RNS Number : 7653X
Real Estate Investors PLC
24 March 2026
Real Estate Investors Plc
("REI", the "Company" or the "Group")
Final Results
For the year ended 31 December 2025
SALES DRIVE IN 2026
AND FULLY COVERED DIVIDEND
Real Estate Investors Plc (AIM: RLE), the UK's only Midlands-focused Real Estate Investment Trust (REIT) with a portfolio of commercial property, is pleased to report its final results for the year ended 31 December 2025 ("FY 2025"):
FINANCIAL HIGHLIGHTS
· REVENUE: Revenue of £9.4 million (FY 2024: £10.8 million)
· PROFIT: Underlying profit before tax of £2.9 million (FY 2024: £3.4 million); with a pre-tax loss of £0.8 million (FY 2024: loss of £2.4 million), primarily as a result of a revaluation deficit of £3.0 million on investment properties (FY 2024: £6.3 million revaluation deficit) (non-cash item)
· EPRA MEASUREMENTS: EPRA** Net Tangible Assets ("NTA") per share of 49.1p (FY 2024: 51.3p) and EPRA** EPS of 1.7p (FY 2024: 1.9p). Basic loss per share of (0.5p) (FY 2024: (1.4p) loss)
· FULLY COVERED DIVIDEND: Final quarterly dividend in respect of FY 2025 of 0.4p per share, payable in April 2026 as a property income distribution, representing a fully covered dividend for 2025 of 1.6p per share (FY 2024: 1.9p) reflecting a yield of 5.2% based on a mid-market opening price of 30.9p on 23 March 2026. The level of dividend for 2026 will be determined by the pace of further disposals
· SHAREHOLDER VALUE: £56.7 million total declared/paid to shareholders since commencement of dividend policy in 2012
DISPOSALS, DEBT AND BANKING
· DISPOSALS: Contracted or completed sales of £8.0 million during the period at 95.93% of December 2024 valuations (pre-costs)
· REDUCING DEBT: Disposal proceeds paid down £5 million of debt, reducing debt to £34.2 million (FY 2024: £39.2 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: Average cost of debt of 5.75% (FY 2024: 6.5%)
· LOW GEARING: Improved LTV (net of cash) of 24.8% (FY 2024: 26.4%)
· CASH AT BANK: £6.1 million cash at bank at 31 December 2025 (FY 2024: £6.9 million)
OPERATIONAL PERFORMANCE
· ROBUST PORTFOLIO: Robust rent collection levels with overall rent collection for 2025 of 99.28% with contracted rental income of £8.3 million p.a. (FY 2024: £9.0 million p.a.) net of disposals and portfolio occupancy of 78.69% (FY 2024: 82.04%). Improved WAULT*** of 6.01 years to break and 7.50 years to expiry (FY 2024: 5.76 years and 6.99 years)
· ASSET MANAGEMENT: Completed 35 lease events during the year
· STABLE CAPITAL VALUES: Gross property assets of £115.7 million (FY 2024: £124.6 million) with 34 assets and 119 occupiers. Like-for-like portfolio valuation reduced by 2.62% to £113.3 million (FY 2024: £116.3 million)
POST YEAR END ACTIVITY
· OCCUPANCY/WAULT/INCOME: Occupancy now at 78%, with contracted rental income at £8.2 million p.a. and WAULT of 5.99 years to break and 7.51 years to expiry
· ASSET MANAGEMENT: Healthy pipeline of new income to the portfolio of £289,880 p.a in legals
· PIPELINE IN LEGALS: £5.4 million in pipeline legals as at March 2026
· ACTIVELY MARKETING: £61.5 million in market in March 2026, predominantly retail mixed-use assets, where market demand has improved
· REMAINING PORTFOLIO: £47.2 million scheduled for sale in 2026 upon completion of ongoing asset management initiatives and improving market conditions
· REDUCING DEBT: Further £1 million of debt repaid since year end, resulting in reduced [gross] debt of £33.2 million, plus further scheduled debt repayment from contracted, but deferred completions
· REFINANCING: In March 2026, the Group extended the existing £9.6 million facility with Lloyds Banking Group Plc for a further 12 months to 31 May 2027 and in February 2026 the £22.4 million facility with National Westminster Bank Plc for a further 12 months to 1 June 2027. As with the previous refinancing in 2025, the facilities have each been extended on a short-term basis to reflect the Group's intention to repay debt as a priority using disposal proceeds.
Paul Bassi, Chief Executive, commented:
"Since announcing our orderly sales programme in January 2024, the market has seen unprecedented low levels of investment sales activity throughout 2024/2025 and a particularly slow Q4 2025 caused by the uncertainty in the lead up to the November 2025 UK Budget. This has resulted in our sales and debt repayment being slower than anticipated.
Despite these challenges, REI has remained disciplined in the execution of its orderly sales programme, completing and contracting disposals totalling £18.9 million in 2024 and £8.0 million in 2025, whilst continuing to pay a covered dividend throughout the sales process.
We remain very focused on concluding the strategy within the 3-year time frame. We intend to place further assets in the market throughout the year to achieve our stated objective. Returning cash to shareholders is the priority once the debt has been repaid from ongoing sales.
More recently, we are mindful of the impact of the conflict across the Middle East and the effect this may have over the coming months on inflation, interest rates and market conditions. Should a further extension to realise value and return capital to our shareholders be necessary in the pursuit of maximising shareholder value, we shall advise in due course.
"In the meantime, management remain open to all options that align with the best interests of shareholders, including the sale of the entire portfolio."
Financial and Operational Results
31 December 2025
31 December 2024
Revenue
£9.4 million
£10.8 million
Pre-tax loss
(£0.8 million)
(£2.4 million)
Underlying profit before tax*
£2.9 million
£3.4 million
Contracted rental income
£8.3 million
£9.0 million
EPRA EPS**
1.7p
1.9p
Basic loss per share
(0.5)p
(1.4)p
Dividend per share
1.6p
1.9p
Average cost of debt
5.75%
6.5%
Like-for-like rental income
£8.26 million
£8.71 million
31 December 2025
31 December 2024
Gross property assets
£115.7 million
£124.6million
EPRA NTA per share
49.1p
51.3p
Like-for-like capital value psf
£123.82 psf
£127.16 psf
Like-for-like valuation
£113.3 million
£116.3 million
Tenants
119
132
WAULT to break***
6.01 years
5.76 years
Total ownership (sq ft)
0.9 million sq ft
1.04 million sq ft
Net assets
£85.9 million
£89.5 million
Loan to value
30.2%
32.0%
Loan to value net of cash
24.8%
26.4%
Definitions
* Underlying profit before tax excludes profit/loss on revaluation and sale of properties and interest rate swaps
** EPRA = European Public Real Estate Association
*** WAULT = Weighted Average Unexpired Lease Term
[Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.]
Enquiries:
Real Estate Investors Plc Paul Bassi/Marcus Daly
+44 (0)121 212 3446
Cavendish Capital Markets Limited (Nominated Adviser) Ben Jeynes/George Lawson
+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. The pace of the ongoing 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.
CHAIRMANS AND CHIEF EXECUTIVES STATEMENT
The last two years have been among the most challenging conditions for UK commercial real estate markets in recent memory. Persistent political uncertainty, elevated inflation and fluctuating interest rate expectations have impacted heavily on investor confidence. Market disruption during the first 12 months of our sales programme in 2024 was followed by continued subdued activity throughout 2025, culminating in a period of transactional paralysis in the second half of 2025, ahead of the UK Budget in November.
Against this difficult backdrop, REI has remained disciplined in executing its stated strategy, delivering value to shareholders through an orderly and selective disposal programme, albeit it not at a rate that the Board had anticipated.
Since announcing the sales programme in January 2024, REI has completed and contracted disposals totalling £26.9 million, comprising £18.9 million in 2024 and a further £8.0 million during 2025. These transactions have been achieved predominantly within the private investor and owner-occupier market where demand has remained more resilient than the wider institutional market. Whilst this approach has resulted in a slower pace of completions due to the nature of the buyer pool and lengthier due diligence processes, it has enabled REI to transact in an otherwise dormant market and, in certain cases, to retain income post-exchange to support dividend payments.
Proceeds from disposals have been applied directly to debt reduction and since the commencement of the sales programme in January 2024, total drawn debt has reduced from £54.4 million (at 1 January 2024) to £34.2 million (at 31 December 2025). Post period end, debt has now been reduced to £33.2 million. REI remains conservatively geared with a Loan to Value (net of cash) of 24.8% (FY 2024: 26.4%), multi-banked, and fully compliant with all covenants. The closure of the hedge facility in March 2025 at a total cost of £174,000, has allowed the business to benefit from easing interest rates, further supporting cash flow and interest cover and aligning with management's priority of reducing costs. The Company's average cost of debt is now 5.75% (FY 2024: 6.5%).
Operationally, the portfolio has continued to perform robustly. At 31 December 2025, the remaining portfolio comprised of approximately 950,423 sq ft across 34 assets and 119 occupiers. Overall rent collection levels remained strong at 99.28% across the period, reflecting the quality of the portfolio covenants.
The asset management team has remained focused on protecting and enhancing income and capital values across the retained portfolio. Since the beginning of 2025, 35 lease transactions have been completed, securing £394,819 p.a. of new letting income, partially offsetting income lost through disposals and lease events. A number of initiatives remain underway to improve occupancy, reduce void costs, and position assets for future sale as market conditions improve.
Contracted rental income at the year-end stood at £8.3 million p.a. (FY 2024: £9.0 million p.a.), portfolio WAULT was 6.01 years to break and 7.50 years to expiry (FY 2024: 5.76 years/6.99 years) and occupancy reduced to 78.69% (FY 2024: 82.04%), reflecting a combination of sales, targeted vacant possession to facilitate sales, known lease events and a number of unexpected tenant insolvencies and CVAs, most notably River Island and Wilkos. Encouragingly, the majority of affected units are already attracting strong occupier interest, and management is confident in securing re-lettings.
Valuations across the UK commercial property sector have continued to reflect cautious sentiment. The portfolio saw a modest 2.62% valuation decline on a like-for-like basis in 2025 to £113.3 million (FY 2024: 4.63% valuation reduction), demonstrating the portfolio's resilience relative to wider market conditions. Management believes there is scope for valuation recovery on some assets in the remaining portfolio, as investor confidence improves, particularly in the office and retail sector.
Financially, revenue has reduced to £9.4 million (FY 2024: £10.8 million) as a result of completed disposals and lease events across the portfolio. However, underlying profitability has remained resilient at £2.9 million (FY 2024: £3.4 million) with a pre-tax loss of £0.8 million, primarily due to a £3 million loss on property revaluations.
Post period occupancy is now 78% and contracted rental income has reduced to £8.2 million with WAULT now at 5.99 years to break and 7.51 years to expiry.
Strategic Sales Programme
Since announcing our orderly sales programme in January 2024, we have seen low levels of investment sales activity throughout 2024/2025 and a notably slow Q4 2025 caused by the November 2025 budget. This has resulted in our sales and debt repayment being slower than anticipated.
We remain focused on concluding the strategy within the 3-year time frame but, in view of current market conditions, a further extension to maximise value and the quantum of the return of capital to our shareholders may be necessary.
We intend to place further assets on the market for sale on an ongoing basis throughout 2026, and we are actively engaged with agents regarding the balance of the portfolio so that we have the ability to sell these quickly when the larger institutional buyers, funds and foreign investors begin to transact. This strategy provides a clear pathway to full repayment of borrowings and, thereafter, the commencement of capital returns to shareholders.
The Company's cost base continues to be rigorously reviewed to ensure operational efficiency, while retaining the necessary expertise to manage the portfolio and successfully conclude the disposal programme.
As the portfolio shrinks, the Board remain open to all options including portfolio sales, or the potential sale of the entire portfolio, in order to maximise shareholder value.
Dividend
Despite the reduction in income associated with asset sales and lease events, the Company has maintained an uninterrupted, fully covered dividend throughout 2025. The first three quarterly dividend payments in respect of 2025 were paid at a level of 0.4p per share, fully covered. The final dividend in respect of 2025 is confirmed at 0.4p per share, reflecting a total, fully covered dividend payment for 2025 of 1.6p (FY 2024: 1.9p) (the level of distributions in 2026 will be influenced by the timing and scale of further asset disposals) and a yield of 5.2% based on a mid-market opening price of 30.5p on 23 March 2026. The Board remains committed to paying a fully covered dividend, subject to business performance and the pace of further disposals.
Total dividends paid or declared since the commencement of the dividend policy in 2012 now exceed £56.7 million, underlining the Board's continued commitment to shareholder value.
The proposed timetable for the final dividend, which will be a property income distribution, is as follows:
Ex-dividend date:
2 April 2026
Record date:
7 April 2026
Dividend payment date:
30 April 2026
Outlook for 2026
During 2026, the Company will remain focused on concluding the strategy within the 3-year timeframe, repaying debt and returning capital to shareholders. Management remains fully aligned with shareholders in the pursuit of this objective. However, the Board are mindful of the conflict in the Middle East and its impact on financial markets, interest rates and investor confidence.
The Board remains committed to paying a fully covered dividend, subject to performance and the pace of disposals.
Our Stakeholders
We sincerely thank our shareholders, advisers, tenants and staff for their ongoing dedication and support.
William Wyatt Paul Bassi CBE D. Univ
Chairman Chief Executive
23 March 2026 23 March 2026
UK Property Overview
Despite a backdrop of gradually falling interest rates, ongoing economic and political uncertainty, and muted sentiment in 2025, the UK commercial property market showed signs of stabilisation and recovery albeit sector selective. Whilst data reveals that 2025 investment volumes improved compared with 2024, (with full-year data indicating total UK commercial real estate investment reaching approximately £62.8 billion), this was supported predominantly by a single deal of £5.2 billion in Q4 alongside notable interest from overseas capital. According to the latest Carter Jonas UK Investment Quarterly reports for 2025, overall transaction volumes have remained below longer-term averages even as sectors rebalance. In Q3 2025, alternatives (including student accommodation and hotels) accounted for the largest share of investment, followed by industrial, office and retail. Office investment in particular softened sharply, with volumes in Q3 down more than 50% on longer-term averages. Capital value trends demonstrate the differences in sectors, with data throughout 2025 suggesting stabilisation or modest growth in industrial and living segments whilst office and secondary retail asset sector continue to face downward valuation pressures. However, the overall picture is one of pricing adjustments alongside small pockets of recovery as the UK commercial property market navigates a more normalised interest-rate environment and shifts in demand.
Portfolio Disposals
During 2025, we capitalised on private investor and owner occupier demand disposing of 14 units/assets for a total of £8.0 million at 95.93% of our 2024 year-end valuations (pre-costs). Of these sales, 68.76% were retail units or parades and 31.24% offices (office disposals were to developers for residential conversion). We currently have a pipeline of disposals in legals of which some are expected to complete before the conclusion of H1 2026.
The REI Portfolio
The REI portfolio, comprising of 34 assets with 119 occupiers, has a net initial yield of 6.85% and a reversionary yield of 9.38%. Valuations have seen a decline of 2.62% on a like-for-like basis to £113.3 million (FY 2024: £116.3 million). The portfolio has numerous opportunities to add capital value and enhance income from rent reviews, lease renewals and new lettings. Whilst investment activity has been depressed, occupier demand for retail has been stable and there are signs that office demand is improving, evidenced by Q4 2025 having the strongest quarterly office occupancy in 8 years, according to KWB's latest market review.
The current portfolio sector weightings are:
Sector
Income by Sector (£)
Income by Sector (%)
Office
4,239,046
51.33%
Traditional Retail
1,006,635
12.19%
Discount Retail - Poundstretcher/B&M etc
793,500
9.61%
Medical and Pharmaceutical - Boots/Holland & Barrett/Superdrug etc
486,749
5.90%
Food and Beverage - McDonalds/Subway etc
301,786
3.65%
Financial/Licences/Agency - Bank of Scotland/Ladbrokes etc
129,500
1.57%
Food Stores - Iceland etc
125,000
1.51%
Other - Hotels (Travelodge/Vine), Car parking, EV Charging
1,175,565
14.24%
Total
8,257,781
100.00%
Asset Management
Asset management remains a core part of the business and the team successfully undertook 35 lease events during the period, securing £394,819 p.a. in new letting income, going some way towards offsetting rental income lost through disposals and lease events. The contracted rental income at the year-end (post sales), was £8.3 million p.a. with occupancy at 78.69%. The portfolio WAULT was 6.01 years to break and 7.50 years to expiry.
Key asset management initiatives undertaken during the year (and to the date of this announcement) include:
The Market Centre, Crewe
Following protracted negotiations, B&M renewed their lease for a further 3 years, remaining in their 15,446 sq ft unit. Furthermore, Greggs relocated into a High Street facing unit, occupying 3,182 sq ft on a 10-year lease at £22,500 p.a. This is an excellent result for the scheme and will help drive increased footfall. Elsewhere within the mall, Oriental Daily Meals Ltd took a lease on a unit for a period of 5 years at £20,000 p.a., which is in line with our ERV. The café space is now let to a local occupier, which is helping draw footfall from the car park side of the scheme. Renewals were also completed with, Signet, Max Spielmann and R. Roberts & Son.
Jasper Retail Park, Tunstall
Shoezone completed a lease renewal for a further 5 years at the scheme at £38,400 p.a. the scheme is now fully let and benefits from on-site McDonalds restaurant.
The Quadrant, Redditch
Following extensive marketing, The Rising Sun Ltd took 6,313 sq ft on a 10-year lease at £47,500 pa, with the scheme now fully let. Swanswell Charitable Trust renewed their lease for a further 5 years at the same rent.
Guardian House, West Bromwich
Serco have taken 4,593 sq ft on a 3-year letting, in addition to space they sub-let from another building tenant.
40 St Pauls Square, Birmingham
The break was removed in respect of Taylor Maxwell at this asset, with rent review settled, securing the Tenant until the lease-end in September 2030.
Westgate House, Warwick
Moore & Tibbetts (an 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 have taken the previous M&S ground floor unit at £38,880 p.a. on 5-year lease. Both lettings required refurbishment works following historic tenancies. Elsewhere within the scheme, Myton renewed their lease for a further 6 years at £20,750 million p.a.
New tenants to the portfolio include Serco and Greggs.
Post Year End Activity
There are currently £289,880 p.a. of pipeline lettings that will improve our occupancy and contracted rental income levels and will reduce void costs across the portfolio.
Examples of lettings currently in legals, along with other asset management activity since the year end:
· High Street, Kingswinford: In legals at present to B&M at a rent of £112,500 p.a. Dilapidations claim ongoing and tenders received for the works
· Birchfield House, Oldbury: Letting to an education provider at a rent of £220,000 p.a, subject to outcome of an Ofsted report and change of use planning permission, with further lettings in discussions
· Commodore Court, Nottingham: Letting in legals to a dentistry practice at a rent of £62,500 p.a. whilst potential occupier seeks NHS funding
· Molineux House, Wolverhampton: Surrender & regrant of lease has now completed
· Westgate House, Warwick: Two lettings in legals to Dough & Brew at a rent of £20,000 p.a. (who are taking additional space in the building) and Clive Marks Schoolwear Limited (who are already in occupation) work now completed and lease completion imminent. Terms have also been agreed with Boots to regear their Lease at a rent of £55,000 p.a. which is progressing through legals
· Market Shopping Centre, Crewe: Argos in legals to take the Iceland unit at a rent of £55,000 p.a. over 5 years with 12-months' rent-free incentive
· The Parade, Leamington: EE and O2 lease renewals have now both completed
· Brandon Court, Coventry: Letting in legals to RSL Wealth Management Ltd at a rent of £56,000 p.a.
Portfolio Summary
Value (£)
Area (Sq ft)
Contracted Rent (£)
ERV (£)
NIY (%)
EQY (%)
RY (%)
Occupancy (%)
Portfolio
113,250,000
950,423
8,257,781
11,319,410
6.85
9.30
9.38
78.69
Land*
2,403,962
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Total
115,653,962
950,423
8,257,781
11,319,410
6.85
9.30
9.38
78.69
*Land holdings are excluded from the yield calculations
Environmental, Social and Governance ("ESG")
Management continues to recognise the importance of incorporating ESG into the working practices at REI. The ESG Committee, formed in 2021, continues to implement the ESG framework for the business and the reduction of the portfolio's carbon footprint remains a priority for the business. Working with Systemslink, we can confirm a 31% reduction in carbon emissions for electricity and gas (for landlord-controlled areas only) between 1 January 2025 and 31 December 2025. Going forward, as energy contracts expire, they are being replaced with 100% green-only electricity contracts where possible.
Carbon Emissions
1 Jan 2025 - 31 Dec 2025
1 Jan 2024 - 31 Dec 2024
Scope 1
158 MTCO2e*
367 MTCO2e*
Scope 2
578 MTCO2e*
637 MTCO2e*
Total Scope 1 & Scope 2
736 MTCO2e*
1,004 MTCO2e*
*applies to landlord-controlled areas only
Portfolio Energy Performance Certification
REI continues to ensure our assets meet the UK statutory regulations for EPCs. We will continue to upgrade assets when required. An overview of the asset EPC ratings across the portfolio is noted below:
% of portfolio (by sq ft)
EPC Rating
A
B
C
D
E
F
G
Total
31 Dec 2025
2.63
46.13
33.68
16.08
1.48
0
0
100
31 Dec 2024
2.52
36.05
26.07
33.38
1.98
0
0
100
31 Dec 2023
2.25
36.88
22.71
35.13
3.03
0
0
100
FINANCIAL REVIEW
Overview
During the year, the Company progressed its planned portfolio sales strategy, completing and contracting £8.0 million of property disposals. The progression of the strategy contributed to a reduction in underlying profit before tax to £2.9 million, compared with £3.4 million in FY 2024. Sales completed in the period resulted in a deficit after costs of £482,000 (FY 2024: £631,000 surplus).
The loss before tax reduced to £0.8 million from £2.4 million in 2024, mainly as a result of a £3.0 million non-cash downward revaluation of investment properties (FY 2024: £6.3 million deficit), reflecting poor market conditions. Cash generated from disposals was directed to repay £5.0 million of debt. As a result, total borrowings decreased to £34.2 million (FY 2024: £39.2 million). The loan-to-value ratio (net of cash) improved to 24.8%, compared with 26.4% a year earlier. The Company continues to maintain relationships with its three lenders and remains well within covenant limits, with additional headroom and cure facilities available.
Disposals, together with leasing activity during the year, led to a reduction in contracted rental income to £8.3 million (FY 2024: £9.0 million) and occupancy of 78.69% (FY 2024: 82.04%). Total revenue for the year was £9.4 million (FY 2024: £10.8 million), and like-for-like rental income decreased to £8.26 million p.a. (FY 2024: £8.71 million p.a.).
Despite lower revenues, the Board maintained its commitment to shareholder returns. Dividends of 0.4p per share were distributed in each of the first three quarters, fully covered by earnings. A final dividend of 0.4p per share has been declared, resulting in a total dividend for 2025 of 1.6p, also fully covered (FY 2024: 1.9p).
31 December 2025
31 December 2024
Gross property assets
£115.7 million
£124.6 million
Underlying profit before tax
£2.9 million
£3.4 million
Pre-tax loss
(£0.8 million)
(£2.4 million)
Revenue
£9.4 million
£10.8 million
EPRA EPS
1.7p
1.9p
EPRA NTA per share
49.1p
51.3p
Net assets
£85.9 million
£89.5 million
Loan to value
30.2%
32.0%
Loan to value net of cash
24.8%
26.4%
Average cost of debt
5.75%
6.5%
Dividend per share
1.6p
1.9p
Like-for-like rental income
£8.26 million
£8.71 million
Like-for-like capital value psf
£123.82 psf
£127.16 psf
Like-for-like valuation
£113.3 million
£116.3 million
Results for the Year
The Group reported a loss before tax of £0.8 million for the year, an improvement on the £2.4 million loss recorded in FY 2024. This was primarily the result of a £3.0 million non-cash downward revaluation of investment properties (FY 2024: £6.3 million deficit) and a £482,000 deficit on property disposals (FY 2024: £631,000 surplus).
Administrative and overhead expenses remained in line with previous year at £2.2 million (FY 2024: £2.3 million). A £200,000 provision was also provided in respect of the Short-Term Incentive Plan (FY 2024: £300,000), which is payable only upon completion in accordance with the scheme rules.
Underlying profit reduced to £2.9 million compared with £3.4 million in the prior year. Total revenue declined to £9.4 million (FY 2024: £10.8 million), primarily reflecting a reduction in rental income following asset sales and leasing activity.
During the year, £5.0 million of debt was repaid using proceeds from property disposals, strengthening the balance sheet. Interest costs reduced to £2.4 million (FY 2024: £3.3 million), due to the repayment of debt and benefiting from the reduction in interest rates as all debt is on variable rates following the close out of the hedging facility.
(Loss)/earnings per share were:
Basic: (0.48)p (FY 2024: (1.35p))
Diluted: (0.48)p (FY 2024: (1.35p))
EPRA: 1.7p (FY 2024: 1.9p)
Shareholders' funds decreased to £85.9 million at 31 December 2025 (FY 2024: £89.5 million) primarily as a result of the deficit on property portfolio revaluation.
Basic NAV: 49.1p (FY 2024: 51.3p)
EPRA NTA: 49.1p (FY 2024: 51.3p)
Finance & Banking
The Group completed and contracted £8.0 million of asset sales and repaid £5.0 million of borrowings, reducing total debt to £34.2 million as at 31 December 2025 (FY 2024: £39.2 million). Since the year end, borrowings have decreased further to £33.2 million. As at 31 December 2025, the loan-to-value ratio stood at 30.2% (FY 2024: 32.0%), with LTV net of cash at 24.8% (FY 2024: 26.4%). The Group remained fully compliant with all banking covenants throughout the period.
Following the close out of the hedging facility in March 2025, at a cost of £25,000 in the year, all debt is now subject to variable interest rates resulting in the average cost of borrowing declining to 5.75%. The Group is well positioned to benefit from the easing in interest rates. Management continues to prioritise the repayment of debt, while monitoring market conditions closely.
Cash balances at 31 December 2025 totalled £6.1 million, held across three banks. The majority of the cash balance is held on instant access deposit accounts, generating interest at approximately 3.25%, ensuring both flexibility and income generation.
Lender
Debt Facility (£m)
Debt Maturity
Amount Fixed (£m)
National Westminster Bank
22.4
June 2027
0
Lloyds Banking Group
9.6
May 2027
0
Barclays
2.2
June 2026
0
Refinancing
In December 2025, the Group extended the £2.2 million facility with Barclays for a further 6 months to June 2026. In March 2026, the Group extended the £9.6 million facility with Lloyds Banking Group Plc for a further 12 months to 31 May 2027 and in February 2026 the £22.4 million facility with National Westminster Bank Plc for a further 12 months to 1 June 2027. As with the previous refinancing in 2025, all the facilities have each been extended on a short-term basis to reflect the Group's intention to repay debt as a priority using disposal proceeds.
Going Concern
Whilst the Group remains very focused on concluding the strategic plan within the 3-year timeframe, a further extension to maximise value and the quantum of capital to shareholders may be necessary and so the Group continues to adopt the going concern basis in preparing the consolidated financial statements.
Taxation
The Group converted to a Real Estate Investment Trust (REIT) on 1 January 2015. Under REIT status the Group does not pay tax on its rental income profits or on gains from the sale of investment properties. The Group continues to meet all REIT requirements for REIT status.
Dividend
Under the REIT status the Group is required to distribute at least 90% of rental income taxable profits arising each financial year by way of a Property Income Distribution. Quarterly dividends commenced in 2016.
Although rental income declined as the Company continued to execute its disposal strategy, strong underlying operational performance enabled dividends to be maintained throughout 2025. Quarterly dividends of 0.4p per share were paid for the first three quarters, each fully covered by earnings, and the Board has confirmed a final dividend of 0.4p per share for the year. This brings total dividends for 2025 to 1.6p per share, fully covered and paid without interruption (FY 2024: 1.9p). Based on the mid-market opening share price of 30.9p on 23 March 2026, the full-year dividend represents a yield of 5.2%. The level of distributions in 2026 will be influenced by the timing and scale of further asset disposals.
The final dividend for 2025 will be paid as a property income distribution on 30 April 2026 to shareholders on the register at 7 April 2026, with an ex-dividend date of 2 April 2026. The Board remains committed to maintaining a fully covered dividend policy, subject to the ongoing pace of portfolio disposals.
Marcus Daly, Finance Director
23 March 2026
Real Estate Investors plc
Consolidated statement of comprehensive income
For the year ended 31 December 2025
Note
2025
2024
£000
£000
Revenue
2
9,367
10,772
Cost of sales
(2,160)
(2,220)
Gross profit
7,207
8,552
Administrative expenses
(2,232)
(2,312)
(Deficit)/gain on sale of investment properties
(482)
631
Deficit in fair value of investment properties
(3,005)
(6,334)
Profit from operations
1,488
537
Finance income
135
163
Finance costs
(2,437)
(3,339)
(Deficit)/gain on financial liabilities at fair value through profit and loss
(25)
282
Loss before taxation
(839)
(2,357)
Income tax charge
-
-
Net loss after taxation and total comprehensive expense
(839)
(2,357)
Total and continuing earnings per ordinary share
Basic
3
(0.48)p
(1.35)p
Diluted
3
(0.48)p
(1.35)p
The results of the Group for the current and prior year related entirely to continuing operations.
Real Estate Investors plc
Consolidated statement of changes in equity
For the year ended 31 December 2025
Share capital
Share premium account
Capital redemption reserve
Share-based payment reserve
Retained Earnings
Total
£000
£000
£000
£000
£000
£000
At 1 January 2024
17,385
52,044
1,463
425
24,241
95,558
Share issue
54
129
-
(183)
-
-
Dividends
-
-
-
-
(3,702)
(3,702)
Transactions with owners
54
129
-
(183)
(3,702)
(3,702)
Loss for the year and total comprehensive income
-
-
-
-
(2,357)
(2,357)
At 31 December 2024
17,439
52,173
1,463
242
18,182
89,499
Share issue
46
84
-
(130)
-
-
Transfer between reserves
-
-
-
(112)
112
-
Dividends
-
-
-
-
(2,796)
(2,796)
Transactions with owners
46
84
-
(242)
(2,684)
(2,796)
Loss for the year and total comprehensive expense
-
-
-
-
(839)
(839)
At 31 December 2025
17,485
52,257
1,463
-
14,659
85,864
Real Estate Investors plc
Consolidated statement of financial position
At 31 December 2025
Note
2025
2024
£000
£000
Assets
Non-current
Intangible assets
-
-
Investment properties
4
111,570
122,200
Property, plant and equipment
5
1
111,575
122,201
Current
Inventories
2,409
2,404
Investment properties held for sale
4
1,680
-
Trade and other receivables
2,730
2,444
Cash and cash equivalents
6,109
6,876
12,928
11,724
Total assets
124,503
133,925
Liabilities
Current
Bank loans
(34,161)
(39,196)
Trade and other payables
(4,478)
(5,081)
(38,639)
(44,277)
Non-current
Derivative financial liabilities
(-)
(149)
(-)
(149)
Total liabilities
(38,639)
(44,426)
Net assets
85,864
89,499
Equity
Share capital
17,485
17,439
Share premium account
52,257
52,173
Capital redemption reserve
1,463
1,463
Share-based payment reserve
-
242
Retained earnings
14,659
18,182
Total Equity
85,864
89,499
Net assets per share
49.1p
51.3p
Real Estate Investors plc
Consolidated statement of cash flows
For the year ended 31 December 2025
2025
2024
£000
£000
Cash flows from operating activities
Loss after taxation
(839)
(2,357)
Adjustments for:
Depreciation
1
1
Net deficit on valuation of investment property
3,005
6,334
Deficit/(gain) on sale of investment property
482
(631)
Finance income
(135)
(163)
Finance costs
2,437
3,339
Loss/(gain) on financial liabilities at fair value through profit and loss
25
(282)
Increase in inventories
(5)
(9)
(Increase)/decrease in trade and other receivables
(286)
106
Decrease in trade and other payables
(528)
(359)
4,157
5,979
Cash flows from investing activities
Expenditure on investment properties
(529)
(3,109)
Expenditure on plant and equipment
(5)
-
Proceeds from sale of investment properties
5,993
18,311
Interest received
135
163
5,594
15,365
Cash flows from financing activities
Interest paid
(2,437)
(3,339)
Equity dividends paid
(2,871)
(3,900)
Hedge settlement
(174)
-
Payment of bank loans
(5,036)
(15,210)
(10,518)
(22,449)
Net decrease in cash and cash equivalents
(767)
(1,105)
Cash and cash equivalents at beginning of year
6,876
7,981
Cash and cash equivalents at end of year
6,109
6,876
NOTES:
Cash and cash equivalents consist of cash in hand and balances with banks only.
Real Estate Investors plc
Notes to the preliminary announcement
For the year ended 31 December 2025
1. Basis of preparation
The financial statements have been prepared under the historical cost convention, except for the revaluation of properties and financial instruments held at fair value through profit and loss, and in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006.
It should be noted that accounting estimates and assumptions are used in preparation of the financial statements. Although these estimates are based on management's best knowledge and judgement of current events and actions, actual results may differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are set out in the Group's annual report and financial statements.
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries made up to 31 December each year. Material intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The principal accounting policies are detailed in the Group's annual report and financial statements.
Going concern
Whilst the Group remains very focused on concluding the strategy within the 3-year time frame, a further extension to maximise value and the quantum of capital to the shareholders may be necessary and so the Group continues to adopt the going concern basis in preparing the financial statements.
The Group has prepared and reviewed forecasts and made appropriate enquiries which indicate that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of 12 months from the date of approval of these financial statements to 23 March 2027. These enquiries considered the following:
· the significant cash balances the Group holds and the low levels of historic and projected operating cash outflows
· any property purchases will only be completed if cash resources or loans are available to complete those purchases
· the Group's bankers have indicated their continuing support for the Group. In March 2026, the Group extended the £9.6 million facility with Lloyds Banking Group Plc for 12 months to 31 May 2027.
· In February 2026, the Group extended the facility of £22.4 million with National Westminster Bank PLC by a further 12 months to 1 June 2027.
· The directors have at the time of approving these financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future being a period of not less than 12 months from the date of approval of these financial statements.
For these reasons, the Directors continue to adopt the going concern basis in preparing the financial statements.
2. Gross profit
2025
2024
£000
£000
Revenue Rental income
8,747
10,237
Surrender premiums
620
535
9,367
10,772
Cost of sales Direct costs
(2,160)
(2,220)
Gross profit
7,207
8,552
3. Earnings per share
The calculation of earnings per share is based on the result for the year after tax and on the weighted average number of shares in issue during the year.
Reconciliations of the earnings and the weighted average numbers of shares used in the calculations are set out below.
2025
2024
Earnings
Average number of shares
Earnings per share
Earnings
Average number of shares
Earnings per share
£000
£000
Basic loss per share
(839)
174,507,154
(0.48)p
(2,357)
174,181,683
(1.35)p
Dilutive effect of share options
-
-
-
-
-
-
Diluted loss per share
(839)
174,507,154
(0.48)p
(2,357)
174,181,683
(1.35)p
The European Public Real Estate Association indices below have been included in the financial statements to allow more effective comparisons to be drawn between the Group and other business in the real estate sector.
EPRA EPS per share
2025
2024
Earnings
Shares
Earnings per share
Earnings
Shares
Earnings per share
£000
No
p
£000
No
P
Loss per share
(839)
174,507,154
(0.48)
(2,357)
174,181,683
(1.35)
Net deficit on valuation of investment properties
3,005
6,334
Deficit/(gain)on disposal of investment properties
482
(631)
STIP provision
200
300
Loss/(gain) in fair value of derivatives
25
(282)
EPRA earnings per share
2,873
174,507,154
1.65
3,364
174,181,683
1.93
3 Earnings per share (continued)
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 are now reporting this as our primary NAV measure, replacing our 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.
31 December 2025
EPRA NTA
EPRA NRV
EPRA NDV
£'000
£'000
£'000
Net assets
85,864
85,864
85,864
Fair value of derivatives
-
-
-
Real estate transfer tax
-
5,662
-
EPRA NAV
85,864
91,526
85,864
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
49.1p
52.3p
49.1p
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
3 Earnings per share (continued)
31 December 2025 No. of shares
31 December 2024 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
49.1p
51.3p
EPRA NRV
52.3p
54.8p
EPRA NDV
49.1p
51.2p
4. Investment properties
Investment properties are those held to earn rentals and for capital appreciation.
The carrying amount of investment properties for the periods presented in the consolidated financial statements is reconciled as follows:
£000
Carrying amount at 1 January 2024
143,105
Additions - subsequent expenditure
3,109
Disposals
(17,680)
Change in fair value
(6,334)
Carrying amount at 31 December 2024
122,200
Additions - subsequent expenditure
529
Disposals
(6,474)
Change in fair value
(3,005)
Carrying amount at 31 December 2025
113,250
2025
2024
£000
£000
Classified as:
Investment properties held for sale
1,680
-
Investment properties
111,570
122,200
113,250
122,200
5. Publication
The financial information set out in this announcement does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The consolidated statement of financial position at 31 December 2025 and the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows and the associated notes for the year then ended have been extracted from the Group's financial statements upon which the auditor's opinion is unqualified and does not include any statement under section 498 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2025 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
The report and accounts for the year ended 31 December 2025 are available from the Company's website and will be posted to shareholders in April 2026.
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END
FR SEDFWDEMSEED
