Mitchells & Butlers said this morning that it continued to explore the potential for converting its estate into a REIT.
The pubs group said it was discussing with advisers and HMRC how it could secure REIT status without breaking the securitisation by retaining the freehold properties and operating business within the existing group structure.
Updating on strong sales performance across its pubs business in the 10 weeks to 19 July, M&B said it had benefited from £82m of asset disposals in the year to date, including £11m from SCPD its property development unit.
M&B added that it remained focused on driving additional value across its non-core assets of lodges, Hollywood Bowl and Alex.
As such M&B is exploring options including asset swaps, disposals or sector consolidation from these businesses.
The group said the strategy was likely to lead to further significant reductions in net debt over the coming months.
M&B saw outlet like-for-like sales growth of 1.1% in the 10 weeks to 19 July reflecting “continued strong demand for food in our pubs and pub restaurants and a resilient performance in a declining on-trade drinks market”.
