Real Estate Investors (RLE) delivered a solid first-half performance that saw underlying profits, excluding gains on asset sales, increase by 29 per cent to £3.1m. Shareholders were rewarded with a 20 per cent hike in the quarterly dividend.
The company operates primarily in the Midlands, where demand for commercial space and residential accommodation remained brisk, notably from an expanding motor industry, while sterling’s decline prompted strong interest in real estate assets from overseas investors.
A total of £8.9m was spent on acquisitions, while disposals generated £12.4m. Occupancy rates rose to a record 94.8 per cent, which helped to lift contracted rental income by 2 per cent to £15.2m.
Analysts at Liberum are forecasting adjusted net asset value (NAV) at the December 2017 year-end of 68.5p (up from 66.2p a year earlier).
