Portfolio Update and Dividend

RNS Number : 4575R

Real Estate Investors PLC

12 December 2016

 

12 December 2016

Real Estate Investors plc

('REI' or 'the Company')

PORTFOLIO UPDATE AND Q3 DIVIDEND DECLARATION

Real Estate Investors plc (AIM:RLE), the Birmingham based property group and UK listed Real Estate Investment Trust ('REIT'), is pleased to announce a portfolio update and Q3 dividend declaration.

Portfolio Update

During H2 2016, REI has sold 2 non-core retail properties in Crawley and Norwich for £2.725m and has acquired a criteria compliant prime retail asset for the sum of £1.275m in Bromsgrove, Worcestershire at an initial yield of 8.4%, where tenants include Boots Opticians, Smart Ideas, Thorntons and Loritas Bakery, with potential to add value through asset management including lease re-gears and rent reviews.

The Company is experiencing an exceptionally strong property investment market across all sectors, particularly since the beginning of Q4, and will consider further sales in H1 2017, as it has received unsolicited approaches for a number of its assets.  REI will look to recycle this capital into criteria compliant acquisitions, where there is scope for further asset management, and income and capital enhancement.

Occupier demand remains healthy, in particular within the retail sector, where there are also a number of opportunities to secure residential planning approval to capture significant capital appreciation, most notably at the scheme in Walsall town centre where BHS was previously an occupier.  The portfolio now comprises 1,410,881 sq ft, with an occupancy of 93% and 310 tenants.

Q3 Dividend Declaration

The Company also confirms that, in accordance with its progressive dividend policy, it will pay its third quarterly dividend of 0.625 pence per share for the period 1 July 2016 to 30 September 2016.  The payment will be made on 20 January 2017 to all shareholders on the register as at 23 December 2016.  The ex-dividend date will be   22 December 2016.

Paul Bassi, CEO of REI, commented: 

"REI remains focused on its investment criteria, and with significant cash and bank facilities, remains well positioned to capitalise on any opportunities that may become available as Brexit discussions continue, whilst maintaining a £200m plus portfolio.  Our rental income has expanded progressively over the last few years and we anticipate further gains from asset management initiatives that will support the growth of dividend payments in line with our progressive dividend policy.  We remain optimistic about the prospects for our business for the year ahead, and for our regional economy, which has out-performed other UK regions during 2016."

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Enquiries:

Real Estate Investors plc Paul Bassi	[phone]
Smith & Williamson Corporate Finance Limited Azhic Basirov/David Jones	[phone]
Liberum Jamie Richards/Ben Roberts	[phone]
Gable Communications Limited John Bick	[phone] [phone]

About Real Estate Investors plc

Real Estate Investors plc is a publicly quoted property investment company with a portfolio of over 1.4 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 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 aims to deliver capital growth and income enhancement from its assets with the view to implementing a progressive dividend policy. Further information on the Company can be found at www.reiplc.com.

 

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