Final Results

17th March 2014
RNS Number : 4017C
Real Estate Investors PLC
17 March 2014
 

 

Real Estate Investors plc

(REI or the “Company” or the “Group”)

 

Final Results

For the year ended 31st December 2013

 

Real Estate Investors plc (AIM: RLE), a property company focussed on investing in commercial property principally in the Midlands, today announces its final results for the year ended 31 December 2013.

 

Financial Highlights

·      Profit before tax of £5.0 million (2012: £1.0 million) up 400%

·      Dividend of 1p, paid in October 2013, in respect of 2013 financial year – increase of 100%

·      EPRA EPS 0.4p (2012: 0.8p)

·      Portfolio valuation of £75.2 million (2012: £77.4 million)

·      EPRA NAV per share up 5.3% to 59.1p (2012: 56.1p)

·      EPRA NNNAV per share 58.6p (2012: 54.6p) up 5%

·      Net loan to value 47.3% (2012: 49.0%) gross debt £44.1 million (2012: £40.6 million)

·      Cash £8.5 million (2012: £2.7 million) weighted average debt maturity 7 years (2012: 8.6 years)

 

Operational Highlights

 

Commenting, Paul Bassi, Chief Executive, said:

The regional economy in the West Midlands has strengthened and re-established itself as a major economic centre.        

 

This improved sentiment towards the region, which was more visible in Q4 and particularly in the property sector, has revealed the early signs of improving investor appetite and economic activity.  We believe property values and occupancy will see further positive improvement in 2014 and 2015.

 

The real forward opportunity is to capitalise on our market reputation and existing resource and acquire the distressed stock that the financial institutions have mothballed throughout the recession.  REI is able to access these opportunities and successful acquisitions should result in capital growth and increased rental income which, in turn, will facilitate the Board’s intention to pay a progressive dividend.”

 

Enquiries:

Real Estate Investors Plc

Paul Bassi, Chief Executive

 

T: +44 (0)121 265 6400

Smith & Williamson Corporate Finance Limited

Azhic Basirov / Siobhan Sergeant

 

T: +44 (0)20 7131 4000

Liberum Capital

Chris Bowman / Jamie Richards

 

T: +44 (0)20 3100 2000

Gable Communications Limited

John Bick / Justine James

 

T: +44 (0)20 7193 7463

M: +44 (0)7872 061007

E: reiplc@gablecommunications.com

 

Notes to Editors

1.       REI is an AIM listed property investment company specialising in commercial and residential property principally in the West Midlands and Central England.

2.       REI is focussed on delivering shareholder value through returns generated from strong yields and capital enhancements. This is achieved by targeting investments in orphaned, distressed, part-let and underperforming commercial and residential property assets.

3.       REI is led by respected property investor Paul Bassi CBE, who has over 30 years of property experience in the West Midlands. Mr Bassi is also founder and non- executive chairman of Bond Wolfe and non-executive chairman of CP Bigwood Chartered Surveyors.

4.       Further information on REI can be found at www.reiplc.com.

 

 

Chairman and Chief Executive’s Statement

 

Overview

 

After several years, the market appears to have recognised that there is more to the UK economy than Central London and the South East.  The regional economy in the West Midlands, where we are focussed, has had its challenges like most regions in the UK and abroad, however, during the period under review, it has strengthened and re-established itself as a major economic centre.

 

This improved sentiment towards the region, which was more visible in Q4 and particularly in the property sector, has revealed the early signs of improving investor appetite and economic activity.  We believe property values and occupancy will see further positive improvement in 2014 and 2015.

 

Investor appetite, in particular from funds, insurance companies, public companies and specialist equity, has been very strong, with a number of properties attracting multiple offers, and achieving prices significantly higher than the guide price.  This activity has and will more so, act as comparable evidence and support growing valuations for our portfolio.  We anticipate other buyers, namely private companies, pension funds, trusts, overseas buyers and HNW’s also returning to the regional market, in order to benefit from superior yields and rising capital values.  We have seen some revaluation uplift in a number of assets, through a combination of asset management, lettings and yield compression, and anticipate that this will continue in 2014-15.

 

Whilst we have picked up our fair share of distressed assets, where we can add value, the long awaited volume of distressed disposals of regional property did not happen during 2013.  It is already clear during the first few months of 2014, that the ‘distressed disposals’ into an improving property market, now supported by bank lending, is finally in full swing.  We anticipate capitalising on these opportunities, particularly those that cannot support traditional debt, due to the short term lease profile or properties that are vacant and require refurbishment before they can be sold or let.  Indeed, we believe that the scale of the opportunity available to REI is greater than our existing resource, yet REI remains uniquely positioned to benefit from our existing ownership and the opportunities that our reputation and track record will attract.

 

Financial markets are starting to take the view that interest rates will rise, hence we have seen a positive move in the fair value of our financial instruments resulting in a credit to our income statement of £2.1 million, which is a non cash item, leaving us with approx £3.3 million more to recover.  With rising interest rates or maturing of our interest rate term, we anticipate recovering the entire amount in due course.

 

Results

 

Against this improving backdrop, we are delighted to report our results for the year in which we made a profit before tax of £5 million (2012: £1.0 million – up 400%). The results are after providing for £345,000 as a result of one of our tenants, Challinors, solicitors, entering administration. This charge represents a provision against rental income of £280,000 as a reversal of the rent free debtor under IFRS, which is a non cash item, and a provision of £65,000 for bad debts.  

 

Dividend

 

We were pleased to have doubled our dividend payment to our shareholders, with a payment of 1.0 pence in October 2013 in respect of the 2013 financial year.  The Board intends to follow a progressive dividend policy in the future and move to a more conventional interim and final payment schedule.

 

Regional Review

 

We are absolutely committed to investing in the Central England regions, with a focus on the West Midlands, as this is a market place and environment in which the management have a longstanding association and network.  This is why we are able to build a business that will generate profits, capital growth and dividends for our shareholders.  Despite media articles and negative sentiment over the last few years, our region is very much alive, robust and growing.  We have listed below some of the facts that reveal the improving level of activity and confidence in the region:

 

 

 

 

 

 

 

 

 

 

 

 

 

Property portfolio overview

 

Over the last few years, we have established REI as a recognised regional landlord.  The majority of our portfolio has been acquired during the downturn, and all acquisitions have met our criteria. We now have assets throughout the Midlands in Birmingham City Centre, Edgbaston, Leicester, Derby, Bromsgrove, West Bromwich, Walsall, Kings Heath, Coventry and Rugeley.

 

Our criteria remain:

 

The total portfolio valuation is now £75.2 million after sales in Derby, Edgbaston, Crawley and Wakefield, totalling £7.0 million, and the acquisition of 37a Waterloo Street, Birmingham City Centre for £1.8 million, and Tudor House, Bridge Street, Walsall for £500,000.

 

Over the last few years, our underperforming assets have been prime City Centre assets, these have now seen some valuation uplifts, and improved occupation and demand.  We now have 143,408 sq ft in the City Centre business district, with a valuation of £28.0 million – representing 37.2% of our total portfolio, across 9 buildings.

 

Overall occupancy is 83.6% (2012: 86.49%) and our WAULT is 3.7 years to break (2012: 4.2 years), both of these have been impacted by 75-77 Colmore Row, a prime 18,000 sq ft office building, which was returned to us by PwC at the end of their lease, in good tenantable condition and is available to let for a total ERV of £400,000 p.a.  Additionally, we secured £0.4 million surrender premium from Bank of Scotland at Apex House, and have since sold this building to a third party. 

 

Our total ownership is now approximately 650,000 sq ft across 46 buildings and presently with 150 occupiers and the gross yield on our investment properties at 31 December 2013 was 8.09%.

 

Rental deals completed in the last few years have also been on relatively soft terms and provide REI with rental growth prospects, as quality stock is becoming occupied and new supply is limited.  Investor appetite for City Centre assets is vastly improved and we will consider sales, once we have completed asset management initiatives and capitalised on any rental growth.  It is our view that this will coincide with the return of HNW/private pension funds/overseas investors and property company buyers that have remained inactive until now.

 


£m

%

Core Portfolio



Offices



Birmingham

28.0

37.2%

Other West Midlands

26.3

35.0%

Total Offices

54.3

72.2%

Total Retail

10.1

13.4%

Total Core Portfolio

64.4

85.6%

Non Core Portfolio

10.8

14.4%

Total Portfolio

75.2

100%

 

Our non City Centre investments have remained stable and secure throughout the downturn, and continue to trade well.  Indeed demand for good town centre stock was demonstrated when Challinors went into administration and we immediately re-let floor space to Sandwell Inspired Partnership, a ‘not for profit co-operative’ formed by the local councils and schools, for a 10 year term, with a 5 year 6 month break, for a gross rental of £251,793 p.a.  This fully demonstrated the benefits of our close working association with local agents.

 

Other activity across our portfolio is as follows:

 

85/89 Colmore Row, Birmingham

A listed building, in a prime location in the City Centre, was acquired in December 2012 from PwC (acting as receivers).  We have let some of the vacant space to the Royal College of Surgeons, on a new 10 year lease at a rental of £74,320 p.a.  We have additional asset management activity ongoing that will further improve our tenant profile, lease terms, rental income and capital growth.  The contracted rent is now £346,393 with an ERV of £548,648.

 

293/310 High Street, West Bromwich

A former Allied Carpets property, acquired in June 2012 with vacant possession for the sum of £475,000.  We have obtained planning approval to create 5 ground floor units, with a separate upper floor.  The refurbishment has been completed at a cost of approximately £100,000.  Three units are let with offers and interest in the others, and our ERV is approximately £140,000 p.a.

 

2/30 Alcester Road, Kings Heath

A prime unbroken retail parade of 16 shops, directly adjoining a Sainsbury’s supermarket store and near to the King Edwards Schools Foundation.  Acquired in November 2008, at the height of the financial crisis, with a number of short leases and outstanding lease renewals.  All leases have been renewed, and the investment continues to trade well with a healthy pipeline of requirement for this parade of shops.

 

75/77 Colmore Row, Birmingham

A listed prime City Centre building previously let to PricewaterhouseCoopers at £400,000 p.a, with a FRI lease that expired on 25th December 2013.  The property has been vacated and will be brought to the market following necessary works.  The 18,000 sq ft building is on the market with Knight Frank at an asking rental of £25 per sq ft (an uplift on the previous letting).

 

Southgate Retail Park, Derby

This multi-let retail park was acquired for £4.8 million in September 2011, providing an approximate 10% yield.  We gained planning consent for a 45,000 sq ft food store during the year, and subsequently sold units 1,2 and 3 to Lidl supermarkets for the sum of £4.25 million, and retained the remainder that is let or under offer with an ERV of £250,000 p.a.

 

Colmore Row/Bennetts Hill/Waterloo Street, Birmingham

These are also listed buildings, within the Central business district, where we have attracted a number of new tenants throughout the year including Goodchilds Estate Agents, Redleaf Ltd and Open Executive Recruitment. 

 

Tudor House, Bridge Street, Walsall

A four shop retail parade, acquired in December 2013 from a receiver for the sum of £500,000.  The property is let to Ladbrokes, Hambro Countrywide and 2 regional multiples.  Successful lease renewals and lettings at this town centre parade will produce approximately £80,000 p.a.

 

Gateway House, Birmingham

A strategically located prime building, offering long term re-development potential.  In the interim, the key tenant, Arcadia Group, occupies over 11,000 sq ft in a prime retail unit.  Nearby, Marks and Spencers operates a key store and Primark is committing to its largest UK store, a giant 200,000 sq ft unit, by taking over The Pavilions Shopping Centre.  REI has achieved annual breaks in the Arcadia lease offering flexibility to capitalise on the retail market at the correct time and we are looking to submit a change of use application or create three retail units on the ground floor.

 

More generally, across the portfolio, we continue to achieve positive lease renewals, rent reviews and new lettings.  With very few exceptions, tenants across the portfolio are renewing, and we are benefitting from improving market sentiment.

 

Sales

 

For several years, it has been very much a buyer’s market and we have capitalised on the opportunities made available to us.

 

It remains our intention to build a business with a strong underlying rental income, however when we have completed our planned asset management, or when we receive favourable interest, we will also consider selling assets.  The part sale of Southgate Retail Park provided us with such an opportunity, and we successfully sold.

 

We have also sold properties from the historical portfolio in Wakefield and Crawley and some locally at Apex in Edgbaston.

 

We anticipate growing capital values, from yield compression, growing rental income and will remain open minded to sales opportunities that provide value for REI. 

 

Over the next few years, we are likely to become a more active seller as the market shifts to the benefit of a seller, and plan to achieve REIT status, which will be more tax efficient for the Company and our shareholders.

 

Acquisitions

 

We have an extensive network that allows us to acquire assets ‘off market’ or through a privileged and known network.  In Q4, we began to see criteria assets and secured 37a Waterloo Street/7 Bennetts Hill, Birmingham City Centre, a listed building fully let and providing £188,000 p.a., with tenants including W H Ireland stock brokers, Triton Global and Systra Limited.  The purchase price was £1.8 million in cash.  This acquisition is criteria compliant and an excellent addition to our City Centre portfolio.  We additionally acquired Tudor House in Walsall for £500,000 with an ERV in excess of £80,000.

 

In Q4, we have seen a significant number of opportunities that we will seek to acquire, predominantly from receivers acting for banks, who appear to be starting the long awaited distressed stock sales.  It is these assets that cannot support traditional debt, and as a cash buyer, will provide REI with our greatest opportunity for capital growth and double digit yields.

 

Since the year end, we have acquired 770/772 Bristol Road South, Northfield, Birmingham for the sum of £1.25 million in cash.  The rental income is £115,800 p.a. plus a vacant flat.  Tenants are HSBC bank (£80,800) with a lease expiring in July 2018 and West Bromwich Building Society (£35,000) with a lease expiring in February 2023 (subject to a tenant break in February 2019).

 

Finance

 

At 31 December 2013, the Group’s gross debt was £44.1 million (2012: £40.6 million) with cash and undrawn facilities of £8.5 million (2012: £4.2 million). The weighted average debt maturity was 7.0 years (2012: 8.6 years) with a weighted average cost of debt of 6.2% (2012: 6.3%) at year end – 94% fixed or hedged (2012: 100%).

 

Net loan to value was 47.3% (2012: 49.0%) and net interest cover based on adjusted earnings before interest and tax as a ratio of finance costs was 2.1 (2012: 1.6). Both loan to value and interest cover fall comfortably within the banking covenants.

 

During the year, we drew down £1.5 million of our undrawn facility and secured a further facility of £2.7 million on a variable basis of 2.75% above base with Lloyds, secured against a previously un-encumbered asset, a listed City centre building at 85/89 Colmore Row, Birmingham.

 

Our £20 million facility with Lloyds is due for renewal in October 2014. We are currently in the process of agreeing terms for the renewal of these facilities, and whilst they remain subject to Credit approval, at the present time the bank is proposing to extend the facilities at a similar level for a period of three to five years from the expiry of the facilities.  

 

REI has continued to receive excellent support from our principal bankers throughout the last few years, namely Lloyds Banking Group, Aviva, Handelsbanken and Nationwide.

 

Outlook & Summary

 

Clearly, we are now in an improved economic environment and the region in which we invest and run our business is well placed to grow and prosper.  This backdrop is essential in order for us to see the continued improvement in occupier demand, and investor appetite.

 

We anticipate that during 2014-15 we will experience greater demand for investment property in our region, as investors seek higher yields and capital growth and this improving demand will naturally inflate capital values.  The additional contributor to capital growth will be rental growth, reducing incentives and tenants beginning to accept longer lease terms with fewer tenant break options.

 

The real forward opportunity is to capitalise on our market reputation and existing resource and acquire the distressed stock that the financial institutions have mothballed throughout the recession.  REI is able to access these opportunities and successful acquisitions should result in capital growth and increased rental income which, in turn, will facilitate the Board’s intention to pay a progressive dividend.

 

Over the next few years, as our portfolio matures, and our asset management programme completes, we will dispose of some of our assets, into an environment in which the banks are lending, and HNW individuals, property companies and pension funds join the existing funds, public companies, insurance companies and overseas buyers from Singapore and China who are buying in our region to secure quality returns and capital growth.

 

It is our intention to change our status to a REIT as soon as is appropriate for the Company and its shareholders to benefit from REIT status and we anticipate that is likely to be 2015.

 

Finally, we would like to thank all our staff, advisors and Board for the support over the last few challenging years, and now look forward to growing REI into a substantial regional public company.

 

JOHN CRABTREE OBE DL D.UNIV

CHAIRMAN

14 MARCH 2014

PAUL BASSI CBE DL D.UNIV Dsc

CHIEF EXECUTIVE

14 MARCH 2014

 

 

 

Consolidated statement of comprehensive income

For the year ended 31 December 2013

 

 


Note

2013

2012

 



£000

£000

 





 

Revenue


6,638

6,122

 





 

Cost of sales


(2,069)

(1,434)

 

Gross profit

2

4,569

4,688

 





 

Administrative expenses


(1,675)

(1,874)

 

Share of profit of joint venture


19

 

Surplus on sale of investment property


459

64

 

Net surplus on valuation of investment properties


2,096

822

 

Profit from operations


5,468

3,700

 

Finance income


21

26

 

Finance costs


(2,595)

(2,404)

 

Profit/(loss) on financial liabilities at fair value through profit and loss


2,062

(320)

 





 

Profit on ordinary activities before taxation


4,956

1,002

 





 

Income tax charge


(1,355)

(635)

 





 

Net profit after taxation and total comprehensive income


3,601

367

 





 

Total and continuing earnings per ordinary share




 

Basic

3

5.04p

0.51p


Diluted

3

5.04p

0.51p

 

 

The results of the Group for the period related entirely to continuing operations.

 

 

Consolidated statement of changes in equity

For the year ended 31 December 2013

 


Share

capital

Share

premium

account

Capital

redemption

reserve

Other

reserves

Retained

earnings

Total


£000

£000

£000

£000

£000

£000








At 1 January 2012

7,142

61

45

121

31,612

38,981








Dividends

(357)

(357)

Transactions with owners

                –

(357)

(357)








Profit for the year and total comprehensive income

367

367

At 31 December 2012

7,142

61

45

121

31,622

38,991








Dividends

(714)

(714)

Transactions with owners

(714)

(714)








Transfer to retained earnings

(121)

121

Profit for the year and total comprehensive income

3,601

3,601

At 31 December 2013

7,142

61

45

34,630

41,878

 

 

Consolidated statement of financial position

At 31 December 2013

 

 


Note

2013

2012



£000

£000

Assets




Non current




Intangible assets


171

171

Investment properties

4

69,551

70,441

Property, plant and equipment


7

18

Deferred tax


2,900

4,255



72,629

74,885





Investment in joint venture


816

236



73,445

75,121

Current




Inventories


5,601

6,935

Trade and other receivables


4,392

3,151

Cash and cash equivalents


8,482

2,685



18,475

12,771





Total assets


91,920

87,892

Liabilities




Current




Bank loans and overdraft


(25,006)

(3,106)

Provision for current taxation


(18)

(18)

Trade and other payables


(2,716)

(2,938)



(27,740)

(6,062)

Non current




Bank loans


(19,050)

(37,525)

Liabilities at fair value through profit and loss


(3,252)

(5,314)



(22,302)

(42,839)

Total liabilities


(50,042)

(48,901)





Net assets


41,878

38,991





 

Equity




Share capital


7,142

7,142

Share premium account


61

61

Capital redemption reserve


45

45

Other reserves


121

Retained earnings


34,630

31,622





Total Equity


41,878

38,991

Net assets per share


               58.6p

54.6p

 

 

Consolidated statement of cash flows

For the year ended 31 December 2013

 



2013

2012



£000

£000

Cash flows from operating activities




Profit after taxation


3,601

367

Adjustments for:




Depreciation


11

11

Net surplus on valuation of investment property


(2,096)

(822)

Surplus on sale of investment property


(459)

(64)

Share of profit of joint venture


(19)

Finance income


(21)

(26)

Finance costs


2,595

2,404

(Profit)/loss on financial liabilities at fair value through profit and loss


(2,062)

320

Income tax charge


1,355

635

Decrease in inventories


1,334

860

Increase in trade and other receivables


(744)

(682)

(Decrease)/increase in trade and other payables


(222)

886



3,273

3,889

Interest paid


(2,595)

(2,404)

Net cash from operating activities


678

1,485

Cash flows from investing activities




Purchase of investment properties


(2,552)

(6,471)

Purchase of property, plant and equipment


(1)

Proceeds from sale of investment property


5,500

350

Investment in joint venture


(561)

(88)

Interest received


21

26



2,408

(6,184)

Cash flows from financing activities




Equity dividends paid


(714)

(357)

Proceeds from new bank loans


4,200

10,303

Payment of bank loans


(479)

(6,807)



3,007

3,139





Net increase/(decrease) in cash and cash equivalents


6,093

(1,560)

Cash, cash equivalents and bank overdrafts at beginning of period


687

2,247

Cash, cash equivalents and bank overdrafts at end of period


6,780

687

 

NOTES:

Cash and cash equivalents consist of cash in hand, bank overdrafts and balances with banks only.

 

Notes to the preliminary announcement

For the year ended 31 December 2013

 

1.  Basis of preparation

The consolidated financial statements have been prepared under the historical cost convention, except for the revaluation of properties and financial instruments held at fair value through the profit and loss account, and in accordance with International Financial Reporting Standards (IFRS) adopted by the European Union.

 

It should be noted that accounting estimates and assumptions are used in preparation of the financial statements.  Although these estimates are based on management’s best knowledge and judgement of current events and actions, actual results may differ from those estimates.  The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are set out in the Group’s annual report and financial statements

 

The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries made up to 31 December each year.  Material intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are eliminated on consolidation.  Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

The principal accounting policies are detailed in the Group’s annual report and financial statements.

 

Going concern

 

After making relevant enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. These enquiries considered the following:

 

·     the significant cash balances the Group holds and the low levels of historical and projected operating cashflows

·     any property purchases will only be completed if cash resources or loans are available to complete those purchases

·     the Group’s bankers have indicated their continuing support for the Group. The Group’s £20 million facility with Lloyds Banking Group is due for renewal in October 2014. The Group is currently in the process of agreeing terms for the renewal of these facilities, and whilst they remain subject to credit approval, at the present time the bank is proposing to extend the facilities at a similar level for a period of three to five years from the expiry of the facilities.

 

For this reason, the directors continue to adopt the going concern basis in preparing the financial statements.

 

2.  Gross Profit


2013

2012


£000

£000




Revenue           –      Rental income

5,234

5,482

–     Surrender premiums

374

640

–     Sale of assets held as inventory

1,030


6,638

6,122




Cost of sales     –      Direct costs

(718)

(574)

–     Cost of property

(1,051)

–     Loss on valuation of assets held as inventory

(300)

(860)


(2,069)

(1,434)


4,569

4,688

 

3.  Earnings per share

 

The calculation of earnings per share is based on the result for the year after tax and on the weighted average number of shares in issue during the year.

 

Reconciliations of the earnings and the weighted average numbers of shares used in the calculations are set out below.

 


2013

2012


Earnings

Average

number of

shares

Earnings

per

Share

Earnings

Average

number of

shares

Earnings

per share


£000



£000










Basic earnings per share

3,601

71,420,598

5.04p

367

71,420,598

0.51p

 

 

 

EPRA EPS per share

 


2013

2012


Earnings

Shares

Earnings per share p

Earnings

Shares

Earnings per share p


£000



£000










Basic earnings per share

3,601

71,420,598

5.04

367

71,420,598

0.51

Fair value of investment properties

(2,096)



(822)



Profits on disposal of investment properties

(459)



(64)



Tax on profits on disposals

92



15



Fair value of inventory properties

300



860



Change in fair value of derivatives

(2,061)



320



Deferred tax

887



(82)



EPRA Earnings

264

71,420,598

0.37

594

71,420,598

0.83

 

 

EPRA NAV per share

 


2013

2012


Net Assets


Shares

Net asset

value per

share p

Net Assets


Shares

Net asset

value per

share p


£000




£000













Basic

41,878


71,420,598

58.6

38,991


71,420,598

54.6

Dilutive impact of share options and warrants






Diluted

41,878


71,420,598

58.6

38,991


71,420,598

54.6

Adjustment to fair value of derivatives

3,252



5,314



Deferred tax

(2,900)



(4,255)



EPRA NAV

42,230


71,420,598

59.1

40,050


71,420,598

56.1

Adjustment to fair value of derivatives

(3,252)



(5,314)



Deferred tax

2,900



4,255



EPRA NNNAV

41,878


71,420,598

58.6

38,991


71,420,598

54.6

 

 

4.  Investment properties

Investment properties are those held to earn rentals and for capital appreciation.

 

The carrying amount of investment properties for the periods presented in the consolidated financial statements as at 31 December 2013 is reconciled as follows:

 


£000



Carrying amount at 1 January 2012

63,434

Additions – acquisition of new properties

6,456

Additions – subsequent expenditure

15

Disposals

(286)

Revaluation

822



Carrying amount at 31 December 2012

70,441

Additions – acquisition of new properties

2,294

Additions – subsequent expenditure

258

Disposals

(5,538)

Revaluation

2,096

Carrying amount at 31 December 2013

69,551

 

5.  Publication

 

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The consolidated statement of financial position at 31 December 2013 and the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows and the associated notes for the year then ended have been extracted from the Group’s financial statements upon which the auditor’s opinion is unqualified and does not include any statement under section 498 of the Companies Act 2006.  The statutory accounts for the year ended 31 December 2013 will be delivered to the Registrar of Companies following the Group’s Annual General Meeting.

 

6.  Copies of the announcement

 

Copies of this announcement are available for collection from the Company’s offices at Cathedral Place, 3rd Floor, 42-44 Waterloo Street, Birmingham, B2 5QB.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 

END

 
 

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