THE UK'S ONLY MIDLANDS FOCUSED REIT Results for the year ended 31 Dec 2022
Investor and Analyst Presentation
THE MIDLANDS
INVESTOR
REAL ESTATE INVESTORS PLC
INTRODUCTION
• UK's only Midlands focused REIT
• Gross property assets of £175.4 million
• Multi-sector diversification, no material reliance on any sector, asset or occupier
• Break up opportunities within assets to satisfy strong private investor demand
• Multi-banked across 4 lenders
• Covered dividend policy
• Leverage providing certainty and security
• Dividend paid quarterly
• 201 tenants & 42 assets
• Internally managed
• 100+ years of combined experience
• Board equity alignment - 11.6% management holding
• Resilient subsectors neighbourhood convenience, government and out of town offices
• Value creation rent reviews, lease renewals, lettings, change of use
Net LTV 36.8%
• Covenant compliant
• Acquisitions at high initial yields - Targets: 8-12% yield and £4m-£20m lot size
• Strong market reputation and access to debt
• £46.3 million declared/paid since commencement of dividend policy (2012)
• 100% of debt fixed
• Scalable property management platform
• Disposals at/above book value - capital recycling
• Low cost of debt of 3.7%
REI TodayDiversified PortfolioActive Asset ManagementMulti-bankedAttractive Returns
HIGHLY EXPERIENCED BOARD & PROVEN TRACK RECORD
• Joined REI Board in 2010, appointed Chairman in 2021
• Joined REI Board in 2014
• Joined REI Board in 2021
• Joined REI Board in 2006
• Joined REI Board in 2006
• 0.14% shareholder in REI
• 0.17% shareholder in REI
• Chartered Surveyor with nearly 40 years' experience
• 9.26% shareholder in REI
• 2.03% shareholder in REI
• Consultant for a leading firm of Independent Financial Advisers
• Joined Caledonia in 1997 from Close Brothers Group Plc. He was appointed a director in 2005 and served as Chief Executive from 2010 until becoming non-executive in 2022
• Peter has a lifetime of experience in providing IFA services to HNW individuals and sold his IFA company to a Swiss Bank in 2007
• Previous Regional Managing Director for GVA, serving over 22 years on the Board
• Non-executive Chairman of Bond Wolfe
• Non-executive Chairman of Likewise Plc (listed)
• Current Principal of Avison Young following its acquisition of Bilfinger GVA
• Chartered Accountant with over 30 years' experience in advising on strategic matters and corporate planning, particularly in the property sector
• Non-executive Director of Cobehold, a Trustee of The Rank Foundation and Chairman of Newmarket Racecourses
• Non-Executive Chairman of a number of property related companies
• Former Non-executive Chairman of CP Bigwood Chartered Surveyors
• Former non-executive director of CP Bigwood Chartered Surveyors
• Former Regional Chairman & Strategy Advisor to Coutts Bank (West Midlands)
• Former non-executive Chairman of the Tipton & Coseley Building Society
• Awarded a CBE in 2010 for services to business and the community
Non-Executive
Executive
William Wyatt | Peter London | Ian Stringer | Paul Bassi CBE | Marcus Daly FCA |
Non-Executive Chairman | Non-Executive Director | Non-Executive Director | Chief Executive Officer | Finance Director |
RESILIENT BUSINESS MODEL
IN LINE WITH THE COMPANY'S COVERED DIVIDEND POLICY
SINCE 2012 TOTAL DIVIDENDS DECLARED/PAID TO SHAREHOLDERS = £46.3 MILLION
Financial Crisis / General Election / Scottish Referendum / European Referendum / BREXIT / COVID19
FY 2022
OPERATIONAL HIGHLIGHTS
• Strong overall rent collection for 2022 (adjusted for monthly and deferred agreements) of 99.54%
Contracted Rental Income £m
• The current quarter (Q1 2022) rent collection to date is 99.80%
• Contracted rental income: £12.6 million p.a.
(FY 2021: £14.3 million p.a.) due to sales and known lease events
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
• Gross property assets: £175.4 million (FY 2021: £190.8 million)
Gross Property Assets £m
• On a like for like basis the portfolio valuation has increased by 1.9% to £173.0 million, (FY 2021: £169.8 million)
• Our like-for-like rental income has remained constant at £12.6 million p.a despite sales, due to asset management during the period
• Completed 25 disposals totalling £20.9 million (before costs) representing an aggregate uplift of 8.5% above Dec 21 valuations
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
• Active asset management with 127 lease events during the period
Occupancy %
• Occupancy: 84.54% (FY 2021: 85.75%)
• WAULT of 4.98 years to break and 6.29 years to expiry (FY 2021: 5.03 years / 6.76 years)
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
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Disclaimer
Real Estate Investors plc published this content on 28 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2023 07:47:06 UTC.