(Alliance News) - Real Estate Investors PLC shook off political and economic uncertainty in the UK to report an annual rise in contracted rents, the UK Midlands-focused real estate investment trust said on Wednesday.
The company, which has a portfolio of 1.6 million square feet of commercial property, said contracted rents rose by 3.9% in 2019 to GBP17.7 million. In 2019, the company completed 44 new lettings and nine lease renewals.
Chief Executive Paul Bassi said: "Despite high levels of economic and political uncertainty creating a relatively static market in 2019, we have increased our revenue and covered our dividend payments.
The company also hailed its "diversified portfolio", ensuring it is not over-reliant on one industry or a single occupier, Real Estate Investors added.
In retail, its focus has been on convenience and neighbourhood shopping, rather than department stores and indoor shopping centres. In 2019, only two units, representing 0.6% of income, were affected by insolvencies.
In 2019, some retail landlords were blighted by company voluntary agreements, an insolvency arrangement which ensures tenants are only entitled to pay a small amount to settle debts with its creditors.
In November, shopping centre owner intu Properties PLC said it was hurt by such agreements being made at UK-based Monsoon Accessorize and Topshop-owner Arcadia Group Ltd.
During 2019, Real Estate Investors also acquired a range of mixed-use investment properties in Leamington Spa, Warwickshire for GBP9.3 million. The units are occupied by "established" firms like Telefonica SA's 02, UK suit retailer Moss Bros Group PLC, McDonald's Corp, and salon chain Toni & Guy.
Looking ahead, the company expects to announce an increase to its final dividend. For the 2019 financial year, it made an interim payout of 1.875 pence per share and a third quarter dividend of 0.9375p.
"Looking ahead into 2020, we anticipate the pent-up requirement to trade that has been accumulating over the last 12 months being released which is likely to stimulate our markets and create further opportunities for Real Estate Investors," Bassi said.
Shares in the company were 0.9% higher at 53.50p each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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