Real Estate Investors (REI), a Birmingham-based property firm, has reaffirmed its commitment to an opportunistic sales strategy aimed at reducing debt amidst challenging and unstable market conditions in the property sector.

Despite these conditions, REI has experienced strong demand from private investors and owner-occupiers for its assets in the first half of the year. The company, which is the UK’s only Midlands-focused Real Estate Investment Trust and is led by Paul Bassi, has reported disposals worth £8.7 million so far this year. These disposals include 11 retail units, a mixed retail and office asset, and a plot of land for a drive-thru pod development.

Since 2021, REI has achieved sales totalling £46.55 million, with more sales in the pipeline. The company hopes to use the proceeds from these sales to repay portfolio debt and reduce its gearing levels. As of July 28, REI has managed to reduce its debt by £7.3 million, bringing its total drawn debt down to £64.2 million, compared to £71.5 million in the previous fiscal year.

REI has also paid a fully covered dividend of 0.625p per share for the first quarter of 2023, amounting to a total of £47.4 million in dividends to shareholders since the inception of its current dividend policy in 2012.

Paul Bassi, CEO of REI, acknowledged the challenging market conditions, including rising interest rates, high inflation, and the ongoing war in Ukraine. Despite these challenges, REI remains committed to its strategy of opportunistic and targeted sales to further reduce debt.

Bassi also noted that the company will maintain maximum flexibility when considering future options, including returning capital, issuing special dividends to shareholders, or conducting further share buybacks, with the aim of maximising shareholder returns. If the acquisition environment changes and valuable opportunities arise, REI may consider opportunistic acquisitions. The board continually evaluates these options.