Real Estate Investors reports Record Half Year Results

Posted on 16 September, 2015 by Kirsten Kennedy

Birmingham’s increasingly strong regional commercial property market is a cause of great celebration for investors in the area, with local property group Real Estate Investors one of the major beneficiaries of this trend.

Increase profit concept. Businessman plan (predict) profit growth represented by graph.

This week, the real estate investment trust revealed a record breaking half year result along with the news that it has finally broken through the one million square foot mark for assets owned in its extensive portfolio.

During the six months to the 30th of June 2015, the group enjoyed a pre-tax profits boost of an incredible 211 per cent, rising to £8.1 million from the £2.6 million recorded during the same period last year.

In part, this was due to a surplus on the revaluation of interest rate swaps of £690,000 and a separate revaluation surplus of £5.9 million, the latter of which increased year on year from £2.4 million in 2014.

Revenue also climbed impressively from £2.9 million to £3.8 million, equating to a rise of an impressive 31 per cent year on year. A 21 per cent rise in contracted rental income since the end of 2014 played a major role in this, with the £9.3 million income sum marking a new record for the firm.

Real Estate Investors chief executive Paul Brassi believes that the fortuitous West Midlands property market and asset management initiatives undertaken by the group have combined to create the ideal climate for growth.

He says; “Our acquisition strategy is beginning to show positive capital growth and strong cash flows.

“The £45 million placing in April has provided additional capital to allow us to capitalise on market opportunities in a rapidly improving regional market.

“Birmingham and the wider Midlands is re-emerging as a major UK economic powerhouse and, while manufacturing and in particular the automotive sector remains strong, the regeneration of the local economy is underpinned by the growing industries of tourism, education, retail, digital media and technology.”

During the first half of the year, Real Estate Investors engaged in major acquisitive activities as a means of increasing the value of its portfolio, allowing the group to break through the one million square foot owned asset ceiling.

This activity helped the overall ownership portfolio to climb by 26 per cent since the end of 2014, when it totalled just 799,112 square feet.

Like many property investors in Birmingham at present, the group placed a great deal of emphasis upon the office and retail sectors, snapping up properties with strong yields in well located areas. These included the acquisitions of Bearwood Shopping Centre in Birmingham for £8.65 million, a package of offices in the Jewellery Quarter’s St Paul’s Square for £3.75 million and retail space in Acocks Green for £8 million.

Mr Bassi continued; “All of these assets provide asset management potential which will provide income and capital growth.

“I anticipate continued growth in our rental income, profitability, dividend payment and our current available resources establishing a £200 million portfolio within the next six months, subject to sales.”

Do you think Real Estate Investment’s acquisitive strategy will continue to pay off as the Birmingham market grows further in the future?




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants