Real Estate Investors PLC Portfolio Update and Dividend (4575R)
December 12 2016 - 2:00AM
UK Regulatory
TIDMRLE
RNS Number : 4575R
Real Estate Investors PLC
12 December 2016
12 December 2016
Real Estate Investors plc
('REI' or 'the Company')
PORTFOLIO UPDATE AND Q3 DIVIDEND DECLARATION
Real Estate Investors plc (AIM:RLE), the Birmingham based
property group and UK listed Real Estate Investment Trust ('REIT'),
is pleased to announce a portfolio update and Q3 dividend
declaration.
Portfolio Update
During H2 2016, REI has sold 2 non-core retail properties in
Crawley and Norwich for GBP2.725m and has acquired a criteria
compliant prime retail asset for the sum of GBP1.275m in
Bromsgrove, Worcestershire at an initial yield of 8.4%, where
tenants include Boots Opticians, Smart Ideas, Thorntons and Loritas
Bakery, with potential to add value through asset management
including lease re-gears and rent reviews.
The Company is experiencing an exceptionally strong property
investment market across all sectors, particularly since the
beginning of Q4, and will consider further sales in H1 2017, as it
has received unsolicited approaches for a number of its assets. REI
will look to recycle this capital into criteria compliant
acquisitions, where there is scope for further asset management,
and income and capital enhancement.
Occupier demand remains healthy, in particular within the retail
sector, where there are also a number of opportunities to secure
residential planning approval to capture significant capital
appreciation, most notably at the scheme in Walsall town centre
where BHS was previously an occupier. The portfolio now comprises
1,410,881 sq ft, with an occupancy of 93% and 310 tenants.
Q3 Dividend Declaration
The Company also confirms that, in accordance with its
progressive dividend policy, it will pay its third quarterly
dividend of 0.625 pence per share for the period 1 July 2016 to 30
September 2016. The payment will be made on 20 January 2017 to all
shareholders on the register as at 23 December 2016. The
ex-dividend date
will be 22 December 2016.
Paul Bassi, CEO of REI, commented:
"REI remains focused on its investment criteria, and with
significant cash and bank facilities, remains well positioned to
capitalise on any opportunities that may become available as Brexit
discussions continue, whilst maintaining a GBP200m plus portfolio.
Our rental income has expanded progressively over the last few
years and we anticipate further gains from asset management
initiatives that will support the growth of dividend payments in
line with our progressive dividend policy. We remain optimistic
about the prospects for our business for the year ahead, and for
our regional economy, which has out-performed other UK regions
during 2016."
Ends
Enquiries:
Real Estate Investors plc
Paul Bassi +44 (0)121 212 3446
Smith & Williamson Corporate
Finance Limited
Azhic Basirov/David Jones +44 (0)20 7131 4000
Liberum
Jamie Richards/Ben Roberts +44 (0)20 3100 2000
Gable Communications Limited +44 (0)20 7193 7463
John Bick +44 (0)7872 061 007
About Real Estate Investors plc
Real Estate Investors plc is a publicly quoted property
investment company with a portfolio of over 1.4 million sq ft of
commercial property managed by a highly experienced property team
with over 100 years of combined experience of operating in the
Midlands property market across all sectors.
The Company's strategy is to invest in well located, real estate
assets in the established and proven markets of central Birmingham
and the Midlands, with income and capital growth potential,
realisable through active portfolio management, refurbishment,
change of use and lettings. The portfolio has no material reliance
on a single asset or occupier.
On 1st January 2015, the Company converted to a REIT. Real
Estate Investment Trusts are listed property investment companies
or groups not liable to corporation tax on their rental income or
capital gains from their qualifying activities.
The Company aims to deliver capital growth and income
enhancement from its assets with the view to implementing a
progressive dividend policy. Further information on the Company can
be found at www.reiplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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