Real Estate Investors Plc
Results for the year ended 31 December 2025
Investor and Analyst Presentation
REAL ESTATE INVESTORS PLC
COMPANY OVERVIEW
REI Portfolio Today
Diversified Portfolio
Active Asset Management
Multi-banked
Attractive Returns
Orderly Sale of Assets
Gross property assets of £115.7 million
Internally managed
portfolio
100+ years of combined Board experience
Board alignment -
13.32% shareholding
Multi-sector diversification, no material reliance on any sector, asset or occupier
119 occupiers & 34
assets
Resilient subsectors of convenience, government and out of town offices
Break up opportunities within assets to satisfy strong private investor demand
Value creation rent reviews, lease renewals, lettings, change of use
Banked across 3 lenders
Net LTV of 24.8% providing certainty and security
Bank covenant compliant
Ongoing Debt repayment programme
Uninterrupted and Fully Covered dividend policy
Dividend paid
quarterly
£56.7 million declared/paid to shareholders since commencement of dividend policy in 2012
Persistent discount between share price and NAV
In 2024 embarked on a 3-year orderly sale of portfolio assets to maximise value
Receipts of disposals will be used to pay down debt and return cash to shareholders
HIGHLY EXPERIENCED BOARD
MANAGEMENT ALIGNED WITH SHAREHOLDERS
Non-Executive
Executive
William Wyatt
Non-Executive Chairman
Joined REI Board in 2010, appointed Chairman in 2021
0.17% shareholder in REI
Joined Caledonia in 1997 from Close Brothers Group Plc. He was appointed a director in 2005 and served as Chief Executive from 2010 until becoming non-executive in 2022
Non-executive Director of Cobehold, and Chair of The Rank Foundation
Peter London
Non-Executive Director
Joined REI Board in 2014
0.15% shareholder in REI
Peter has a lifetime of experience in providing IFA services to HNW individuals and sold his IFA company to a Swiss Bank in 2007
Non-Executive Chairman
of a number of financial and property related companies
Ian Stringer
Non-Executive Director
Joined REI Board in 2021
0.06% shareholder in REI
Chartered Surveyor with over 40 years' experience in commercial real estate
Past principal of Avison Young (and predecessors)
1983-2025 serving over 22 years on the Board and 10 years as Midlands Regional Managing Director
Property Advisor to King Edwards School's Foundation from 2007-2025
Paul Bassi CBE
Chief Executive Officer
Joined REI Board in 2006
10.29% shareholder in REI
Non-executive Chairman of Bond Wolfe
Non-executive Chairman of Likewise Plc (listed)
Former Non-executive Chairman of CP Bigwood
Former Regional Chairman & Strategy Advisor to Coutts Bank (West Midlands)
Awarded a CBE in 2010 for services to business and the community
Marcus Daly FCA
Finance Director
Joined REI Board in 2006
2.65% shareholder in REI
Chartered Accountant with over 30 years' experience in advising on strategic matters and corporate planning, particularly in the property sector
Former non-executive director of CP Bigwood Chartered Surveyors
Former non-executive Chairman of the Tipton & Coseley Building Society
A RESILIENT RECORD
DURING UNCERTAIN TIMES
Crisis Election Referendum Referendum BREXIT COVID Ukraine War living crisis / Budget2006
2010
2011
2012
2014 2015
2019
2020
2021
2022
2023 2024 2025
PB & MD join taking a 29% stake
Gross assets of £56.5m
Gross assets of
Gross assets of
Gross assets of
£104.4m
Gross assets of £228.9m
Gross assets
of £190.8m Gross
(£17.55m of assets of
Gross assets of
Gross Gross assets of assets of
SINCE 2012 TOTAL DIVIDENDS DECLARED/PAID TO SHAREHOLDERS = £56.7 MILLION 3-YEAR DISPOSAL STRATEGY ANNOUNCED IN JANUARY 2024 Financial General Scottish EU Start of Cost of Labour ElectionPB (CEO) MD (FD)
Adopted 'Midland' focus
£71.2m
£77.4m Gross
assets of
£157.5m
'Covid Impact' Gross assets of £201.3m
disposals during 2021)
£175.4m
(£20.9m
disposals in 2022)
£145.5m
(£17.97m
disposals in 2023)
£124.6m
(£18.9m
disposals in 2024)
£115.7m
(£8.0m disposals in 2025)
FY 2025
OPERATIONAL HIGHLIGHTS
Strong overall rent collection for 2025 of 99.28%
Contracted rental income: £8.3 million p.a.
(FY 2024: £9.0 million p.a.) due to disposals and lease events
Gross property assets: £115.7 million (FY 2024: £124.6 million)
Net LTV reduced to 24.8% (FY 2024: 26.4%) despite valuation decline
On a like for like basis the portfolio valuation has reduced by 2.62% to
£113.3 million, (FY 2024: £116.3 million)
£8.3 million p.a. like-for-like rental income (FY 2024: £8.7 million p.a.)
Completed and contracted £8.0 million of disposals, at 95.93% of December 2024 year-end valuations
Active asset management with 35 lease events during the period
Occupancy: 78.69% (FY 2024: 82.04%)
Improved WAULT of 6.01 years to break / 7.50 years to expiry (FY 2024: 5.76 years / 6.99 years)
Post period activity:
Healthy pipeline of sales in legals
Further £1 million debt repaid, reducing total debt to £33.2 million
Contracted Rental Income £m14.9
16.2
17.0
17.7
16.7
14.3
11.9
12.6
10.9
5.8
7.7
9.0
8.3
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Gross Property Assets £m201.9
213.1
224.8 228.9
201.3
190.8
157.5
175.4
145.5
104.4
124.6
115.7
75.2
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Occupancy %83.6 84.6 89.0
93.0 94.0 96.1 96.3 91.6 85.8
84.5 83.0 82.0 78.7
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
FY 2025
FINANCIAL HIGHLIGHTS
EPRA NTA per share of 49.1p (FY 2024: 51.3p)
EPRA EPS of 1.7p (FY 2024: 1.9p)
Final dividend per share of 0.4p (Final Q4 2024: 0.4p) paid as a property income distribution, representing a total fully covered dividend for 2025 of 1.6p per share (FY 2024: 1.9p)
Underlying profit before tax* of £2.9 million (FY 2024: £3.4 million) the reduction being due to the fall in income of £1.4 million due to strategic sales and lease events across the portfolio, offset by the decrease of £900,000 in finance costs, as a result of repayment of bank loans and a reduction in interest rates
Administrative and overhead expenses for the period were £2.2 million (FY 2024: £2.3 million) and include a provision of £0.2 million for the Company's STIP (FY 2024: £0.3 million payable upon completion of the corporate strategy, consistent with the rules of the plan
61.3
64.5
66.2
68.9
69.3
67.4
55.2
58.8
62.2
54.9
51.3
49.1
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
4.3
4.5
3.9
3.7
2.7
2.6
1.7
0.4
0.3
1.9
2.8
3.3
0.8
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
3.6
3.8
3
3
2.5
2.5
1.6
1
1.5
1.9
2
2.6
3.1
Underlying profit before tax excludes profit/loss on revaluation, sale of properties and interest rate swaps
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
FY 2025 FINANCIALS
ROBUST UNDERLYING PERFORMANCE
Revenue of £9.4 million (FY 2024: £10.8 million)
Underlying profit before tax* of £2.9 million (FY 2024: £3.4 million)
FY 2025
FY 2024
Loss before tax of £0.8 million (FY 2024: £2.4 million loss) including:
£3.0 million deficit on property revaluations (FY 2024: £6.3 million deficit) - non-cash item
a deficit of £482,000 on the sale of investment properties (FY 2024: £631,000 surplus)
a provision for the STIP of £200,000 (FY 2024: £300,000)
£25,000 deficit on the close out of the hedge position (FY 2024: £282,000 gain)
Income Statement | £m | £m |
Revenue | 9.4 | 10.8 |
Cost of sales | (2.2) | (2.2) |
Admin expenses | (2.2) | (2.3) |
Property revaluation and sales EBIT
Underlying profit before tax*
(3.5)
1.5
2.9
(5.8)
0.5
3.4
Loss on ordinary activities before tax
(0.8)
(2.4)
EPRA EPS
1.7p
1.9p
DPS
1.6p
1.9p
* Underlying profit before tax excludes profit/loss on revaluation, sale of properties and interest rate swaps
FY 2025 FINANCIALS
Net LTV
24.8%
Net Debt
£28.1m
EPRA NTA per share
49.1p
Net assets
£85.9m
FY 2025 | FY 2024 | |
Balance Sheet | £m | £m |
Property | 115.7 | 124.6 |
Cash | 6.1 | 6.9 |
Debt | (34.2) | (39.2) |
Other | (1.7) | (2.8) |
Net assets | 85.9 | 89.5 |
Adjustments | - | 0.2 |
EPRA NTA | 85.9 | 89.7 |
EPRA NTA per share | 49.1p | 51.3p |
Net Debt | 28.1 | 32.3 |
LTV (net of cash) | 24.8% | 26.4% |
STRONG BALANCE SHEET
Gross property assets
£115.7m
FY 2025 FINANCIALS
REDUCING DEBT & LOW GEARING
Total debt of £34.2 million (FY 2024: £39.2 million)
£5.0 million of debt repaid with disposal proceeds in 2025
Cost of debt 5.75% (FY 2024: 6.5%) & all debt on variable rates
Net LTV 24.8% (FY 2024: 26.4%) & Interest cover of 2.0x (FY 2024: 2.0x)
Multi-banked across 3 lenders - all covenants continue to be met
£6.1 million cash at bank at 31 December 2025
£25,000 deficit on the close out of the hedge position (FY 2024: £282,000 gain)
In December 2025, the Group extended the £2.2 million facility with Barclays for a further 6 months to June 2026
Post period activity:
Further £1 million debt repaid using disposal proceeds, reducing total debt to
£33.2 million
In March 2026, the Group extended the £9.6 million facility with Lloyds Banking Group Plc for a further 12 months to 31 May 2027 and in February 2026 the £22.4 million facility with National Westminster Bank Plc for a further 12 months to 1 June 2027
As with the previous refinancing in 2025, all facilities have been extended on a short-term basis to reflect the Group's intention to repay debt as a priority using disposal proceeds.
Lender | Debt Facility (£m) | Debt Maturity | Amount Fixed (£m) |
National Westminster Bank | 21.9 | June 2027 | 0 |
Lloyds Banking Group | 9.1 | May 2027 | 0 |
Barclays | 2.2 | June 2026 | 0 |
Sales
FY21 FY22 FY23 FY24
£17.6m £20.9m £18.m £18.9m
FY25
£8.0m
Total
£83.4m
Debt Repaid
£11.9m £18m £17.1m £15.2m
£5.0m
£67.2m
Total Debt
£89.5m £71.5m £54.4m £39.2m £34.2m
£34.2m
Cash at Bank
£9.8m £7.8m £8.0m £6.9m
£6.1m
£6.1m
MOVEMENT IN
EPRA NTA PER SHARE (P)
51.3
1.4
-2.0
49.1
-1.6
60
50
40
30
20
10
0
01-Jan-25 Underlying Profits Revaluation/deficit on sales Dividend 31-Dec-25
MOVEMENT IN
EPRA EARNINGS PER SHARE (P)
1.9
0.5
1.7
-0.8
0.1
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
01-Jan-25 Rental Income Admin Expenses Finance Costs 31-Dec-25
UNINTERRUPTED DIVIDEND
£56.7 MILLION TOTAL DIVIDENDS PAID SINCE 2012
Uninterrupted dividend payments despite disposals
£56.7 million total dividends declared/paid since 2012
Shareholder Distribution Year on YearFinal Q4 dividend for 2025 of 0.4p per share (Q4 2024: 0.4p), representing a total fully covered dividend for 2024 of 1.6p per share (FY 2024: 1.9p)
Dividend paid quarterly
Dividend is fully covered by EPRA earnings
Management are committed to a fully covered dividend policy subject to the pace of the disposal programme
+7%
COVID19 PERIOD
Dividend
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Total
0.4p
0.4p
0.4p
0.4p
Announcement
June 2025
September 2025
December 2025
March 2026
Payment
July 2025
October 2025
January 2026
30 April 2026
Interim
Final
+14%
1
+19%
+2%
0.937
+31%
0.875
0.8125
+33%
0.75
0.9375
0.875
1.5
0.4375
0.625
0.75 0.75 0.4375
+50%
0.4
1
0.625
0.625
0.875
0.9375
0.4
+100%
0.75
0.75
0.5
0.75
0.8125
0.5
0.625
0.625
0.4
0.5 0.5
1
1
0.4
0.75
0.75
0.875 0.9375
0.75
0.8125
0.5
0.625
0.5
0.625
0.5
0.4
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
2024 & 2025
PROGRESS ON STRATEGY
2024
Sales & Debt Summary
Strategy announced in January 2024
Sales of £18.9 million
20 units/assets - average lot size of £945,000
6.95% (pre-costs) above 2023 valuations
Proceeds used to repay £15.2 million debt
Reducing debt to £39.2 million
Summary of 2024 & 2025
Ongoing widespread economic uncertainty and political instability
A subdued market with limited investment transaction activity
Corporate and institutional funds remaining inactive
UK government borrowing costs continuing to stay elevated
Easing of bank lending requirements
2025
Sales & Debt Summary
Continuation of stated strategy
Sales of £8.0 million
14 units/assets - average lot size of £571,000
95.93% (pre-costs) of 2024 valuations
Proceeds used to repay £5 million debt
Reducing debt to £34.2 million
Reduced financing costs/interest rates, though declining slower than expected
Continued elevated inflation levels
Market stagnation caused by the delayed November 2025 budget
Active asset management (82 combined lease events in 2024/2025)
Stable and improving occupier market
ENTIRELY PRIVATE INVESTOR BUYERS - LARGER ASSET SALES PLANNED IN 2026
£60 MILLION+ OF ASSETS IN MARKET READY FOR SALE
In addition to £5.4 million of sales currently in pipeline legals, we have a number of properties in the portfolio which are already in the market or will be launched in late March 2026 having undergone successful asset management initiatives. These are predominantly retail, mixed-use assets to feed an improvement in sector demand. We are in dialogue with a number of owner occupiers regarding portfolio assets.
We will be actively marketing these assets with a view to clearing the Company's debt, whilst preparing the next tranche of sales and commencing our capital return from proceeds. This is subject to the impact of the conflict across the Middle East. Examples include:
Jasper Retail Park, Tunstall (Multi-let retail warehouse park)
Following the letting to McDonalds Restaurants on a 20-year lease, the retail park is now fully let and produces an overall rent of £726,900 pa.
Virginia House, Worcester (Single let student building)
After a comprehensive refurbishment including a change of use from offices to student accommodation, this property is now fully let to Virginia House Limited, a student accommodation provider with 119 years remaining unexpired, at a passing rent of £145,000 p.a.
Maypole Retail Park, Derby (Multi-let mixed use retail & hotel site)
The asset is fully occupied with a long unexpired Lease profile, to strong tenant covenants including Travelodge, InHealth Limited, Ladbrokes, Subway and Poundstretcher, at a rent of £467,943 pa.
Sandwell Valley School, 150 Birmingham Road, Birmingham (School)
Let to a strong tenant covenant, backed by Local Authority for use as a school, the property produces £100,000 pa, on an over-riding lease until Sept 2041.
Westgate House, Warwick
Clive Marks Schoolwear Limited (retail) are in occupation. Letting to Dough & Brew (retail) is imminent. Boots seeking Lease Renewal. Following receipt of dilapidations monies, works on the final office suite to commence.
Molineux House, Wolverhampton
Surrender & re-grant of lease completed to add three years term certain. The property is fully let and produces £324,370 p.a.
£47 MILLION BALANCE OF PORTFOLIO FINAL ACTIONS BEFORE SALE
The balance of portfolio assets are scheduled for sale in 2026 upon completion of ongoing asset management initiatives and improving market conditions.
These sales are subject to initiatives such as final lettings, lettings that are progressing through legals, lease renewals, planning permission decisions or dilapidation settlements. As a result, some assets are being held for income for a short period until such time that demand improves, or asset management initiatives are concluded.
Examples of assets in the balance of the portfolio that are undergoing final initiatives prior to sale are:
Property Description
Asset Type
Action
Kingswinford
Retail
Peat House, Leicester
Office
In legals with B&M for entire unit, alongside advanced negotiations on dilapidations settlement to be sold upon completion of B&M shop fit out
Waiting for Bellrock Board sign-off on lease renewal for five-year lease on third floor prior to launching sale
Gateway House
Office/Retail
Birch House, Oldbury
Office
Discussions ongoing with Holland & Barrett around ground floor lease renewal. Strong interest in office suites on upper floors to be launched upon letting of upper parts
Concluding discussions with tenant around break removal before sale
Brandon Court, Coventry
Office
Office refurbishment now completed, lettings in progress before sale
Crewe Market Centre
Retail & Parking
Letting of void space before sale into an improving retail market
DIVERSE AND ATTRACTIVE PORTFOLIO
48.67% of
our portfolio is MIXED USE / RETAIL / OTHER
88.71% of
our office investments are 'NON- BIRMINGHAM CITY CENTRE CORE'
BALANCED RISK
Sector | Income by Sector (£) | Income by Sector (%) |
Office | 4,239,046 | 51.33% |
Traditional Retail | 1,006,635 | 12.19% |
Discount Retail - Poundstretcher/B&M etc | 793,500 | 9.61% |
Medical and Pharmaceutical - Boots/Holland & Barrett/Superdrug etc | 486,749 | 5.90% |
Food and Beverage - McDonalds/Subway etc | 301,786 | 3.65% |
Financial/Licences/Agency - Bank of Scotland/Ladbrokes etc | 129,500 | 1.57% |
Food Stores - Iceland etc | 125,000 | 1.51% |
Other - Hotels (Travelodge/Vine), Car parking, EV Charging | 1,175,565 | 14.24% |
Total | 8,257,781 | 100.00 |
99.28%
Overall Rent Collection in 2025 to date
TOP 10 TENANTS BY INCOME PORTFOLIO DIVERSITY
Rank
Tenant
Rent £'000
% Sector
Property
1
625 7.59 Office
Birchfield House, Oldbury
3
396 4.80 Office
Avon House, Bromsgrove
2
4504 350
6
317 3.84 Office
Boundary House, Wythall
7
304 3.69 Office
Peat House, Leicester
8
230 2.79 Retail
Gateway House, Birmingham
9
222 2.70 Hotel
Maypole, Birmingham
10
199 2.41 Offices
Guardian House, West Bromwich
3,417 41.45
5 324
5.46
4.24
3.93
Discount Retail
Hotel Office
Jasper, Tunstall
119
Occupiers across portfolio
34
Assets across the portfolio
£8.3 million p.a. Contracted Rental Income
West Plaza, West Bromwich Molineux House, Wolverhampton
ESG & THE REI PORTFOLIO
A RESPONSIBLE LANDLORD
Energy Performance CertificationIn accordance with government guidelines, REI has undertaken a programme to ensure our assets meet the UK statutory regulations and timeframes for EPCs. None of the portfolio is below a grade 'E' (in line with April 2023 regulations) and we will continue to upgrade assets when required to meet 2027 regulations.
An overview of the asset EPC ratings across the portfolio is noted below:
Portfolio Carbon Emissions Monitoring & ReportingManagement continues to recognise the importance of incorporating ESG into the working practices at REI. The ESG Committee, formed in 2021, continues to implement the ESG framework for the business and the reduction of the portfolio's carbon footprint remains a priority for the business. Working with Systemslink, we can confirm a 31% reduction in carbon emissions for electricity and gas (for landlord-controlled areas only) between 1 January 2024 and 31 December 2025. Going forward, as energy contracts expire, they are being replaced with 100% green-only electricity contracts where possible.
PROGRESS MADE ON PORTFOLIO EPC RATINGS
36.05
33.68%
33.38
26.07
16.08%
2.52
2.63%
1.48%
1.98
50 46.13%
40
30
20
10
0
A B C D E
31-Dec-24 31-Dec-25Carbon Emissions | 1 Jan 2025 - 31 Dec 2025 | 1 Jan 2024 - 31 Dec 2024 |
Scope 1 | 158 MTCO2e* | 367 MTCO2e* |
Scope 2 | 578 MTCO2e* | 637 MTCO2e* |
Total Scope 1 & Scope 2 | 736 MTCO2e* | 1,004 MTCO2e* |
*applies to 0.7 million sq ft of the portfolio that is classed as landlord-controlled areas
What does ESG look like in 2026 for REI?
Continued ESG committee meetings & assessment of framework and legislation
Continuing to collect and report carbon emissions data
Portfolio EPC programme of works to ensure compliance
Ongoing EV charging & solar panel programme
FY26 OUTLOOK
STRATEGY FOCUS
Asset Sales
Repay Debt
Return Capital
We are mindful of the impact of the conflict across the Middle East and the effect this may have on inflation, interest rates and market conditions.
Notwithstanding, we remain focused on concluding the strategy within the 3-year timeframe, but should a further extension be necessary due to market conditions, we shall advise in due course.
Our approach for the year ahead is as follows:
Disposals - Continue disposals programme to include larger asset sales
Debt Repayment - Prioritise the total repayment of Company's debt using disposal proceeds
Capital Returns - Returning cash to shareholders is a priority once the debt has been repaid from ongoing sales
Asset Management - Intensively manage remaining portfolio, taking advantage of the strength of the occupier market to secure lettings, with a view to reducing portfolio vacancy levels and void costs, maximising rental income and capital values and maintaining rent collection levels
Quarterly Dividend - Maintain uninterrupted and fully covered quarterly dividend payments, subject to the pace of disposal programme
Flexibility & Optionality - Consider sale of whole portfolio on terms aligned with shareholder interests
ESG - Continue to act responsibly, operating an efficient portfolio, monitoring and targeting carbon reduction, whilst meeting EPC regulations
Alignment - Board combined shareholdings of 13.3%
OPERATIONAL
TEAM
Anna Durnford
Director, Investor Relations
Joined REI in 2007
Provides executive assistance to the Board & oversees investor relations and operations within the business
Over 20 years experience within the legal, financial, accountancy and property sectors
Previously worked for Ernst & Young & Independent HNW IFA
Ian Clark
BSc (Hons) MRICS
Director, Asset Manager
Joined REI in 2011
Responsible for the coordinating portfolio asset management strategy across the portfolio
Qualified chartered surveyor with over 25 years experience in the property market
Previously worked for GVA and Argent Estates Limited as Asset Manager where he was responsible for the asset management of the
1.5 million sq ft Brindleyplace Estate
Andrew Osborne BSc (Hons) Investment Manager
Joined REI in 2014
Responsible for coordinating investment strategy, specialising in investment acquisition and disposals of commercial properties
He began his career as an Investment surveyor at CBRE and is a previous Senior Asset Manager at Square Metre Properties, on behalf of Goldman Sachs and Property Fund Manager at Canada Life and Regional Director of Highcross in Birmingham
Jack Sears
BSc (Hons) MRICS
Asset Management
Joined REI in 2016
Responsible for the management of portfolio assets, liaising with agents
Qualified Chartered Surveyor with over 15 years experience in the property market
Previously worked at Bilfinger GVA and BNP Paribas Real Estate as a property manager, assisting corporate clients with the management of their residual properties
Donna Mooney
Receptionist/Administrator
Joined REI in 2016
Provides Front of House support and administrative support to the Executive team and operations function
Donna has had a long and varied career as a Personal Assistant most recently supporting members of the UK&I Leadership team within Corporate Finance and Tax at Ernst & Young LLP