Pub company Enterprise Inns is aiming to convert to a REIT, it said in its interim management statement this morning.
It said: “We expect to grow the commercial property portfolio significantly in the future and it is our intention to operate these assets in such a way as to enable us to take advantage of the status of a real estate investment trust, were the board to determine that such a structure delivers greatest value to shareholders.”
Enterprise Inns is focusing on reducing the tied drinks agreements with those operating its pubs and instead putting in leases that will provide a steadier stream of income, in particular those that are high performance, food-led pubs.
This steady rental flow would create a steady income stream suitable for a REIT structure.
