Real Estate Investors sees high level of private investor demand
Real Estate Investors (REI), the UK’s only Midlands-focused Real Estate Investment Trust (REIT), says it has seen a high level of private investor demand for its assets in 2021 and this continued during H1 2022.
REI has disposed of 11 commercial assets during H1 2022 totalling £5.7m which is an aggregate uplift of 27.9% on December 2021 valuations.
Asset sales for 2021 and 2022 total £23.2m with further pipeline disposals in legals totalling £10m.
No acquisitions were made during H1 2022 due to a lack of suitably priced assets say REI.
The board says it remains focused on delivering maximum value to its shareholders and a share price discount to the net tangible assets is unwarranted and that it is in the best interests of all shareholders to take steps to reduce this discount.
Paul Bassi, Chief Executive of REI said: “Following 2 years of pandemic disruption, we are pleased to report significantly improved occupier and investor activity during Q2 2022 and have a healthy pipeline of new lettings in our void space.
“We expect ongoing activity to improve our occupancy levels and portfolio WAULT. There remains a strong private investor market and we intend to continue to make sales to satisfy this investor demand.
“We intend to repay existing debt and reduce gearing levels with disposal proceeds and consider a special dividend, share buyback or other form of capital return to shareholders.”