Half Year Results

16th September 2015

Real Estate Investors plc
(“REI” or the “Company” or the “Group”)
Half year results for the six months to 30 June 2015

Record contracted rental income, positive capital growth
and a rapidly improving regional market

Real Estate Investors Plc (AIM:RLE), the Birmingham based property group and UK listed Real Estate Investment Trust, today announces its unaudited half year results for the six month period ending 30 June 2015.

Financial Highlights
•   Pre-tax profits up 211% to £8.1 million (H1 2014: £2.6 million) includes surplus on revaluation of interest rate swaps of £690,000 (H1 2014: £68,000 loss) and property revaluation surplus of £5.9 million (H1 2014: £2.4 million) both non-cash items
•   Revenue of £3.8 million (H1 2014: £2.9 million) up 31%
•   Proposed interim dividend per share up 33% to 1.0p (H1 2014: 0.75p)
•   Profit before tax, revaluation and surplus on valuation interest rate swaps of £1.5 million (H1 2014: £384,000) up 296%
•   EPRA NAV per share up 4% to 63.6p (H1 2014: 61.3p)
•   Successful £45 million equity fundraising in April 2015 at a price of 60p per share
•   Rental income increased 37% to £3.7 million (H1 2014: £2.7 million)
•   Cash and cash equivalents of £23.8 million (H1 2014: £18.5 million)

•   Gross Property Assets   £130.4 million up 25% on 31 December 2014
•   Investment Property Assets £128.0 million up 25% 31 December 2014
•   EPRA NAV per share 63.6p up 4% 31 December 2014
•   EPRA NNNAV per share 61.9p up 7% 31 December 2014
•   Net Assets £115.3 million up 78% 31 December 2014
•   Loan to Value 32.7%
•   Loan to Value (net of cash) 14.5%

Operational Highlights
•   Conversion to a Real Estate Investment Trust (REIT) with effect from January 1st 2015
•   Secured criteria compliant acquisitions during period of £28.3 million
•   Disposals during period of £8.9 million at a significant surplus to book value
•   Record contracted rental income of £9.3 million p.a., up 21% since 31 December 2014
•   Total ownership of 1,004,459 sq ft (31 December 2014: 799,112 sq ft) up 26%, with 225 tenants (31 December 2014: 175)
•   Prime Birmingham City centre ownership 181,166 sq ft (31 December 2014: 159,792 sq ft) representing 28% of our portfolio by valuation (31 December 2014: 31%)
•   Overall occupancy 80% (31 December 2014: 85%) and WAULT to break 5.1 years (31 December 2014: 4.4 years)

Paul Bassi, CEO of Real Estate Investors Plc, commented:
“An excellent set of first half results.  Our acquisition strategy is beginning to show positive capital growth and strong cash flows.  The £45 million placing in April has provided additional funds, to allow us to capitalise on market opportunities, in a rapidly improving regional market.  I anticipate continued growth in our rental income, profitability, dividend payment and, with our current available resources, establishing a £200 million portfolio within the next 6 months, subject to sales.”

“Birmingham and the wider Midlands  is re-emerging as a major UK economic powerhouse and whilst manufacturing and in particular the automotive sector remains strong, the regeneration of the local economy is underpinned by the growing industries of tourism, education, retail, digital media and technology. “

Dividend Timetable 
H1 Ex-dividend date: 24 September 2015
H1 Record date: 25 September 2015
H1 Dividend payment date: 23 October 2015

TO SEE THE FULL HALF YEAR REPORT – PLEASE CLICK HEREhttps://reiplc.com/half-yearly-report-6/

Enquiries:
Real Estate Investors PLC
Paul Bassi +44 (0)121 212 3446
Smith & Williamson Corporate Finance Limited
Azhic Basirov/David Jones +44 (0)20 7131 4000
Liberum
Jamie Richards/Tom Fyson +44 (0)20 3100 2000
Gable Communications Limited
John Bick +44 (0)20 7193 7463
+44 (0)7872 061007
rei@gablecommunications.com