Real Estate Investors (RLE) Trading Update summary

Trading performance and disposals

• Disposals in 2022 reached £20.1 million, achieving an 11.4% uplift over December 2021 book value.

• Additional disposals in the legal pipeline are expected to exceed 2021 year-end book values.

• Proceeds from sales used to pay down £17 million in debt, reducing loan-to-value to 38.3%.

• Contracted rental income stands at £12.9 million p.a., with occupancy at 85.12% and potential to rise.

• 127 lease events completed in 2022, with key lettings adding £384,000 in annual rental income.

Financial position and capital management

• £5.8 million cash at bank as of 30 November 2022.

• Average cost of debt increased to 3.7% due to debt repayment; all debt is fixed with a 2-year average maturity.

• Hedge facility improved by £2.2 million year-to-date.

• £2 million share buyback completed, cancelling 7,142,857 shares at an average cost of 28p per share.

• Board remains flexible on future capital returns, including special dividends or further buybacks.

Dividend and shareholder returns

• Fully covered Q3 2022 dividend of 0.4375p per share, with a minimum annual dividend of 2.5p per share expected for FY2022.

• Dividend policy for FY2023 to be based on FY2022, subject to further disposals.

• Share buyback programme completed in Q4 2022, supporting shareholder value.