RCS - Regional REIT Ltd - Positive Update on Office Use

Regional REITAnnouncement

14/02/2023 07:00

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RNS Number : 7765P  Regional REIT Limited  14 February 2023

14 February 2023

REGIONAL REIT Limited

("Regional REIT" or the "Company")

Positive Update on Office Use

Regional REIT, the regional office specialist, is pleased to disclose, from
its own tenant data, that virtually all of its tenants have returned to their
offices over the last year.

The Company's significant regional office portfolio comprises 156 buildings
with 1,042 high quality tenants, geographically spread across the country in
the Company's identified growth regions, outside London.

As at 30 November 2022, 99% of the Company's tenants had returned to the
office in some form, with only 12 tenants still to return. Two of these being
the Scottish Government, which has already signed lease extensions. This is a
significant increase from 1 March 2022, where the Company's data collection
confirmed only around 30% of its tenants had returned to the office.

There are a variety of ways in which the Company's offices are being utilised,
with hybrid working being the most popular. The vast majority of tenants are
in full attendance three days per week, Tuesday, Wednesday, Thursday, and for
many this is four or even five days per week. In terms of hybrid working,
Regional REIT's data suggests that the majority of staff are being encouraged
to work from the office on the same days to foster collaboration.

Stephen Inglis, CEO of London & Scottish Property Investment Management,
the Asset Manager to Regional REIT commented:

"The study of our portfolio has been very interesting, with a mass return of
staff being observed across large swathes of our properties. Staff numbers
back in the office increased from some 30% in Q1 2022, to 99% in Q4 2022. Most
of our occupiers are encouraging their staff to be in the office the majority
of time.

"In the UK regions where commutes tend to be simpler and shorter than the
London area, the trend remains towards more people being in the office more of
the week. We expect this momentum to continue through 2023, until employers
and employees strike the right balance for them between WFH and WFO.

"We are of the opinion that by the end of 2023 this will have played out, with
the majority of regional employers adopting a more even split of either: four
days in the office and one day from home policy; or three days in the office
and two from home. From the trends we are seeing, we believe employees working
fully from home (that were not doing so pre-pandemic) will be in a small
minority."

 

- ENDS -

 

 

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 156 properties, 1,042 occupiers as at 30 September 2022,
with a valuation of c.£914.9m.

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 (http://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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