RCS - Regional REIT Ltd - Annual Tenant Survey Published

Regional REITAnnouncement

20/01/2025 07:00

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RNS Number : 8454T  Regional REIT Limited  20 January 2025

20 January 2025

REGIONAL REIT Limited

("Regional REIT" the "Group" or the "Company")

Annual Tenant Survey Published

Office Active Occupation Continues to Increase

Regional REIT, the regional office specialist, is pleased to provide an update
on the continued return to the office.

Office active occupation( 1 ) is now ahead of the pre-pandemic level( 2 ) as
companies encourage staff back to the office.

·    Current active office occupation has increased to 75.3% from 71.4%
(February 2024), above pre-pandemic active occupancy, estimated at 70%.

·    Employee occupation remains high at an average of 4 days per week
(February 2024: 4 days per week).

The survey is the largest of its kind from the largest owner of regional
office assets and is based on the Company's tenants in 112 buildings across
the office portfolio. The properties provide space for a broad range of
different business sectors that are geographically spread across England,
Scotland and Wales.

The survey's results are based on a 74.5% response rate (by rent), with over
28,000 employees having taken part and demonstrate a continuing improvement in
the return to the office trend, which is confirmed by other recent reports and
studies. For example, a report by Virgin Media O2 Business Movers Index( 3 ),
tracking commuting behaviour in the UK, reported that the number of companies
requiring employees to work from company premises three or more days a week
has increased to 75% in 2024 from 67% in 2023. Firms in the study seeking
staff back in the office for at least four days a week also increased to 50%,
up from 46% previously. Nearly 40% of British workers now commute five days a
week according to the study.

 1  Active occupation being the average desk occupancy during business hours.
For example, if a company had 100 desks, then on average during business hours
75 desks would be occupied, with the balance unoccupied due to absences from
holidays, illness, or out of the office on business.

 2  Savills, European Office Occupancy March 2023

 3  Virgin O2 Business Movers Index Q3 2024

 

Stephen Inglis, Asset Manager of Regional REIT and Head of ESR Europe LSPIM,
commented:

"Our latest annual survey further confirms the significant and increasing role
that 'the office' plays in ongoing business life, further building on the
positive trends that we observed in our previous tenant surveys.

 

An increase in active occupation, in tandem with employees back in the office
for an average of four days per week, demonstrates a clear positive trend and
an encouraging backdrop for the regional office market. This will over time,
result in improving demand for office space and with limited supply, will
result in improved occupancy in the UK office markets and rental growth."

 

- ENDS -

 

Enquiries:

 

 Regional REIT Limited
 Press enquiries through Burson Buchanan

 ESR Europe Private Markets Limited                         Tel: +44 (0) 203 831 9776
 Investment Adviser to the Group
 Adam Dickinson, Investor Relations, Regional REIT Limited

 ESR Europe LSPIM Limited                                   Tel: +44 (0) 141 248 4155
 Asset Manager to the Group
 Stephen Inglis

 Burson Buchanan Communications                             Tel: +44 (0) 20 7466 5000
 Financial Communications
 Charles Ryland, Henry Wilson, Samuel Adams

 

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 ESR Europe
LSPIM 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 131 properties, 1,303 units and 808 tenants as at 30
September 2024, with a valuation of c.£648.8m.

 

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 (http://www.regionalreit.com/) .

 

LEI: 549300D8G4NKLRIKBX73

 

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