Real Estate Investors expects debt-free position by fourth quarter

(Alliance News) - Real Estate Investors PLC on Friday said its decision to delay placing assets on the market until April was correct, despite a challenging commercial property market.

The Midlands-focused REIT said GBP15.7 million of assets were under offer or in legals. Of this, GBP10.7 million had unconditionally exchanged or completed at 92% of December 2025 book value.

The company said scheduled sales in the fourth quarter, combined with its existing legal pipeline, would repay its debt in full and allow it to begin returning capital to shareholders.

The portfolio continues to deliver contracted annual rental income of GBP7.7 million, which will rise to GBP8.1 million "following the completion of pipeline lettings," the company said.

Rent collection stood at 99% for both year-to-date and the current quarter.

"Although retail investment market values are stable and improving, office market transactions are reduced with values remaining under pressure," the company said.

Real Estate Investors said debt repayment would leave it with a debt-free portfolio, which it believes could attract regional property company buyers due to its geographical focus, income generation and asset base.

The company reaffirmed its fully covered quarterly dividend of 0.375 pence per share, announced in July, down 6.3% from 0.4 pence a year earlier.

The company said it has so far paid a total of GBP57.4 million in dividends to shareholders.

Chief Executive Paul Bassi said: "We continue to operate in an extremely challenging sales environment and have seen some sales in H1 2026 despite the [Middle East] conflict and interest rate volatility continuation.

"Despite a tough marketplace, and subject to ongoing market conditions, we anticipate the repayment of our debt from our legal pipeline and scheduled further sales and remain resolutely focused on returning capital to shareholders which will commence immediately after the repayment of the Company's borrowings.

"We remain open to a corporate transaction that will deliver shareholder value and a more rapid conclusion to our stated strategy."

The trading update precedes the company's interim results, due to be published on September 30.

Shares in Real Estate Investors were up 3.2% at 31.68 pence on Friday afternoon in London.

By Niall Holden, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.