Real Estate Investors Plc · LSE:RLE
Real Estate Investors — FY2021 Earnings Presentation
78 slides from Real Estate Investors's earnings presentation, 2022
Slide 1: The UK's Only Midlands Focused REIT
THE UK’S ONLY MIDLANDS FOCUSED REIT Results for the year ended 31 December 2021 Investor and Analyst Presentation THE MIDLANDS INVESTOR REI PLC
Slide 2: Real Estate Investors Plc Introduction
REAL ESTATE INVESTORS PLC INTRODUCTION REI Diversified Active Asset Multi- Attractive Today Portfolio Management banked Returns • UK’s only Midlands • Multi-sector • Value creation rent • Multi-banked across 5 • Progressive dividend focused/ REIT diversification, no reviews, lease renewals, lenders
Slide 3: Highly Experienced Board & Proven Track Record
HIGHLY EXPERIENCED BOARD & PROVEN TRACK RECORD Non-Executive Executive William Wyatt Peter London Ian Stringer Paul Bassi CBE DL D.UNIV DSC Marcus Daly FCA Non-Executive Chairman Non-Executive Director Non-Executive Director Chief Executive Officer Finance Director • Joined REI Board in 2010, • Join
Slide 4: REIT Responsibility - Dividend Maintained Through Challenging Times
REIT RESPONSIBILITY - DIVIDEND MAINTAINED THROUGH CHALLENGING TIMES IN LINE WITH THE COMPANY’S PROGRESSIVE DIVIDEND POLICY SINCE 2012 TOTAL DIVIDENDS DECLARED/PAID TO SHAREHOLDERS = £41.9 MILLION Financial Crisis / General Election / Scottish Referendum / European Referendum / BREXIT / COVID19 2004
Slide 5: The REI Business Model Active Asset Management
THE REI BUSINESS MODEL ACTIVE ASSET MANAGEMENT Generating value through asset management Buys REI market expertise Sells/holds Institutional sales VALUE ADD 12 - 24 months of Institutional quality assets Offices Asset Management Value & convenience retail Lease renewals HNW/private investors/ Leisur
Slide 6: FY 2021 Operational Highlights
FY 2021 OPERATIONAL HIGHLIGHTS Contracted Rental Income £m • Strong overall rent collection for 2021 (adjusted for monthly and deferred agreements) of 97.81% despite ongoing pandemic 17.0 17.7 16.7 16.2 14.9 • Q1 2022 rent collection to date 99.42% (adjusted for monthly/deferred 11.9 14.3 agreements
Slide 7: FY 2021 Financial Highlights
FY 2021 FINANCIAL HIGHLIGHTS • EPRA NTA per share of 58.8p (FY 2020: 55.2p) EPRA NTA • EPRA EPS 3.7p (FY 2020: 4.5p) 64.5 66.2 68.9 69.3 67.4 59.1 61.3 58.8 55.2 • Total dividend per share for 2021 of 3.0625p per share (FY 2020: 3p) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY
Slide 8: FY 2021 Financials
FY 2021 FINANCIALS • Revenue of £16.0 million (FY 2020: £16.4 million) FY 2021 FY 2020 Income Statement £m £m • Profit before tax of £13.9 million (FY 2020: loss £20.2 million) to Revenue 16.0 16.4 include £4.9 million gain on property revaluations (FY 2020: £27.9 million reduction), £1.2 million pr
Slide 9: FY 2021 Financials Strong Balance Sheet
FY 2021 FINANCIALS STRONG BALANCE SHEET Gross property assets Net assets FY 2021 FY 2020 Balance Sheet £m £m Property 190.8 201.3 £190.8m £105m Cash 9.8 4.2 Debt (89.4) (101.4) Other (6.2) (6.4) Net assets 105.0 97.7 EPRA NTA per share Net LTV Adjustments 2.1 3.5 58.8p 42.2% EPRA NTA 107.1 101.2 Net
Slide 10: Movement in EPRA NTA per Share (p)
MOVEMENT IN EPRA NTA PER SHARE (P) REI PLC 9
Slide 11: Movement in EPRA Earnings per Share (p)
MOVEMENT IN EPRA EARNINGS PER SHARE (P) REI PLC 10
Slide 12: FY 2021 Financials Simplified Debt Position
FY 2021FINANCIALS SIMPLIFIED DEBT POSITION Debt Structure % Debt Maturity £m • Cost of debt 3.5% (FY 2020: 3.4%) with 90% fixed debt (as at 1 Jan) • Net LTV 42.2% (target LTV - 40% or below) (FY 2020: 49.2%) Fixed Floating 53 • Interest cover of 3.0x (FY 2020: 3.2x) 10 • Multi-banked across 5 lender
Slide 13: Attractive Spread Between NIY & Cost of Debt
ATTRACTIVE SPREAD BETWEEN NIY & COST OF DEBT 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2014 2015 2016 2017 2018 2019 2020 2021 Cost of Debt NIY REI PLC 12
Slide 14: Quarterly Dividend Payments Continued Despite Pandemic
QUARTERLY DIVIDEND PAYMENTS CONTINUED DESPITE PANDEMIC Continued dividend payments despite pandemic Shareholder Distribution Year on Year £41.9 million total dividends declared/paid since 2012 Total dividend for 2021 of 3.0625p per share (2020: 3p) COVID19 +7% PERIOD Interim Paid quarterly +
Slide 15: Strong Investor Appetite
STRONG INVESTOR APPETITE • Strong private investor market with significant access to low cost of debt and new equity • Sales & approaches for existing properties at pre-Covid19 levels • Market investment values showing signs of improving yields / strong auction results • Sales providing comparable d
Slide 16: Break Up Value
BREAK UP VALUE Example – Acocks Green Prominent suburban parade purchased in June 2015 for £8.00m Arden House (office portion) sold for £0.760m in Nov 2015 2021 – 5 lots progressing firmly in solicitor’s hands to three Example - Bearwood High Street: separate parties, with a total sale value of £3.9
Slide 17: Renewed Occupier Demand
RENEWED OCCUPIER DEMAND • Contracted rental income as at Breakdown of reduction in rental income since 31 December 2020 31.12.2021 - £14.3m Rent lost to sales: £977,852 p.a. Rent lost to tenants vacating due to known lease events: £1,259,933 p.a. • Contracted rental income as at 31.12.2020 - £16.7m
Slide 18: Diverse and Attractive Portfolio
DIVERSE AND ATTRACTIVE PORTFOLIO FS % by 4.09% Other Sector £ per annum Income 10.78% 81.03% of FIN Office 4,815,756 33.61 3.81% our offices Office Traditional Retail 2,665,694 18.61 are ‘non 33.61% Discount Retail - Poundland/B&M etc 1,801,350 12.57 Birmingham RBC Medical and Pharmaceutical - City
Slide 19: Top 10 Tenants by Income No Material Exposure
TOP 10 TENANTS BY INCOME NO MATERIAL EXPOSURE Rank Tenant Rent £’000 % Sector Property 25.26% 1 572 3.99 Discount Retail Crewe Shopping Centre, Acocks Green & Kings Heath Top 10 tenants represent only 25.26% of REI’s 2 450 3.14 Discount Retail Jasper, Tunstall contracted income 3 420 2.93 Office Mol
Slide 20: Active Capital Recycling Acquisitions & Disposals
ACTIVE CAPITAL RECYCLING ACQUISITIONS & DISPOSALS Acquisitions & Disposals 70 Acquisitions 2021 Disposals 60 • Completed 15 disposals totalling (net of costs) £17.55 million and 1 inventory sale for £1.15 50 million (aggregate uplift of 10.3% above book 40 value, 14.0 % uplift on portfolio disposals
Slide 21: ESG & the REI Portfolio
ESG & THE REI PORTFOLIO EPC – ENSURING THE PORTFOLIO IS COMPLIANT • From April 2023 all assets require an EPC rating of ‘E’ or above ONGOING ESG STRATEGY IN 2022 • Currently 0.84% of the portfolio is below an ‘E’. Some of our non- compliant assets have been/are being sold. • Continued meetings of ES
Slide 22: Why REI? Outlook & NAV Growth
WHY REI? OUTLOOK & NAV GROWTH Outlook • Dividend – Maintain progressive dividend policy • Stability – To re-let voids to improve income/WAULT/capital values to secure valuation recovery • Reduce gearing (target 40% or below)/improve NAV – Via asset management, sales, cash generation, valuation/hedge
Slide 23: ESG – Our Partners
ESG – OUR PARTNERS Portfolio Scope 1 and Scope 2 Emissions (landlord controlled areas only/electricity and gas only) Working with Measurabl, we have established the carbon emissions (Scope 1 and Scope 2 emissions) for landlord controlled areas only across the portfolio (totalling 1.07 million sq ft)
Slide 24: Poised for Take Off… The Region with a Head Start
POISED FOR TAKE OFF… THE REGION WITH A HEAD START REI PLC 23
Slide 25: Operational Team
OPERATIONAL TEAM Ian Clark Andrew Osborne Jack Sears Anna Durnford BSc (Hons) MRICS BSc (Hons) BSc (Hons) MRICS Donna Mooney Head of Investor Relations Senior Asset Manager Investment Manager Asset Management Receptionist/Administrator • Joined REI in 2007 • Joined REI in 2011 • Joined REI in 2014 •
Slide 26: Real Estate Investors Plc
REAL ESTATE INVESTORS PLC 2nd Floor 75–77 Colmore Row Birmingham B3 2AP Telephone: 0121 212 3446 Fax: 0121 212 1415 www.reiplc.com
Slide 27: The UK's Only Midlands Focused REIT
THE UK’S ONLY MIDLANDS FOCUSED REIT Results for the year ended 31 December 2021 Investor and Analyst Presentation THE MIDLANDS INVESTOR REI PLC
Slide 28: Real Estate Investors Plc Introduction
REAL ESTATE INVESTORS PLC INTRODUCTION REI Diversified Active Asset Multi- Attractive Today Portfolio Management banked Returns • UK’s only Midlands • Multi-sector • Value creation rent • Multi-banked across 5 • Progressive dividend focused/ REIT diversification, no reviews, lease renewals, lenders
Slide 29: Highly Experienced Board & Proven Track Record
HIGHLY EXPERIENCED BOARD & PROVEN TRACK RECORD Non-Executive Executive William Wyatt Peter London Ian Stringer Paul Bassi CBE DL D.UNIV DSC Marcus Daly FCA Non-Executive Chairman Non-Executive Director Non-Executive Director Chief Executive Officer Finance Director • Joined REI Board in 2010, • Join
Slide 30: REIT Responsibility - Dividend Maintained Through Challenging Times
REIT RESPONSIBILITY - DIVIDEND MAINTAINED THROUGH CHALLENGING TIMES IN LINE WITH THE COMPANY’S PROGRESSIVE DIVIDEND POLICY SINCE 2012 TOTAL DIVIDENDS DECLARED/PAID TO SHAREHOLDERS = £41.9 MILLION Financial Crisis / General Election / Scottish Referendum / European Referendum / BREXIT / COVID19 2004
Slide 31: The REI Business Model Active Asset Management
THE REI BUSINESS MODEL ACTIVE ASSET MANAGEMENT Generating value through asset management Buys REI market expertise Sells/holds Institutional sales VALUE ADD 12 - 24 months of Institutional quality assets Offices Asset Management Value & convenience retail Lease renewals HNW/private investors/ Leisur
Slide 32: FY 2021 Operational Highlights
FY 2021 OPERATIONAL HIGHLIGHTS Contracted Rental Income £m • Strong overall rent collection for 2021 (adjusted for monthly and deferred agreements) of 97.81% despite ongoing pandemic 17.0 17.7 16.7 16.2 14.9 • Q1 2022 rent collection to date 99.42% (adjusted for monthly/deferred 11.9 14.3 agreements
Slide 33: FY 2021 Financial Highlights
FY 2021 FINANCIAL HIGHLIGHTS • EPRA NTA per share of 58.8p (FY 2020: 55.2p) EPRA NTA • EPRA EPS 3.7p (FY 2020: 4.5p) 64.5 66.2 68.9 69.3 67.4 59.1 61.3 58.8 55.2 • Total dividend per share for 2021 of 3.0625p per share (FY 2020: 3p) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY
Slide 34: FY 2021 Financials
FY 2021 FINANCIALS • Revenue of £16.0 million (FY 2020: £16.4 million) FY 2021 FY 2020 Income Statement £m £m • Profit before tax of £13.9 million (FY 2020: loss £20.2 million) to Revenue 16.0 16.4 include £4.9 million gain on property revaluations (FY 2020: £27.9 million reduction), £1.2 million pr
Slide 35: FY 2021 Financials Strong Balance Sheet
FY 2021 FINANCIALS STRONG BALANCE SHEET Gross property assets Net assets FY 2021 FY 2020 Balance Sheet £m £m Property 190.8 201.3 £190.8m £105m Cash 9.8 4.2 Debt (89.4) (101.4) Other (6.2) (6.4) Net assets 105.0 97.7 EPRA NTA per share Net LTV Adjustments 2.1 3.5 58.8p 42.2% EPRA NTA 107.1 101.2 Net
Slide 36: Movement in EPRA NTA per Share (p)
MOVEMENT IN EPRA NTA PER SHARE (P) REI PLC 9
Slide 37: Movement in EPRA Earnings per Share (p)
MOVEMENT IN EPRA EARNINGS PER SHARE (P) REI PLC 10
Slide 38: FY 2021 Financials Simplified Debt Position
FY 2021FINANCIALS SIMPLIFIED DEBT POSITION Debt Structure % Debt Maturity £m • Cost of debt 3.5% (FY 2020: 3.4%) with 90% fixed debt (as at 1 Jan) • Net LTV 42.2% (target LTV - 40% or below) (FY 2020: 49.2%) Fixed Floating 53 • Interest cover of 3.0x (FY 2020: 3.2x) 10 • Multi-banked across 5 lender
Slide 39: Attractive Spread Between NIY & Cost of Debt
ATTRACTIVE SPREAD BETWEEN NIY & COST OF DEBT 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2014 2015 2016 2017 2018 2019 2020 2021 Cost of Debt NIY REI PLC 12
Slide 40: Quarterly Dividend Payments Continued Despite Pandemic
QUARTERLY DIVIDEND PAYMENTS CONTINUED DESPITE PANDEMIC Continued dividend payments despite pandemic Shareholder Distribution Year on Year £41.9 million total dividends declared/paid since 2012 Total dividend for 2021 of 3.0625p per share (2020: 3p) COVID19 +7% PERIOD Interim Paid quarterly +
Slide 41: Strong Investor Appetite
STRONG INVESTOR APPETITE • Strong private investor market with significant access to low cost of debt and new equity • Sales & approaches for existing properties at pre-Covid19 levels • Market investment values showing signs of improving yields / strong auction results • Sales providing comparable d
Slide 42: Break Up Value
BREAK UP VALUE Example – Acocks Green Prominent suburban parade purchased in June 2015 for £8.00m Arden House (office portion) sold for £0.760m in Nov 2015 2021 – 5 lots progressing firmly in solicitor’s hands to three Example - Bearwood High Street: separate parties, with a total sale value of £3.9
Slide 43: Renewed Occupier Demand
RENEWED OCCUPIER DEMAND • Contracted rental income as at Breakdown of reduction in rental income since 31 December 2020 31.12.2021 - £14.3m Rent lost to sales: £977,852 p.a. Rent lost to tenants vacating due to known lease events: £1,259,933 p.a. • Contracted rental income as at 31.12.2020 - £16.7m
Slide 44: Diverse and Attractive Portfolio
DIVERSE AND ATTRACTIVE PORTFOLIO FS % by 4.09% Other Sector £ per annum Income 10.78% 81.03% of FIN Office 4,815,756 33.61 3.81% our offices Office Traditional Retail 2,665,694 18.61 are ‘non 33.61% Discount Retail - Poundland/B&M etc 1,801,350 12.57 Birmingham RBC Medical and Pharmaceutical - City
Slide 45: Top 10 Tenants by Income No Material Exposure
TOP 10 TENANTS BY INCOME NO MATERIAL EXPOSURE Rank Tenant Rent £’000 % Sector Property 25.26% 1 572 3.99 Discount Retail Crewe Shopping Centre, Acocks Green & Kings Heath Top 10 tenants represent only 25.26% of REI’s 2 450 3.14 Discount Retail Jasper, Tunstall contracted income 3 420 2.93 Office Mol
Slide 46: Active Capital Recycling Acquisitions & Disposals
ACTIVE CAPITAL RECYCLING ACQUISITIONS & DISPOSALS Acquisitions & Disposals 70 Acquisitions 2021 Disposals 60 • Completed 15 disposals totalling (net of costs) £17.55 million and 1 inventory sale for £1.15 50 million (aggregate uplift of 10.3% above book 40 value, 14.0 % uplift on portfolio disposals
Slide 47: ESG & the REI Portfolio
ESG & THE REI PORTFOLIO EPC – ENSURING THE PORTFOLIO IS COMPLIANT • From April 2023 all assets require an EPC rating of ‘E’ or above ONGOING ESG STRATEGY IN 2022 • Currently 0.84% of the portfolio is below an ‘E’. Some of our non- compliant assets have been/are being sold. • Continued meetings of ES
Slide 48: Why REI? Outlook & NAV Growth
WHY REI? OUTLOOK & NAV GROWTH Outlook • Dividend – Maintain progressive dividend policy • Stability – To re-let voids to improve income/WAULT/capital values to secure valuation recovery • Reduce gearing (target 40% or below)/improve NAV – Via asset management, sales, cash generation, valuation/hedge
Slide 49: ESG – Our Partners
ESG – OUR PARTNERS Portfolio Scope 1 and Scope 2 Emissions (landlord controlled areas only/electricity and gas only) Working with Measurabl, we have established the carbon emissions (Scope 1 and Scope 2 emissions) for landlord controlled areas only across the portfolio (totalling 1.07 million sq ft)
Slide 50: Poised for Take Off… The Region with a Head Start
POISED FOR TAKE OFF… THE REGION WITH A HEAD START REI PLC 23
Slide 51: Operational Team
OPERATIONAL TEAM Ian Clark Andrew Osborne Jack Sears Anna Durnford BSc (Hons) MRICS BSc (Hons) BSc (Hons) MRICS Donna Mooney Head of Investor Relations Senior Asset Manager Investment Manager Asset Management Receptionist/Administrator • Joined REI in 2007 • Joined REI in 2011 • Joined REI in 2014 •
Slide 52: Real Estate Investors Plc
REAL ESTATE INVESTORS PLC 2nd Floor 75–77 Colmore Row Birmingham B3 2AP Telephone: 0121 212 3446 Fax: 0121 212 1415 www.reiplc.com
Slide 53: The UK's Only Midlands Focused REIT
THE UK’S ONLY MIDLANDS FOCUSED REIT Results for the year ended 31 December 2021 Investor and Analyst Presentation THE MIDLANDS INVESTOR REI PLC
Slide 54: Real Estate Investors Plc Introduction
REAL ESTATE INVESTORS PLC INTRODUCTION REI Diversified Active Asset Multi- Attractive Today Portfolio Management banked Returns • UK’s only Midlands • Multi-sector • Value creation rent • Multi-banked across 5 • Progressive dividend focused/ REIT diversification, no reviews, lease renewals, lenders
Slide 55: Highly Experienced Board & Proven Track Record
HIGHLY EXPERIENCED BOARD & PROVEN TRACK RECORD Non-Executive Executive William Wyatt Peter London Ian Stringer Paul Bassi CBE DL D.UNIV DSC Marcus Daly FCA Non-Executive Chairman Non-Executive Director Non-Executive Director Chief Executive Officer Finance Director • Joined REI Board in 2010, • Join
Slide 56: REIT Responsibility - Dividend Maintained Through Challenging Times
REIT RESPONSIBILITY - DIVIDEND MAINTAINED THROUGH CHALLENGING TIMES IN LINE WITH THE COMPANY’S PROGRESSIVE DIVIDEND POLICY SINCE 2012 TOTAL DIVIDENDS DECLARED/PAID TO SHAREHOLDERS = £41.9 MILLION Financial Crisis / General Election / Scottish Referendum / European Referendum / BREXIT / COVID19 2004
Slide 57: The REI Business Model Active Asset Management
THE REI BUSINESS MODEL ACTIVE ASSET MANAGEMENT Generating value through asset management Buys REI market expertise Sells/holds Institutional sales VALUE ADD 12 - 24 months of Institutional quality assets Offices Asset Management Value & convenience retail Lease renewals HNW/private investors/ Leisur
Slide 58: FY 2021 Operational Highlights
FY 2021 OPERATIONAL HIGHLIGHTS Contracted Rental Income £m • Strong overall rent collection for 2021 (adjusted for monthly and deferred agreements) of 97.81% despite ongoing pandemic 17.0 17.7 16.7 16.2 14.9 • Q1 2022 rent collection to date 99.42% (adjusted for monthly/deferred 11.9 14.3 agreements
Slide 59: FY 2021 Financial Highlights
FY 2021 FINANCIAL HIGHLIGHTS • EPRA NTA per share of 58.8p (FY 2020: 55.2p) EPRA NTA • EPRA EPS 3.7p (FY 2020: 4.5p) 64.5 66.2 68.9 69.3 67.4 59.1 61.3 58.8 55.2 • Total dividend per share for 2021 of 3.0625p per share (FY 2020: 3p) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY
Slide 60: FY 2021 Financials
FY 2021 FINANCIALS • Revenue of £16.0 million (FY 2020: £16.4 million) FY 2021 FY 2020 Income Statement £m £m • Profit before tax of £13.9 million (FY 2020: loss £20.2 million) to Revenue 16.0 16.4 include £4.9 million gain on property revaluations (FY 2020: £27.9 million reduction), £1.2 million pr
Slide 61: FY 2021 Financials Strong Balance Sheet
FY 2021 FINANCIALS STRONG BALANCE SHEET Gross property assets Net assets FY 2021 FY 2020 Balance Sheet £m £m Property 190.8 201.3 £190.8m £105m Cash 9.8 4.2 Debt (89.4) (101.4) Other (6.2) (6.4) Net assets 105.0 97.7 EPRA NTA per share Net LTV Adjustments 2.1 3.5 58.8p 42.2% EPRA NTA 107.1 101.2 Net
Slide 62: Movement in EPRA NTA per Share (p)
MOVEMENT IN EPRA NTA PER SHARE (P) REI PLC 9
Slide 63: Movement in EPRA Earnings per Share (p)
MOVEMENT IN EPRA EARNINGS PER SHARE (P) REI PLC 10
Slide 64: FY 2021 Financials Simplified Debt Position
FY 2021FINANCIALS SIMPLIFIED DEBT POSITION Debt Structure % Debt Maturity £m • Cost of debt 3.5% (FY 2020: 3.4%) with 90% fixed debt (as at 1 Jan) • Net LTV 42.2% (target LTV - 40% or below) (FY 2020: 49.2%) Fixed Floating 53 • Interest cover of 3.0x (FY 2020: 3.2x) 10 • Multi-banked across 5 lender
Slide 65: Attractive Spread Between NIY & Cost of Debt
ATTRACTIVE SPREAD BETWEEN NIY & COST OF DEBT 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2014 2015 2016 2017 2018 2019 2020 2021 Cost of Debt NIY REI PLC 12
Slide 66: Quarterly Dividend Payments Continued Despite Pandemic
QUARTERLY DIVIDEND PAYMENTS CONTINUED DESPITE PANDEMIC Continued dividend payments despite pandemic Shareholder Distribution Year on Year £41.9 million total dividends declared/paid since 2012 Total dividend for 2021 of 3.0625p per share (2020: 3p) COVID19 +7% PERIOD Interim Paid quarterly +
Slide 67: Strong Investor Appetite
STRONG INVESTOR APPETITE • Strong private investor market with significant access to low cost of debt and new equity • Sales & approaches for existing properties at pre-Covid19 levels • Market investment values showing signs of improving yields / strong auction results • Sales providing comparable d
Slide 68: Break Up Value
BREAK UP VALUE Example – Acocks Green Prominent suburban parade purchased in June 2015 for £8.00m Arden House (office portion) sold for £0.760m in Nov 2015 2021 – 5 lots progressing firmly in solicitor’s hands to three Example - Bearwood High Street: separate parties, with a total sale value of £3.9
Slide 69: Renewed Occupier Demand
RENEWED OCCUPIER DEMAND • Contracted rental income as at Breakdown of reduction in rental income since 31 December 2020 31.12.2021 - £14.3m Rent lost to sales: £977,852 p.a. Rent lost to tenants vacating due to known lease events: £1,259,933 p.a. • Contracted rental income as at 31.12.2020 - £16.7m
Slide 70: Diverse and Attractive Portfolio
DIVERSE AND ATTRACTIVE PORTFOLIO FS % by 4.09% Other Sector £ per annum Income 10.78% 81.03% of FIN Office 4,815,756 33.61 3.81% our offices Office Traditional Retail 2,665,694 18.61 are ‘non 33.61% Discount Retail - Poundland/B&M etc 1,801,350 12.57 Birmingham RBC Medical and Pharmaceutical - City
Slide 71: Top 10 Tenants by Income No Material Exposure
TOP 10 TENANTS BY INCOME NO MATERIAL EXPOSURE Rank Tenant Rent £’000 % Sector Property 25.26% 1 572 3.99 Discount Retail Crewe Shopping Centre, Acocks Green & Kings Heath Top 10 tenants represent only 25.26% of REI’s 2 450 3.14 Discount Retail Jasper, Tunstall contracted income 3 420 2.93 Office Mol
Slide 72: Active Capital Recycling Acquisitions & Disposals
ACTIVE CAPITAL RECYCLING ACQUISITIONS & DISPOSALS Acquisitions & Disposals 70 Acquisitions 2021 Disposals 60 • Completed 15 disposals totalling (net of costs) £17.55 million and 1 inventory sale for £1.15 50 million (aggregate uplift of 10.3% above book 40 value, 14.0 % uplift on portfolio disposals
Slide 73: ESG & the REI Portfolio
ESG & THE REI PORTFOLIO EPC – ENSURING THE PORTFOLIO IS COMPLIANT • From April 2023 all assets require an EPC rating of ‘E’ or above ONGOING ESG STRATEGY IN 2022 • Currently 0.84% of the portfolio is below an ‘E’. Some of our non- compliant assets have been/are being sold. • Continued meetings of ES
Slide 74: Why REI? Outlook & NAV Growth
WHY REI? OUTLOOK & NAV GROWTH Outlook • Dividend – Maintain progressive dividend policy • Stability – To re-let voids to improve income/WAULT/capital values to secure valuation recovery • Reduce gearing (target 40% or below)/improve NAV – Via asset management, sales, cash generation, valuation/hedge
Slide 75: ESG – Our Partners
ESG – OUR PARTNERS Portfolio Scope 1 and Scope 2 Emissions (landlord controlled areas only/electricity and gas only) Working with Measurabl, we have established the carbon emissions (Scope 1 and Scope 2 emissions) for landlord controlled areas only across the portfolio (totalling 1.07 million sq ft)
Slide 76: Poised for Take Off… The Region with a Head Start
POISED FOR TAKE OFF… THE REGION WITH A HEAD START REI PLC 23
Slide 77: Operational Team
OPERATIONAL TEAM Ian Clark Andrew Osborne Jack Sears Anna Durnford BSc (Hons) MRICS BSc (Hons) BSc (Hons) MRICS Donna Mooney Head of Investor Relations Senior Asset Manager Investment Manager Asset Management Receptionist/Administrator • Joined REI in 2007 • Joined REI in 2011 • Joined REI in 2014 •
Slide 78: Real Estate Investors Plc
REAL ESTATE INVESTORS PLC 2nd Floor 75–77 Colmore Row Birmingham B3 2AP Telephone: 0121 212 3446 Fax: 0121 212 1415 www.reiplc.com