Property investment firm reports strong asset sales

Paul Bassi, CEO of REI

Real Estate Investors (REI) has maintained its portfolio value of £190 million – even after sales of £10.2m in the year to date, results for the six month period ended 30 June 2022 reveal.

REI says it also has “significant” pipeline sales in legals which will be reflected in the second half results.

Chief executive Paul Bassi said REI had focused on building up cash and will consider capital return options to shareholders, and opportunistic acquisitions.

The company has reported pre-tax profits of £8.3m, including a £3.1m gain on property revaluations.

Revenue was down slightly from £7.8m in the first half of 2021 to £7.2m, predominantly due to disposals.

REI continues to pay a covered dividend and will make a fully covered quarterly dividend payment of 0.8125p per share for the second quarter of 2022.

Bassi said: “The first half of 2022 was a stable period after the challenging years of Brexit and Covid.

“Improving occupier demand and sales to a strong private investor market and overseas buyers will provide the foundation for rising valuations and improved rental income and allow us to execute our strategy, while remaining open to any sector consolidation opportunities.

“We are mindful of current recessionary concerns, inflation and rising interest rates. While we are not immune to the effects of economic downturns, we are well insulated with fixed and reduced debt, lower loan-to-value, a diverse occupier base plus a healthy WAULT with growing levels of cash to capitalise on any market opportunities.

“Post period lettings will also add to our revenues going forward, plus the potential for further capital value appreciation.”