REG - Real Estate Investrs - Final Results
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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 +44 (0)121 212 3446
Paul Bassi/Marcus Daly
Cavendish Capital Markets Limited (Nominated Adviser) +44 (0)20 7220 0500
Ben Jeynes/George Lawson
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
1(st) 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
(http://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 Share Capital Share-based payment reserve Retained Total
capital premium redemption Earnings
account reserve
£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)
-
17,439 52,173 1,463 242 18,182 89,499
At 31 December 2024
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 (4,478) (5,081)
payables
(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 Earnings per Average Earnings
number of share Earnings number of per share
shares shares
£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 Shares Earnings
per share 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 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 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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