More acquisitions likely as REI posts record results
REAL Estate Investors plc (REI), the Birmingham-based property group, has posted record revenue and profits for the financial year to December 31, 2014.
Revenue was up by 19% to £8m from £6.7m in 2013 while profits before tax rose by 21% from £5m in 2013 to £6m this year.
Other highlights in the results include contracted rental income up 33% to £7.7m from £5.8m in 2013.
Overall occupancy currently stands at 84.6% – up 1% year-on-year.
The total of acquisitions made by REI in 2014 was £29.5m, against £2.6m in 2013.
This was aided in part by a £20m fund raising exercise in March 2014.
Chief executive Paul Bassi said: “Record profits, gross property assets and dividend payments reveal an excellent year of progress that provides the basis for continued growth and delivery of a progressive dividend policy.
“We anticipate further rental growth and improved occupancy levels, benefiting from a growing regional economy that is clearly emerging as a major economic powerhouse in the UK.
“The acquisition pipeline remains healthy, as does the potential to make opportunistic, tax free sales, due to our REIT status, but only where we consider we have achieved maximum asset management.”
Since the year end REI has acquired the Birmingham office building 36 Great Charles Street for £1.85m.
