TIDMRLE
RNS Number : 9774M
Real Estate Investors PLC
27 January 2021
Real Estate Investors Plc
("REI" or the "Company" or the "Group")
Rent Collection & Trading Update
Real Estate Investors Plc (AIM: RLE), the UK's only
Midlands-focused Real Estate Investment Trust (REIT), with a
portfolio of 1.59 million sq. ft. of investment property across all
sectors, is pleased to provide the following update for 2020.
Rent Collection
Rent collection remains the key feature of our business against
the backdrop of COVID-19. Despite the unprecedented challenges
faced by businesses over the last 12 months, REI has benefitted
from the diverse and ongoing asset management initiatives within
the portfolio and we have continued positive dialogue with our
occupiers, resulting in a strong overall rental collection
performance for 2020 of 95.29%. This figure is expected to improve
over the coming weeks and months as tenants, who have the ability
to pay but have previously taken advantage of government
legislation on overdue rents, begin to pay and tenants who are
currently closed, commence re-trading later in 2021. Further
collections generated will be attributed to the relevant current or
historic quarters, resulting in improvements in the overall rental
collection for 2020. Rent collection to date for Q1 2021 is
promising and currently stands at 89.95%.
A summary of each quarter and the overall rent collection for
2020 is shown below:
Rent Collections Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
(to date)
Collected 99.60% 85.54% 87.35% 92.19% 87.81%
Deferred arrangement 0.28% 9.23% 4.29% 1.90% 2.14%
Total 99.88% 94.77% 91.64% 94.09% 89.95%
Debtors 0.12% 5.23% 8.36% 5.91% 10.05%
Portfolio
With 262 occupiers across 53 assets, the Company's portfolio
remains stable and robust with ongoing opportunities being realised
via asset management initiatives. The Company's diversified
portfolio, with no material reliance on any single occupier, asset
or sector has underpinned the positive rent collection.
Occupancy and WAULT
Our occupancy at the year-end was 91.60% (2019: 96.3%). This
reduction is almost entirely due to known lease events
predominantly in the office sector that, in a normalised
marketplace, would provide opportunities to increase lease terms
and improve our average lease length (WAULT), along with the
potential for capital uplifts within our portfolio. We already have
space under offer to the NHS/CO-OP/ Department for Work and
Pensions. Against a challenging backdrop, in 2020, REI completed 34
value add lease events (including 7 lease renewals). As a result of
proactive asset management initiatives in 2020, our WAULT has
improved to 4.8 years to break and 6.54 years to expiry (YE 2019:
3.82 years to break and 5.79 years to expiry).
Whilst we are seeing some delay in tenant occupancy decisions,
we note the strength of demand for our convenience and
neighbourhood portfolio, with increases in occupier requirements
from national c-store and essential services operators. The
pandemic-driven increase in turnover experienced by these
businesses has seen many seek to rapidly expand their presence. Our
focus on convenience and neighbourhood assets will continue as
opportunities emerge.
Share Buyback
The Company announced a share buyback on 20 October 2020, to
purchase an aggregate market value up to GBP2 million of the
Company's ordinary shares. In aggregate, between 20 October 2020
and 27 November 2020, the Company repurchased 7,042,700 ordinary
shares at an average purchase price of 28.40 pence per share.
Dividend
The Company's income, despite challenges faced throughout the
pandemic, has supported the continuation of our dividend payments
which were paid at a level of 0.50p per quarter in 2020. The level
of the final dividend payment will be confirmed within our results
for the year ended 31 December 2020 which are expected to be
announced in March 2021.
Paul Bassi, Chief Executive Officer, commented :
"The diversity of our portfolio and intensive asset management,
has resulted in resilient levels of rent collection, and has
allowed us to combat much of the impact of COVID-19, which has
devastated many other businesses."
"With a growing occupier demand resulting in new/pipeline
lettings for our void space, combined with portfolio lease
renewals, we believe that we will move forward with a stable and
secure property business, to make opportunistic sales and
acquisitions that support a continued progressive dividend
policy."
Enquiries:
Real Estate Investors Plc
Paul Bassi/Marcus Daly +44 (0)121 212 3446
Cenkos Securities
Katy Birkin/Ben Jeynes +44 (0)20 7397 8900
Liberum
Jamie Richards/William Hall +44 (0)20 3100 2000
Allenby Capital
Nick Naylor/Asha Chotai +44 (0)20 3328 5656
Novella Communications
Tim Robertson/Fergus Young +44 (0)20 3151 7008
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the UK version
of the EU Market Abuse Regulation (2014/596) which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018, as
amended and supplemented from time to time.
About Real Estate Investors Plc
Real Estate Investors Plc is a publicly quoted, internally
managed property investment company and REIT with a portfolio of
1.59 million sq ft of mixed-use 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 across 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, supporting its dividend policy, which has enjoyed 7
years of consecutive growth. Further information on
the Company can be found at www.reiplc.com .
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