Real Estate Investors plc
Real Estate Investors PLC is an AIM-listed, UK Real Estate Investment Trust (REIT) that owns and manages a commercial property portfolio concentrated in the established and proven markets of the greater Midlands area, predominantly office and retail assets. The business model is generating rental and capital growth through active asset management, with disposal proceeds historically recycled into acquisitions but currently being used to repay debt and return capital to shareholders under a 2024-announced three-year orderly disposal strategy.
10 annual reports read, FY2016 to FY2025
Open a year to see what its report said. Every line in it carries the page it was read from.
Sources: Companies House (10)
FY2026Next report expected 31 Mar 2027
- Open the reportJSONComing soonSixty seconds on the FY2025 report
Real Estate Investors PLC owns and lets offices and shops, mostly in the Midlands. It is selling its properties under a three-year plan to pay off debt and return money to shareholders. In the year to 31 December 2025, revenue fell to £9.4m from £10.8m. It made a loss of £839k, smaller than the £2.4m loss the year before. Revenue fell mainly because rent was lost from properties that were sold and from units left empty. Some tenants, including River Island and Wilkos, ran into financial trouble. The loss came largely from a £3.0 million drop in the estimated value of its properties. That is a paper loss, with no cash leaving the business. Lower interest costs helped. The company ended the year with £6.1m in cash and borrowings of £34.2m, lower than a year earlier. It raised very little from shareholders. The dividend for the year was 1.6p per share, against 1.9p. Management aims to finish the sales plan on time but says more time may be needed given market conditions. The board also noted the Middle East conflict's effect on markets and interest rates. The auditor raised no concerns, and its banks have extended its loans into 2027.
From the reportevery line sits on the page it namesWhat drove revenueContracted rental income from a diversified commercial portfolio (34 assets, 119 occupiers)
Contracted rental income at year-end £8.3m p.a. (FY2024: £9.0m p.a.), not reliant on one single tenant or business sector
page 3AndAsset management/leasing activity
35 lease events completed during the year securing £394,819 p.a. of new letting income, partially offsetting income lost through disposals and lease events
page 5What moved the margintailwindReduced average cost of debt (5.75% vs 6.5% FY2024) following hedge facility closure
Average cost of debt reduced to 5.75% (FY2024: 6.5%); interest costs reduced to £2.4m (FY2024: £3.3m)
page 3AndheadwindNon-cash downward revaluation of investment properties
£3.0 million non-cash downward revaluation deficit (FY2024: £6.3m deficit), primarily driving pre-tax loss of £0.8m
page 3What management saidWe remain focused on concluding the strategy within the 3-year time frame but, in view of current market conditions, a further extension to maximise value and the quantum of the return of capital to our shareholders may be necessary.
page 6After the year endIn February 2026 the Group extended the £22.4 million National Westminster Bank facility for a further 12 months to 1 June 2027
page 65The dividendBoard remains committed to paying a fully covered dividend, subject to business performance and pace of disposals (REIT requires distribution of at least 90% of rental taxable profits). FY2025 total dividend 1.6p per share (FY2024: 1.9p), fully covered; final dividend of 0.4p per share declared, ex-dividend 2 April 2026, record date 7 April 2026, payment 30 April 2026. Total dividends declared/paid since 2012 policy commencement exceed £56.7 million.
page 6Going concern and the auditUnqualified ('true and fair') audit opinion from Cooper Parry Group Limited (Melanie Hopwell, Senior Statutory Auditor); key audit matters were risk of fraud in revenue recognition and valuation of investment properties, both concluded with no material misstatements identified. Group materiality set at £1,250,000 (1% of total assets); performance materiality £996,000. Directors adopted going concern basis for a period of not less than 12 months from 23 March 2026 approval date, supported by cash balances, bank facility extensions (NatWest £22.4m to June 2027, Lloyds £9.6m to May 2027) and continuing bank support; no material uncertainty identified by auditor.
page 26The risks it names first- Investment portfolio: tenant default, change in demand for space, market pricing affecting value, inflationp.16
- Financial: going concern, reduced availability or increased cost of debt, interest rate sensitivityp.16
- People: retention/recruitmentp.16
- Corporate: reputational risk, legal and regulatory risk, health & safety, IT/cyberp.16
Read from C001078-AR-2025-ch.
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