REI tops milestone of £50m in dividends

The Birmingham AIM-listed business has now paid and declared £50.6 million to shareholders since the commencement of its dividend policy in 2012, to include a final 2023 dividend of 0.625p.

During the year, REI completed sales totalling £17.97 million, with a further £1m since the year end.

The company has continued its successful debt repayment programme of £17.1m, with a further £2.7m paid off since the year end, reducing total drawn down debt to £51.7m.

At the end of December REI had a portfolio of £145.5m.

The results show a pre-tax loss of £9.4 million, which chief executive Paul Bassi said was due to market sentiment, yield shifts and portfolio valuation decline.

He said: “Despite a backdrop of negative market sentiment, higher interest rates and political instability, coupled with very low levels of property transactions, we have secured excellent sales, and reduced our debt significantly whilst paying a covered dividend.

“Having finalised and announced our strategic plan in January 2024, our priority is to continue disposing of assets and maximising returns to shareholders, within the three-year timeframe.”

Rent collection levels across the year remained robust with overall rent collection for 2023 of 99.82 per cent, while revenue for the year was £11.5m.

A major letting contracted to complete in April 2024 will improve existing occupancy to 85.91 per cent and boost contracted rental income to £11.2m per annum, subject to sales and other lease activity.

Mr Bassi added: “We have additional pipeline sales in legals, and healthy pipeline lettings of £803,107 gross per annum.

“We will continue to capitalise on ongoing demand for smaller lot sizes from private investors and special purchasers. We will be holding our larger assets for income until corporate and institutional buyers return to the market.

“In the meantime, the business is operationally robust, and we will continue intensively managing assets to maximise income and reduce vacancy levels.

“The company announced in January 2024 that due to the persistent and substantial discount between share price and NAV, it would be conducting a three-year strategic sale of portfolio assets, with receipts from disposals used to pay down debt and return cash to shareholders.

“We are committed to maximising shareholder returns, while remaining open to individual asset sales or a corporate transaction that is in the best interest of shareholders.

“In the meantime, we are focused on further sales and a full repayment of our debt, with the board's intention to continue paying a fully covered quarterly dividend.”