Real Estate Investors (RLE) H1 2022 earnings summary

Executive summary

• Achieved £8.3 million pre-tax profit for H1 2022, with strong asset sales and reduced debt.

• Sold 11 assets for £5.7 million (27.9% above book value); total disposals YTD £10.2 million.

• Occupancy improved to 85.88% (up to 86.47% post period), with strong rent collection at 99.36%.

• EPRA NTA per share rose 3.7% to 61p; dividend of 0.8125p per share declared for Q2 2022.

• Focus remains on debt reduction, opportunistic disposals, and potential capital return to shareholders.

Financial highlights

• Revenue £7.2 million (H1 2021: £7.8 million), mainly due to disposals.

• Underlying profit before tax £2.9 million (H1 2021: £3.8 million); EPRA EPS 1.64p (H1 2021: 2.1p).

• Net assets £110.5 million; gross property assets £190.2 million.

• Loan to value (net of cash) reduced to 40.2% (FY 2021: 42.2%).

• Net debt down to £75.5 million (FY 2021: £79.6 million); £8.3 million cash at bank.

Outlook and guidance

• Strong investor and occupier demand expected to continue, with further disposals and lettings in pipeline.

• Board to consider capital return to shareholders if disposals continue and market conditions allow.

• Well insulated from rising rates due to 95.2% fixed debt and prudent gearing.

• Potential for opportunistic acquisitions if market conditions shift.

• Management remains alert to sector consolidation and corporate opportunities.