Real Estate Investors plc (REI) is preparing to sell off over £50 million of assets in the fourth quarter of 2025 to satisfy growing investment demand following recent interest rate reductions.
Subject to market conditions, the Midlands-focus Real Estate Investment Trust, is set to bring to market £54 million of larger portfolio assets.
This is in addition to a pipeline of sales contracted, completed or in legals since the 31 December 2024 year end totalling £11.3 million.
And a further £14.4 million of portfolio assets is currently being marketed to the private investor audience.
Paul Bassi, chief executive of Birmingham-based REI, said: “Debt reduction remains a priority for capital receipts.
“Mindful of the anticipated and subdued market conditions experienced in the first half of 2025, which are likely to continue in the second half, we are pleased with our planned sales and debt reduction to date.
“We look forward to larger sales in the fourth quarter of 2025 and the first six months of 2026 which should benefit from recent and anticipated future interest rate reductions and the loosening of borrowing criteria by UK banks.
“We are halfway through our three-year orderly sales programme and remain focused on our strategic objective of repaying all our borrowing from targeted sales in order to commence our capital repayment programme to our shareholders.
“We will remain open to a corporate sale or a portfolio sale of our remaining properties.
“We are committed to maximising shareholder value during the sales programme while continuing to pay a covered dividend, subject to the pace of disposals.”
Total debt, which is scheduled to reduce further from deferred contracted sales, is now £34.9 million, down from £39.2 million at the end of 2024.
Occupancy is up to 85.5% from 82.04% and contracted rental income remains steady at £9 million per annum, with rental collection for the first half of 2025 at 99.75%.
REI’s asset management team has completed 12 lease events in the year to date and has a strong new lettings pipeline of £492,000 per annum in legals.
Paul Bassi said: “REI’s portfolio is performing well with stable occupancy and excellent rent collection, plus numerous asset management initiatives that have the potential to improve occupancy, income and capital values.”
REI will release its interim results for the six months to 30 June 2025 on 23 September 2025.
