Regional REIT Ltd
LSE:RGL
Regional REIT Ltd
Regional REIT Ltd. engages in the management and investment of commercial properties. The Company’s commercial property portfolio is comprised of United Kingdom assets which are offices located in regional centers outside of the M25 motorway. Its portfolio is diversified with properties, units and tenants. The firm also invest in property portfolios, in which approximately 50% of the properties are situated inside the M25 motorway. London & Scottish Property Investment Management Limited acts as the Asset Manager and Toscafund Asset Management LLP (Toscafund) acts as the Investment Manager of the Company.
Regional REIT Ltd. engages in the management and investment of commercial properties. The Company’s commercial property portfolio is comprised of United Kingdom assets which are offices located in regional centers outside of the M25 motorway. Its portfolio is diversified with properties, units and tenants. The firm also invest in property portfolios, in which approximately 50% of the properties are situated inside the M25 motorway. London & Scottish Property Investment Management Limited acts as the Asset Manager and Toscafund Asset Management LLP (Toscafund) acts as the Investment Manager of the Company.
Dividend Commitment: The company reiterated its intention to pay a 10p per share dividend for the year, which is expected to be fully covered by earnings despite income headwinds.
Sales & Debt Reduction: Asset sales have reached around £23.2 million so far, with a target of £40–50 million for the year to reduce debt. Loan-to-value is expected to fall below 40% by year-end if planned sales complete.
Income Headwinds: Unexpected tenant breaks directly led to a 1.03% like-for-like net asset value decline and guided-down income consensus for the year.
Capex Progress: £6 million invested in Capex in H1 2025, with increased focus on refurbishments to improve asset quality and occupancy.
Market Stability: Yields have stabilized and management believes the market has reached the bottom, though investment activity remains subdued.
Occupancy Outlook: Portfolio occupancy is impacted by tenant losses but is expected to improve from H2 2025 and into 2026 as new lettings materialize.
Cost of Debt: Refinancing in 2026 will increase the company’s weighted average cost of debt from 3.4% to 4.2%.
ESG Progress: Nearly 60% of the portfolio now meets EPC A or B, with ongoing upgrades and solar initiatives underway.
