Birmingham’s REI eyes 2027 capital return as debt clearance continues
Birmingham-based property investment trust Real Estate Investors (REI) has said it expects to begin returning capital to shareholders in 2027, as it continues to pay down debt through an ongoing programme of asset sales.
Deals completed, exchanged, under offer or in legals so far this year total £16.9m. REI fully repaid its facility with Barclays in June, and has repaid £5.1m year to date, reducing total borrowings from £34.2m at the start of the year to £29.1m. That figure is expected to fall further to around £24m once an asset that has unconditionally exchanged, with a deferred completion date in October, legally completes.
The board said the legal completion of disposals on the market, together with the existing sales pipeline and a deferred contracted sale, is expected to repay the company’s debt in full and allow REI to begin capital returns to shareholders in 2027.
Paul Bassi, chief executive of REI, said: “REI remains focused on executing its stated disposal strategy, reducing debt and protecting shareholder value. The company has continued to make progress during the period, with assets placed under offer, transactions progressing through the legal process and further debt reductions achieved.” He added that debt repayment would likely attract a corporate buyer and fast track the capital return to shareholders.
REI is now beginning to bring its larger assets to market, alongside continuing asset management initiatives across its remaining portfolio, with what it described as positive prospects of improving occupancy and rental income to support dividend payments. Despite challenging conditions, the company has maintained its dividend policy, with £58.1m paid or announced to shareholders since 2012.
Revenue for the first half of 2026 was £4.6m, against £4.8m in the same period last year, as the disposal programme takes effect. Underlying profit before tax was £1.3m, down from £1.5m, while a loss before tax of £1.3m, against a £0.3m profit in the first half of 2025, was driven by a non-cash revaluation deficit of £2.5m.
The company said that, due to ongoing political and economic uncertainty, the sales programme will not complete within its original timeframe, though management remain focused on sales, debt repayment and capital returns in 2027, and will continue to consider all corporate options that align with shareholder interests.
The update follows REI’s trading update in August, when the company said it remained open to a corporate transaction covering its whole portfolio and reported debt reduced to £29.2m.
