Real Estate Investors : Annual Report 2022 714.73 KB

REAL ESTATE INVESTORS PLC

FINANCIAL STATEMENTS

For the year ended 31 December 2022

Company Registration Number:

5045715

Registered Office:

75-77 Colmore Row, Birmingham

B3 2AP

Directors:

W P Wyatt: Chairman

P London: Non-Executive Director

I M Stringer: Non-Executive Director P P S Bassi CBE: Chief Executive

M H P Daly: Finance DirectorSecretary:

M H P Daly

Statutory auditor:

Grant Thornton UK LLP Chartered Accountants Registered Auditor 17th Floor

103 Colmore Row Birmingham

B3 3AG

Solicitor:

Gateley Plc One Eleven Edmund Street Birmingham B3 2HJNominated Adviser:

Cenkos Securities plc 6-8 Tokenhouse Yard London

EC2R 7AS

Broker:

Liberum Capital Limited Ropemaker Place, Level 12 25 Ropemaker Street London

EC2Y 9LY

Banker:

National Westminster Bank 3rd Floor

2 St Philips Place Birmingham

B3 2RB

Lloyds Banking Group 125 Colmore Row Birmingham

B3 3SF

Registrar:

Link Group 10th Floor Central Square

29 Wellington Street Leeds

LS1 4DL

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REAL ESTATE INVESTORS PLC

CHAIRMAN'S AND CHIEF EXECUTIVE'S REPORT

For the year ended 31 December 2022

Growing NTA in a challenging market

• • Revenue* of £13.3 million (FY 2021: £14.7 million) (decrease in the main due to loss of income associated with sales)

• • Profit before tax of £10.9 million (FY 2021: £13.9 million), including a revaluation gain of £3.2 million on investment properties (FY 2021: gain of £4.9 million), a gain of £948,000 on the sale of investment property (FY 2021: gain of £1.2 million) and a gain in the market value of our interest rate hedging instruments of £2.2 million (FY 2021: gain of £1.4 million)

• • Underlying profit before tax** of £4.6 million (FY 2021: £6.4 million)

• • EPRA*** Net Tangible Assets ("NTA") per share of 62.2p (FY 2021: 58.8p) up 5.7%

• • Completed disposals totalling £20.9 million (an aggregate uplift, before costs, of 8.5% above December 2021 valuation)

• • Disposal proceeds used to pay down £18 million of debt in 2022

• • LTV (net of cash) reduced to 36.8% (FY 2021: 42.2%)

• • £7.8 million cash at bank as at 31 December 2022

• • Average cost of debt of 3.7%

• • 100% of debt fixed with a weighted average debt maturity of 2 years

• • EPRA*** EPS of 2.7p (FY 2021: 3.7p)

• • Successful £2 million share buyback programme launched and completed in Q4 2022, in line with Company strategy announced on 6 July 2022

Uninterrupted Fully Covered Dividend

• • Final dividend of 0.4375p per share, payable in April 2023 as a Property Income Distribution (PID)

• • Total fully covered dividend per share for 2022 of 2.5p (FY 2021: 3.0625p), (which would be the basis for the dividend for FY2023, subject to the pace of further disposals) reflecting a yield of 8.8% based on a mid-market opening price of 28.25p on 27 March 2023

• • £46.3 million total declared/paid to shareholders since commencement of dividend policy in 2012

Positive valuations and strong lettings activity

• • Like-for-like portfolio valuation up by 1.9% to £173.0 million (FY 2021: £169.8 million)

• • Gross property assets of £175.4 million (FY 2021: £190.8 million) with 201 occupiers across 42 assets

• • Rent collection levels for 2022 of 99.54% (2021 overall collection: 97.81%) and Q1 2023 rent collection to date of 99.80% (adjusted for monthly/deferred agreements)

• • Completed 127 lease events during the year

• • WAULT **** of 4.98 years to break and 6.29 years to expiry (FY 2021: 5.03 years /6.76 years)

• • Contracted rental income of £12.6 million (FY 2021: £14.3 million) net of disposals

• • Portfolio occupancy of 84.54% (FY 2021: 85.75%) with potential to rise further as key pipeline lettings are completed (subject to ongoing sales and ongoing portfolio lease activity)

Post year end activity - continued demand from private investor market

• • Additional significant pipeline sales in legals

• • Healthy pipeline of new lettings in legals of £828,486 p.a.

• • In March 2023, the Group extended the £20 million facility with Lloyds for 6 months to 31 May 2024 and the £31 million facility with NatWest for 3 months to June 2024

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REAL ESTATE INVESTORS PLC

CHAIRMAN'S AND CHIEF EXECUTIVE'S REPORT

For the year ended 31 December 2022

Financial and Operational Results

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