Business
Trading Update and Notice of Interim Results
Trading Update and Notice of Interim Results.
About this update from Real Estate Investors Plc
[{"type":"text","content":"\n\nReal Estate Investors Plc\n(\"REI\", the \"Company\" or the \"Group\")\n \nTRADING UPDATE AND NOTICE OF INTERIM RESULTS\n \nONGOING SALES, DEBT REPAYMENT & FULLY COVERED DIVIDEND\n \nReal Estate Investors Plc (AIM: RLE), the UK's only Midlands-focused Real Estate Investment Trust (REIT) with a portfolio of commercial property across all sectors, is pleased to provide the following trading update:\n \nDISPOSALS - DELIVERING ON SALES STRATEGY\n· Private investors and owner occupiers have remained active, allowing us to secure sales - breaking up parades and feeding demand for smaller assets, despite the challenging macro environment\n· Year to date disposals of £8.7 million (comprising of 11 retail units, 1 mixed retail and office asset and a piece of land for drive-thru pod development) at an aggregate uplift of 11.7%, pre-costs, to December 2022 book value\n· Further pipeline of sales in solicitors' hands and we intend to complete sales to generate receipts to reduce portfolio debt and execute our strategy\n· We have now achieved total sales of £46.55 million from 1 January 2021 to date\n \nDEBT POSITION - INCREASED LIQUIDITY & RETURN ON DEPOSITS\n· Our priority has remained to repay debt with a view to reducing portfolio gearing levels\n· As at 28 July 2023, debt repayment of £7.3 million, reducing total drawn debt to £64.2m (FY 2022: £71.5 million)\n· Pro-forma loan to value (net of cash) now 34.7% (FY 2022: 36.8%) based on 31 December 2022 valuations\n· Company is maximising returns on cash reserves, with monies on deposit earning 3.4% at present\n· Average cost of debt maintained at 3.7% (FY 2022: 3.7%)\n· Company's debt is 100% fixed, with a blended debt profile term of 17 months. Plans agreed with Royal Bank of Scotland and Lloyds to begin facility negotiations in Q4 2023\n· As at 30 June 2023, hedge facility had improved by £388,000 year-to-date \n \nPORTFOLIO ACTIVITY - HEALTHY PIPELINE OF LETTINGS\n· We have experienced slow occupier decision making since the year end, however, due to our healthy pipeline of lettings, and with our further scheduled sales, we ant...