AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Successful Asset Disposals: REI completed 20 disposals totaling £18.9 million, achieving a 6.95% uplift on the book value.
- Debt Reduction: The company reduced debt by £15.3 million, bringing total debt to £39.1 million by the year-end.
- Improved Lease Metrics: REI's weighted average unexpired lease term (WAULT) improved significantly, with occupancy holding steady.
Real Estate Investors Plc (LSE:RLE), the UK’s only Midlands-focused Real Estate Investment Trust (REIT), has provided an update on its performance for the year ending 31 December 2024, ahead of its Final Results announcement on 25 March 2025.
Key Performance Highlights
In a challenging year for the property market, characterized by low transaction volumes due to an uncertain interest rate environment, an early general election, and a dampened investor sentiment, REI has successfully executed a strategic disposal program. The company completed 20 targeted disposals, raising £18.9 million, with a notable 6.95% uplift over the December 2023 year-end book values (pre-costs). These disposals were aimed at private investors and owner-occupiers, ensuring continued liquidity despite a tough market.
Strong Debt Reduction
REI made significant progress in reducing its debt, paying down £15.3 million during 2024. This has brought the company’s total debt down to £39.1 million at the year-end, compared to £54.4 million at the close of FY 2023. The proceeds from the asset sales were used to finance this debt reduction, underscoring the company’s commitment to improving its balance sheet and financial stability.
Improved Lease Terms and Occupancy
The company’s portfolio remains resilient, with year-end occupancy at 82.04%, slightly down from 83.03% in FY 2023. However, REI has improved its weighted average unexpired lease term (WAULT), which now stands at 5.76 years to break and 6.99 years to expiry, compared to 5.24 years and 6.01 years respectively in FY 2023. These improvements reflect stronger lease terms, providing greater stability to the portfolio.
Strategic Outlook
REI’s pipeline remains active, with additional sales in legal processes expected to complete in the coming months. Furthermore, the company is holding back certain larger market-ready assets until investor sentiment strengthens, which will help achieve better pricing outcomes. The company continues to focus on maintaining a strong, diverse portfolio and is well-positioned for future growth as market conditions improve.
