Punch Taverns rules out REIT in short term

01 May 2007 by
Punch Taverns rules out REIT in short term

Punch Taverns, the country largest pub landlord, has ruled out putting property into a Real Estate Investment Trust (REIT) in the short-term.

Giles Thorley, chief executive of Punch Taverns, said the value of its property was now better recognised by investment markets.

He added the company would consider any activities that could add value, including REITs, but the best long-term returns for shareholders were, at present, best served by its current business structure.

As of 3 March, Punch owned 9,304 pubs in the UK of which 8,119 were leased and 1,185 were managed. Since then 869 smaller leased pubs have been sold to Admiral Taverns.

Pre-tax profit grew 12% in the half year to 3 March to £130m (2006: £116m) while turnover rose to £912m (£618.9m) as it bedded down its January 2006 acquisition of Spirit Group and September's purchase of Mill House Inns.

During the 28 week period Punch continued its programme of transferring smaller managed pubs in the Spirit estate over to lease arrangements with terms agreed for 519 pubs and the programme due to complete in August.

Thorley said: "Both our leased and managed estates continue to perform well and will be further enhanced by the completion of the transfer to lease process and recently announced corporate transactions."

Pub acquisitions push Admiral into top three >>

Pub groups Punch Taverns and Mitchells & Butlers poised to join FTSE-100 >>

Punch Taverns buys Scorpio Inns for more than £17m >>

Punch sells Old Orleans chain to Regent Inns for £26m >>

Details of UK's first hotel REIT unveiled >>

By Christopher Walton

E-mail your comments to Christopher Walton here.

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking