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.