Revenues up 58% at property group as portfolio value approaches £200m
BIRMINGHAM property group Real Estate Investors saw a 58% increase in revenues in the first half of the year, while making acquisitions which increased the value of its portfolio to nearly £200m.
It had been bullish earlier in the year, saying it wanted to take advantage of the withdrawal of major property funds from the market ahead of the EU referendum.
“This uncertainty created a window of opportunity during which we secured £37.3m of new assets, increasing our contracted rental income to £15.6m, up 31% since the year end,” said REI’s chief executive Paul Bassi.
Its deals included spending £20m in June on Market Square Shopping Centre in Crewe, which followed £10.45m deals in March for two properties in Wythall and West Bromwich, and a further £5.135m in April on properties in Telford and Nottingham.
The group, which started the year with a £70m war chest, is keeping open-minded about further deals, at the right price.
Mr Bassi said: “There remained a positive appetite for quality income producing assets across the Midlands, and we will consider sales at a surplus to existing valuations, subject to acquiring further property to maintain our income levels.”
Its revenues in the six months to June increased 58% to £6m. However it recorded a pre-tax loss of £560,000, caused by two non-cash items – a revaluation of interest rate swaps of £1.2m and property revaluation loss of £1.8m.
The group, which has a progressive dividend policy,
increased its dividends by 25% to 1.25p.
Mr Bassi added: “Our portfolio has grown to almost £200 million and we remain well positioned to grow our property portfolio, rental income and dividend payments, while maintaining prudent gearing levels and capitalising on the historically low interest rate environment.”
