REI cuts debt as disposal strategy gains momentum

Real Estate Investors (REI) concluded 2024 with the sale of 20 properties, generating £18.9m as part of its strategy to sell off its portfolio.
The Midlands-focused real estate investment trust launched a three-year disposal programme in January 2024, aimed at reducing debt and maximising shareholder returns. By the end of the year, REI had cut its debt from £54.4m in 2023 to £39.1m.
The Birmingham-based group kickstarted the programme due to a disconnect between the value of its portfolio and the company’s market valuation. It is exploring several disposal options, including selling assets individually, in smaller portfolios, or as a whole portfolio sale.
Larger assets are set to be put on the market, but REI is holding them back until ‘suitable investors return to the market’.
Paul Bassi, chief executive of REI said: “Despite low levels of property transactions during 2024 driven by the uncertain interest rate trajectory, a surprise early general election and a subsequent budget that dampened investor confidence and activity, our versatile and diverse portfolio has allowed us to successfully dispose of £18.9m of assets.
“We remain open to exploring a corporate transaction, including the potential sale of the entire portfolio, in order to maximise shareholder returns.
“REI remains on track with its strategic objective of repaying debt from property sales.
“While the first six months of this year are likely to see a continuation of the trends and activity levels we observed in 2024, we are cautiously optimistic about the second half of 2025 as we expect momentum to build particularly if interest rates continue to gradually reduce and sentiment improves.
“This should pave the way for more favourable market conditions and investor optimism which would allow us to accelerate our disposals programme, repay debt more rapidly and commence our capital return to shareholders, all while continuing to pay a fully covered dividend.”