TIDMRLE
RNS Number : 6126Z
Real Estate Investors PLC
26 January 2022
26 January 2022
Real Estate Investors Plc
("REI" or the "Company" or the "Group")
TRADING UPDATE AND NOTICE OF RESULTS
GBP17.55M OF ASSETS SOLD INTO STRONG PRIVATE INVESTOR MARKET
Real Estate Investors Plc (AIM:RLE), the UK's only
Midlands-focused Real Estate Investment Trust (REIT), with a
portfolio of 1.5 million sq ft of commercial property, is pleased
to provide the following update for the year ended 31 December
2021:
2021 Highlights
-- Completed 15 disposals totalling GBP17.55 million (an
aggregate uplift of 7.3% before costs above December 2020
value)
-- Further GBP2.33 million of assets in pipeline legals to take
advantage of strong investor demand
-- Near normal rent collection levels for 2021of 97.81%
(adjusted for monthly/deferred agreements)
-- Occupancy levels at 85.75% with near-term potential to rise
to 86.73% (based on pipeline lettings and pipeline disposals)
-- Improved WAULT to 5.03 years to break and 6.76 years to
expiry (FY 2020: 4.84 years / 6.54 years)
-- Disposal proceeds used to pay down GBP11.9 million of debt
-- Average cost of debt of 3.5% with 90% of debt fixed as at 1 January 2022
-- As at the year-end, hedge facility has improved by GBP1.4
million for the year to 31 December 2021
-- Dividends paid of 2.25p per share in respect of 2021, with a
final dividend to be announced in March, making a minimum annual
payment of at least 3p
-- Cash at bank of GBP9.8 million as at 31 December 2021
Paul Bassi, Chief Executive, commented:
"Despite trading in an environment dominated by COVID, our
diversified portfolio, which has a healthy exposure to growing
market subsectors, has proved to be resilient and portfolio rents
are sustainable. The period saw the business take advantage of
private investor demand, particularly in the neighbourhood and
convenience sector, disposing of 15 assets for a total of GBP17.55
million.
Following a hiatus in office occupier decisions due to
government 'work from home' advice and the uncertainty around the
Omicron variant, there is now a revival of interest in office
space, particularly our out-of-town stock and we have a healthy
pipeline of new lettings in our void space. We expect this
activity, combined with portfolio lease renewals, to translate into
enhanced occupancy levels in 2022.
We expect a sharp increase in market activity over the next few
months as our region is showcased on the global stage in 2022
during the hosting of the highly anticipated Commonwealth Games.
The business is well positioned to benefit from the increased
activity and opportunities that this event will generate."
Strong Disposal Activity
We identified a number of portfolio assets with enhanced
break-up value to satisfy strong levels of private investor demand.
We completed 15 disposals totalling GBP17.55 million during the
period, an aggregate uplift of 7.3% (before costs) on December 2020
book value, freeing up capital for debt repayment and future
acquisitions. As this appetite shows no signs of slowing down, we
have a further GBP2.33 million of pipeline disposals which we
expect to complete in Q1 2022. We anticipate valuation gains within
2022 as the enhanced income and capital value from asset management
initiatives is realised and our opportunistic disposals provide the
comparable data needed for valuers to recognise the unlocked
potential and future value of our assets.
High Rent Collection
Robust rent collection levels reported in H1 2021 continued
throughout H2 2021 and led to an overall collection for 2021 of
97.81%. This demonstrates the cushioning that the portfolio
diversification provides from sector over-exposure which has
crippled many businesses. Our strong rent collection levels over
the last 12 months, coupled with the fact that we anticipate the
end of the government moratorium on unpaid commercial rents in
March 2022 (extended in June 2021 for 9 months) makes us confident
regarding ongoing rental collection levels.
WAULT and Occupancy
With 256 occupiers across 47 assets, the portfolio has proven
itself to be robust with ongoing opportunities being realised via
asset management initiatives. Against a challenging backdrop, in
2021, REI completed 54 lease events resulting in an improvement in
our WAULT to 5.03 years to break and 6.76 years to expiry (FY 2020:
4.84 years to break/6.54 years to expiry), as at 31 December
2021.
Occupancy at the year end sits at 85.75% (FY 2020: 91.60% / H1
2021: 83.73%) with a potential to rise to 86.73% due to pipeline
lettings and pipeline disposals. The occupancy reduction since
December 2020 is largely due to disposals and known lease events
predominantly across our office sector, however our retail
portfolio occupancy is strong at 95.68%. We are in advanced
discussions with potential occupiers and remain very optimistic
with current market interest that we will recover occupancy in
2022.
Following competitive bidding at West Plaza, the former Premier
Inn, Vine Hotels signed up to a 15-year lease over six floors, at a
rental level above valuer ERV. This represents almost two thirds of
the building and the remainder is fully occupied. Following a
refurbishment, the hotel has been opened as a Best Western. New
tenants to the portfolio in 2021 also include The Trustees of
Association of School and College Leaders; Merkur Slots UK Limited;
JD Sports Gyms Limited; Comex 2000; Bennetts Motorcycling Services
Limited; Community Health and Eyecare Limited; YMCA; Secretary of
State for Housing, Communities and Local Government.
Demand for our neighbourhood and convenience assets remains very
strong. We are also experiencing high demand for roadside/fast food
and drive thru locations and, in response, we have identified
suitable unoccupied sites/redundant land and are negotiating
competitive terms to strong covenants in this space.
Banking & Capital
Following our announcement in March 2021 regarding a new GBP51
million NatWest facility, the business took the opportunity to take
advantage of the low interest rate environment and fixed GBP35
million of this facility. With effect from 1 January 2022 our fixed
debt ratio is now 90%, with our average cost of debt increasing
slightly to 3.5%. During 2021, using disposal proceeds, we repaid
GBP11.9 million of debt. Cash at bank at the year end was GBP9.8
million. All banking covenants continue to be met with headroom
available and various cure facilities, and as at the year-end, our
hedge facility has improved by GBP1.4 million for the year to 31
December 2021.
ESG
We continue to engage with our stakeholders, recognising our
duty to them to operate a sustainable business. We are working with
market experts and consultants to accurately capture, measure and
report ESG data and intend to expand on our ESG reporting in our
year-end results.
Notice of Results
The Company announces that it will release its final results for
the year ended 31 December 2021 on 22 March 2022.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of 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
Cenkos Securities (Nominated Adviser)
Katy Birkin/Ben Jeynes +44 (0)20 7397 8900
Liberum (Broker)
Jamie Richards/William King +44 (0)20 3100 2000
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
1.5 million sq ft 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 Company's strategy is to invest in well located, real
estate assets in the established and proven markets across 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, supporting its progressive dividend policy. Further
information on the Company can be found at www.reiplc.com .
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBLGDBRUDDGDU
(END) Dow Jones Newswires
January 26, 2022 02:00 ET (07:00 GMT)
Real Estate Investors (AQSE:RLE.GB)
Gráfico Histórico do Ativo
De Fev 2025 até Mar 2025
Real Estate Investors (AQSE:RLE.GB)
Gráfico Histórico do Ativo
De Mar 2024 até Mar 2025
