Interim Results

Real Estate Investors PLC
16 August 2005


REAL ESTATE INVESTORS PLC

Interim results for the six months ended 30 June 2005

Real Estate Investors PLC ("REI" or "the Company"), the commercial property
investment company, today announces its interim results for the six months ended
30 June 2005.


Chairman's Statement


As the Company made a very full statement about its progress in June, I do not
propose repeating that information in these Interim Results.


However, I can report that, since our announcement on 9 June 2005, REI has
increased its market capitalisation as a result of an institutional share
placing by our brokers, Seymour Pierce Ellis. Six million new shares have been
issued, raising £600,000 (before expenses) and, as a result, we have further
widened our shareholder base.


Our immediate objectives are to continue to grow the business in a secure
fashion and for this activity to be reflected in our share price. To this end,
we will continue with our successful strategy of acquiring investments by
utilising our flexible capital structure, through the issue to vendors of new
ordinary shares in REI.



John J Jack, Chairman

16 August 2005


For further information please contact:

Peter Lewin - Chief Executive              01923 776633
Malcolm Lewin - Finance Director

Christopher Joll
MJ2 ltd                                    020 7491 7776



INTERIM CONSOLIDATED RESULTS
for the six months ended 30 June 2005

                                 Six months to       Period to    Period ended
                                       30 June         30 June     31 December
                                          2005            2004            2004
                                    (Unaudited)     (Unaudited)       (Audited)
                                         £'000           £'000           £'000

Turnover                                   537              20             214

Administrative expenses                   (216)            (17)           (218)
                                       -------         -------         -------
Operating profit/(loss)                    321               3              (4)

Profit on sale of investment                47               -               -
properties (Note 4)
                                       -------         -------         -------
Profit on ordinary activities              368               3              (4)
before interest

Interest receivable                         17               3              21
Interest payable                          (383)            (11)           (114)
                                       -------         -------         -------
Profit/(loss) on ordinary                    2              (5)            (97)
activities before taxation

Taxation                                     -               -              30
                                       -------         -------         -------
Retained profit/(loss) for the               2              (5)            (67)
period
                                       =======         =======         =======
Earnings/(loss) per share                 0.01p          (0.11p)         (0.36p)
                                       =======         =======         =======



CONSOLIDATED BALANCE SHEET
as at 30 June 2005
                                          30 June         30 June  31 December
                                             2005            2004         2004
                                       (Unaudited)     (Unaudited)    (Audited)
                                            £'000           £'000        £'000

Fixed assets
Tangible assets                             9,251           4,211        5,574
Intangible assets - goodwill                  121             153          148
- negative goodwill                          (906)              -         (906)
                                          -------         -------      -------
                                            8,466           4,364        4,816
                                          -------         -------      -------
Current assets
Stock                                       9,704               -        9,655
Debtors                                     1,566              78          334
Cash at bank                                  624           1,102        2,028
                                          -------         -------      -------
                                           11,894           1,180       12,017

Creditors - amounts falling due            (1,373)           (413)      (9,279)
within one year
                                          -------         -------      -------
Net current assets                         10,521             767        2,738
                                          -------         -------      -------
Total assets less current                  18,987           5,131        7,554
liabilities

Creditors - amounts falling due
after more than one year
Convertible debt                             (325)           (325)        (325)
Other                                     (14,643)         (2,386)      (3,628)
                                          -------         -------      -------
                                          (14,968)         (2,711)      (3,953)
                                          -------         -------      -------
Net assets                                  4,019           2,420        3,601
                                          =======         =======      =======

Capital and reserves
Called up share capital                       414             264          320
Share premium account                       3,626           2,116        2,703
Capital redemption reserve                     45              45           45
Shares to be issued                             -               -          600
Profit and loss account                       (66)             (5)         (67)
                                          -------         -------      -------
Shareholders' funds                         4,019           2,420        3,601
                                          =======         =======      =======



GROUP CASH FLOW STATEMENT
for the six months ended 30 June 2005

                                 Six months to       Period to    Period ended
                                       30 June         30 June     31 December
                                          2005            2004            2004
                                    (Unaudited)     (Unaudited)       (Audited)
                                         £'000           £'000           £'000

Net cash inflow from operating             605              54              84
activities (Note 1)
                                       -------         -------         -------
Returns on investment and
servicing of finance
Interest received                            9               3              21
Interest paid                             (216)              -             (95)
                                       -------         -------         -------
Net cash (outflow)/inflow from            (207)              3             (74)
returns on investment and
servicing of finance

Taxation                                     -               -             (20)

Capital expenditure and
financial investment
Purchase of tangible fixed              (4,317)            (11)         (1,205)
assets
Sale of investment properties            1,184               -               -
                                       -------         -------         -------
Net cash outflow from capital           (3,133)            (11)         (1,205)
expenditure and financial
investment

Acquisitions and disposals
Purchase of subsidiary                  (2,253)           (219)           (218)
undertakings
Payment of exchange deposit for              -               -            (300)
3147398 Limited acquisition
Payment of amounts owed by                 (67)           (837)           (837)
subsidiaries to vendors
Net cash from purchase of                    -               -             763
subsidiaries
                                       -------         -------         -------
Net cash outflow from                   (2,320)         (1,056)           (592)
acquisitions and disposals

Financing
Net proceeds from issue of                   -           2,100           2,563
shares
Receipts from borrowing                 11,218               -           3,000
Repayments of borrowing                 (6,165)              -          (1,728)
Funds deposited with lenders            (1,409)              -               -
Finance lease                                7               -               -
                                       -------         -------         -------
Net cash inflow from                     3,651           2,100           3,835
financing
                                       -------         -------         -------
(Decrease)/increase in cash             (1,404)          1,090           2,028
                                       =======         =======         =======



NOTES:

1. Reconciliation of operating profit/(loss) to net cash inflow from operating
activities

                                 Six months to       Period to    Period ended
                                       30 June         30 June     31 December
                                          2005            2004            2004
                                    (Unaudited)     (Unaudited)       (Audited)
                                         £'000           £'000           £'000

Operating profit/(loss)                    321               3              (4)
Depreciation                                12               -              10
Amortisation                                 3               -               4
(Increase) in stock                        (48)              -               -
Decrease/(Increase) in                     149             (74)           (100)
debtors
Increase in creditors                      168             125             174
                                       -------         -------         -------
Net cash inflow from                       605              54              84
operating activities
                                       =======         =======         =======

2. Reconciliation of net cash flow to movement in net debt

                                 Six months to       Period to    Period ended
                                       30 June         30 June     31 December
                                          2005            2004            2004
                                    (Unaudited)     (Unaudited)       (Audited)
                                         £'000           £'000           £'000

(Decrease)/increase in cash             (1,404)          1,090           2,028
in the period
Net cash inflow from                    (3,651)              -          (1,272)
financing
                                       -------         -------         -------
Change in net debt resulting            (5,055)          1,090             756
from cash flows
Loans acquired with                          -          (2,840)         (8,949)
subsidiaries
Other non-cash movements                     4               -              (4)
Net debt at start of                    (8,197)              -               -
period
                                       -------         -------         -------
Net debt at end of period              (13,248)         (1,750)         (8,197)
                                       =======         =======         =======



3. Analysis of movement in net debt
                     At 1 January                   Non-cash      At 30 June
                             2005    Cash flow       changes            2005
                            £'000        £'000         £'000           £'000

Cash at bank                2,028       (1,404)            -             624
Funds deposited                 -        1,409             -           1,409
with lenders
                          -------      -------       -------         -------
                            2,028            5             -           2,033

Debt due within            (6,272)       5,959             -            (313)
one year
Debt due after             (3,953)     (11,019)            4         (14,968)
one year
                          -------      -------       -------         -------
                           (8,197)      (5,055)            4         (13,248)
                          =======      =======       =======         =======

4. Profit on sale of investment properties

                            Six months to        Period to       Period ended
                                  30 June          30 June        31 December
                                     2005             2004               2004
                               (Unaudited)      (Unaudited)          (Audited)
                                    £'000            £'000              £'000

Sale proceeds                       1,190                -                  -
Cost of sales                      (1,143)               -                  -
                                  -------          -------            -------
Profit on disposal                     47                -                  -
of investment
                                  =======          =======            =======

5. Basis of preparation
The financial information for the periods ended 30 June 2004 and 30 June 2005 is
unaudited and does not constitute statutory accounts within the meaning of the
Companies Act 1985. It has been prepared on the basis of the accounting policies
set out in the Group's statutory accounts for the period ended 31 December 2004.
The figures for the period ended 31 December 2004 have been extracted from the
statutory accounts which have been reported on by the Group's auditors and have
been delivered to the Registrar of Companies. The auditors' report was
unqualified and did not contain any statement under Section 237 (2), (3) or (4)
of the Companies Act 1985.

6. Earnings per share
Earnings per share have been calculated on profit retained for the period of
£2,000 and on 38,974,107 ordinary shares of 1p each which is the weighted
average number of shares in issue during the period ended 30 June 2005.

7. Copies of report
Copies of this report are available from the Company's business address at REI
House, Bury Lane, Rickmansworth, Hertfordshire WD3 1ED.





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