Real Estate Investors sees EPRA NAV/share rise after year of progress

Real Estate Investors' shares are up almost 2% after it posted a rise in EPRA net asset value per share, as its full-year pre-tax profit slipped lower.

Chief executive Paul Bassi said the year was one of excellent progress, despite an uncertain economic and political backdrop.

During the 12-month period the company said it secured record property ownership, revenue and contracted rental income, with its underlying profits rising 271% to £5.2m, and set to grow further as we start to see the full contribution from the acquisitions made in the prior year.

"Our like-for-like portfolio valuation was up 3.9% over the year, reflecting the active asset management that we have undertaken," the CEO said.

"With the benefit of our clear pathway to future growth in rental income, we also anticipate further growth in our dividend payments."

Bassi noted that London and the South East had enjoyed more than half a century of exceptional economic prosperity, but was now witnessing a political, social and economic re-balancing within the UK.

He saw the UK's regions -- in particular Birmingham and the West Midlands -- looked set to enter a new golden era, propelled in part by the arrival of major projects such as HSBC's HQ move and HS2, but also by the continued commercial growth in the area.

Pre-tax profit was £8.2m, from £12.2m. Change in fair value of investment properties were £3.5m, from £8.6m. EPRA net asset value per share was 66.2p, from 64.5p. Total dividend was 2.625p, up 31.3%.

At 12:57 GMT, shares in AIM-quoted Real Estate Investors were up 1.7% to 60p each.