21st Feb 2018 09:00
RDI REIT P.L.C.
("RDI" or the "Company")
(Registered number 010534V)
LSE share code: RDI
JSE share code: RPL
ISIN: IM00B8BV8G91
LEI: 2138006NHZUMMRYQ1745
LONDON SERVICED OFFICES PROPERTY TOUR
RDI, the FTSE 250 income focused UK-REIT, together with its new strategic partner, Office Space in Town ("OSIT"), will host a property tour for analysts and institutional investors today.
The event will include a presentation hosted by members of the RDI management team and Giles Fuchs, the CEO of OSIT, followed by site visits to three of the four recently acquired Central London serviced offices.
The presentation will be made available on the Company's website (www.rdireit.com) later today.
Mike Watters, CEO of RDI commented:
"We are pleased to have the opportunity to introduce the OSIT management team and recently acquired serviced offices. These well-located London assets are underpinned by strong real estate fundamentals, whilst delivering attractive yields in excess of 6%.
"Since acquisition, trading performance has been positive and ahead of management's expectations reflecting the strong occupier demand for flexible, cost efficient office space.
"We will be hosting a number of property tours in the future to showcase the income-producing opportunities that these properties present."
For further information and to be included on future property tours:
RDI REIT P.L.C. Mike Watters, Stephen Oakenfull, Janine Ackermann
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Tel: +44 (0) 20 7811 0100 |
FTI Consulting UK Public Relations Adviser Dido Laurimore, Claire Turvey, Ellie Sweeney
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Tel: +44 (0) 20 3727 1000 |
Instinctif Partners SA Public Relations Adviser Frederic Cornet, Lizelle du Toit
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Tel: +27 (0) 11 447 3030 |
Note to editors:
Acquisition summary
· Four Central London serviced offices valued at £161.7 million
· The equity consideration of £72.5 million reflects an 80% interest in the portfolio and includes transaction costs of less than 1.0%
· Existing debt facilities of £73.5 million reflects an LTV of 45%, in line with the Company's strategic priority to reduce Group leverage
· Implied net initial yield of over 6.0%
· The net cash yield on equity is anticipated to be in excess of 9.0%
· Office Space in Town ("OSIT"), the Company's new strategic partner, will retain the remaining 20% interest in the portfolio and receive an EBITDA based management fee to ensure strong alignment of interests
· London is the leading serviced office market globally, where structural and behavioural changes are driving strong demand for flexible, cost efficient space
· OSIT provides a premium flexible office service at mid-market rates which has consistently delivered high levels of occupancy and client satisfaction
· All four properties have been extensively refurbished and redeveloped by OSIT in the last four years
· All assets are strategically positioned within short walking distances of London Underground stations
· In an exciting and growing market, this acquisition presents a scalable platform which could be easily integrated with future potential acquisitions and which complements RDI's existing portfolio
About RDI
RDI is a FTSE 250 UK Real Estate Investment Trust (UK-REIT) committed to becoming the UK's leading income focused REIT. The Company's income-led business model and strategic priorities are designed to offer shareholders superior, sustainable and growing income returns, with a target growth in underlying earnings per share of 3%-5% across the medium term.
Income sustainability is underpinned by a diversified portfolio and tenant base, with no overreliance on any one sector or tenant, together with an efficient capital structure. The secure and growing income stream is 39% indexed and has a WAULT of 7.4 years to first break (8.5 years to expiry). This is complemented by an average debt maturity of 7.3 years of which over 90% of interest costs are either fixed or capped. The Company is focused on all aspects impacting shareholder distributions and reports one of the lowest cost ratios in the industry whilst maintaining a low cost of debt. All figures as at 31 August 2017.
The Company owns properties independently valued at £1.5bn in the United Kingdom and Germany, Europe's two largest and most transparent property markets. RDI invests in assets with strong property fundamentals spread across UK shopping centres, UK retail parks, UK offices, UK logistics, UK hotels and German retail.
RDI holds a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange and is included within the FTSE 250, EPRA and GPR indices.
For more information on RDI, please refer to the Company's website www.rdireit.com
About Office Space in Town
Office Space in Town ("OSIT") was established in 2009 by a brother and sister team, Giles and Niki Fuchs, who have both been involved in the Serviced Office Industry for over 25 years.
It is a service company that offers businesses and individuals workspace solutions through providing serviced offices, managed offices, co-working space, meeting rooms and virtual offices in London, Cardiff, Northampton, and Edinburgh.
The company currently manages six London and five regional flexible offices, including the four offices acquired by RDI.
For more information on OSIT, please refer to the company's website www.officespaceintown.com
Pro forma portfolio
Pro forma portfolio | % of portfolio by market value | Market value (£m) | Annual-ised gross rental income (£m) | ERV (£m) | EPRA NIY | EPRA topp-ed up yield | Reversion-ary yield | Weighted average lease length | EPRA voids (by ERV) | % Indexed |
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UK Shopping Centres | 19% | 316.5 | 26.2 | 27.1 | 6.4% | 6.8% | 8.0% | 8.0 | 3.3% | 27.5% |
UK Retail Parks | 10% | 169.9 | 11.4 | 10.8 | 5.8% | 6.2% | 6.0% | 7.7 | 3.8% | 4.7% |
UK Other Retail | 2% | 28.3 | 2.3 | 2.3 | 7.5% | 7.5% | 7.8% | 16.6 | - | - |
UK Retail | 31% | 514.7 | 39.9 | 40.2 | 6.3% | 6.6% | 7.3% | 8.4 | 3.2% | 19.4% |
UK Offices - Greater London | 6% | 90.2 | 3.4 | 4.4 | 2.8% | 3.3% | 4.6% | 5.1 | 4.1% | 23.7% |
UK Offices - Flexible London | 10% | 161.7 | 10.3 | 10.3 | 6.0% | 6.0% | 6.0% | 2.2 | 5.6% | - |
UK Offices - Regions | 7% | 113.6 | 9.6 | 9.2 | 6.9% | 7.7% | 7.6% | 3.3 | 4.2% | 23.0% |
UK Distribution & Industrial | 7% | 117.6 | 6.3 | 7.5 | 4.8% | 5.0% | 6.0% | 5.0 | 3.7% | - |
UK Automotive | 3% | 42.8 | 2.9 | 2.3 | 6.3% | 6.3% | 5.0% | 12.3 | - | 100.0% |
UK Commercial | 33% | 525.9 | 32.5 | 33.7 | 5.4% | 5.7% | 6.0% | 4.3 | 4.2% | 18.2% |
Greater London RBL portfolio | 11% | 184.4 | 11.9 | 12.5 | 6.0% | 6.0% | 6.4% | 8.3 | - | - |
IHL Hotels - RBL Portfolio | 5% | 75.4 | 6.0 | 6.0 | 7.5% | 7.5% | 7.5% | 10.0 | - | - |
Edinburgh | 2% | 39.1 | 2.6 | 3.0 | 6.1% | 6.1% | 7.1% | 8.5 | - | 3.4% |
IHL Hotels - Travelodge Portfolio | 2% | 29.0 | 1.6 | 1.6 | 5.3% | 5.3% | 5.3% | 21.1 | - | 100.0% |
Enfield Travelodge | 1% | 16.1 | 0.7 | 0.7 | 4.2% | 4.2% | 4.2% | 29.9 | - | 100.0% |
UK Hotels | 21% | 344.0 | 22.8 | 23.8 | 6.2% | 6.2% | 6.5% | 10.3 | - | 10.5% |
Total UK | 85% | 1,384.6 | 95.2 | 97.7 | 5.9% | 6.2% | 6.6% | 7.5 | 2.8% | 16.9% |
German Shopping Centres | 11% | 181.3 | 9.4 | 10.6 | 4.2% | 4.3% | 5.5% | 4.8 | 0.6% | 94.5% |
German Supermarkets and Retail Parks | 4% | 68.7 | 4.8 | 4.9 | 5.9% | 5.9% | 6.6% | 5.2 | 3.2% | 94.4% |
Europe | 15% | 250.0 | 14.2 | 15.5 | 4.7% | 4.7% | 5.8% | 4.9 | 1.4% | 94.5% |
Total | 100% | 1,634.6 | 109.4 | 113.2 | 5.7% | 6.0% | 6.5% | 7.1 | 2.6% | 27.0% |
Pro forma reflects the portfolio as at 31 August 2017 adjusted for major transactions post year end.
Related Shares:
RDI.L