Enterprise Inns REIT talks ongoing

Enterprise Inns is still in talks with HM Revenues and Customs (HMRC) over the possibility of converting to a Real Estate Investment Trust (REIT).

The pub operator and owner, which owns some 7,700 tenanted pubs, is looking for HMRC to evaluate its definition of rent income in a REIT, which at present doesn’t define beer sales and property rent as a combined income.

Enterprise added that their pubs had performed well despite “disappointing weather for part of the summer and the challenging comparables from the 2006 World Cup” with average pre-tax profits up 6% year-on-year.

It said the improvements were due to ongoing improvements in the quality and earnings potential of our pubs while the impact of the smoking ban, although difficult to evaluate at an early stage, had led to quality pubs performing well.

The company has also delayed raising £750m of debt to next year because of a turbulent credit market. It is looking to refinance its existing balance sheet.

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By Christopher Walton

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