Real Estate Investors PLC on Monday said its net asset value declined in the first half of 2023 as investment and sales activity in the year so far ‘has been at its lowest level since the 2008 financial crisis’.
The Birmingham-based company said EPRA NAV per share declined 3.1% to 60.3 pence as at June 30 from 62.2p as at December 31.
More positively, occupancy rate improved to 85.0% from 84.5% over the six months.
Chief Executive Officer Paul Bassi said: ‘Throughout 2023 investment and sales activity has been at its lowest level since the 2008 financial crisis, with corporate and institutional investors remaining dormant. With a lack of available assets for purchase and against the backdrop of an inactive investment marketplace, the diverse nature of our portfolio has allowed us to break-up and sell individual units, taking advantage of the ongoing demand for smaller lot sizes from private investors and owner occupiers. We will continue with this approach until we see a normalised market.’
The company declared a dividend of 0.6250 pence per share for the second quarter of 2023, down 23% from 0.8125p a year prior.
Looking ahead, CEO Bassi said: ‘We are confident that normalised market conditions will return once the trajectory of interest rates settles, allowing us to sell further assets where asset management initiatives have been completed. It is our intention to accelerate our sales programme and we will consider the sale of assets either on an individual or collective basis, on terms that represent value for shareholders.’
Real Estate Investors shares were 1.8% lower at 27.01 pence midday Monday in London.
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