Midlands-focused REIT Real Estate Investors completed £18.9m in property sales in 2024, achieving a 6.95% uplift (pre-costs) above December 2023 valuations.
The REIT’s disposal proceeds paid down £15.2m of debt, reducing total debt by 30% to £39.2m from £54.4 in 2023.
REI remains on track with its three-year orderly sales programme, aimed at repaying all borrowings through targeted disposals.
However, total revenue fell to £10.8m form £11.5m year-on-year, primarily due to lost rental income from asset sales.
Underlying profit before tax fell by 24% to £3.4m.
As of 2024, REI’s portfolio comprises 36 assets valued at £124.6m, down from £145.5m in 2023, with 132 occupiers.
Like-for-like portfolio valuation declined by 4.93% to £122.2m.
Despite these challenges, rent collection remained robust at 99.9%, with 47 lease events completed during the year.
The REIT improved its WAULT to 5.76 years to break and 6.99 years to expiry.
Contracted rental income stood at £9m per annum, while portfolio occupancy was slightly lower at 82.04%, down from 83% in 2023.
Earlier this month, the REIT secured a 12-month extension on its £12.6m facility with Lloyds, now maturing on 29 May 2026, and its £24m facility with National Westminster Bank, now due on 1 June 2026.
Paul Bassi, chief executive, said: “There are signs the investment market is bottoming out and we anticipate stable and improving values ahead. We are optimistic that, with the anticipated improvements to the property market and against a backdrop of gradually reducing interest rates, planned sales to private investors in H1 2025 and larger asset sales in H2 2025, along with further debt reduction, will be achieved.
“We are on track with our three-year orderly sales programme and strategic objective of repaying all our borrowings from targeted sales and will commence our capital repayment programme in due course, while continuing to pay a dividend and remaining committed to maximising value for our shareholders.”
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