The UK’s only Midlands-focused REIT, with a portfolio of commercial property across all sectors, is well advanced on a programme of strategic sales as it publishes its half year results to June 30 2025.
The business, based in Colmore Row in Birmingham, recorded £7.7 million in sales in the first half of 2025, despite the challenging market, and has cut debt by £4.3 million.
REI currently has £17.5 million in legals and on the open market and plans a further £54 million of targeted sales in 2026. Asset management is ongoing on the balance of the portfolio to maximise disposal value.
The results demonstrate stable occupancy, robust rent collection and a fully covered dividend.
Chief executive Paul Bassi said: “As anticipated, the first half of 2025 presented challenging conditions, which has dictated the pace of our disposals.
“While we have refrained from placing larger assets on the market until more suitable buyers emerge, our diverse portfolio and the ongoing demand from smaller private investors has delivered completed and contracted disposals of £7.7 million year to date, reducing debt by £4.3 million, while preserving rental income and occupancy.
“In addition to the announced sales in our disposal legal pipeline, and other assets on the open market, we have a further £54 million of our larger assets primed for sale in 2026.”
He said recent UK government borrowing cost increases and the uncertainty around the forthcoming November budget were dampening sentiment and some paralysis in the property market until the year end was expected.
“However, the interest rate reductions year to date, and the relaxation in bank lending criteria, provide a more favourable environment for small, private investor demand. We will look to initiate capital returns, the timing and method of which will be announced once our debt has been fully repaid.
“We are at a crucial midway point in our three-year orderly sales programme, and we remain resolutely focused on delivering on our strategy while continuing with covered dividend payments, subject to the pace of sales.
“We will also continue to evaluate portfolio and corporate options that align with shareholder interests,” he said.
REI’s revenue in the first half of 2025 was £4.8 million, down from £5.6 million in the same period in 2024 due to sales.
Underlying profit before tax stood at £1.5 million (2024: £1.8 million), with a profit before tax of £0.3 million (2024: £3.2 million loss), largely driven by a non-cash revaluation loss of £0.8 million (2024: £4.9 million loss)
The fully covered dividend for the second quarter of 2025 is 0.4p per share, against 0.5p in second quarter of 2024, and since 2012 total dividends now paid will amount to £55.3 million.