Real Estate Investors (RLE) investor relations material

Market overview

• Investment market in 2025 was depressed, with commercial property transactions down 40% on the five-year Q1 average and 25% year-on-year to date.

• Retail market values are stable and improving, while office transactions and values remain under pressure.

• Retail occupier market is positive, with falling vacancy rates and limited supply.

Asset sales and debt repayment

• £15.7 million of assets are under offer or in legals since April 2026; £10.7 million has exchanged or completed at 92% of December 2025 book value.

• Scheduled Q4 2026 sales and pipeline completions will repay all debt, enabling capital returns to shareholders.

• Debt reduced from £34.2 million (FY 2025) to £29.2 million currently, with further reductions expected to £24 million by mid-October 2026.

• All Barclays borrowings have been repaid; only NatWest and Lloyds facilities remain, with a conservative LTV and average debt cost of 5.75%.

Portfolio occupancy and rental income

• Legal pipeline of new lettings just under £400,000 p.a.; occupancy to rise to 82.2% from 78.0% after completions.

• Contracted annual rental income is £7.7 million, rising to £8.1 million after pipeline lettings.

• Rent collection remains strong at over 99% year-to-date and for the current quarter.

• WAULT stands at 4.36 years to break and 5.99 years to expiry, supporting stable income.

• 15 lease events completed year-to-date, including renewals, break removals, and new lettings with major occupiers.