TIDMRGL
RNS Number : 7642Q
Regional REIT Limited
23 February 2023
23 February 2023
REGIONAL REIT Limited
("Regional REIT", the "Group" or the "Company")
Q4 2022 Dividend, Letting Update and Year-End Portfolio
Valuation
Dividend Yield of 11% and 99% Rent Collection for 2022
Regional REIT (LSE: RGL), the regional office specialist, is
today pleased to announce its Q4 2022 dividend, a positive rent
collection update and a portfolio valuation as at 31 December
2022.
Q4 2022 Dividend - Expected to be covered; yield of 11%
The Company confirms that it will pay a dividend of 1.65 pence
per share ("pps") for the period 1 October 2022 to 31 December 2022
(1 October 2021 to 31 December 2021: 1.70pps). This amounts to a
total dividend of 6.6pps for 2022 (2021: 6.5pps), and which is
expected to be covered by 2022 EPRA earnings. It equates to an
annualised dividend yield of c.11% at the closing price per share
on 22 February 2023. The entire dividend will be paid as a REIT
property income distribution ("PID").
Rent Collection 2022 Update
The Company is also pleased to report that as at 15 February
2023, Q1 2022 collections amounted to 99.2%, Q2 2022 to 98.9% and
Q3 2022 to 98.1%. Currently, Q4 2022 rent collection, adjusting for
monthly rent and agreed collection plans, stands at 97. 9 %, which
is above the equivalent period in 2021 when 96.6% had been
collected. The total rent collection for 2022 is currently at 98. 6
% compared with 98.6% this time last year.
% Q1 2022 Q2 2022 Q3 2022 Q4 2022 YTD
98.
Rent paid 99.2 98.9 98.1 97.2 4
Adjusted for monthly 0.
rents 0.0 0.0 0.0 0. 7 2
Agreed collections
plans 0.0 0.0 0.0 0.0 0.0
-------- -------- -------- -------- ----
98.
99.2 98.9 98.1 97. 9 6
The Company remains in supportive and ongoing discussions with
occupiers regarding the balance of the outstanding rent and expects
to collect the vast majority in due course.
Table may not sum due to rounding.
Quarterly rental collection refers to all invoices issued during
the calendar quarters:
Q1: 1 January 2022 to 31 March 2022
Q2: 1 April 2022 to 30 June 2022
Q3: 1 July 2022 to 30 September 2022
Q4: 1 October 2022 to 31 December 2022
Full Year 2022 Portfolio Valuation
Additionally, the Company provides the following portfolio
valuation update.
-- Portfolio valuation GBP789.5m (2021: GBP906.1m)
-- The like-for-like value of the portfolio decreased by 12.1%
in 2022 after adjusting for capital expenditure, acquisitions and
disposals during the period (11.0% excluding capital expenditure
adjustment)
-- Equivalent Yield 9.0% (2021: 8.7%)
-- Gross rent roll GBP71.8m (2021: GBP72.1m); ERV GBP92.0m (2021: GBP94.6m)
-- 154 properties (2021: 168); 1,076 occupiers (2021: 1,077)
-- Portfolio: offices (by value) at 91.8% of the portfolio
(2021: 89.8%), retail 3.6% (2021: 3.7%), industrials 3.1% (2021:
5.1%), and Other 1.4% (2021: 1.4%)
-- England represented 78.3% (2021: 75.7%) (by value), Scotland
16.7% (2021: 19.0%) and Wales 5.0% (2021: 5.3%)
-- EPRA Occupancy (by ERV) at 83.4% (2021: 81.8%)
-- Average lot size c. GBP5.1m (2021: c. GBP5.4m)
-- Net loan-to-value ratio was 49.5% (2021: 42.4%); ample
headroom remains on all loan covenants.
-- Group cost of debt (incl. hedging) 3.5% pa (2021: 3.3% pa) -
100% fixed and hedged, ensuring the maximum cost of debt will not
exceed 3.5%
-- Weighted average debt duration 4.5years (2021: 5.5 years)
Stephen Inglis, CEO of London and Scottish Property Investment
Management, the Asset Manager, commented:
"2022 was operationally strong, with the Company delivering on
its targeted distribution of 6.6 pence per share, equating to a
yield of 11 % on the share price as at 22 February 2022. The full
year 2022 dividend is expected to be covered by earnings, which
will be confirmed when the 2022 annual results are announced.
"Although, as elsewhere in the commercial real estate sector,
property valuations were impacted negatively during the period by
the macroeconomic environment, operationally the Company has
performed well. We have continued to focus on providing vibrant
spaces to help our customers to thrive and in-turn to collect the
rents. This has allowed the dividend to be increased to 6.6 pence
per share for 2022 from 6.5 pence per share for 2021. Additionally,
while the Company's LTV has increased, we are encouraged by the
ample headroom available across the debt facilities and the fixed
nature of the Company's debt at 3.5%.
"There is an air of optimism as we progress into the new year,
with our 30 November 2022 internal data showing that 99% of our
tenants had returned to the office in some form, with only 12 of
our 1,076 tenants yet to do so."
Further Background Information
Dividend
The Company has introduced the option for shareholders to invest
their dividend in a Dividend Reinvestment Plan ("DRIP"). More
details can be found on the Company's website
https://www.regionalreit.com/investors/investors-dividend/dividend-reinvestment-plan
.
The key dates relating to this dividend are given below:
Ex-dividend date 02 March 2023
Record date 03 March 2023
--------------
Last day for DRIP election 16 March 2023
--------------
Payment date 06 April 2023
--------------
Lettings Update - Summary of Activity since 30 September
2022:
Since 30 September 2022, notable new lettings in aggregate
amounted to c.GBP1.7m of new rent and aggregate lease renewals
amounted to c. GBP1.0m, reflecting in aggregate an increase of a
7.3% above 30 June 2022 ERV.
-- Norfolk House, Birmingham - 44,245 sq. ft. of previously
vacant Grade A office space has been let to Global Banking School.
The annual rent amounts to GBP840,991 pa (GBP19.01/ sq. ft.), with
a 15-year lease including an option to break after 10 years.
-- Capitol Park, Leeds - Hermes Parcelnet Ltd (Evri) renewed its
lease for a further five years to December 2028, at a rental income
of GBP473,045 pa (GBP18.34/ sq. ft.) on 25,790 sq. ft. of space.
Moreover, the tenancy also includes provision of additional car
parking spaces at a rent of GBP25,632 pa.
-- Hampshire Corporate Park, Eastleigh - Complete Fertility Ltd
has leased 9,928 sq. ft. of space for 15 years with a break option
in 2032 at a rent of GBP287,921 pa (GBP29.00/ sq. ft.).
-- Integration House, Fleet - Boeing United Kingdom Ltd renewed
its lease for a further five years, to December 2027, at a rental
income of GBP194,943 pa (GBP16.67/ sq. ft.) on 11,679 sq. ft. of
space.
-- The Foundation, Chester Business Park, Chester - 8,676 sq.
ft. of space has been let to SpaMedica Ltd at a rent of GBP173,520
pa (GBP20.00/ sq. ft.) for a period of 10 years with the option to
break in 2027.
-- Milburn House, Newcastle - Lycett, Brown-Swinburne &
Douglass Ltd renewed its lease for a further 12 months, at a rental
income of GBP170,012 pa (GBP14.82/ sq. ft.) for 11,469 sq. ft. of
space.
-- Ashby Park, Ashby De La Zouch - A new tenancy agreement has
been signed with Ashfield Healthcare Ltd for 6,462 sq. ft.. The
lease is for two years with the option to break in 2023, providing
a rental income of GBP119,547 pa (GBP18.50/ sq. ft.).
-- 1-4 Llansamlet Retail Park, Nantyffin Rd, Swansea - 2,810 sq.
ft. of space has been let to TH UK & Ireland Ltd (Tim Hortons)
at a rent of GBP98,000 pa (GBP34.88/ sq. ft.) for a period of 15
years with the option to break in 2032.
-- Central Park, New Lane, Leeds - Akari Care Ltd has leased
4,400 sq. ft. for a period of five years with the option to break
in 2025 at a rent of GBP83,600 pa (GBP19.00/ sq. ft.).
-- Quadtech, Hemel Hempstead - 5,001 sq. ft. of space has been
let to the Glenelly Infrastructure Solutions Ltd at a rent of
GBP75,000 pa (GBP15.00/ sq. ft.) for a period of ten years with the
option to break in 2027.
-- Delta 1200, Delta Business Park, Swindon - TM Group (UK) Ltd
has leased 4,857 sq. ft. for a period of eight years at a rent of
GBP69,198 pa (GBP14.25/ sq. ft.).
-- Oakland, Manchester - Secretary of State for Levelling Up,
Housing and Communities renewed its lease for a further 12 months,
at a rental income of GBP54,500 pa (GBP10.00/ sq. ft.) on 5,450 sq.
ft. of space.
-- The Royals, Altrincham Road, Manchester - Texas Instruments
Ltd renewed its lease for a further five years, to August 2027, at
a rental income of GBP51,557 pa (GBP14.50/ sq. ft.) on 3,557 sq.
ft. of space.
Forthcoming Events
28 March 2023 Full year 2022 Preliminary Results Announcement
24 May 2023 May 2023 Trading Update and Outlook Announcement
Q1 2023 Dividend Declaration Announcement
25 May 2023 Annual General Meeting
Note: All dates are provisional and subject to change.
-S -
Enquiries:
Regional REIT Limited
Press enquiries through Buchanan
Toscafund Asset Management Tel: +44 (0) 20 7845 6100
Investment Manager to the Group
Adam Dickinson, Investor Relations, Regional REIT Limited
London & Scottish Property Investment Management Tel: +44 (0) 141 248 4155
Asset Manager to the Group
Stephen Inglis
Buchanan Communications Tel: +44 (0) 20 7466 5000
Financial PR
Charles Ryland, Henry Wilson, George Beale
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 Toscafund Asset Management LLP, the
Investment Manager.
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 154
properties, 1,076 occupiers as at 31 December 2022, with a
valuation of c.GBP789.5m.
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.
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
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END
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