Real Estate Investors (RLE) H2 2024 earnings summary

Executive summary

• Achieved £18.9m in property sales, 6.95% above Dec 2023 valuations, with proceeds used to repay £15.2m of debt, reducing total debt to £39.2m (FY 2023: £54.4m).

• Revenue declined to £10.8m (FY 2023: £11.5m) due to disposals; underlying profit before tax was £3.4m (FY 2023: £4.5m).

• Loss before tax narrowed to £2.4m (FY 2023: £9.4m loss), mainly due to a £6.3m revaluation deficit (non-cash).

• Fully covered dividend of 1.9p per share (FY 2023: 2.5p), yielding 6.7% at 28.5p share price.

• Portfolio comprised 36 assets, 132 occupiers, with occupancy at 82.04% and contracted rent of £9.0m p.a.

Financial highlights

• Gross property assets: £124.6m (FY 2023: £145.5m).

• EPRA EPS: 1.9p (FY 2023: 2.6p); basic loss per share: (1.3)p (FY 2023: (5.4)p).

• EPRA NTA per share: 51.3p (FY 2023: 54.9p).

• Net assets: £89.5m (FY 2023: £95.6m).

• Loan to value (net of cash): 26.4% (FY 2023: 32.4%).

• Average cost of debt: 6.5% (FY 2023: 3.7%).

• Cash at year end: £6.9m (FY 2023: £8.0m).

Outlook and guidance

• Board expects market improvement as interest rates fall, enabling acceleration of sales and potential for larger asset disposals.

• Dividend policy remains fully covered, but future levels depend on pace of disposals.

• Open to portfolio or corporate transactions aligned with shareholder interests.