**Summary**
Real Estate Investors Plc (REI), a UK-based Midlands-focused Real Estate Investment Trust (REIT), reported its final results for the year ended 31 December 2025. Key highlights include
**Financial Performance** Revenue decreased to £9.4 million (from £10.8 million in 2024), with an underlying profit before tax of £2.9 million (down from £3.4 million). A pre-tax loss of £0.8 million was recorded, primarily due to a £3.0 million revaluation deficit on investment properties.
**Dividend** A fully covered dividend of 1.6p per share was declared for 2025, representing a yield of 5.2%.
**Disposals and Debt Reduction** REI completed or contracted sales of £8.0 million, using proceeds to reduce debt by £5 million to £34.2 million. Post-year-end, debt was further reduced to £33.2 million.
**Portfolio Performance** The portfolio demonstrated robust rent collection at 99.28%, with a contracted rental income of £8.3 million p.a. and an improved WAULT of 6.01 years to break and 7.50 years to expiry. Occupancy stood at 78.69%.
**Post-Year-End Activity** Occupancy improved to 78%, with contracted rental income at £8.2 million p.a. and WAULT at 5.99 years to break and 7.51 years to expiry. A healthy pipeline of new income and disposals is in progress.
**Strategic Sales Programme** REI remains focused on completing its orderly sales programme within the 3-year timeframe, aiming to repay debt and return capital to shareholders. The company is actively marketing assets and exploring options to maximize shareholder value, including potential portfolio or entire company sales.
**ESG Initiatives** REI achieved a 31% reduction in carbon emissions for landlord-controlled areas in 2025 and is transitioning to 100% green electricity contracts.
Despite market challenges, REI continues to execute its strategy, prioritizing debt reduction and shareholder returns while maintaining operational resilience.
| Financial Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue (£ million) | 9.4 | 10.8 | -13% |
| Underlying Profit Before Tax (£ million) | 2.9 | 3.4 | -15% |
| Pre-tax Loss (£ million) | -0.8 | -2.4 | 67% Improvement |
| Contracted Rental Income (£ million) | 8.3 | 9.0 | -8% |
| EPRA EPS (pence) | 1.7 | 1.9 | -11% |
| Basic Loss per Share (pence) | -0.5 | -1.4 | 64% Improvement |
| Dividend per Share (pence) | 1.6 | 1.9 | -16% |
| Average Cost of Debt (%) | 5.75 | 6.5 | -11% |
| Gross Property Assets (£ million) | 115.7 | 124.6 | -7% |
| EPRA NTA per Share (pence) | 49.1 | 51.3 | -4% |
| Debt (£ million) | 34.2 | 39.2 | -13% |
| Loan to Value (net of cash) (%) | 24.8 | 26.4 | -6% |
| Cash at Bank (£ million) | 6.1 | 6.9 | -12% |