REG - Real Estate Investrs - Trading Update

Real Estate InvestorsAnnouncement

16/01/2025 07:00

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RNS Number : 4879T  Real Estate Investors PLC  16 January 2025

Real Estate Investors Plc

("REI", the "Company" or the "Group")

 

Trading Update

Sales & Debt Reduction on Track

 

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 provide the following trading update, ahead of the
announcement of its Final Results for the year ended 31 December 2024 on 25
March 2025:

 

·   During 2024, REI completed 20 targeted disposals of £18.9 million, at
an aggregate uplift of 6.95% (pre-costs) to 31 December 2023 year end book
value

·   Debt reduction of £15.3 million during the year, with total debt
reduced to £39.1 million as at 31 December 2024 (FY 2023: £54.4 million)

·    Additional multiple sales in pipeline legals as REI targets private
investor market and owner occupier demand

·    Year end occupancy of 82.04% (FY 2023: 83.03%)

·    Improved WAULT of 5.76 years to break and 6.99 years to expiry (FY
2023: 5.24 years to break / 6.01 years to expiry)

·    Strong new lettings in pipeline legals with targeted vacant
possession secured for forward residential sales

 

Despite low levels of property transactions during 2024 driven by the
uncertain interest rate trajectory, a surprise early general election and a
subsequent budget that dampened investor confidence and activity, our
versatile and diverse portfolio has allowed us to successfully dispose of
£18.9 million of assets.

 

These sales were targeted at private investor and owner occupier demand and
sold at an aggregate uplift of 6.95% above December 2023 year end book values
(pre-costs).  Receipts from these disposals were used to repay £15.3 million
of debt, despite the loss of income from sales, all whilst continuing to pay a
fully covered dividend.

 

There are further sales in pipeline legals that are expected to complete in
the coming months along with a selection of larger market-ready assets which
we are holding back until such time that suitable investors return to the
market, which will allow us to achieve stronger pricing and benefit from the
rental income in the interim.

 

We remain open to exploring a corporate transaction, including the potential
sale of the entire portfolio, in order to maximise shareholder returns.

 

The Company would like to thank our staff, shareholders, advisers and
occupiers for their ongoing support.

 

Paul Bassi, Chief Executive, commented: "The Company remains on track with its
strategic objective of repaying debt from property sales.  Whilst the first
six months of this year are likely to see a continuation of the trends and
activity levels we observed in 2024, we are cautiously optimistic about the
second half of 2025 as we expect momentum to build particularly if interest
rates continue to gradually reduce and sentiment improves.  This should pave
the way for more favourable market conditions and investor optimism which
would allow us to accelerate our disposals programme, repay debt more rapidly
and commence our capital return to shareholders, all whilst continuing to pay
a fully covered dividend."

 

Enquiries:

 

 Real Estate Investors Plc
 Paul Bassi/Marcus Daly            +44 (0)121 212 3446
 Cavendish Capital Markets Limited (Nominated Adviser)
 Katy Birkin/Ben Jeynes            +44 (0) 20 7220 0500
 Panmure Liberum Limited (Broker)
 Jamie Richards/William King       +44 (0) 20 3100 2000

 

 

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) .

 

 

 

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