5 August 2024
REGIONAL
REIT Limited
("Regional REIT", the "Group" or the "Company")
AGM Trading
Update
Regional REIT Limited (LSE: RGL),
the regional property specialist, announces the following trading
update for the quarter from 1 April 2024 to 30 June
2024.
Summary of activity in the quarter to 30 June
2024
Lettings
Since 1 April 2024, the Group has
made strong progress on lettings, exchanging on six notable leases
to new tenants totalling 69,067 sq. ft., amounting to £0.7m per
annum ("pa") of rental income when fully occupied, achieving an
average rental uplift of 11.0% against December 2023 ERVs. A
further seven leases have renewed amounting to 47,000 sq. ft. and
£0.6m pa of rental income.
Sales
Three disposals (plus one part sale)
were completed in the quarter to 30 June 2024 with sales proceeds
amounting to £6.9 million (before costs), reflecting a net initial
yield of 9.6%.
Stephen Inglis, CEO of London & Scottish Property
Investment Management, Asset Manager commented:
"During the quarter we were pleased
to achieve further progress in the Group's letting activity and
disposal programme, with £0.7m of additional notable rental income
from new leases and £6.9 million generated from recent
disposals.
As announced on 18 July 2024, the
successful capital raise of £110.5m ensures the repayment of the
retail bond, facilitate the further reduction of the LTV to 40.6%,
and will provide for accretive capital expenditure on assets for
the long term."
Rental Updates
·
Ashby Park, Ashby
De La Zouch - Ashfield Healthcare
Ltd. has let 18,942 sq. ft. of office space to July 2034, with an
option to break in 2029, at a rental income of £350,427 pa (£18.50/
sq. ft.).
·
Central Park, New
Lane, Leeds - QBE Management
Services (UK) Ltd renewed its existing leases to June 2025, at a
combined rental income of £297,390 pa (£13.79/ sq. ft.) on 21,570
sq. ft. of space, and also renewed its car parking lease for an
additional £10,000 pa.
·
1175 Century Way,
Thorpe Park, Leeds - Fonemedia Ltd
has let 3,524 sq. ft. of office space to May 2029, with an option
to break in 2027, at a rental income of £84,576 pa (£24.00 / sq.
ft.).
·
1-6 Silver Court,
Welwyn Garden City - Telespazio UK
Ltd has let 3,873 sq. ft. of office space to April 2027, with an
option to break in 2025, at a rental income of £67,800 pa (£17.51/
sq. ft.).
·
84 Albion Street,
Leeds - Jugo Digital Ltd has let
1,304 sq. ft. of office space to April 2027, with an option to
break in 2025, at a rental income of £66,000 pa (£50.61/ sq.
ft.).
·
Cardiff Gate
Business Park, Cardiff - SMS Energy
Services Ltd. renewed its lease to February 2025, at a rental
income of £61,908 pa (£14.00/ sq. ft.) on 4,422 sq. ft. of
space.
·
York House,
Felixstowe - Existing tenant
Poundland Ltd has renewed existing lease of 7,593 sq. ft. of space
at a rental income of £60,000 (£7.90/ sq. ft.). The lease is to
April 2027.
·
Templeton On The
Green, Glasgow - National Society
For The Prevention Of Cruelty To Children. renewed its lease to
March 2025, at a rental income of £59,820 pa (£12.00/ sq. ft.) on
4,985 sq. ft. of space.
·
Oakland House,
Manchester - Secretary of State for
Levelling Up, Housing & Communities renewed its lease to June
2029, with the option to break in 2027, at a rental income of
£59,500 pa (£10.92/ sq. ft.) on 5,450 sq. ft. of space.
·
Eagle Court,
Coventry Road, Birmingham - Goldbeck
Construction Ltd has let 2,863 sq. ft. of office space to May 2025,
with an option to break in 2024, at a rental income of £51,534 pa
(£18.00/ sq. ft.).
·
Murdostoun House,
Strathclyde Business Park, Bellshill - ATPAC Ltd has let 3,229 sq. ft. of office space to June 2029,
with an option to break in 2027, at a rental income of £41,982 pa
(£13.00/ sq. ft.).
·
Beaufort Office
Park, Bristol - St John Ambulance
renewed its lease to May 2028, with the option to break in 2026, at
a rental income of £49,170 pa (£16.50/ sq. ft.) on 2,980 sq. ft. of
space.
Subsequent Events summary post 30 June 2024
Since the quarter end, the Group has
successfully completed a £110.5m capital raise ensuring the
repayment of the £50m retail bond, enabling the reduction of bank
facilities by £26.3m, and providing £28.4m for identified accretive
capital expenditure projects.
Lettings
·
1175 Century Way,
Thorpe Park, Leeds - Greenbelt Group
Ltd has let 2,670sq. ft. of office space to July 2029, at a rental
income of £64,080 pa (£24.00 / sq. ft.).
Forthcoming Events
5 Aug 2024
10 Sep 2024
13 Nov 2024
|
Annual General Meeting
Interim Results
Announcement
Q3 2024 Trading Update
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Note: All dates are provisional
and subject to change
- ENDS -
Enquiries:
Regional REIT Limited
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Press enquiries through
Buchanan
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ESR
Europe Private Markets Limited
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Tel: +44 (0) 203 831 9776
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Investment Adviser to the
Group
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Adam Dickinson, Investor Relations,
Regional REIT Limited
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London & Scottish Property Investment
Management
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Tel: +44 (0) 141 248 4155
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Asset Manager to the
Group
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Stephen Inglis
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Buchanan Communications
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Tel: +44 (0) 20 7466 5000
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Financial PR
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Charles Ryland, Henry Wilson, George
Beale
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About Regional REIT
Regional REIT Limited ("Regional
REIT" or the "Company") and its subsidiaries (the "Group") is
a United Kingdom ("UK") based real estate investment
trust that launched in November 2015. It is managed
by London & Scottish Property Investment Management
Limited, the Asset Manager, and ESR Europe Private Markets Limited,
the Investment Adviser.
Regional REIT's commercial property
portfolio is comprised wholly of income
producing UK assets and comprises, predominantly of
offices located in the regional centres outside of the M25
motorway. The portfolio is geographically diversified, with 132
properties, 827 tenants as at 21 June 2024, with a valuation of
c.£647.8m.
Regional REIT pursues its investment
objective by investing in, actively managing and disposing of
regional core and core plus property assets. It aims to deliver an
attractive total return to its Shareholders, targeting greater than
10% per annum, with a strong focus on income supported by
additional capital growth prospects.
The Company's shares were admitted
to the Official List of the UK's Financial Conduct
Authority and to trading on the London Stock Exchange on 6 November
2015. For more information, please visit the Group's website
at www.regionalreit.com .
Cautionary Statement
This document has been prepared
solely to provide additional information to Shareholders to assess
the Group's performance in relation to its operations and growth
potential. The document should not be relied upon by any other
party or for any other reason. Any forward looking statements made
in this document are done so by the Directors in good faith based
on the information available to them up to the time of their
approval of this document. However, such statements should be
treated with caution due to the inherent uncertainties, including
both economic and business risk factors, underlying any such
forward-looking information.
ESMA Legal Entity Identifier
("LEI"): 549300D8G4NKLRIKBX73