Real Estate Investors (RLE) H1 2026 earnings summary

Executive summary

• Gross property assets at £111.5 million as of June 2026, reflecting ongoing disposals and a challenging market.

• Contracted rental income decreased to £7.9 million p.a. due to asset sales and lease events.

• Net LTV reduced to 24.4% and total debt further lowered, with all bank covenants met.

• Dividend policy remains uninterrupted and fully covered, with £58.1 million paid or announced since 2012.

• Orderly asset sale programme continues, with proceeds used for debt repayment and planned capital returns to shareholders in 2027.

Financial highlights

• Revenue for H1 2026 was £4.6 million, down from £4.8 million in H1 2025.

• Underlying profit before tax was £1.3 million (H1 2025: £1.5 million), reflecting lower income and higher holding costs, partially offset by reduced finance costs.

• Loss before tax of £1.3 million, including a £2.5 million non-cash property revaluation deficit and £160,000 loss on property sales.

• EPRA NTA per share declined to 47.6p (FY 2025: 49.1p); EPRA EPS at 0.77p (H1 2025: 0.85p).

• Gross portfolio valuation: £111.5 million (FY 2025: £115.7 million); like-for-like valuation down 2.27%.

Outlook and guidance

• Sales programme will extend beyond the initial 3-year timeframe due to market uncertainty.

• Management expects full debt repayment and commencement of capital returns to shareholders in 2027.

• Focus remains on disposals, debt repayment, asset management, and maintaining a covered dividend.

• Open to corporate transactions that deliver value and expedite wind-down.

• Ongoing monitoring of political and economic headwinds, including potential interest rate rises.