2022 2023 2024 2025 to date Total
Sales £17.6m £20.9m £18.0 m £18.9 m £7.7 m £83.1 m
Debt Repaid £11.9m £18.0m £17.0 m £15.2 m £4.3 m £66.4 m
Total Drawn Debt £89.4m £71.4m £54.4 m £39.2 m £34.9 m £34.9 m
In March 2025, the Group extended the £12.6 million facility with Lloyds
Banking Group Plc for a further 12 months to 29 May 2026 and the £22.9
million facility with National Westminster Bank Plc for a further 12 months to
1 June 2026. In June 2025 the Group extended the £2.4 million facility with
Barclays for a further 6 months until 30 December 2025. The facilities were
extended on a short term basis to reflect the Group's priority of repaying
debt as per the stated strategy and it is the Board's intention to extend the
reduced bank facilities as required in Q1 2026.
Cost of debt at 30 June 2025 was 6.5%, reducing to 6.0% in August 2025,
following the UK interest rate reduction.
The Group's loan to value (LTV) net of cash at the half year was 26.6% (FY
2024: 26.4%) and the hedge facility was closed out and settled during the
period, with all debt now on variable rates.
The business continues to be multi-banked across 3 lenders:
Lender Debt Facility Debt Maturity Hedging Debt Facility
(as at 30 June 2025) (as at 30 June 2025) (year-to-date)
Lloyds Bank £12.6 million May 2026 Nil £9.6 million
National Westminster Bank £22.9 million June 2026 Nil £22.9 million
Barclays £2.4 million Dec 2025 Nil £2.4 million
DIVIDEND
The Board is pleased to announce a Q2 2025 fully-covered dividend of 0.4p
reflecting a yield of 5% based on a mid-market opening price of 32.00p on 22
September 2025.
Subject to the pace of the ongoing sales programme, the Board remains
committed to paying a fully-covered dividend. The proposed timetable, for
the dividend, which will be paid as an ordinary dividend, is as follows:
Ex-dividend date: 2 October 2025
Record date: 3 October 2025
Dividend payment date: 24 October 2025
ASSET MANAGEMENT & OCCUPANCY
Rent collection in H1 2025 remained robust at 99.75%. Activity levels across
the portfolio built steadily throughout H1 2025, with the focus of asset
management initiatives on delivering lease events that will materialise in H2
2025.
During H1 2025, 14 lease events were completed, comprising lettings, lease
renewals and break removals. While volumes were lower than in H1 2024, new
lettings delivered £188,726 p.a. of additional rental income. Contracted
rental income as at 30 June 2025 stood at £8.9 million p.a., reflecting the
combined impact of lease events and disposals (H1 2024: £10.3 million p.a.).
Occupancy at the half year was 82.25% (FY 2024: 82.04%), supported by
successful leasing activity with WAULT at 5.65 years to break and 6.95 years
to expiry.
Since the period end, occupancy has remained robust at 81.20% and contracted
rental income is now £8.4 million p.a. despite sales and the reduction in
rental income associated with known lease expiries at Gateway House,
Kingswinford, Brandon Court & 75-77 Colmore Row and the loss of rent from
the River Island CVA. These losses were partially offset by new lettings at
Westgate House and occupancy has remained robust due to the sale of assets
such as Kingston House where a high proportion of our void space was
located. WAULT is also stable at 6.12 years to break and 7.64 years to
expiry.
Currently, 62.5% of void space is concentrated in 7 properties, of which 3
have a number of leases progressing through legals; once completed, these will
meaningfully reduce both portfolio void levels and associated holding costs,
whilst enhancing rental income and capital values.
Example key lease events year-to-date include:
Peat House
· Fairfield School of Business - (existing tenant on fourth floor)
took a new 15-year lease at £158,992 p.a, representing a small increase on
the passing rent. The new letting eliminates void costs and increases the
WAULT and capital value
Westgate House
· Moore & Tibbetts - (existing Tenant at £30,610 p.a.) has
surrendered their existing space and moved to the third floor at £146,220
p.a. on a new 10-year lease
· Clive Mark Schoolwear Limited - has taken part of the ground
floor unit vacated by M&S at £38,880 p.a. on a 5-year lease
PORTFOLIO MIX TABLE
Sector Income (£) Income (%)
Office £4,316,616 48.42%
Traditional Retail £1,195,103 13.41%
Discount Retail - Poundstretcher/B&M etc £810,000 9.09%
Medical and Pharmaceutical - Boots/Holland & Barrett/Superdrug etc £526,749 5.91%
Food & Beverage - McDonalds, Subway etc £284,286 3.19%
Financial/Licences/Agency - Bank of Scotland/Ladbrokes £129,500 1.45%
Food Stores - Iceland £406,544 4.56%
Other - Hotels (Travelodge/Vine), Car parking & EV Charging £1,245,565 13.97%
£8,914,363 100.00%
PORTFOLIO SUMMARY TABLE
Value Area Contracted ERV NIY EQY RY Occupancy
(£) (sq ft) Rent (£) (£) (%) (%) (%) (%)
Portfolio £119,360,000 1,017,413 £8,914,363 £11,546,354 7.07% 9.12% 9.15% 82.25%
Land* £2,403,962 n/a n/a n/a n/a n/a n/a n/a
Total £121,763,962 1,017,413 £8,914,363 £11,546,354 7.07% 9.12% 9.15% 82.25%
*Our land holdings are excluded from the yield calculations
ENVIRONMENTAL & SOCIAL GOVERNANCE ("ESG")
Despite the primary focus being directed towards the stated Group strategy
since the start of 2024, the asset management team continue to ensure that our
remaining portfolio assets meet necessary environmental criteria and
compliance with applicable governance.
We continue to behave as a responsible landlord, respecting the communities
within which our business and assets operate.
In an effort to reduce the portfolio's carbon footprint we continue to work
alongside Systemslink, (a leading energy management software provider), to
collect, track and report carbon emissions data across REI's
landlord-controlled areas. We will continue to report carbon emission data
in our year-end reporting.
Similar to 2024, where possible, as energy contracts expire, they are being
replaced with 100% green-only electricity contracts.
PORTFOLIO ENERGY PERFORMANCE CERTIFICATION
In accordance with government guidelines, REI also continues to ensure its
assets meet the UK statutory regulations and timeframes for Energy Performance
Certificates ("EPCs").
An overview of the asset EPC ratings across the portfolio is noted below,
showing the progress since 31 December 2024 to date:
% of portfolio (by sq ft)
EPC Rating
A B C D E F G Total
31 December 2.52 36.05 26.07 33.38 1.98 0 0 100
2024
1 September 2.56 43.06 35.68 16.78 1.92 0 0 100
2025
OUTLOOK
Following the interest rate reductions year to date, we anticipate a more
normalised investment market in 2026. However, the recent spike in UK
government borrowing rates and the uncertainty created by the forthcoming
budget in November could cause negative sentiment and market paralysis to
persist through the remainder of 2025.
With the short term uncertainty behind us, we expect H1 2026 to see the return
of UK funds, property companies, private equity and overseas buyers to the
market. This should provide a favourable backdrop for the disposal of our
larger assets at positive pricing levels.
We remain firmly committed to acting in the best interests of our shareholders
and will continue to monitor market conditions carefully, pursue sales with a
view to repaying debt, and, once debt has been fully eliminated, return
capital to shareholders. Importantly, we recognise that the timing of our
larger sales is fundamental in order to maximise shareholder value.
In the meantime, our shareholders will continue to benefit from a fully
covered dividend (subject to the pace of disposals).
OUR STAKEHOLDERS
The Executive and Management team extend their gratitude to all shareholders,
advisors, occupiers, and staff for their continued support and guidance
throughout the disposal programme.
William
Wyatt
Paul Bassi CBE D.UNIV
Chairman
Chief Executive
22 September
2025
22 September 2025
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 30 June 2025
Six months to Six months to Year ended
30 June 2025 30 June 2024 31 December 2024
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Revenue 4,817 5,578 10,772
Cost of sales (1,109) (1,132) (2,220)
Gross profit 3,708 4,446 8,552
Administrative expenses (1,214) (1,299) (2,312)
(Deficit)/gain on sale of investment properties (160) (80) 631
Deficit in fair value of investment properties (762) (4,863) (6,334)
Profit/(loss) from operations 1,572 (1,796) 537
Finance income 72 88 163
Finance costs (1,290) (1,734) (3,339)
(Deficit)/gain on financial liabilities held at fair value (25) 271 282
Profit/(loss) before taxation 329 (3,171) (2,357)
Income tax charge - - -
Net profit/(loss) after taxation and total comprehensive income 329 (3,171) (2,357)
Basic earnings/(loss) per share 6 0.19p (1.82)p (1.35)p
Diluted earnings/(loss) per share 6 0.19p (1.82)p (1.35)p
EPRA earnings per share 6 0.85p 1.04p 1.93p
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the 6 months ended 30 June 2025
Share Share Capital Retained Total
Share-based payment
Capital Premium Redemption Reserve Earnings
Account Reserve
£'000 £'000 £'000 £'000 £'000 £'000
At 31 December 2023 17,385 52,044 1,463 24,241 95,558
425
Share based payment - - - 300 - 300
Share issue 54 129 - (183) - -
Dividends - final 2023 - - - - (1,086) (1,086)
Dividends - interim 2024 - - - - (872) (872)
Transactions with owners 54 129 - (1,958) (1,658)
117
Loss for the period and total comprehensive income - - - (3,171) (3,171)
-
At 30 June 2024 17,439 52,173 1,463 542 19,112 90,729
Share based payment - - - (300) - (300)
Dividends - interim 2024 - - - - (1,744) (1,744)
Transactions with owners - - - (300) (1,744) (2,044)
- - - 814 814
Profit for the period and total comprehensive income
-
At 31 December 2024 17,439 52,173 1,463 242 18,182 89,499
Share based payment - - - - - -
Share issue 46 84 - (130) - -
Dividends - final 2024 - - - - (698) (698)
Dividends - interim 2025 - - - - (699) (699)
46 84 - (1,397) (1,397)
Transactions with owners (130)
Profit for the period and total comprehensive income - - - 329 329
-
At 30 June 2025 17,485 52,257 1,463 17,114 88,431
112
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2025
30 June 2025 30 June 2024 31 December 2024
(Unaudited) (Unaudited) (Audited)
Note £'000 £'000 £'000
Assets
Non-current assets
Investment properties 5 119,360 133,825 122,200
Property, plant and equipment 1 1 1
119,361 133,826 122,201
Current assets
Inventories 2,408 2,403 2,404
Trade and other receivables 2,852 2,608 2,444
Cash and cash equivalents 6,104 5,400 6,876
11,364 10,411 11,724
Total assets 130,725 144,237 133,925
Liabilities
Current liabilities
Bank loans (37,874) (47,970) (39,196)
Trade and other payables (4,420) (5,378) (5,081)
(42,294) (53,348) (44,277)
Non-current liabilities
Derivative financial liabilities - (160) (149)
- (160) (149)
Total liabilities (42,294) (53,508) (44,426)
Net assets 90,729 89,499
88,431
Equity
Ordinary share capital 17,485 17,439 17,439
Share premium account 52,257 52,173 52,173
Capital redemption reserve 1,463 1,463 1,463
Share-based payment reserve 112 542 242
Retained earnings 17,114 19,112 18,182
Total equity 88,431 90,729 89,499
CONSOLIDATED STATEMENT OF CASHFLOWS
for the 6 months ended 30 June 2025
Six months to Six months to Year ended
30 June 30 June 2024 31 December 2024
2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Cashflows from operating activities
Profit/(loss) after taxation 329 (3,171) (2,357)
Adjustments for:
Depreciation - 1 1
Deficit/(gain) on sale of investment property 160 80 (631)
Net valuation loss 762 4,863 6,334
Share based payment - 300 -
Finance income (72) (88) (163)
Finance costs 1,290 1,734 3,339
Loss/(gain) on financial liabilities held at fair value 25 (270) (282)
Increase in inventories (4) (9) (9)
(Increase)/decrease in trade and other receivables (408) (59) 106
Decrease in trade and other payables (585) (159) (359)
1,497 3,222 5,979
Cash flows from investing activities
Expenditure on investment properties (27) (2,121) (3,109)
Proceeds from sale of property, plant and equipment 1,945 6,459 18,311
Interest received 72 88 163
1,990 4,426 15,365
Cash flow from financing activities
Interest paid (1,290) (1,734) (3,339)
Hedge repayment (174) - -
Equity dividends paid (1,472) (2,058) (3,900)
Repayment of bank loans (1,323) (6,437) (15,210)
(4,259) (10,229) (22,449)
Net decrease in cash and cash equivalents (772) (2,581) (1,105)
Cash and cash equivalents at beginning of period 6,876 7,981 7,981
Cash and cash equivalents at end of period 6,104 5,400 6,876
NOTES TO THE INTERIM FINANCIAL INFORMATION
for the 6 months ended 30 June 2025
1. BASIS OF PREPARATION
Real Estate Investors Plc, a Public Limited Company, is incorporated and
domiciled in the United Kingdom.
The interim financial report for the period ended 30 June 2025 (including the
comparatives for the year ended 31 December 2024 and the period ended 30 June
2024) was approved by the board of directors on 22 September 2025.
It should be noted that accounting estimates and assumptions are used in
preparation of the interim financial information. Although these estimates are
based on management's best knowledge and judgement of current events and
action, actual results may ultimately differ from these estimates. The areas
involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the interim financial information
are set out in note 3 to the interim financial information.
The interim financial information contained within this announcement does not
constitute statutory accounts within the meaning of the Companies Act 2006.
The full accounts for the year ended 31 December 2024 received an unqualified
report from the auditor and did not contain a statement under Section 498 of
the Companies Act 2006.
2. ACCOUNTING POLICIES
The interim financial information has been prepared under the historical cost
convention.
The principal accounting policies and methods of computation adopted to
prepare the interim financial information are consistent with those detailed
in the 2024 financial statements approved by the Board on 24 March 2025.
Some accounting pronouncements which have become effective from 1 January 2025
and have therefore been adopted do not have a significant impact on the
Group's financial results or position.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal actual results. The
estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next
accounting year are as follows:
Investment property revaluation
The Group uses the valuations performed by its independent valuers or the
directors as the fair value of its investment properties. The valuation is
based upon assumptions including future rental income, anticipated maintenance
costs, anticipated purchaser costs and the appropriate discount rate. The
valuer and the directors also make reference to market evidence of transaction
prices for similar properties.
Interest rate swap valuation
The Group carries the interest rate swap as a liability at fair value through
the profit or loss at a valuation. This valuation has been provided by the
Group's bankers.
Critical judgements in applying the Group's accounting policies
The Group makes critical judgements in applying accounting policies. The
critical judgement that has been made is as follows:
REIT Status
The Group elected for REIT status with effect from 1 January 2015. As a
result, providing certain conditions are met, the Group's profit from property
investment and gains are exempt from UK corporation tax. In the Directors'
opinion the Group has met these conditions.
4. SEGMENTAL REPORTING
Primary reporting - business segment
The only material business that the Group has is that of investment in
commercial properties. Revenue relates entirely to rental income from
investment properties.
5. INVESTMENT PROPERTIES
The carrying amount of investment properties for the periods presented in the
interim financial information is reconciled as follows:
£'000
Carrying amount at 31 December 2023 143,105
Additions 2,121
Disposals (6,538)
Revaluation (4,863)
Carrying amount at 30 June 2024 133,825
Additions 988
Disposals (11,142)
Revaluation (1,471)
Carrying amount at 31 December 2024 122,200
Additions 27
Disposals (2,105)
Revaluation (762)
Carrying amount at 30 June 2025 119,360
6. EARNINGS AND NAV PER SHARE
The calculation of the basic earnings per share is based on the profit
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the period. The calculation of the diluted earnings
per share is based on the basic earnings per share adjusted to allow for all
dilutive potential ordinary shares.
The calculation of the basic NAV per share is based on the balance sheet net
asset value divided by the weighted average number of shares in issue during
the period. The calculation of the diluted NAV per share is based on the basic
NAV per share adjusted to allow for all dilutive potential ordinary shares.
The European Public Real Estate Association ("EPRA") earnings and NAV figures
have been included to allow more effective comparisons to be drawn between the
Group and other businesses in the real estate sector.
EPRA EPS per share
30 June 2025 30 June 2024
Earnings Average number of shares Earnings per share Earnings Average number of shares Earnings per share
£'000 P £'000 P
Basic profit/(loss) per share 329 0.19 (3,171) 173,977,342 (1.82)
174,633,025
Fair value of investment properties 4,863
762
Deficit on disposal of investment properties 160 80
STIP provision 200 300
Change in fair value of derivatives 25 (271)
EPRA Earnings 1,476 174,633,025 0.85 1,801 173,977,342 1.04
NET ASSET VALUE PER SHARE
The Group has adopted the new EPRA NAV measures which came into effect for
accounting periods starting 1 January 2020. EPRA issued new best practice
recommendations (BPR) for financial guidelines on its definitions of NAV
measures. The new NAV measures as outlined in the BPR are EPRA net tangible
assets (NTA), EPRA net reinvestment value (NRV) and EPRA net disposal value
(NDV).
The Group considered EPRA Net Tangible Assets (NTA) to be the most relevant
NAV measure for the Group and we report this as our primary NAV measure,
replacing previously reported EPRA NAV and EPRA NNNAV per share metrics. EPRA
NTA excludes the intangible assets and the cumulative fair value adjustments
for debt-related derivatives which are unlikely to be realised.
30 June 2025
EPRA NTA EPRA NRV
EPRA NDV
£'000 £'000 £'000
Net assets 88,431 88,431 88,431
Fair value of derivatives - - -
Real estate transfer tax - 5,370 -
EPRA NAV 88,431 93,801 88,431
Number of ordinary shares issued for diluted and EPRA net assets per share 174,848,215 174,848,215 174,848,215
EPRA NAV per share 50.6p 53.6p 50.6p
The adjustments made to get to the EPRA NAV measures above are as follows:
• Real estate transfer tax: Gross value of property portfolio as provided in
the Valuation Certificate (i.e. the value prior to any deduction of
purchasers' costs).
• Fair value of derivatives: Exclude fair value financial instruments that
are used for hedging purposes where the company has the intention of keeping
the hedge position until the end of the contractual duration.
31 December 2024
EPRA NTA EPRA NRV
EPRA NDV
£'000 £'000 £'000
Net assets 89,499 89,499 89,499
Fair value of derivatives 149 149 -
Real estate transfer tax - 6,110 -
EPRA NAV 89,648 95,758 89,499
Number of ordinary shares issued for diluted and EPRA net assets per share 174,738,511 174,738,511 174,738,511
EPRA NAV per share 51.3p 54.8p 51.2p
30 June 2025 31 December 2024
No. of Shares No. of Shares
Number of ordinary shares issued at end of period 174,848,215 174,381,971
Dilutive impact of options 356,540
-
Number of ordinary shares issued for diluted and EPRA net assets per share 174,848,215 174,738,511
Net assets per ordinary share
EPRA NTA 50.6p 51.3p
EPRA NRV 53.6p 54.8p
EPRA NDV 50.6p 51.2p
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