RDI Disposes of Leeds Office for £26.1 Million

RDI REIT P.L.C.

("RDI" or the "Company" or the "Group")

(Registration number 010534V)

LSE share code: RDI

JSE share code: RPL

ISIN: IM00B8BV8G91

LEI: 2138006NHZUMMRYQ1745

RDI DISPOSES OF LEEDS OFFICE FOR £26.1 MILLION

RDI, the FTSE 250 income focused UK-REIT, which has a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, today announces that it has exchanged contracts for the disposal of City Point in Leeds for £26.05 million.

The 5,699 sqm (61,379 sqft) office was originally acquired as part of the Company's AUK Portfolio acquisition in March 2016 for an acquisition price of £21.6 million with over 17% vacancy. In January 2017, RDI let 1,022 sqm (11,000 sqft) to Blacks Solicitors LLP, bringing the asset to full occupancy. The sale price represents a net initial yield of 5.8% and a 15.3% premium to the last reported market value. The geared internal rate of return ('IRR') over the investment period was over 20%.

The property, which has been acquired by West Midlands Pension Fund, delivers total gross annualised rental income of £1.6 million with a WAULT of 3.7 years.

The disposal is in line with RDI's stated strategy of recycling capital out of mature assets and into new growth opportunities. Further details on the Company's progress against strategic priorities will be provided in its interim results which will be announced on Wednesday, 25 April 2018.

Mike Watters, Chief Executive, commented:

"The disposal of City Point, Leeds represents yet another example of delivering value from the AUK acquisition. After two years of owning this asset, we have delivered an excellent 20.6% premium to the acquisition price, whilst also de-risking the portfolio by reducing our exposure to a maturing regional office investment market and an asset with a number of upcoming lease breaks and expiries. We are confident that the progress on our active recycling will support our relentless focus to deliver superior, sustainable and growing distributions."

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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