REIT Real Estate Investors plc (LON: RLE) has announced that it has changed from a floating rate facility to a fixed rate financing facility.
The total loan amount is £10 million, with a fixed interest rate of 3.129% per annum until 30 November 2023. Upon completion of the new facility, the company announced that 77% of its debt will be in fixed rate form. The average cost of total debt remains at 3.7%.
Property investors added that the new facility with Lloyds is a safe addition to the group’s property portfolio. We currently have a portfolio of commercial real estate totaling 1.53 million square feet across all sectors in the Midlands.
Comments from real estate investors
In response to this update, company CEO Paul Bassi said:
“In line with our stated strategy, we have developed this facility with Lloyds Bank to take advantage of the low interest rate environment. is completed.”
“Given our existing cash and banking facilities, we are well-positioned to maintain an opportunistic approach to acquiring further compliant assets, with some acquisitions in the pipeline expected to close in the near future. I plan to.”
Memo for investors
The company’s shares rose 1.89% or 1.00 pence on the news, rising to 54.00 pence per share as of 12:58 BST on 10/10/19. Liberum’s analysts reiterated their Buy rating on Real Estate Investors stock, with an attractive P/E ratio of 13.77 and an attractive dividend yield of 6.72%.
Elsewhere in real estate development and real estate brokerage news, you’ll find the latest updates on: Shaftesbury plc (LON: SHB), Rightmove Plc (LON: RMV), Berkeley Group Holdings Ltd (LON: BKG), Redrow plc (LON: RDW), U+I Group PLC (LON: UAI), Hunters Property PLC (LON ): HUNT) and GCP Student Living plc (LON: DIGS).
