14th Mar 2016 08:38
LONDON (Alliance News) - Birmingham-based property investor Real Estate Investors PLC on Monday said its pretax profit doubled in 2015 thanks profit made on the sale of properties, a rise in the value of its investments, and higher rental income.
The company said its pretax profit for the year to the end of December was GBP12.2 million, up from GBP6.0 million a year earlier, as it made a gain on the sale of properties in the year and booked an GBP8.6 million rise in the fair value of its investment properties, up from a GBP6.8 million gain a year earlier.
Profit was further boosted by the group making a profit on its financial liabilities, having booked a loss in 2014, while the rest was driven by a rise in rental income to GBP8.4 million, a 38% year-on-year rise from GBP6.1 million a year earlier.
The company will pay a final dividend of 1.0 pence per share, taking its total dividend up to 2.0p, a 33% rise year-on-year.
The total value of the company's property assets increased to GBP157.5 million from GBP104.4 million in the year, as it made GBP57.7 million in acquisitions in the Midlands area, nearly double the GBP29.4 million it spent on new properties in 2014. Real Estate Investors sold GBP15.3 million worth of property in the year, up from GBP7.0 million in sales a year earlier.
The group's overall occupancy rate improved to 89.0% from 84.6% and the total number of tenants on its books rose to 211, up 21% year-on-year.
"We have enjoyed progressively positive results over concurrent years, together with a growing dividend payment. We anticipate continued growth in our portfolio in 2016, and further rental and capital growth over the coming years, all of which will underpin our commitment to paying a progressive dividend," said Paul Bassi, chief executive of Real Estate Investors.
"Our region is in the early stages of its re-emergence as an economic and commercial powerhouse, underpinned by a number of supporting factors, not least, the highest level of future inward investment the region has ever seen, building on the now established new business and industrial prosperity, which is clearly evidenced by the renewed buoyancy in new job creation across the region," he added.
Real Estate Investors shares were up 4.6% to 64.93p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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