Final Results

Real Estate Investors Plc

("REI", the "Company" or the "Group")

Final Results

For the year ended 31 December 2024

STRATEGY ON TRACK, WITH ONGOING SALES PROGRESS AND DEBT REDUCTION

Real Estate Investors Plc (AIM: RLE), the UK's only Midlands-focused Real Estate Investment Trust (REIT) with a portfolio of commercial property, is pleased to report its final results for the year ended 31 December 2024:

Targeted Sales Above Book Value & Debt Reduction

· Completed sales of £18.9 million (an aggregate uplift (pre-costs) of 6.95% above December 2023 valuations)

· Disposal proceeds used to pay down £15.2 million of debt, reducing total debt to £39.2 million (FY 2023: £54.4 million)

· Improved LTV (net of cash) to 26.4% (FY 2023: 32.4%)

· Average cost of debt of 6.5% (FY 2023: 3.7%)

· Revenue of £10.8 million (FY 2023: £11.5 million) with decrease predominantly due to loss of rent from sales

· Underlying profit before tax of £3.4 million (FY 2023: £4.5 million)

· EPRA** EPS of 1.9p (FY 2023: 2.6p)

· Basic loss per share of (1.3p) (FY 2023: (5.4p)

· Loss before tax of £2.4 million (FY 2023: loss of £9.4 million), primarily as a result of a revaluation deficit of £6.3 million on investment properties (FY 2023: £13.2 million revaluation deficit) (non-cash item)

· EPRA** Net Tangible Assets ("NTA") per share of 51.3p (FY 2023: 54.9p)

· £6.9 million cash at bank as at 31 December 2024 (FY 2023: £8 million)

· Gain in market value of hedging instrument of £282,000 (FY 2023: deficit of £499,000) (non-cash item)

Fully Covered Dividend

· Final quarterly dividend in respect of 2024 of 0.4p per share, payable in April 2025 as an ordinary dividend

· Total fully covered dividend for 2024 of 1.9p per share (FY 2023: 2.5p) reflecting a yield of 6.7% based on a mid-market opening price of 28.5p on 24 March 2025. The level of dividend for 2025 will be subject to the pace of further disposals

· £53.9 million total declared/paid to shareholders since commencement of dividend policy in 2012

Diverse and Resilient Portfolio

· Gross property assets of £124.6 million (FY 2023: £145.5 million) with 36 assets and 132 occupiers

· Like-for-like portfolio valuation down by 4.93% to £122.2 million (FY 2023: £128.5 million)

· Continued robust rent collection levels with overall rent collection for 2024 of 99.94%

· Completed 47 lease events during the year

· Improved WAULT*** of 5.76 years to break and 6.99 years to expiry (FY 2023: 5.24 years and 6.01 years)

· Contracted rental income of £9.0 million p.a. (FY 2023: £10.9 million p.a.) net of disposals

· Portfolio occupancy of 82.04% (FY 2023: 83.03%)

Post Year End Activity

· Additional £1.6 million of completed and contracted sales since year end (an aggregate uplift, pre-costs, of 7.47% above December 2023 valuations)

· Sale agreed on Kingston House at £2.7 million, dependent upon planning permission which was granted on 13 March 2025, with expected completion by end of Q2 2025, which will materially reduce holding costs

· Further £1 million of debt repaid since year end, resulting in reduced debt of £38.2 million

· Healthy pipeline of new income to the portfolio of £230,110 p.a in legals

· In March 2025, the Group extended the £12.6 million facility with Lloyds Banking Group Plc for a further 12 months to 29 May 2026 and the £24 million facility with National Westminster Bank Plc for a further 12 months to 1 June 2026. As with the previous refinancing in 2024, the facilities have each been extended on a short term basis to reflect the Group's intention to repay debt as a priority using disposal proceeds

Paul Bassi, Chief Executive, commented: "Despite the early general election and the negative impact of the Autumn budget on the property market and economic sentiment, we completed £18.9 million of targeted sales aimed at the private investor market achieving 6.95% (pre-costs) above our December 2023 valuations, allowing us to repay £15.2 million of debt and reduce our total debt by almost a third to £39.2 million, improving our LTV (net of cash) to 26.4%.

There are signs that the investment market is bottoming out and we anticipate stable and improving values ahead. We are optimistic that, with the anticipated improvements to the property market and against a backdrop of gradually reducing interest rates, planned sales to private investors in H1 2025 and larger asset sales in H2 2025, along with further debt reduction will be achieved. 

We are on track with our 3 year orderly sales programme and strategic objective of repaying all our borrowings from targeted sales and will commence our capital repayment programme in due course, whilst continuing to pay a dividend and remaining committed to maximising value for our shareholders."

Financial and Operational Results

Definitions

* Underlying profit before tax excludes profit/loss on revaluation and sale of properties and interest rate swaps

** EPRA = European Public Real Estate Association

*** WAULT = Weighted Average Unexpired Lease Term

Enquiries:

About Real Estate Investors Plc

Real Estate Investors Plc is a publicly quoted, internally managed property investment company and REIT with a portfolio of mixed-use commercial property, managed by a highly-experienced property team with over 100 years of combined experience of operating in the Midlands property market across all sectors. The portfolio has no material reliance on a single asset or occupier. On 1st January 2015, the Company converted to a REIT. Real Estate Investment Trusts are listed property investment companies or groups not liable to corporation tax on their rental income or capital gains from their qualifying activities. The Company announced in January 2024 that it would be undertaking an orderly strategic sale of the Company's portfolio over three years, disposing of assets individually or collectively, at or above book value, to optimise returns to shareholders. The pace of the disposal programme will be dictated by market conditions, with an initial focus on repaying the Company's debt. In the meantime, it is the Board's intention to continue paying a fully covered quarterly dividend. Further information on the Company can be found at www.reiplc.com.

CHAIRMANS AND CHIEF EXECUTIVES STATEMENT

The year presented numerous challenges, including global conflicts, UK and US elections, persistent inflation, and uncertainties around interest rates. Additionally, Q3 2024 was marked by heightened market disruption and subsequent low investor confidence following a poorly received UK Budget.

Mindful of the above, as per our stated strategy in January 2024, we continued with our anticipated sales programme targeted at private investors and owner occupiers which resulted in sales of £18.9 million during 2024. This was achieved at an aggregate uplift of 6.95% above our 2023 year end valuations, plus post-period sales of £1.6 million, making total sales since January 2024 of £20.5 million.

Using receipts from disposals during the period, we repaid £15.2 million of debt, resulting in reduced total debt of £39.2 million (FY 2023: £54.4 million), representing a reduction of 27.9%. A post-period debt repayment of £1 million has further reduced total debt to £38.2 million.

The portfolio saw a 4.93% valuation reduction on a like-for-like basis in 2024 which was a direct result of market sentiment and challenges faced by the UK commercial property sector over the last 12 -18 months. We believe there are positive prospects of recovering valuations through improved market conditions and reducing interest rates.

Our asset management team has focussed on enhancing the rental income and capital value of our remaining properties, whilst preparing identified assets for future sales. With the benefit of an active occupier market, the team completed 47 lease transactions, representing £1.1 million per annum of new income to the portfolio and offsetting some of the lost income due to asset sales.

Our robust portfolio continued to perform well, with 99.94% overall rent collection in 2024. At the year end contracted rental income was £9.0 million per annum (FY 2023: £10.9 million per annum), with an improved portfolio WAULT of 5.76 years to break and 6.99 years to expiry and occupancy at 82.04%, all of which are in line with management's expectations due to disposals, known lease events and securing vacant possession for onward agreed sales during 2025.

Post-period, occupancy is now 82.74% and contracted rental income has reduced to £8.9 million (due to sales), with WAULT now at 5.69 years to break and 6.97 years to expiry. We have sought full or part vacant possession on selected assets with a view to completing specific asset management initiatives or to meet conditions of sale and we anticipate that as these properties sell, our occupancy rate will improve and our void costs will substantially decrease. The completion of lettings in our legal pipeline will also positively contribute to rental income and occupancy levels, subject to the rate of our ongoing disposal programme. 

Revenue for the year was £10.8 million (FY 2023: £11.5 million), with the reduction predominantly due to income loss following the sale of properties. Underlying profit before tax was £3.4 million (FY 2023: £4.5 million) with a pre-tax loss of £2.4 million, primarily due to a £6.3 million non-cash loss on property revaluations. A provision has been made for the Company's Shorter Term Incentive Plan (STIP) of £300,000 (announced in January 2024), although payment is deferred until completion, as per the STIP rules. 

Despite the loss of income from sales, the robust operational performance of the business resulted in an uninterrupted, fully covered dividend of 1.9p per share for 2024. A total of £53.9 million has been paid/declared to shareholders since the commencement of the dividend policy. 

Whilst Q1 2025 has seen the continuation of weak market sentiment from 2024, expectations of falling interest rates and sector rental growth should lead to market improvements. According to Colliers, investment volumes in 2025 are forecasted to meet or exceed 2024 levels, potentially reaching between £45 billion and £50 billion. We have already completed additional asset sales amounting to £1.6 million since the year end. In addition to sales completed this year, we have a healthy pipeline of disposals currently in legals that are expected to complete in Q2 2025.

We remain optimistic about H2 2025 and expect some investors that have been absent to return to the market as conditions slowly improve. Improved market activity and the emergence of larger institutional investors and funds would allow us to accelerate our disposals programme by marketing our larger oven-ready assets for disposal with a view to achieving stronger pricing. This would result in the Company's debt being repaid more rapidly and the fulfilment of the Company's strategy.

Management are committed to leveraging positive market sentiment and continuing to deliver value for our shareholders via our quarterly dividend, whilst remaining open to a portfolio or corporate transaction that aligns with shareholder interests and accelerates the Company's strategy.

Dividend

Despite market uncertainty and significant disposals during 2024, the Company's dividends remained uninterrupted. The first three quarterly dividend payments in respect of 2024 were paid at a level of 0.5p per share and were fully covered. Due to the level of disposals, the final dividend in respect of 2024 is confirmed at 0.4p per share, reflecting a total, fully covered dividend payment for 2024 of 1.9p (FY 2023: 2.5p) (the basis for 2025 dividend to be agreed/discussed, subject to the pace of further disposals) and a yield of 6.7% based on a mid-market opening price of 28.5p on 24 March 2025. The Board remains committed to paying a fully covered dividend, subject to business performance and the pace of further disposals.

The proposed timetable for the final dividend, which will be an ordinary dividend, is as follows:

Outlook for 2025

The Board remains firmly committed to maximising shareholder returns by implementing proactive asset management, making targeted sales in an orderly manner, whilst prioritising the repayment of debt and returning capital to shareholders in due course.

We are expecting market improvement ahead as interest rates gradually reduce, enabling us to expedite our sales programme and sell larger corporate and institutional-grade assets as 2025 progresses, albeit the pace of the sales programme is wholly dependent on investors returning to the market. 

In the interim, we remain open to exploring corporate transactions, including the potential sale of the entire portfolio, provided it aligns with the best interests of our shareholders.

Our Stakeholders

We sincerely thank our shareholders, advisers, tenants and staff for their ongoing support.

William Wyatt Paul Bassi CBE D. Univ

Chairman Chief Executive

24 March 2025 24 March 2025

UK Property Overview

Despite high interest rates, a change in UK government and a negative Autumn budget suppressing commercial property investment activity throughout the year, UK commercial property rebounded in 2024. According to a report by Carter Jonas, a total of over £40 billion of commercial property was traded in the year, an increase of 20% compared with 2023. The industrial sector attracted the most investment, followed by the retail and office sectors.

Capital growth performance varies considerably across the main commercial property sectors. Industrial and retail are outperforming the all-property average, with annual growth in December 2024 standing at 3.9% and 3.0% respectively. In contrast, office capital values are continuing to fall on an annual basis, at -5.7% over the 12 months to December 2024. During the period September to December 2024, industrial capital values rose by 2.3%, retail increased by 1.7%, and the fall in the office sector was only -0.3%. Indeed, office capital values have now broadly levelled off, posting a modest rise of +0.1% during December 2024.

The value of the REI portfolio reduced on a like for like basis by 4.93%, largely due to market sentiment towards the office sector and reduced investor confidence. The consensus in today's market is that valuations have now broadly bottomed out and that investor confidence is returning.

Portfolio Disposals

As with last year, we capitalised on the ability to break up several of our portfolio assets and targeted the strong private investor market and owner occupiers, to achieve premium pricing. During the year we disposed of 20 units/assets for a total of £18.9 million at an aggregate uplift of 6.95% (pre-costs) above our 2023 year end valuations. Of these sales, 52.87% comprised break ups of retail units, 9.92% of entire retail assets, 8.46% drive-thru units and 28.75% offices (office disposals were to owner occupiers).

Post Year End Disposals

Since the year end, we have capitalised on improving market sentiment and have disposed of a further £1.6 million of assets. We have further completions expected before the conclusion of H1 2025 that are currently in legals. The reduction in interest rates is expected to pave the way for buyers to return to the market and acquire larger lot sizes in H2 2025.

The REI Portfolio

The REI portfolio, comprising of 36 assets with 132 occupiers, has a net initial yield of 6.92% and a reversionary yield of 9.02%. Valuations have seen a decline of 4.93% on a like-for-like basis to £122.2 million (FY 2023: £128.5 million). Management intend to continue with asset management initiatives to maximise income, occupancy and capital value.

The current portfolio sector weightings are:

Asset Management

Despite the business primarily focussing on sales, 2024 was a successful year for the asset management team, completing 47 lease events and securing £1.1 million in new letting income. This activity resulted in improved WAULT of 5.76 years to break and 6.99 years to expiry (FY 2023: 5.24 years and 6.01 years). Occupancy levels however reduced to 82.04% from 83.03% at December 2023, largely driven by intentional decisions to secure vacant possession on some assets such as Kingston House, West Bromwich to allow sales to complete.

Key asset management initiatives undertaken during the year (and to the date of this announcement) include:

Kingston House, West Bromwich

Vacant possession was secured to facilitate the sale of this 43,000 sq ft office asset for residential conversion at £2.7 million. The sale is agreed dependent upon planning permission which was granted on 13 March 2025, with expected completion by end of Q2 2025. This sale will materially reduce holding costs.

Birch House, Oldbury

Following the complete refurbishment of Birch House, DHU took occupation of the entire 35,749 sq ft building, at a contracted rent of £625,608 p.a.

Peat House, Leicester

Fairfield School of Business took a new lease on the 4th floor at £145,120 p.a. The letting, that was in line with the ERV, represented just under 25% of the building, which is now fully let, producing a total rent of £556,052 p.a.

Topaz Business Park, Bromsgrove

Following the news that Costa was opening a drive-thru at the site, a number of lettings totalling £76,774 p.a. were completed. Further lettings in H1 2025 will see this asset fully let. The Costa unit has since been sold for £1.6 million.

Jasper Retail Park, Tunstall

McDonalds signed a new 20-year lease at £55,000 p.a. This was a positive letting and has enhanced the offer at the scheme, leading to increased footfall for the other tenants.

Market Shopping Centre, Crewe

Following lengthy discussions, British Heart Foundation signed a 10-year lease at £57,500 p.a., taking just under 11,000 sq ft at the scheme.

Post Year End Activity and Sentiment

There are currently £230,110 p.a. of pipeline lettings that will improve our occupancy and contracted rental income levels and will reduce void costs across the portfolio.

Portfolio Summary

*Land holdings are excluded from the yield calculations

Environmental, Social and Governance ("ESG")

Whilst managements' primary focus is asset management, the sale of assets and debt repayment in line with the stated strategy, the business continues to recognise the importance of incorporating ESG into the working practices at REI. The ESG Committee, formed in 2021, continues to implement the ESG framework for the business. 

The reduction of the portfolio's carbon footprint remains a priority for the business. Working with Systemslink, we can confirm an 18.24% reduction in carbon emissions for electricity and gas (for landlord-controlled areas only) between 1 January 2023 and 31 December 2024. This reduction is in part due to our tenants being more aware and conscientious, proactive initiatives such as LED lamp replacement and boiler upgrades and, the fact that we have sought vacant possession on some assets in readiness for sale. Going forward, as energy contracts expire, they are being replaced with 100% green-only electricity contracts where possible.

*applies to 0.9 million sq ft of the portfolio that is classed as landlord-controlled areas

Portfolio Energy Performance Certification

REI continues to ensure our assets meet the UK statutory regulations for EPCs. We will continue to upgrade assets when required. An overview of the asset EPC ratings across the portfolio is noted below:

FINANCIAL REVIEW

Overview

In line with the Company's strategic objective of an orderly sale of the Company's portfolio, we disposed of assets worth £18.9 million, leading to a 24% decrease in underlying profit before tax to £3.4 million (FY 2023: £4.5 million). Investment property sales during the year realised a surplus of £631,000 (FY 2023: £182,000 loss).

The loss before tax was £2.4 million (FY 2023: £9.4 million loss), impacted by a £6.3 million revaluation deficit on investment properties (FY 2023: £13.2 million deficit), a non-cash item.

In line with our strategy, receipts from disposals were used to repay £15.2 million of debt. This reduced our total debt to £39.2 million (FY 2023: £54.4 million), improving the loan-to-value (LTV) ratio (net of cash) to 26.4% (FY 2023: 32.4%). REI continues to maintain relationships with three lenders, and continues to comfortably meet all banking covenants, with headroom and cure facilities in place.

As anticipated, contracted rental income decreased to £9.0 million (FY 2023: £10.9 million), largely due to disposals and some reduction from lease events across the portfolio. Occupancy levels remained strong at 82.04% (FY 2023: 83.03%). The reduction in contracted rental income, although expected, contributed to a decrease in total revenue to £10.8 million (FY 2023: £11.5 million). Our like-for-like rental income also dropped to £9.0 million per annum (FY 2023: £9.5 million per annum).

Despite the reduction in revenue due to disposals, we maintained dividend payments throughout the year, with 0.5p per share paid in Q1, Q2, and Q3, all fully covered. The final dividend for 2024 is confirmed at 0.4p per share, resulting in a fully covered total dividend of 1.9p for the year (FY 2023: 2.5p).

Results for the Year

The loss before tax for the year was £2.4 million (FY 2023: £9.4 million loss), primarily driven by a £6.3 million revaluation deficit on investment properties (FY 2023: £13.2 million deficit), a £631,000 surplus on the sale of investment properties (FY 2023: £182,000 loss), a provision for the STIP of £300,000 (FY 2023: £Nil), and a £282,000 gain in the market value of our interest rate hedging instruments (FY 2023: £499,000 loss). Underlying profit decreased to £3.4 million (FY 2023: £4.5 million).

Revenues reduced to £10.8 million (FY 2023: £11.5 million), largely due to a loss of £1.9 million in rental income, primarily from disposals and anticipated lease events.

Administrative and overhead costs were reduced to £2.3 million (FY 2023: £2.6 million). The overall reduction in overheads was £600,000 mainly due to the reduction in executive salaries of £300,000 but then offset by a provision of £300,000 for STIP costs (FY 2023: £Nil) which was introduced during the year, although payment is deferred until completion as per the STIP rules.

The Group focused on using the proceeds from the sale of investment property to repay debt of £15.2 million during the year. However, interest costs increased to £3.3 million (FY 2023: £2.4 million) as favourable fixed rates on the loan facilities matured.

(Loss)/earnings per share were:

Basic: (1.35)p (FY 2023: (5.4p))

Diluted: (1.35)p (FY 2023: (5.4p))

EPRA: 1.9p (FY 2023: 2.6p)

Shareholders' funds decreased to £89.5 million at 31 December 2024 (FY 2023: £95.6 million) primarily as a result of the loss on property portfolio revaluation.

Basic NAV: 51.3p (FY 2023: 55p)

EPRA NTA: 51.3p (FY 2023: 54.9p)

Finance & Banking

After achieving sales of £18.9 million in 2024 and repaying £15.2 million in debt, total debt as of 31 December 2024 stood at £39.2 million (FY 2023: £54.4 million). This amount has been further reduced to £38.2 million following the year end. As at 31 December 2024, the Group held £6.9 million in cash with three banking partners, continuing to comfortably meet all banking covenants.

During the period, the cost of debt was maintained at 6.5% with 25% of the portfolio's debt fixed. Management are encouraged by reducing interest rates and debt repayment remains management's priority. At this time, it is prudent to maintain a strong cash reserve in case the business needs to provide bank security in the form of cash. The Company continues to maximise returns on its cash holdings, with £6.9 million in cash at the year end, most of which is on deposit earning an interest rate of 4% with instant access. The LTV as at 31 December 2024 was 32.0% (FY 2023: 38%) and the LTV (net of cash) was 26.4% (FY 2023: 32.4%). The Group's hedge facility improved by £282,000 for the year to 31 December 2024.

Refinancing

In March 2025, the Group extended the £12.6 million facility with Lloyds Banking Group Plc for a further 12 months to 29 May 2026 and the £24 million facility with National Westminster Bank Plc for a further 12 months to 1 June 2026. As with the previous refinancing in 2024, the facilities have each been extended on a short term basis to reflect the Group's intention to repay debt as a priority using disposal proceeds.

Going Concern

The consolidated financial statements for the Group have been prepared on a going concern basis.

Taxation

The Group converted to a Real Estate Investment Trust (REIT) on 1 January 2015. Under REIT status the Group does not pay tax on its rental income profits or on gains from the sale of investment properties. The Group continues to meet all REIT requirements for REIT status.

Dividend

Under the REIT status the Group is required to distribute at least 90% of rental income taxable profits arising each financial year by way of a Property Income Distribution. Quarterly dividends commenced in 2016.

Despite rental income reducing as our strategic disposal programme progressed, dividend payments continued without interruption in 2024 due to a robust operational business performance. The first three quarterly dividends for 2024 were paid at 0.5p per share, fully covered, with the final dividend for 2024 set at 0.4p per share. This results in a total, fully covered, uninterrupted dividend payment of 1.9p for 2024 (FY 2023: 2.5p). Based on a mid-market opening price of 28.5p on 24 March 2025, this equates to a yield of 6.7%. The dividend for 2025 will depend on the pace of further disposals. 

The final 2024 dividend will be paid on 30 April 2025 as an ordinary dividend, to all shareholders on the register as at 4 April 2025 with an ex-dividend date of 3 April 2025. The Board remains committed to paying a fully covered dividend, subject to the rate of disposal of assets.

Marcus Daly, Finance Director

24 March 2025

Real Estate Investors plc

Consolidated statement of comprehensive income

For the year ended 31 December 2024

The results of the Group for the current and prior year related entirely to continuing operations.

Real Estate Investors plc

Consolidated statement of changes in equity

For the year ended 31 December 2024

Real Estate Investors plc

Consolidated statement of financial position

At 31 December 2024

Real Estate Investors plc

Consolidated statement of cash flows

For the year ended 31 December 2024

+

NOTES:

Cash and cash equivalents consist of cash in hand and balances with banks only.

Real Estate Investors plc

Notes to the preliminary announcement

For the year ended 31 December 2024

1. Basis of preparation

The financial statements have been prepared under the historical cost convention, except for the revaluation of properties and financial instruments held at fair value through profit and loss, and in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006.

It should be noted that accounting estimates and assumptions are used in preparation of the financial statements. Although these estimates are based on management's best knowledge and judgement of current events and actions, actual results may differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are set out in the Group's annual report and financial statements.

The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries made up to 31 December each year. Material intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The principal accounting policies are detailed in the Group's annual report and financial statements.

Going concern

The Group has prepared and reviewed forecasts and made appropriate enquiries which indicate that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of 12 months from the date of approval of these financial statements to 31 March 2026. These enquiries considered the following:

· the significant cash balances the Group holds and the low levels of historic and projected operating cash outflows

· any property purchases will only be completed if cash resources or loans are available to complete those purchases

· the Group's bankers have indicated their continuing support for the Group. In March 2025, the Group extended the £12.6 million facility with Lloyds Banking Group Plc for 12 months to 29 May 2026.

· In March 2025, the Group extended the facility of £24 million with National Westminster Bank PLC by a further 12 months to 1 June 2026.

· The directors have at the time of approving these financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future being a period of not less than 12 months from the date of approval of these financial statements.

For these reasons, the Directors continue to adopt the going concern basis in preparing the financial statements.

2. Gross profit

3. Earnings per share

The calculation of earnings per share is based on the result for the year after tax and on the weighted average number of shares in issue during the year.

Reconciliations of the earnings and the weighted average numbers of shares used in the calculations are set out below.

The European Public Real Estate Association indices below have been included in the financial statements to allow more effective comparisons to be drawn between the Group and other business in the real estate sector.

EPRA EPS per share

3 Earnings per share (continued)

NET ASSET VALUE PER SHARE

The Group has adopted the new EPRA NAV measures which came into effect for accounting periods starting 1 January 2020. EPRA issued new best practice recommendations (BPR) for financial guidelines on its definitions of NAV measures. The new NAV measures as outlined in the BPR are EPRA net tangible assets (NTA), EPRA net reinvestment value (NRV) and EPRA net disposal value (NDV).

The Group considered EPRA Net Tangible Assets (NTA) to be the most relevant NAV measure for the Group and we are now reporting this as our primary NAV measure, replacing our previously reported EPRA NAV and EPRA NNNAV per share metrics. EPRA NTA excludes the intangible assets and the cumulative fair value adjustments for debt-related derivatives which are unlikely to be realised.

The adjustments made to get to the EPRA NAV measures above are as follows:

• Real estate transfer tax: Gross value of property portfolio as provided in the Valuation Certificate (i.e. the value prior to any deduction of purchasers' costs).

• Fair value of derivatives: Exclude fair value financial instruments that are used for hedging purposes where the company has the intention of keeping the hedge position until the end of the contractual duration.

3 Earnings per share (continued)

4. Investment properties

Investment properties are those held to earn rentals and for capital appreciation.

The carrying amount of investment properties for the periods presented in the consolidated financial statements is reconciled as follows:

5. Publication

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The consolidated statement of financial position at 31 December 2024 and the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows and the associated notes for the year then ended have been extracted from the Group's financial statements upon which the auditor's opinion is unqualified and does not include any statement under section 498 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2024 will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

6.  Copies of the announcement

Copies of this announcement are available for collection from the Company's offices at 2nd Floor, 75-77 Colmore Row, Birmingham, B3 2AP and from the Company's website at www.reiplc.com. The report and accounts for the year ended 31 December 2024 are available from the Company's website and will be posted to shareholders in April 2025.