Real Estate Investors’ portfolio value fell by 12% last year, as a number of the Midlands-focused REIT’s retail assets struggled during the pandemic.
REI said its portfolio was valued at £201.2m at the end of 2020, down from £228.9m the previous year. However, pretax profit remained stable at £8.1m, while revenue dipped slightly to £16.4m.
It said the drop in value was down to a combination of retail assets declining in value and difficulties in finding tenants for properties where leases had expired. Occupancy fell a little less than five percentage points to 91.6% over the course of the year.
Chief executive Paul Bassi hailed the performance as “resilient… under uniquely difficult circumstances”.
He added that while valuation declines were “understandable”, the company expected them to reverse as investment activity restarts.
“We can already see from the prices achieved in the marketplace that confidence in the Midlands property market is returning, alongside the government’s timetable for lifting of lockdown restrictions.
“Management are currently focused on certain sales to satisfy investor demand, which will further assist in reducing the company’s gearing, leaving existing cash and bank facilities available to make strategic and opportunistic acquisitions.”
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