Enterprise Inns' Reit Plans Earn a Round of Applause From Investors ; in Brief

Evening Standard - London › May 16, 2007

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Summary

INVESTORS cheered pub landlord Enterprise Inns today after it outlined plans to qualify as a real estate investment trust (Reit) without splitting up the company. Enterprise hopes to convert to taxefficient Reit status without separating its operating arm from its property portfolio of nearly 8000 pubs, worth Pounds 5.5 billion. Shares in the firm jumped 43p to 770p while rival Punch Taverns was up 42p to 1385p, even though it recently said a similar move was not on the cards soon. JPMorgan Cazenove analyst Tim Barrett said a Reit was "the golden scenario in valuation terms" for Enterprise.

The company posted a slight fall in pre-tax profits from Pounds 153 million to Pounds 149 million in the six months to 31 March after it sold its 137 pubs in Scotland.

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Enterprise Inns' Reit Plans Earn a Round of Applause From Investors ; in Brief

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