REI upbeat despite seeing FY losses widen
WEST Midland property group Real Estate Investors remains positive about the future despite seeing pre-tax losses widen from £5.6m in 2010 to £6.7m last year.
Chief executive Paul Bassi said: “The UK economy and property and asset valuations remain subdued, yet this is an ideal environment in which to grow and establish REI within the Midlands.
“We have maintained excellent occupancy levels, acquired some good quality prime and secondary assets with attractive yields, whilst capitalising on first rate banking relationships and refinancing unencumbered, but income producing assets, against historically low interest rates. Simplistically, we have created a diverse regional portfolio, with strong yields and capital growth potential.
“I remain optimistic about 2012 for REI as a business, and I believe that capital values will improve gradually during 2012 to 2014, benefitting from our asset management and lettings success, together with general improvement in market conditions.”
Despite the subdued nature of the sector, the company saw pre-tax profit excluding net property valuation and other matters rise to £115,000 (2010: loss of £292,000).
Contracted rental income rose 50% to £6m (2010: £4m), while rental income was up 19% to £3.9m. Net assets came in at £39m (2010: £32.3m). Gross property assets were valued at £71.2m (2010: £56.5m), an increase of 26%.
Investment property assets also rose 26% to £63.4m (2010: £50.5m).
