Birmingham Real Estate Investment Trust gives trading update - announcing £26.9m in property sales
Real Estate Investors plc (REI) has announced total proceeds of £26.9 million from its property sales programme by the end of 2025.
A trading update from the Midlands-focused Real Estate Investment Trust has reported sales of £18.9 million in 2024 and £8.0 million in 2025.
The Birmingham-based company said the disposals had been made despite an “exceptionally subdued market” and had reduced REI’s total drawn debt by more than £20 million in the last two years.
Paul Bassi, chief executive of REI, said: “Despite one of the most challenging transactional markets for UK real estate over the last two years, we have continued to progress our orderly sales programme.
“In an exceptionally subdued market, we completed and contracted disposals of £18.9 million in 2024 and achieved a further £8.0 million in 2025.
“This significantly reduced REI’s drawn debt to £34.3 million, down from £54.4 million on January 1 2024.
“Throughout the period we have continued to pay a covered dividend to our shareholders, now totalling £56 million since the commencement of the dividend policy.
“This both demonstrates our disciplined approach and the resilience of the remaining portfolio.
“With the budget now behind us, interest rates easing and a healthy pipeline of disposals and lettings, we are cautiously optimistic about improving market conditions in 2026.
“The board is heavily invested in the business and firmly aligned with the best interests of shareholders.
“Whilst the focus remains on delivering the disposal strategy within the stated three-year timeframe, including debt repayment and returns of capital to shareholders, we will consider an extension if absolutely necessary, to maximise shareholder value.”
Mr Bassi said REI’s remaining portfolio of 950,423 sq ft is spread across 34 assets with 119 occupiers, and that rent collection in 2025 was stable at 99.28 per cent. He said year-end occupancy was down to 78.69 per cent in 2025, against 82.04 per cent in 2024, due to known lease events and several unexpected tenant Company Voluntary Arrangements (CVAs), most notably River Island.
But most of the affected units already have strong occupier interest and REI is confident about re-lettings. REI’s contracted rental income at the year-end was £8.3 million per annum, against £9 million in 2024, further impacted by the loss of income associated with sales.
Mr Bassi added: “In the year ahead, there is currently a pipeline of sales in legals as we continue to target the strong private investor market and owner occupier demand.
“We also have a selection of new lettings at advanced stages in pipeline legals that would improve our contracted rental income, occupancy and Weighted Average Unexpired Lease Term (WAULT) figures.
“We are now two years into our three-year orderly sales programme and anticipate placing more assets on the market in mid-March 2026.
“This will commence with our larger retail assets that are ready for sale, to capitalise on the recent improvement in investor demand in the retail sector."
The year-end trading update comes ahead of the REI’s announcement of its final results for the year ended December 31 2025, which it expects to publish on March 24 2026.
Mr Bassi added: “In the meantime, REI remains open to exploring a corporate transaction, including the potential sale of the entire portfolio, to maximise shareholder value.”
