StockMarketWire.com - UK midlands focused property investor Real Estate Investors swung to a first-half loss, owing to lower property values and interest-rate hedging costs.

Pre-tax losses for the six months through June amounted to £3.8m, compared to a £1.7m profit on-year. Revenue rose 1.2% to £8.2m.

Real Estate Investors declared a second-quarter dividend of 0.5p per share, in line with a revised policy announced in June, bringing the first-half dividend to 1p, down from 1.875p on-year.

The company said 0.5p per share was expected to be the level of dividend for the third quarter, with an option to make a larger final-quarter dividend payment once the financial year had been completed.

Rent collection for the March quarter was 90.7%, up from 90.2% as reported on 15 July.

June quarter rent collection so far was 86.9%, up from 81.9% on 15 July.

'There remain a handful of larger, corporate tenants, who are not engaging in discussions and continue to hide behind the government's 'shield' on the enforcement of bad debts,' the company said.

'These debts will be collected in due course and represent the majority of the uncollected rent to date.'

Chief executive Paul Bassi said the company's business model had proved to be resilient against 'extremely challenging circumstances'.

'We continue to see healthy demand across our portfolio and we are reviewing all our assets in light of the government relaxation of the planning laws, which we believe could result in a number of material value creation opportunities across the portfolio,' Bassi said.

'We have taken a cautious approach to dividend payments in the short term in case of a second lockdown, however, we remain committed to a progressive dividend policy.'


At 8:50am: [LON:RLE] Real Estate Investors PLC share price was 0p at 29p



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