17th Sep 2014 09:35
LONDON (Alliance News) - Real Estate Investors PLC Wednesday reported an increase in profit in the first-half, following strong valuation gains, buoyed by improving property values, and said it expects further profit enhancing sales and improving occupancy as the year progresses.
The West Midlands-based property group reported a pretax profit of GBP2.6 million for the six months to June 30, compared with a GBP769,000 profit in the first-half of 2013, boosted by a net valuation gain of GBP2.4 million in the period, compared with a GBP467,000 net valuation last year.
The company proposed an interim dividend of 0.75 pence, and said it anticipates a further final dividend of 0.75 pence for the full-year.
"We are beginning to see the benefits of our strategy to focus on our region and asset management opportunities, which has resulted in improving valuations and allowed us to continue with our progressive dividend policy. We anticipate further profit enhancing sales and improving occupancy across our portfolio during 2014/2015," said Chief Executive Officer Paul Bassi in a statement.
Revenue in the first-half etched up to GBP2.9 million, up from GBP2.6 million a year earlier.
In its statement, the company said its European Public Real Estate Association net asset value stood at 57.8 pence at June 30, down 2.2% from its December 31, 2013 price of 59.1 pence. EPRA is the industry body for European REITs.
The company said it made GBP9.1 million in acquisitions in the first six months of 2014.
"Since the half year end we have acquired further property and land to the value of GBP7.7 million and, subject to potential sales and criteria opportunities, anticipate achieving record gross property assets of GBP100 million in the near future," the company said.
Shares in the property investment company were trading 4.7% higher mid-morning Wednesday, at 53.90 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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