Property investors ready to continue spending after doubling pre-tax profits

MIDLANDS property firm Real Estate Investors (REI) is to continue to look for opportunities to invest after doubling its pre-tax profits last year.

The AIM-listed company spent £57.7m on acquisitions in 2015 and last week agreed deals on properties worth £10.5m.

It has £70m available in cash and bank facilities and said it plans to use the “substantial funds to capitalise on market opportunities to grow REI’s portfolio and dividend further”.

REI’s chief executive Mr Bassi said: “Despite the economic and political ‘headwinds’, a highly volatile stock market, coupled with the Brexit debate and Euro vote, which might deliver another buying opportunity, we anticipate that economic activity in our region will remain positive and that investor and occupier demand will remain stable, especially as it is likely that the low interest rate environment will remain for 2016.

“Property investment continues to provide investors with secure returns in uncertain and volatile periods and we therefore anticipate a positive property market going forward.”

In 2015 its pre-tax profits doubled to £12.2m, while its gross property assets increased by half, to £157.5m.

REI’s final results show record contracted rental income, profits, dividends and occupancy levels.

Mr Bassi added: “We have enjoyed progressively positive results over concurrent years, together with a growing dividend payment.

“We anticipate continued growth in our portfolio in 2016, and further rental and capital growth over the coming years, all of which will underpin our commitment to paying a progressive dividend.”

Its 2015 acquisitions included Jasper Retail Park, Stoke-on-Trent, Bearwood Shopping Centre in Smethwick, Virginia House in Worcester, Brandon Court in Coventry and 150 Birmingham Road, West Bromwich. It also sold properties worth £15.3m, of which nearly half came from the proceeds of 85-89 Colmore Row.