Trading Update

Real Estate Investors Plc (AIM: RLE), the UK's only Midlands-focused Real Estate Investment Trust (REIT), with a portfolio of commercial property across all sectors, is pleased to provide the following trading update, ahead of the announcement of its Final Results for the year ended 31 December 2024 on 25 March 2025:

• During 2024, REI completed 20 targeted disposals of £18.9 million, at an aggregate uplift of 6.95% (pre-costs) to 31 December 2023 year end book value
• Debt reduction of £15.3 million during the year, with total debt reduced to £39.1 million as at 31 December 2024 (FY 2023: £54.4 million)
• Additional multiple sales in pipeline legals as REI targets private investor market and owner occupier demand
• Year end occupancy of 82.04% (FY 2023: 83.03%)
• Improved WAULT of 5.76 years to break and 6.99 years to expiry (FY 2023: 5.24 years to break / 6.01 years to expiry)
• Strong new lettings in pipeline legals with targeted vacant possession secured for forward residential sales

Despite low levels of property transactions during 2024 driven by the uncertain interest rate trajectory, a surprise early general election and a subsequent budget that dampened investor confidence and activity, our versatile and diverse portfolio has allowed us to successfully dispose of £18.9 million of assets.

These sales were targeted at private investor and owner occupier demand and sold at an aggregate uplift of 6.95% above December 2023 year end book values (pre-costs). Receipts from these disposals were used to repay £15.3 million of debt, despite the loss of income from sales, all whilst continuing to pay a fully covered dividend.

There are further sales in pipeline legals that are expected to complete in the coming months along with a selection of larger market-ready assets which we are holding back until such time that suitable investors return to the market, which will allow us to achieve stronger pricing and benefit from the rental income in the interim.

We remain open to exploring a corporate transaction, including the potential sale of the entire portfolio, in order to maximise shareholder returns.

The Company would like to thank our staff, shareholders, advisers and occupiers for their ongoing support.

Paul Bassi, Chief Executive, commented: "The Company remains on track with its strategic objective of repaying debt from property sales. Whilst the first six months of this year are likely to see a continuation of the trends and activity levels we observed in 2024, we are cautiously optimistic about the second half of 2025 as we expect momentum to build particularly if interest rates continue to gradually reduce and sentiment improves. This should pave the way for more favourable market conditions and investor optimism which would allow us to accelerate our disposals programme, repay debt more rapidly and commence our capital return to shareholders, all whilst continuing to pay a fully covered dividend."