REI Regulatory News (RLE)

4 July 2014

Real Estate Investors Plc

("Real Estate Investors", "REI" or "the Company")

Trading Update

Excellent progress on acquisitions and on-going asset management across portfolio

Real Estate Investors (AIM: RLE), the West Midlands based property investment company, is pleased to report the following trading update for the six month period ending 30 June 2014 ahead of announcing the Company's half year results in September:

Summary

· An established and diverse property portfolio focussed across the Midlands, with properties in Birmingham, Walsall, West Bromwich, Bromsgrove, Leamington, Leicester, Edgbaston, Derby, Kings Heath and Rugeley. Overall, we have 686,281 sq ft across 47 buildings and 151 tenants. 19.3% is located in prime Birmingham CBD and 84.4% in Birmingham and Midlands.

· A successful placing in March 2014 raising £20m gross to provide additional resources to capitalise on acquisition opportunities from motivated vendors

· The Company continues to complete lettings in an improved occupier market.

· New tenants include Goodchilds Estate Agents, Clark Brooks Turner Carey Solicitors, The Royal College of Surgeons, YMCA, KSS Leisure, Bad Apple Hair and eCigs UK.

· Sale of Cathedral Place for the sum of £4.606m at a net initial yield of 4.12% as detailed in a separate announcement today

· REI is in discussions to sell further assets from within the portfolio where we have completed our asset management initiatives or received a direct approach.

· Purchases in first half include investment properties in Leamington, Leicester, Northfield, Birmingham and Bromsgrove, plus a former college campus for residential development in Sandwell, for an aggregate consideration of £8.6m.

· New tenants secured from REI's acquisitions during the first six months of the year include:

· HSBC, WBBS, Lunn Poly, First Secretary of State, WH Smith, WH Ireland, Webb Gray Architects, Thomas Cook, Thomson Travel and Sharps Bedrooms.

· £20m pipeline of acquisitions that are criteria compliant providing attractive yields and potential for capital uplift.

· Significantly improved lending market, offering excellent and competitive banking support.

Paul Bassi, Chief Executive,commented: "During the first half of 2014, we have made excellent progress on lettings, acquisitions and sales. I anticipate continued further activity during the second half in a significantly improved regional economy and property market. The Company will continue with its progressive dividend policy and will declare the interim dividend in September 2014 and a final dividend in March 2015. It remains our intention to secure REIT status within the near future."

Enquiries:

Notes to Editors

Real Estate Investors is an AIM listed property investment company with a £75.2m (as at 31 Dec 2013) commercial and residential portfolio principally in the West Midlands and central England.

Real Estate Investors is focused on delivering shareholder value through returns generated from strong yields and capital enhancements. This is achieved by targeting investments in orphaned, distressed, part-let and underperforming commercial and residential property assets.

Real Estate Investors is led by respected property investor Paul Bassi CBE, who has over 30 years of property experience in the West Midlands. Mr Bassi is also founder and non-executive chairman of Bond Wolfe and non-executive chairman of CP Bigwood Chartered Surveyors. Real Estate Investors was admitted to trading on AIM in June 2004. Further information on Real Estate Investors can be found at www.reiplc.com.