Real Estate Investors Plc · LSE:RLE
Real Estate Investors — FY2024 Earnings Presentation
26 slides from Real Estate Investors's earnings presentation, 2025
Slide 1: Real Estate Investors Plc Results for the year ended 31 December 2024
Real Estate Investors Plc Results for the year ended 31 December 2024 Investor and Analyst Presentation
Slide 2: Company Overview
REAL ESTATE INVESTORS PLC COMPANY OVERVIEW REI Portfolio Diversified Active Asset Multi- Attractive Orderly Sale Today Portfolio Management banked Returns of Assets • Gross property assets • Multi-sector • Break up opportunities • Banked across 3 • Uninterrupted and • Persistent discount of £124.6 m
Slide 3: Highly Experienced Board Aligned with Shareholders
HIGHLY EXPERIENCED BOARD ALIGNED WITH SHAREHOLDERS Non-Executive Executive William Wyatt Peter London Ian Stringer Paul Bassi CBE Marcus Daly FCA Non-Executive Chairman Non-Executive Director Non-Executive Director Chief Executive Officer Finance Director • Joined REI Board in 2010, • Joined REI Boa
Slide 4: A Resilient Record Throughout Challenging Times
A RESILIENT RECORD THROUGHOUT CHALLENGING TIMES SINCE 2012 TOTAL DIVIDENDS DECLARED/PAID TO SHAREHOLDERS = £53.9 MILLION 3-YEAR DISPOSAL STRATEGY ANNOUNCED IN JANUARY 2024 Financial Crisis General Election Scottish Referendum EU Referendum BREXIT COVID Ukraine War Cost of living crisis 2006 2010 201
Slide 5: FY 2024 Operational Highlights
FY 2024 OPERATIONAL HIGHLIGHTS • Strong overall rent collection for 2024 of 99.94% Contracted Rental Income £m • Contracted rental income: £9.0 million p.a. (FY 2023: £10.9 million p.a.) due to disposals 17.0 17.7 16.7 16.2 • Gross property assets: £124.6 million (FY 2023: £145.5 million) 14.9 14.3
Slide 6: FY 2024 Financial Highlights
FY 2024 FINANCIAL HIGHLIGHTS EPRA NTA per share (p) • EPRA NTA per share of 51.3p (FY 2023: 54.9p) • EPRA EPS of 1.9p (FY 2023: 2.6p) 66.2 68.9 69.3 67.4 61.3 64.5 62.2 55.2 58.8 54.9 51.3 • Final dividend per share of 0.4p (Final Q4 2023: 0.625p) paid as an Ordinary Dividend, representing a total f
Slide 7: FY 2024 Financials: Robust Underlying Profits
FY 2024 FINANCIALS ROBUST UNDERLYING PROFITS • Revenue of £10.8 million (FY 2023: £11.5 million) reduction due to sales FY 2024 FY 2023 Income Statement £m £m • Underlying profit before tax* of £3.4 million (FY 2023: £4.5 million) Revenue 10.8 11.5 • Loss before tax of £2.4 million (FY 2023: £9.4 mi
Slide 8: FY 2024 Financials: Strong Balance Sheet
FY 2024 FINANCIALS STRONG BALANCE SHEET Gross property assets Net assets FY 2024 FY 2023 Balance Sheet £m £m £124.6m £89.5m Property 124.6 145.5 Cash 6.9 8.0 Debt (39.2) (54.4) Other (2.8) (3.5) Net assets 89.5 95.6 EPRA NTA per share Net LTV Adjustments 0.2 0.4 51.3p 26.4% EPRA NTA 89.7 96.0 EPRA N
Slide 9: FY 2024 Financials: Simplified Debt Position
FY 2024 FINANCIALS SIMPLIFIED DEBT POSITION • Total debt of £39.2 million (FY 2023: £54.4 million) Debt Profile • £15.2 million of debt repaid with disposal proceeds in 2024 Lender Debt Facility Debt Maturity Amount Fixed • Cost of debt 6.5% (FY 2023: 3.7%) & 25% of debt was fixed (£m) (£m) • Net LT
Slide 10: Movement in EPRA NTA per Share (p)
MOVEMENT IN EPRA NTA PER SHARE (P) 60 1.9 54.9 -3.4 51.3 50 -2.1 40 30 20 10 0 01-Jan-24 Underlying Profits Revaluation/surplus on sales Dividend 31-Dec-24 REI PLC 9
Slide 11: Movement in EPRA Earnings per Share (p)
MOVEMENT IN EPRA EARNINGS PER SHARE (P) 3 2.6 0.3 2.5 -0.4 2 1.9 -0.6 1.5 1 0.5 0 01-Jan-24 Rental Income Admin Expenses Finance Costs 31-Dec-24 REI PLC 10
Slide 12: Uninterrupted Dividend Delivering Consistent Returns
UNINTERRUPTED DIVIDEND DELIVERING CONSISTENT RETURNS Uninterrupted dividend payments despite disposals Shareholder Distribution Year on Year £53.9 million total dividends declared/paid since 2012 Final Q4 dividend for 2024 of 0.4p per share (Q4 2023: COVID19 0.625p), representing a total fully
Slide 13: A Year of Sales at a Premium to Book Value
A YEAR OF SALES AT A PREMIUM TO BOOK VALUE Acquisitions & Disposals • Completed disposals totalling £18.9 million in 2024 at 70 an aggregate uplift of 6.95% (pre-costs) above book Acquisitions Disposals value) 60 50 • 20 unit/asset disposals in 2024 - average lot size of 40 COVID19 PERIOD £945,000 g
Slide 14: Market Conditions & Sentiment: Signs of Stability Ahead
MARKET CONDITIONS & SENTIMENT SIGNS OF STABILITY AHEAD Summary of 2024 2025 and Beyond Continued widespread economic uncertainty and political unrest Anticipated gradually reducing interest rates Interest rates trajectory uncertainty & elevated inflation levels Lower finance costs/long term
Slide 15: Private Investor & Owner Occupier Portfolio Break Up Value
PRIVATE INVESTOR & OWNER OCCUPIER PORTFOLIO BREAK UP VALUE Summary of 2024: • Orderly sale & debt repayment strategy announced in January 2024 • Sales of £18.9 million • 20 units/assets sold in 2024 with an average lot size of £945,000 • 6.95% (pre-costs) above 2023 year-end book values • £15.2 mill
Slide 16: Larger Lot Sizes: Planned Sales in 2025 & 2026
LARGER LOT SIZES PLANNED SALES IN 2025 & 2026 We have a number of properties in the portfolio which are ready for sale, all of which have undergone successful business plans and improvements. Due to the current subdued marketplace our normal buyer pool for assets of £2 million+ remains inactive (suc
Slide 17: Larger Lot Sizes: Planned Sales in 2025 & 2026
LARGER LOT SIZES PLANNED SALES IN 2025 & 2026 Further examples include: Peat House (Single let office building) Following recent letting activity the building is now fully occupied and is let on attractive terms to covenants including Innes England, Bellrock Fund Management, The Association of Schoo
Slide 18: Active Asset Management Reducing Voids and Maximising Value
ACTIVE ASSET MANAGEMENT REDUCING VOIDS AND MAXIMISING VALUE Despite the business primarily focussing on sales, 2024 was a successful year for the asset management team, completing 47 lease events and securing £1.1 million in new letting income. This activity resulted in improved WAULT of 5.76 years
Slide 19: Maximising Occupancy & Income
MAXIMISING OCCUPANCY & INCOME BREAKDOWN OF CONTRACTED RENTAL INCOME CHANGE UNLOCKING VOID POTENTIAL Contracted rental income at 31 Dec 2023 - £10.9 million p.a. Of the 17.96% vacancy (at 31 December 2024) within the portfolio, almost half of this (8.63%) can be attributed to spaces at 4 properties (
Slide 20: Diverse and Attractive Portfolio: Balanced Risk
DIVERSE AND ATTRACTIVE PORTFOLIO BALANCED RISK Other 13.89% Office Income Income 47.28% Sector by by FS Sector Sector 4.50% (£) (%) 86.37% of FIN Office 4,266,720 47.28 our office 1.43% Traditional Retail 1,275,436 14.13 investments are ‘non- Birmingham RBC Discount Retail - Poundland/B&M etc 882,50
Slide 21: Top Tenants by Income: Diversity is Key
TOP 10 TENANTS BY INCOME DIVERSITY IS KEY Rank Tenant Rent £’000 % Sector Property 99.94% 1 625 6.93 Office Birchfield House, Oldbury Overall Rent Collection for 2 450 4.99 Discount Retail Jasper, Tunstall 2024 3 396 4.39 Office Avon House, Bromsgrove £9.0 million p.a. Contracted 4 324 3.59 Office M
Slide 22: ESG & the REI Portfolio
ESG & THE REI PORTFOLIO Energy Performance Certification Portfolio Carbon Emissions Monitoring & Reporting In accordance with government guidelines, REI has undertaken a Whilst managements’ primary focus is asset management, the sale of assets and debt repayment programme to ensure our assets meet t
Slide 23: FY25 Outlook: Orderly Sales Strategy on Track
FY25 OUTLOOK ORDERLY SALES STRATEGY ON TRACK Dispose Repay Return of Assets Debt Capital Disposals Programme – Continue disposals programme to the strong private investor/owner-occupier markets. Accelerate larger asset sales in anticipation of institutional/corporate buyers returning to the market i
Slide 24: Appendices
APPENDICES REI Real Estate Investors Pk REI PLC 23
Slide 25: Disposal Strategy Alignment: STIP and Remuneration Changes
DISPOSAL STRATEGY ALIGNMENT STIP AND REMUNERATION CHANGES Shorter Term Incentive Plan (“STIP”) Revised Remuneration Policy (Effective 1 January 2024) To support the Disposal Strategy and the return of capital to shareholders, the In addition, the Company’s Remuneration Committee has approved changes
Slide 26: Operational Team
OPERATIONAL TEAM Ian Clark Andrew Osborne Jack Sears Anna Durnford BSc (Hons) MRICS BSc (Hons) BSc (Hons) MRICS Donna Mooney Director, Investor Relations Director, Asset Manager Investment Manager Asset Management Receptionist/Administrator • Joined REI in 2007 • Joined REI in 2011 • Joined REI in 2