Real Estate Investors (RLE)

Sector:

Real Estate

Index:

FTSE AIM All-Share

54.50p
   
  • Change Today:
    -0.50p
  • 52 Week High: 58.00
  • 52 Week Low: 49.00
  • Currency: UK Pounds
  • Shares Issued: 186.42m
  • Volume: 74,272
  • Market Cap: £101.60m
  • RiskGrade: 78
  • Beta: 0.04

Real Estate Investors preparing for Brexit after solid first half

By Josh White

Date: Monday 17 Sep 2018

LONDON (ShareCast) - (Sharecast News) - Midlands-focussed property group Real Estate Investors issued its unaudited half-year results for the six months ended 30 June on Monday, reporting a 2.2% rise in gross property assets to £217.8m.
The AIM-traded firm said its revenue rose 4.2% year-on-year to £7.4m, while its underlying profit before tax was ahead 9.7% at £3.4m.

Pre-tax profit stood at £5.3m - a drop of 17.2%.

The company's EPRA net asset value per share rose 1.7% to 70.1p, while its EPRA earnings per share were 12.5% higher at 1.8p.

Its second quarter dividend was announced at 0.875p, giving a fully-covered dividend for the first half of 1.75p - up 16.7% year-on-year.

Real Estate Investors' average cost of debt was 4.1% for the period, up from 4.0% in the first half of last year, though since period end it had been reduced to 3.7%.

It signed a new £10m five-year term facility with RBS at 1.95% above Libor, and agreed a five-year extension to the term of its £20m Lloyds facility, effective from October.

"Our portfolio remains stable, secure and diverse across many sectors, without any material exposure to a single sector or occupier," said Real Estate Investors chief executive officer Paul Bassi.

"We operate in a regional economy that is enjoying an outstanding period of economic activity and regeneration and which we believe is set to prosper further."

Bassi said the company's main focus continued to be the growth of its dividends to shareholders on a sustainable, fully covered and progressive basis.

"Our half year revenue of £7.4m is set to grow further from acquisitions made in June, with further available capital to invest.

"We anticipate record revenues and contracted rents over the next 12 months, and at the half-year end, our gross property assets have grown to £217.8m, up 2.2%, despite sales of £5m during the first half."

Bassi said that, in line with its strategy, the year-to-date had been a period of preparation for "any market downturn" that the firm could experience over the coming 12 months, given ongoing political uncertainty.

"Accordingly, we have made strategic sales and secured £30m of cash and agreed bank facilities to enable us to capture criteria compliant assets as opportunities arise.

"We are well placed to grow the portfolio further, achieve record contracted rental income over the next 12 months and grow our dividend payments, in line with our progressive dividend policy."

Having secured vacant possession and completed refurbishments, Bassi noted that the firm had £1.6m potential rental revenue from void space within its existing portfolio, which would "enhance" its capital values further and reduce its holding costs upon letting.

"Additionally, as announced earlier in the year, we have approximately 250,000 square feet of potential for 'permitted development' conversion to residential.

"The conversion or sale of these properties will provide positive capital growth and valuation gain.

"Since the half-year end, we have already agreed terms for the sale of an office scheme for permitted development at a premium to the existing office valuation."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

RLE Market Data

Currency UK Pounds
Share Price 54.50p
Change Today -0.50p
% Change -0.91 %
52 Week High 58.00
52 Week Low 49.00
Volume 74,272
Shares Issued 186.42m
Market Cap £101.60m
Beta 0.04
RiskGrade 78

RLE Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
21.27% above the market average21.27% above the market average21.27% above the market average21.27% above the market average21.27% above the market average
7.14% above the sector average7.14% above the sector average7.14% above the sector average7.14% above the sector average7.14% above the sector average
Price Trend
6.61% above the market average6.61% above the market average6.61% above the market average6.61% above the market average6.61% above the market average
20% below the sector average20% below the sector average20% below the sector average20% below the sector average20% below the sector average
Income
80.73% above the market average80.73% above the market average80.73% above the market average80.73% above the market average80.73% above the market average
85.71% above the sector average85.71% above the sector average85.71% above the sector average85.71% above the sector average85.71% above the sector average
Growth
2.41% above the market average2.41% above the market average2.41% above the market average2.41% above the market average2.41% above the market average
40.35% above the sector average40.35% above the sector average40.35% above the sector average40.35% above the sector average40.35% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

RLE Dividends

  Latest Previous
  Q2 Q1
Ex-Div 26-Sep-19 27-Jun-19
Paid 31-Oct-19 26-Jul-19
Amount 0.94p 0.94p

Trades for 22-Oct-2019

Time Volume / Share Price
16:15 25,000 @ 55.00p
16:07 1,640 @ 54.00p
14:02 50,000 @ 54.00p
13:21 10,000 @ 54.55p
12:46 539 @ 55.00p

RLE Key Personnel

CEO Paul Bassi
Finance Director Marcus Daly

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