Technology will have a “far more significant and lasting impact” on property than Covid or Brexit, according to RDI REIT chief executive Mike Watters.
In a financial update for the year ended 31 August 2020, Watters said environmental change and changes in consumer habits will also have more impact on property too.
He added: “The wholesale repositioning of our portfolio has delivered a significant realignment toward sectors and assets that are likely to benefit from these changes.”
Watters, who has been at RDI REIT for more than 14 years, also announced he would be leaving the business in December.
He will be replaced by deputy chief executive Stephen Oakenfull, who has been at RDI REIT since 2007 and second in command since 2013.
The REIT’s net rental income for the year ended 21 August 2020 fell to £51.2m, down from £70.9m the previous comparable year.
EPRA NAV per share was 151.5p, down from 185.5p last year, and its portfolio valuation stood at circa £1.2bn, down from £1.4bn.
The REIT said it was looking to exit all retail assets, which represent 10.1% of the portfolio, and “capitalise on the strength of existing distribution, industrial and office portfolio”. It will also “review options” on its hotel portfolio.
Watters said: “In a world with ever increasing complexity, we look forward to getting back to basics – a simplified business backed by a strong balance sheet and disciplined capital allocation.”
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