TIDMRLE
RNS Number : 0559Z
Real Estate Investors PLC
08 January 2020
8 January 2020
Real Estate Investors Plc
("REI" or the "Company" or the "Group")
Trading Update
Real Estate Investors Plc (AIM: RLE), the UK's only
Midlands-focused Real Estate Investment Trust (REIT), with a
portfolio of 1.59 million sq. ft. of commercial property, is
pleased to provide the following positive trading update for 2019
and outlook for 2020.
Chief Executive Paul Bassi, commented, "Despite high levels of
economic and political uncertainty creating a relatively static
market in 2019, we have increased our revenues and covered our
dividend payments, with contracted rents rising to GBP17.66
million, up 3.85% over the year. Looking ahead into 2020, we
anticipate the pent-up requirement to trade that has been
accumulating over the last 12 months being released which is likely
to stimulate our markets and create further opportunities for
REI."
2019 highlights
-- With 280 occupiers across 53 assets the portfolio remains
well-balanced with additional value being created via asset
management initiatives: in 2019, REI completed 53 lease events (44
new lettings and 9 lease renewals)
-- Maintained a diversified portfolio, with no material reliance
on any single occupier, asset or sector and this has provided REI
with excellent occupancy levels in excess of 96%
-- Strong occupier demand for offices in a vibrant regional
economy with this sector representing the largest component within
the REI portfolio (37%). Low levels of new build and existing stock
being squeezed by conversion to residential under Permitted
Development rights leading to strong rental increases e.g. Topaz
Business Park, Bromsgrove which achieved an 18.6% per annum rental
increase
-- Continued retail focus on convenience and neighbourhood
shopping (a strong sub-sector), no department stores/indoor
shopping centres or out of town stand-alone retail and only two
small retail units affected by insolvency in the year, representing
0.56% of income
-- Excellent embedded value with 250,000 sq. ft. of space with
the potential for conversion to residential within the portfolio
under Permitted Development rights
-- Acquired prime mixed-use investment properties for GBP9.25
million with a net initial yield of 8.13%, in Leamington Spa,
Warwickshire, with established occupiers (including O2, Toni &
Guy, McDonald's, Tiger UK, Moss Bros, Timpson) and significant
potential to improve rental income and capital valuations
-- Overall cost of debt has reduced to 3.4%, with 72% of the
Company's debt now fixed. The Company remains multi-banked across 6
funders, including a new Barclays Bank GBP8.5 million 4-year
facility at 1.95% above LIBOR, secured against a portfolio of
assets, drawn down on 30 December 2019
Dividend
The Company's fully covered dividend, paid quarterly, has now
seen year-on-year growth for 7 consecutive years, with total
dividends paid to date of GBP27.3 million. During 2019, we paid a
pro-rata dividend of 3.75p per share and anticipate announcing an
increase in our final dividend payment, thereby setting the level
for our 2020 dividend.
Paul Bassi commented further: "We have tended to trade well
during periods of instability by having the flexibility to respond
to opportunities. With GBP15 million of cash and bank facilities to
deploy, we are well placed to continue to do so and we also
anticipate further growth in our portfolio and revenues to support
our progressive dividend policy, whilst maintaining our diverse
portfolio.
Consolidation within the real estate sector is likely to create
corporate activity during 2020, to follow the recent acquisitions
of Mucklow and Hansteen and we remain alert to opportunities that
are in the best interests of our shareholders."
Enquiries:
Real Estate Investors Plc
Paul Bassi/Marcus Daly +44 (0)121 212 3446
Cenkos Securities
Azhic Basirov/Katy Birkin +44 (0)20 7397 8900
Liberum
Jamie Richards/William Hall +44 (0)20 3100 2000
Allenby Capital
Nick Naylor/Asha Chotai +44 (0)20 3328 5656
Novella Communications
Tim Robertson/Fergus Young +44 (0)20 3151 7008
About Real Estate Investors Plc
Real Estate Investors Plc is a publicly quoted, internally
managed property investment company and REIT with a portfolio of
1.59 million sq ft of 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 Company's strategy is to invest in well located, real estate
assets in the established and proven markets of central Birmingham
and the Midlands, with income and capital growth potential,
realisable through active portfolio management, refurbishment,
change of use and lettings. The portfolio has no material reliance
on a single asset or occupier.
On 1 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 aims to deliver capital growth and income
enhancement from its assets, supporting a progressive dividend
which is paid quarterly. Further information on the Company can be
found at www.reiplc.com
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTFLFIDLSIDIII
(END) Dow Jones Newswires
January 08, 2020 02:00 ET (07:00 GMT)
Grafico Azioni Real Estate Investors (LSE:RLE)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Real Estate Investors (LSE:RLE)
Storico
Da Apr 2023 a Apr 2024
