Trading Update and Dividend

15 July 2020

Real Estate Investors Plc

(“REI” or the “Company” or the “Group”)

Trading Update and Dividend

Real Estate Investors Plc (AIM: RLE), the UK’s only Midlands-focused Real Estate Investment Trust (REIT) with a diversified portfolio of 1.59 million sq ft of investment property across all sectors, provides the following update on rent collection.

The Company is pleased to report, rent collection for the March quarter (March to June) has now risen to 90.16% (adjusted for monthly and deferred agreements) from 81% reported in our 15 June trading update.

June quarter (June to September) rent collection so far is 81.94% (adjusted for monthly and deferred agreements), a direct reflection of the diversification of our portfolio and strong relationship with our tenants.

Based on current constructive dialogue with a number of tenants, we anticipate that rent collections for both periods will improve as these tenants recommence trading from their premises.

Many tenants have taken this opportunity to engage with us and explore lease event opportunities in return for incentives, which has proven beneficial for the tenant and provided REI with capital enhancement potential.

However, there are some established tenants who have the ability to pay but are delaying doing so, using the ongoing restriction imposed by the government on the ability of landlords to recover rent, these arrears will be pursued at the appropriate time and the Company expects to secure full rental payments.

Generally, our tenants confirm they are gradually returning towards normalised trading with convenience retail continuing to outperform historic trading levels, a sector that REI has a healthy exposure to.

Market Activity

We are encouraged by the increasing number of enquiries from investors for certain assets that have proven resilient during the Covid crisis.  We will consider selective and opportunistic sales, as we acquire new assets that we believe provide income and capital upside. 

Dividend Payment

As announced on 15 June, a dividend of 0.5p per share will be paid on 24 July 2020 as a Property Income Distribution, to all shareholders on the register as at 26 June 2020.

Paul Bassi, Chief Executive, commented:

“The stability and diversity of our asset base remains the key ingredient for the continued success of our rent collection and the resilience of our property portfolio.”

“REI Plc remains fully operational with staff now having the ability to work flexibly from our offices in a safe environment, collaboratively working together to pursue opportunities and asset management initiatives that will drive capital and income growth and underpin the future success of the business.”

Enquiries:

About Real Estate Investors Plc

Real Estate Investors Plc is a publicly quoted, internally managed property investment company and REIT with a portfolio of 1.59 million sq ft of mixed-use commercial property, managed by a highly-experienced property team with over 100 years of combined experience of operating in the Midlands property market across all sectors.  The Company’s strategy is to invest in well located, real estate assets in the established and proven markets across the Midlands, with income and capital growth potential, realisable through active portfolio management, refurbishment, change of use and lettings.  The portfolio has no material reliance on a single asset or occupier.   On 1st January 2015, the Company converted to a REIT.  Real Estate Investment Trusts are listed property investment companies or groups not liable to corporation tax on their rental income or capital gains from their qualifying activities.  The Company aims to deliver capital growth and income enhancement from its assets, supporting its dividend policy, which has enjoyed 7 years of consecutive growth.  Further information on the Company can be found at www.reiplc.barques.dev.