“Resilient” year at real estate investment trust

Managing Director Paul Bassi

The executive director of a real estate investment trust headquartered in Birmingham has described the company’s performance as “resilient” despite slipping to a pre-tax loss.

Real Estate Investors posted a pre-tax loss of £ 20.2 million for the year ended December 31, 2020 after a profit of £ 3.7 million.

Sales fell from £ 16.4 million to £ 16.4 million over the same period.

However, the company posted an underlying profit of £ 8.1 million.

Chairman Paul Bassi said: “This has been a robust operating performance in uniquely difficult circumstances that has resulted in a stable underlying profit of £ 8.1 million, an increase of 1.2 percent over the previous year. This was it Only possible due to the diversity of our portfolio in a covered dividend of 3 pence for the year.

“Valuation declines are symptomatic of market uncertainty and sentiment caused on this occasion by the impact of a global pandemic. They are understandable and we expect them to reverse when investment begins again.

“We can already see from the prices in the market that confidence is returning to the Midlands property market, along with the government’s timetable for the removal of lockdowns.

“Management is currently focused on certain sales to meet investor demand. This will help further reduce the company’s gearing and free up existing cash and banking facilities for strategic and opportunistic acquisitions.”