Property group REI sees profits leap by 400%

REAL Estate Investors plc (REI), the Birmingham-based  property investment company, has seen profits before tax surge by 400% in its financial year to December 31.
 
As a consequence, REI has been able to double its dividend payment for 2013. The company has also announced its intention to convert to a REIT – Real Estate Investment Trust – which could be as early as 2015.
 
Profit before tax in 2013 was up to £5m from £1m in 2012, with revenue up by 8% from £6.1m to £6.6m.
 
During the year REI sold £7m worth of property and acquired property for £2.3m.
 
Chief executive Paul Bassi said: “We are absolutely committed to investing in the central England regions, with a focus on the West Midlands, as this is a marketplace and environment in which the management has a longstanding association and network.
 
“This is why we are able to build a business that will generate profits, capital growth and dividends for our shareholders.”
 
REI’s final results also reveal that the company now has 650,000 sq ft across 46 buildings with 150 tenants.
 
The business is now a major Birmingham city centre landlord, with 143,408 sq ft across nine buildings accounting for 37.2% of the portfolio by value.
 
The total portfolio valuation is now £75.2m after sales in Derby, Birmingham, Crawley and Wakefield totalling £7m and the acquisition of 37a Waterloo Street in Birmingham city centre for £1.8m and Tudor House in Walsall for £500,000.
 
Bassi added: “The regional economy in the West Midlands has strengthened and re-established itself as a major economic centre.
 
“This improved sentiment towards the region, which was more visible in the fourth quarter of 2013 and particularly in the property sector, has revealed the early signs of improving investor appetite and economic activity.
 
“We believe property values and occupancy will see further positive improvement in 2014 and 2015.”