Potential REITs

Companies considering launching a REIT

Crest Nicholson

Status: In talks to set up a joint venture that would see it become a landlord of its own property for the first time.
FT.com story - 11/03/08

Enterprise Inns

Status: Considering converting to a REIT

Enterprise shares surge after it gains green light for Reit switch
FT.com story - 08/05/08 

Unaudited Interim Results of Enterprise Inns plc for the six months ended 31 March 2008

We reported in our pre-close statement on 28 March 2008 that we had been involved in ongoing discussions with HMRC regarding a potential conversion to REIT status and that a response was awaited to a Code of Practice 10 (CoP 10) submission requesting confirmation of the Group's eligibility to join the REIT regime.

"We announced on 7 May 2008 that HMRC's response to the CoP 10 submission had now been received, confirming that the Group is eligible to convert to REIT status if an internal restructuring of the Group is undertaken. Accordingly, in conjunction with our tax, legal and financial advisers, we are progressing the detailed analysis required to decide whether the Board will recommend to shareholders at an EGM that the Group should elect into the REIT regime. We expect this work to take several months to complete and a further announcement will be made in due course."

Chairman's interim statement, Interim results, 13 May 2008

Greene King

Status: Considering converting to a REIT

Greene King warns of slowdown
FT.com story - 03/07/08
company press release

Real Estate Investment Trust

We stated our commitment to releasing property value in our preliminary results statement for 2006/7. Since then, we have consulted with HM Revenue & Customs as to the feasibility of a Real Estate Investment Trust (REIT) for Greene King. They have indicated that Greene King could in principle convert to a REIT without de-merging the company. This removes one key obstacle, but we still need to be convinced that a REIT structure for Greene King will deliver real long-term economic value. We are also reviewing the operational implications for the business. We will provide an update at our interim results in December.

Source: Preliminary results for the 53 weeks ended 4 May 2008 , 3 July 2008

Mitchells and Butlers

Status: Considering converting to a REIT

Third Quarter Interim Management Statement

REITs

As part of our commitment to demonstrating the full value of the estate an assessment is being made of our ability to convert to REIT status without breaking the securitisation, through retaining the freehold properties and operating business within the existing Group structure. We are continuing discussions with advisers and HMRC to review the feasibility, costs and benefits of such a transition and we will update as appropriate, should there be further developments on this front.

Third Quarter Interim Management Statement, 25 July 08

Punch Taverns plc

Status: REIT plans on hold

Punch Taverns puts REIT conversion on hold and suspends dividend
Property Week story

REIT

In our presentation to analysts on 7 July 2008 we advised that a clearance application had been submitted to HMRC for a structure which would allow Punch to elect to a REIT (Real Estate Investment Trust) regime whilst retaining all existing businesses.  Clearance has now been received from HMRC for that structure.

As previously highlighted, conversion to a REIT status would involve material implementation costs and introduces a significantly increased dividend requirement which must be weighed up against the tax benefits.  Whilst work progresses in assessing the reorganisation steps that would be required to allow conversion, in the current environment our main priorities are to maintain the strength of our balance sheet and to continue to invest in our business.

Source: Pre-closing trading statement, press release, 3 September 2008

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