Birmingham-headquartered Real Estate Investors returned to pre-tax profit in the first half of its fiscal year.
The listed investment trust, which owns a 1.53 million square foot portfolio of commercial real estate, reported pre-tax profit of Â£ 9million for the six months to June 30, 2021, up from a loss of 3 , Â£ 8million over the same period of 2020.
However, revenue rose from Â£ 8.2million to Â£ 7.7million.
Managing Director Paul Bassi said: âWe are delighted to report promising signs of a market recovery after an extremely volatile 18 months. Investor and homeowner markets are improving with little evident distress and survey levels accelerate in the second quarter.
âOur diversified portfolio continued to demonstrate resilience, shielding us from overexposure to a downturn in certain sectors and supporting robust rental collection levels as the value of our portfolio at constant scope increased in the first half of the year.
âWhile we see opportunities and renewed interest in a reinvigorated investor market, the legacy of the pandemic is still visible as our occupancy and income levels are not yet fully recovering.
âThat said, with rising demand and occupant decisions, strong investor interest, and a healthy pipeline of new rentals on our empty space, we expect this activity to translate into higher rental rates. occupancy, improved revenues and a further recovery in valuations over the coming months, contributing to an increase in our net asset value and supporting our progressive dividend policy.
âREI is extremely well positioned in an active region that continues to attract migration of people from London and the South East, as well as global companies such as Goldman Sachs.
“We plan to enjoy our community more once our already vibrant region takes global spotlight in 2022 when it hosts the highly anticipated Commonwealth Games.”