Real Estate Investors (RLE) H1 2025 earnings summary

Executive summary

• Gross property assets at £121.8 million as of June 2025, with a diversified, multi-sector portfolio and 122 occupiers across 35 assets.

• Ongoing 3-year orderly sale of assets to maximize value, with £7.7 million of sales completed or contracted year to date, achieving 95.93% of December 2024 valuations.

• Occupancy and rent collection remained robust, supporting continued dividend payments, with rent collection at 99.75% for H1 2025 and occupancy at 82.25%.

• Management remains aligned with shareholders, holding a 13.3% stake and implementing a Shorter Term Incentive Plan (STIP) to support the disposal strategy.

• Disposals include £54 million of larger assets prepared for sale in 2026.

Financial highlights

• Revenue for H1 2025 was £4.8 million, down from £5.6 million in H1 2024 due to asset sales.

• Underlying profit before tax was £1.5 million (H1 2024: £1.8 million); profit before tax was £0.3 million, reversing a £3.2 million loss in H1 2024.

• EPRA NTA per share at 50.6p (FY 2024: 51.3p); EPRA EPS at 0.85p (H1 2024: 1.04p).

• Q2 2025 dividend of 0.4p per share, fully covered by EPRA earnings, yielding 5%.

• Gross portfolio valuation at £121.8 million, down from £124.6 million at FY 2024.

Outlook and guidance

• Continued focus on asset disposals, debt repayment, and maintaining covered quarterly dividends.

• Market outlook for 2026 anticipates lower finance costs, yield compression, and improved occupier demand.

• Flexibility to consider a corporate transaction or partial capital return after debt repayment, with larger asset disposals planned for 2026.