17th Mar 2014 08:56
LONDON (Alliance News) - Real Estate Investors PLC Monday reported an increase in profit and revenue for the year, as it prepares to convert into a real estate investment trust.
The company, which invests in commercial property principally in the Midlands, posted pretax profit of GBP5.0 million for 2013, up from GBP1.0 million, as revenue crept to GBP6.6 million, from GBP6.1 million a year earlier.
The company benefited from a GBP2.1 million profit on financial liabilities at fair value compared with a GBP320,000 deficit in 2012. It was also boosted by GBP1.0 million from the sale of assets held as inventory compared with none in 2012.
On the back of a strong performance the company doubled its annual dividend to 1 pence per share and said it intended to change its status to a REIT as early as 2015.
Real Estate Investors said its portfolio is now worth GBP75.2 million, down from GBP77.4 million. Its EPRA net asset value per share rose 5.3% to 59.1 pence from 56.1 pence.
EPRA is the European Public Real Estate Association, the industry body for European REITs.
During the period the company sold assets worth GBP7.0 million and made acquisitions totalling GBP2.3 million, including 37a Waterloo Street in Birmingham City Centre for GBP1.8 million.
At the period-end the group's net debt stood at GBP44.1 million at the end of 2013, compared with GBP40.6 million a year before, with cash and undrawn facilities of GBP8.5 million, up from GBP4.2 million.
Looking ahead, the firm said it expects to see greater demand for investment property in the Midlands and to dispose of some of its assets over the next few years.
"The real forward opportunity is to capitalise on our market reputation and existing resource and acquire the distressed stock that the financial institutions have mothballed throughout the recession," Chief Executive Paul Bassi said in a statement.
"REI is able to access these opportunities and successful acquisitions should result in capital growth and increased rental income which, in turn, will facilitate the Board's intention to pay a progressive dividend," he added.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
REI