REG - Regional REIT Ltd - 2025 Half Year Results and Dividend Declaration
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RNS Number : 4887Y Regional REIT Limited 09 September 2025
9 September 2025
Regional REIT Limited
("Regional REIT", the "Group" or the "Company")
2025 Half Year Results
Continued strategic positioning to deliver long-term value
Regional REIT (LSE: RGL), the regional office specialist, today announces its
half year results for the 6 months to 30 June 2025.
Stephen Inglis, Head of ESR Europe LSPIM Ltd, the Asset Manager, said:
"Regional REIT continued to make progress in the delivery of its strategy in
the first half of the year, albeit challenging conditions in the investment
markets and a small number of lease breaks negatively impacted the Group's
overall performance in the period on a headline basis. Notwithstanding these
challenges we are seeing property yields stabilising suggesting the market has
bottomed.
We continue to prioritise our capex programme, refurbishing and updating our
Capex to Core assets to enhance the overall quality of our portfolio, drive
rental growth and reduce costs. Although more long-term in nature, we are also
advancing our plans to add value on sites by securing accretive planning
consents. Alongside this underlying progress, the Total Shareholder Return for
the six-month period was +9.6%.
With a clear uptick in occupational demand in the regional office market,
combined with a lack of good quality Grade A supply with EPC A or B ratings,
we are well placed to deliver on our strategy. We are receiving an increased
level of letting enquires and are making strong progress on a pipeline of
material new letting opportunities, which we expect to feed through into our
results in 2026.
In addition, I am pleased with the progress on the August 2026 refinancing,
which is now well advanced. We remain focused on the disposal programme to
generate capital as the market recovers, and we continue to prioritise
reducing our debt to further strengthen the balance sheet."
Resilient operations underpinning fully covered dividend; Total Shareholder
Return +9.6%
· Dividend declared of 5.0p (H1 24: 3.4p*) fully covered
· EPRA EPS 5.2pps (H1 24: restated 13.5 pps*)
*On 19 July 2024 the shares in issue increased by 1,105,149,821 shares to
1,620,886,404. On 29 July 2024 the shares were consolidated on a 1 for 10
share basis.
Actively repositioning the portfolio for long term strength
· Portfolio valuation £608.3m (FY 24: £622.5m), down 2.0% on a
like-for-like basis, after adjusting for disposals and capital expenditure
· EPRA NTA £328.7m (FY 24: £340.8m)
Pursuing opportunities to create value while progressing refinancing and
reducing debt
· Gross borrowings reduced to £310.0m (FY 24: £316.7m); cash and
cash equivalents £47.1m (FY 24: £56.7m)
· Net LTV 43.2% (FY 24: 41.8%)
· Successfully executed strategic sales to recycle capital in line with
the Board's priorities; delivered £7.8m (before costs) of transactions
· £93.2m of sites identified for sale, of which circa £50m are either
contracted, under offer or in negotiation
· Prioritising disposals to generate liquidity which can in-part
contribute to debt reductions
· Good progress with August 2026 debt maturity refinancing
New lettings 4.2% ahead of ERV supported by active asset management and
ongoing capex programme to add value
· EPRA occupancy 78.6% (FY 24: 77.5%)
· Rent collection remains high at 97.7%* (FY 24: 98.6%)
· 20 new lettings during the period totalling £1.4m rent roll;
lettings achieving 4.2% above 2024 ERV; average size 5,912 sq ft (2024: 3,140
sq ft)
*As at 3 September 2025. All outstanding rent is expected to be collected in
due course.
Portfolio strategy update
As previously announced, the portfolio has been segmented into four strategic
categories:
· Core (£355.1m; 58.4%) - well positioned to deliver sustainable
long-term income
· Capex to Core (£103.2m; 17.0%) - targeted investment to upgrade
assets to secure lettings
· Value Add (£56.8m; 9.3%) - assets with potential for
repositioning and planning gains
· Sales (£93.2m; 15.3%) - assets targeted for disposal programme
Q2 2025 Dividend Declaration
The Company declares that it will pay a dividend of 2.50 pence per share
("pps") for the period 1 April 2025 to 30 June 2025. The entire dividend will
be paid as a REIT property income distribution ("PID").
Shareholders have the option to invest their dividend in a Dividend
Reinvestment Plan ("DRIP"), and more details can be found on the Company's
website:
https://www.regionalreit.com/investors/investors-dividend/dividend-reinvestment-plan
(https://www.regionalreit.com/investors/investors-dividend/dividend-reinvestment-plan)
.
The key dates relating to this dividend are:
Ex-dividend date 18 September 2025
Record date 19 September 2025
Last day for DRIP election 26 September 2025
Payment date 17 October 2025
The level of future payments of dividends will be determined by the Board
having regard to, among other factors, the financial position and performance
of the Group at the relevant time, UK REIT requirements, the interest of
shareholders and the long-term future of the Company.
Outlook
There is increasingly a structural lack of quality new supply rated EPC A
& B in the regional office market. That combined with strengthening
occupational demand and a renewed understanding of the importance of the
office to company culture and performance, means that the outlook for regional
offices is becoming more positive. In that context, with its diversified,
national presence and clear opportunities for value creation, Regional REIT is
well placed to benefit from these tailwinds over the medium term, albeit we do
not expect to see this momentum to feed through into our results until 2026.
In the meantime, the business is prioritising its Capex programme to enhance
the quality of its core portfolio to drive rental income and occupancy, while
progressing opportunities to add value through change of use.
While there have been a number of unexpected lease breaks, which will
negatively impact rental income for the year, the Company is encouraged by the
increasing number of enquiries across the portfolio and can take confidence
from the recent lettings activity, with leases in the first six months of the
year coming in 4.2% ahead of ERV. The Company looks forward to providing
updates as further lettings flow through.
Post period end
Disposals
Since 30 June 2025, the Company has completed four disposals for an aggregate
total of £6.8m (before costs).
Borrowings
Following the post period end disposals, Group borrowings have been further
reduced by £6.4m to £303.6m.
Acquisitions
Since 30 June 2025, the Company has completed the acquisition of a strategic
asset for £1.1m (before costs). This completes the ownership of the 7-acre
island site in Central Park, Leeds.
Lettings
A further five notable new lettings and renewals achieved post period end for
45,757 sq.ft. amounting to £1.0m.
Forthcoming Events
November 2025 Q3 2025 Trading Update
March 2026 2025 Preliminary Results
May 2026 Q1 2026 Trading Update
- ENDS -
Enquiries:
Regional REIT Limited
Press enquiries through FTI Consulting
ESR Europe Private Markets Limited Tel: +44 (0) 203 831 9776
Investment Manager 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
Shore Capital Tel: +44 (0) 20 7408 4050
Joint Broker and Financial Adviser
Gillian Martin, Daphne Zhang (Corporate Advisory)
Ben Canning / Henry Willcocks (Corporate Broking)
Peel Hunt Tel: +44 (0)20 7418 8900
Joint Broker and Financial Adviser
Capel Irwin, Henry Nicholls (Corporate Advisory)
FTI Consulting Tel: +44 (0)20 3727 1000
Financial Communications RegionalREIT@fticonsulting.com (mailto:RegionalREIT@fticonsulting.com)
Dido Laurimore, Giles Barrie
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, predominantly offices located in the regional centres
outside of the M25 motorway. The portfolio is geographically diversified, with
123
properties, 1,248 units and 740 tenants as at 30 June 2025, with a valuation
of c.£608.3m.
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
(https://url.avanan.click/v2/r02/___http:/www.regionalreit.com/___.YXAxZTpzaG9yZWNhcDphOm86NjNiYTA4MjhkYWFjMWMxYzA3ZmYyZTMxYmVlMGJjOTI6Nzo5ZGI4OjZiNGQzODEwNTY5NGE3NzhhZDYyOThlMmQ4ODdmNTY4YThmYjVmNWU4NGRjM2MxMGJjNmUzZmFkOWU2ZjY1Yjk6cDpGOk4)
.
LEI: 549300D8G4NKLRIKBX73
Strategy Progressing Well to Reposition the Portfolio for Long Term Value
CAPEX Programme
£6.0m Prioritising accretive deployment
(30 June 2024: £5.2m; 31 December 2024: £8.5m)
Strategic Sales Programme
£7.8m Focused disposals, maintaining disciplined capital deployment
(30 June 2024: £21.9m; 31 December 2024: £30.8m)
Group Borrowings
£310.0m Continue to reduce Group borrowings
(30 June 2024: £353.m; 31 December 2024: £316.7m)
Key Financials
Period ended 30 June 2025
30 June 31 December 2024
2025
Portfolio Valuation £608.3m £622.5m
IFRS NAV per Share 207.2p 216.9p
EPRA* NTA per Share 202.8p 210.2p
Net Loan to Value Ratio* 43.2% 41.8%
Weighted Average Cost of Debt* 3.4% 3.4%
Weighted Average Debt Duration* 2.4 yrs 2.9 yrs
Total Shareholder Return (six-month period to 30 June 2025) +9.6%
The European Public Real Estate Association ("EPRA")*
The EPRA's mission is to promote, develop and represent the European public
real estate sector. As an EPRA member, we fully support the EPRA Best
Practices Recommendations. Specific EPRA metrics can be found in the Company's
financial and operational highlights, with further disclosures and supporting
calculations in the full Half Year Report.
* Alternative Performance Measures. Details are provided in the Glossary of
Terms in the full Half-Year Report.
"During the period we have made continued progress in implementing our revised
strategy, focusing on core assets, targeted capital expenditure and value-add
opportunities to reposition the portfolio to deliver long-term shareholder
value, whilst maintaining a fully covered dividend."
David Hunter
Chairman
Chairman's Statement
Overview
Over the past six months, the Company has continued to execute the Board's
strategic direction established in 2024, following the successful £110.5m
equity capital raise.
In our Full Year results announced in March 2025, we outlined our portfolio
segmentation into four categories: core, capital-expenditure-to-core,
value-add, and disposals. The Company is prioritising capital expenditure to
reposition the portfolio, aiming to capitalise on regional office rental
growth by offering spaces that foster and support successful corporate
operations. Some £6.0m of capital expenditure was deployed in the six months
to 30 June 2025, with £22.9m of targeted investment to upgrade assets being
completed, in progress or under consideration. Additionally, we are
progressing the valueadd segment to leverage opportunities within the
portfolio that we previously lacked the capital to pursue. Alongside, we
continue to advance our strategic sales programme, realising an additional
£7.3m in sales during the period.
All this activity has been undertaken against what remains a challenging
backdrop for commercial real estate. The Regional REIT portfolio valuation
declined 2.0% on a like-for-like basis, after adjusting for disposals and
capital expenditure. In part this reflects the capital expenditure which is
yet to be fully recognised in the valuation, until the space is fully let.
The Board places high importance on the dividend, which is fully covered and
is distributed in accordance with HMRC guidelines. Robust rent collections
continue to support these uninterrupted dividend payments. The Board
recognises the importance of delivering a fully covered dividend which remains
an overriding focus for us.
The Board is pleased to report continued momentum in our leasing activity, as
highlighted in the 26 June 2025 Letting Update. Since the May trading update,
the Group has secured seven new lettings and eight lease renewals, delivering
over £1.6 million in annual rental income-representing a 6.3% uplift above
estimated rental values (ERV). These transactions reflect the effectiveness of
our active asset management and capital expenditure strategy, which continues
to attract quality tenants and support rental growth. While progress has been
made in delivering our strategy, challenging investment market conditions and
a number of unexpected lease breaks have impacted headline performance. Our
priority remains to reduce debt, lower the loan-to-value ratio, and strengthen
the balance sheet ahead of the 2026 refinancing. We continue to advance our
disposal programme to generate capital and reduce facility size. The Board
remains confident in the Group's ability to deliver long-term value for
shareholders.
Financial Resources
The Company's EPRA NTA decreased to £328.7m (IFRS NAV: £335.9m) as at 30
June 2025, down £12.1m from £340.8m (IFRS NAV: £351.6m) at 31 December
2024, primarily due to a £12.1m downward revaluation of the investment
property portfolio. A cash balance of £47.1m was retained (2024: £56.7m), of
which £42.7m was unrestricted (2024: £55.9m). Net Loan-to-Value (LTV) rose
to 43.2% (2024: 41.8%) following the valuation decline, while the weighted
average cost of debt remained stable at 3.4%. The Company's debt is fully
fixed and hedged, mitigating interest rate volatility. Prior to the £96.4m
facility with the Royal Bank of Scotland, Bank of Scotland and Barclays
maturing in August 2026, the Directors are in the process of considering the
refinancing options which are at an advanced stage. The Board's selection of
the most appropriate banking facility offered is still subject to commercial
and practical considerations.
Sustainability
Across the portfolio, we have made significant progress in our sustainability
initiatives, with signed leases and solar installations underway on 12
properties, delivering a total generation capacity of 3,026 kW. A further 12
installations are in progress, expected to add another 2,299 kW. Combined,
this capacity is equivalent to powering approximately 1,600 UK homes annually.
These efforts are projected to reduce CO2 emissions by around 910 tonnes,
significantly improving EPC ratings and strengthening our sustainability
credentials. In turn, these energy-efficient upgrades are enhancing the appeal
of our buildings, supporting both occupancy and tenant retention.
As at 30 June 2025, 82.5% of the portfolio had achieved EPC ratings of C or
better, broadly in line with the 82.7% recorded at the end of 2024. This
consistency reflects the underlying resilience of the portfolio and the steady
progress of our asset management strategy. Capital expenditure during the
period has been focused on EPC improvements, keeping us well positioned to
meet the MEES target of EPC B ahead of the 2030 deadline. In a market where
compliant office space remains limited, our continued investment in
energy-efficient buildings supports occupancy and rental performance, while
reinforcing Regional REIT's differentiated offering.
Dividends
For the period under review, the Company declared fully covered total
dividends of 5.00 pence per share ("pps") (six months to 30 June 2024:
3.40pps*).
The Board has approved a dividend of 2.50pps in respect of the period 1 April
2025 to 30 June 2025.
The level of future payment of dividends will be determined by the Board
having regard to, among other factors, the financial position and performance
of the Group at the relevant time, UK REIT requirements, the interest of
shareholders and the long-term future of the Company.
* On 19 July 2024 the shares in issue increased by 1,105,149,821 shares to
1,620,886,404. On 29 July 2024 the shares were consolidated on a 1 for 10
share basis.
Performance
The Company's Total Shareholder Return was +9.6%, versus the return of +8.5%
for the FTSE EPRA NAREIT UK Total Return Index over the six months to 30 June
2025. The annualised EPRA Total Return was 0.5% p.a. (2024: 0.6% p.a.).
Board Composition
As announced on 21 July 2025, following a thorough search process and in line
with the Company's policy, Sarah Whitney was appointed as an Independent
Non-Executive Director. In addition, Sarah was also appointed to the Audit,
Nomination and Management Engagement & Remuneration Committees. Sarah is a
Chartered Accountant with more than 35 years of experience in advising on
strategy, corporate finance, real estate and economic development matters, as
well as having an impressive background as a non-executive director.
Outlook
The Company has taken decisive steps to reposition its portfolio in line with
the strategic shift initiated in 2024. The segmentation of the portfolio into
core, capital-expenditure-to-core, value-add assets and disposal provides a
clear framework for delivering our strategy and unlocking long-term value.
However, the pace of recovery is uneven, and the disposal programme has faced
headwinds due to subdued investment appetite. These headwinds may continue to
impact performance into the second half of the year. In light of this, the
Company remains focused on progressing accretive initiatives, enhancing asset
quality, and maintaining disciplined capital deployment.
The Board is confident in the new strategy. As market conditions evolve, the
Company is well placed to capture emerging opportunities while managing risks
prudently, ensuring that shareholder value continues to be prioritised.
David Hunter
Chairman
8 September 2025
Asset and Investment Managers' Report
Regional REIT continued to make progress in the delivery of its strategy in
the first half of the year, albeit challenging conditions in the investment
markets and a number of unexpected lease breaks negatively impacted the
business' overall performance on a headline basis. During the six months to 30
June 2025, the Company's portfolio valuation declined on a like-for-like basis
by 2.0% after adjusting for disposals and capital expenditure.
We remain committed to reducing debt, thereby lowering the loan-to-value ratio
and enhancing the balance sheet to position the business for long-term
success. To that end, to ensure the terms of our upcoming 2026 refinancing are
as attractive as possible, we are prioritising progressing disposals to
generate capital, which will enable us to reduce the size of the facility on
refinancing.
Despite some headwinds, there continues to be clear opportunities for value
creation within the portfolio, and Regional REIT remains well positioned to
benefit from strengthening occupier demand for quality space. We continue to
prioritise our capex programme, refurbishing and updating our Capex to Core
segment of assets to enhance the overall quality of our portfolio and drive
rental growth, as evidenced in our most recent lettings. Alongside that,
although more long-term in nature, we are also advancing our plans to add
value on sites by securing selected planning consents.
Fundamentally, with a clear uptick in occupational demand in the regional
office market for the right product, combined with a lack of good quality
Grade A supply with EPC A or B ratings, Regional REIT is well placed to
deliver on our strategy, albeit we do not expect to see this momentum feed
through into our results until 2026.
Stephen Inglis
Head of ESR Europe LSPIM Ltd, Asset Manager
UK Office Investment Activity
The global economic climate in mid-2025 is marked by a mixed picture of
cautious recovery and uncertainties. Global commercial real estate investment
in general, saw a rebound in 2024 with an 8% year-on-year increase, whilst
global investment turnover in the office sector rose over 7% year-on-year,
according to Savills(1). This optimism is further reinforced by the RICS UK
Commercial Property survey(2), which suggests that the UK commercial real
estate market has either reached its bottom or is in the early upswing stage
of the next cycle.
The UK office investment market is showing signs of increased activity and
investor confidence, particularly in regional markets and driven by a strong
occupational market and a diverse range of investors seeking opportunities
amidst repriced assets and constrained supply of prime stock. CBRE(3) has
noted that prime rents increased in HY 2025, not just in Central London, but
South East and regional cities. Pipeline constraints and lack of availability
of high-quality stock means that prime rental values are projected to increase
across all UK office markets tracked by CBRE, with the highest growth for
Central London expected in the West End, followed by the City, and Birmingham
and Glasgow expected to take the lead in the regional markets.
Following an improvement in volume in 2025 Q1, office investment remained
relatively robust in Q2, with £2.2bn transacted(4). This increase in overall
office investment was primarily driven by London. Lambert Smith Hampton
("LSH") also continue in their note that the UK retains significant appeal as
a relative safe haven, and international investors continue to seek
opportunities to acquire assets against the uncertain global backdrop. This
was underpinned by a flurry of large-scale purchases by North American
investors, totalling £608m and accounting for 62% of overseas office
investment. Volume in the UK regions was dominated by two sizeable deals,
namely Pontegadea's £75m purchase of Capital Square, Edinburgh (5.80% NIY);
and Melford Capital Partners' £75m acquisition of 101 Embankment, Manchester
(9.10% NIY).
Despite ongoing drift in secondary market pricing, strong demand for scarce,
high-quality properties and perceptions of attractive relative value are
pushing prime yields downwards. While prime yields remained stable across all
key market segments in Q1, current sentiment suggests a potential 25bps
hardening for core regional centres and City offices in the second half of the
year.
(1) Office investment bounces back 7% in 2024 as total global CRE investment
rises 8% YOY to $828
billion, February 2025, Savills
(2) RICS survey calls the bottom of the UK commercial real estate market as
yields harden across sectors, March 2025
(3) 2025 UK Real Estate Market Outlook Mid-Year review, August 2025, CBRE
(4) UK Investment Transactions Bulletin, UKIT Q2 2025 by Lambert Smith Hampton
(LSH), July. 2025
Significant supply and demand imbalance in the UK Regional Office Market
In their most recent update, Avison Young(5), show that take-up of office
space across the nine regional markets(6) reached 1.6m square feet (sq ft) in
Q2 2025. Taking the half-year 2025 take-up to 3.7m sq ft, which is the
strongest half-year since 2019 and 6% above the 10-year average. The
out-of-town commercial real estate market is gaining traction due to a
shortage of large, high-quality office spaces (Grade A) in city centres. This
has led larger businesses to consider out-of-town locations, as evidenced by
six of the ten largest deals this year occurring outside city centres, a
significant shift from the previous year where all top ten deals were city
centre based. This trend highlights a growing preference for out-of-town
locations, possibly driven by factors like more affordable property prices,
greater availability of space, better accessibility, or potentially lower
operational costs, including employee wages outside of major cities.
Quarterly prime rental growth increased 0.9% despite the vacancy rate seeing a
negligible increase from 2.0% to 2.2%. Led by an increase in prime rents for
the Big Nine except Newcastle.
In terms of the development pipeline, in 2025 it is estimated that
approximately 1.1m sq ft. of office space is still under-construction in the
Big Nine regional markets, of which 55% is already let. The estimated pipeline
total is 12% lower than the 10-year average and not nearly as high as
pre-2009, as shown in the chart(7), which augurs well for existing office
space.
(5) The Big Nine, Quarterly update of Regional Office Activity, Avison Young,
Q2 2025, July 2025
(6) Nine regional office markets mentioned by Avison Young include:
Birmingham, Bristol, Cardiff,
Edinburgh, Glasgow, Leeds, Liverpool, Manchester, Newcastle
(7) The Big Nine, Quarterly update of Regional Office Activity, Avison Young,
Q2 2025, July 2025
Rental Growth in the UK Regional Office Market
According to monthly data from MSCI, rental value growth finished the quarter
on a high for 'Rest of UK Office' markets with growth of 3.0%. Conversely,
central London offices experienced modest growth of 1.3% over the same period.
Avison Young report that eight of the Big Nine's cities saw an increase in
their prime rents this quarter.
Property Portfolio
As at 30 June 2025, the Group's property portfolio was valued at £608.3m (30
June 2024: £647.9 m; 31 December 2024: £622.5 m), with rent roll of £56.7 m
(30 June 2024: £63.5 m; 31 December 2024: £60.7m), and an EPRA occupancy of
78.6% (30 June 2024: 78.0%; 31 December 2024: 77.5%).
On a like-for-like basis, 30 June 2025 versus 31 December 2024, EPRA occupancy
was 78.6% (31 December 2024: 77.4%).
There were 123 properties (30 June 2024: 132; 31 Dec 2024: 126) in the
portfolio, with 1,248 units (30 June 2024: 1,305; 31 December 2024: 1,271) and
740 tenants (30 June 2024: 832; 31 December 2024: 780). If the portfolio was
fully occupied at the Colliers International Property Consultant Ltd view of
market rents, the rental income would be £82.9 m per annum as at 31 December
2024 (30 June 2024: £83.7m; 31 December 2024: £83.2 m).
As at 30 June 2025, the net initial yield on the portfolio was 5.8% (30 June
2024: 6.1%; 31 December 2024: 5.9%), the equivalent yield was 10.5% (30 June
2024: 10.2%; 31 December 2024: 10.4%) and the reversionary yield was 11.8% (30
June 2024: 11.2%; 31 December 2024: 11.6%).
Property Portfolio by Sector as at 30 June 2025
Sector Properties Valuation % by valuation Sq. ft. Occupancy (EPRA) WAULT to first break Gross rental income Average rent ERV Capital rate EPRA net initial yield Equivalent yield Reversionary yield
(£m) (%) (m) (%) (yrs) (£m) (£psf) (£m) (£psf) (%) (%) (%)
Office 105 550.2 90.4% 5.0 77.5% 2.6 51.4 15.25 77.4 109.45 5.6% 10.6% 12.1%
Retail 12 22.8 3.8% 0.2 94.0% 3.4 2.4 10.49 2.4 92.66 7.3% 9.0% 9.5%
Industrial 4 23.1 3.8% 0.4 88.5% 2.9 1.8 5.47 2.1 55.14 6.5% 7.8% 8.2%
Other 2 12.2 2.0% 0.1 98.5% 9.1 1.1 12.48 0.9 128.63 8.5% 8.4% 7.0%
Total 123 608.3 100.0% 5.8 78.6% 2.8 56.7 14.13 82.9 105.12 5.8% 10.5% 11.8%
Property Portfolio by Region as at 30 June 2025
Region Properties Valuation % by valuation Sq. ft. Occupancy (EPRA) WAULT to first break Gross rental income Average rent ERV Capital rate EPRA net initial yield Equivalent yield Reversionary yield
(%) (m) (%) (yrs) (£m) (£psf) (£m) (£psf) (%) (%) (%)
(£m)
Scotland 26 96.5 15.9% 1.0 64.3% 3.8 8.8 13.84 15.9 92.12 4.5% 11.3% 13.0%
South East 22 108.2 17.8% 0.9 79.1% 2.3 10.6 16.58 14.4 127.20 6.7% 10.3% 11.8%
North East 18 99.4 16.3% 0.8 79.7% 3.1 8.0 14.45 11.9 119.26 5.3% 9.7% 10.7%
Midlands 22 123.3 20.3% 1.3 85.4% 3.3 11.7 12.86 17.0 92.53 5.8% 10.7% 12.1%
North West 17 83.7 13.8% 0.9 74.0% 2.0 8.0 13.24 12.2 94.18 4.5% 10.6% 12.1%
South West 12 57.2 9.4% 0.4 93.1% 1.7 6.0 17.66 7.2 142.92 8.3% 10.7% 11.8%
Wales 6 40.1 6.6% 0.4 89.5% 2.9 3.5 10.82 4.3 92.26 7.1% 9.1% 9.6%
Total 123 608.3 100.0% 5.8 78.6% 2.8 56.7 14.13 82.9 105.12 5.8% 10.5% 11.8%
Tables may not sum due to rounding.
Top 15 Investments (market value) as at 30 June 2025
Property Sector Anchor tenants Market % of Lettable EPRA Annualised % of gross rental income WAULT
value (£m) portfolio area Occupancy gross rent (£m) to
(Sq. Ft.) (%) first
break
(years)
300 Bath Street, Glasgow Office Glasgow Tay House Centre Ltd, University of Glasgow, Fairhurst Group LLP, ESR 18.4 3.0% 151,045 82.3% 0.9 1.5% 2.2
Europe LSPIM Ltd
Norfolk House, Smallbrook Queensway, Birmingham Office Global Banking School Ltd 17.8 2.9% 118,530 81.0% 1.6 2.9% 6.8
Hampshire Corporate Park, Hampshire House, Eastleigh Office Aviva Central Services UK Ltd, Lloyd's Register EMEA, Complete Fertility Ltd 16.7 2.7% 84,043 100.0% 1.8 3.2% 2.2
Beeston Business Park, Nottingham Office Metropolitan Housing Trust Ltd, SMS Electronics Ltd, SMS Product Services Ltd 15.0 2.5% 215,335 71.8% 1.1 1.9% 4.5
1-4 Llansamlet Retail Park, Nantyffin Rd, Swansea Office Wren Kitchens Ltd, Dreams Ltd, NCF Furnishings Ltd, A Share & Sons Ltd 14.1 2.3% 74,425 100.0% 1.2 2.2% 3.1
Eagle Court, Coventry Road, Birmingham Office Virgin Media Ltd, Rexel UK Ltd, Goldbeck Construction Ltd 13.5 2.2% 132,690 75.8% 1.3 2.3% 2.2
Oakland House, Manchester Office Please Hold (UK) Ltd, A.M.London Fashion Ltd, CVS (Commercial Valuers & 12.9 2.1% 161,505 80.8% 1.2 2.1% 1.9
Surveyors) Ltd
800 Aztec West, Bristol Office NNB Generation Company (HPC) Ltd, EDF Energy Ltd 12.7 2.1% 73,293 100.0% 1.5 2.7% 1.3
Manchester Green, Manchester Office Chiesi Ltd, Ingredion UK Ltd, Assetz SME Capital Ltd 12.6 2.1% 107,760 82.4% 1.5 2.7% 1.5
Capitol Park, Leeds Office Hermes Parcelnet Ltd, Harron Homes Ltd, BDW Trading Ltd 12.5 2.0% 86,758 91.0% 1.0 1.7% 3.1
Linford Wood Business Park, Milton Keynes Office IMServ Europe Ltd, Senceive Ltd, Autotech Recruit Ltd, Aztech IT Solutions Ltd 12.0 2.0% 107,411 74.2% 1.2 2.1% 2.3
Ashby Park, Ashby De La Zouch Office Ceva Logistics Ltd, Ashfield Healthcare Ltd, Brush Electrical Machines Ltd 11.6 1.9% 87,873 92.7% 1.2 2.2% 2.8
Orbis 1, 2 & 3, Pride Park, Derby Office Firstsource Solutions UK Ltd, DHU Health Care C.I.C., Tentamus Pharma (UK) Ltd 11.5 1.9% 121,883 100.0% 1.8 3.2% 2.8
Lightyear - Glasgow Airport, Paisley Office Rolls-Royce Submarines Ltd, Heathrow Airport Ltd, Loganair Ltd, Cefetra 11.1 1.8% 73,499 67.9% 1.3 2.3% 4.4
Limited
The Coach Works, Leeds Office St James's Place Wealth Management Group Ltd, Abstract Tech Ltd, Canal & 10.3 1.7% 41,122 78.0% 0.8 1.5% 1.4
River Trust
Total 202.4 33.3% 1,637,172 85.1% 19.5 34.4% 2.9
Tables may not sum due to rounding.
Top 15 Tenants (share of rental income) as at 30 June 2025
WAULT to first break Lettable area Annualised gross rent % of gross rental income
Tenant Property Sector (years) (Sq. Ft) (£m)
EDF Energy Limited 800 Aztec West, Bristol; Endeavour House, Sunderland Electricity, gas, steam and air conditioning supply 4.0 109,114 1.7 3.0%
Global Banking School Limited Norfolk House, Birmingham Education 7.4 73,628 1.4 2.5%
Virgin Media Limited Eagle Court, Birmingham; Southgate Park, Peterborough Information and communication 2.2 75,309 1.3 2.4%
The Secretary of State for Housing, Communities and Local Government 1 Burgage Square, Wakefield; Bennett House, Stoke On Trent; Oakland House, Public sector 3.8 109,427 1.2 2.1%
Manchester; Origin (Office), Bracknell; Waterside Business Park, Swansea
Firstsource Solutions UK Limited Orbis 1, 2 & 3, Pride Park, Derby Administrative and support service activities 3.3 62,433 1.0 1.8%
NNB Generation Company (HPC) Ltd 800 Aztec West, Bristol Electricity, gas, steam and air conditioning supply 0.6 41,744 0.9 1.5%
SPD Development Company Ltd Clearblue Innovation Centre, Bedford Professional, scientific and technical activities 8.5 58,167 0.8 1.5%
Aviva Central Services UK Limited Hampshire Corporate Park, Eastleigh Other service activities 0.4 42,612 0.8 1.4%
Odeon Cinemas Ltd Kingscourt Leisure Complex, Dundee Information and communication 10.3 41,542 0.8 1.3%
Please Hold (UK) Limited Oakland House, Manchester Professional, scientific and technical activities 2.4 60,362 0.7 1.2%
True Potential LLP Newburn & Gateway House, Newcastle Not specified 4.9 54,584 0.6 1.1%
SpaMedica Limited 1175 Century Way, Thorpe Park, Leeds; Albert Edward House, Preston; Fairfax Human health and social work activities 2.6 40,529 0.6 1.1%
House, Wolverhampton; Southgate Park, Peterborough; The Foundation Chester
Business Park, Chester
DHU Health Care C.I.C. Orbis 1, 2 & 3, Pride Park, Derby Human health and social work activities 0.8 42,301 0.6 1.0%
Lloyds Bank Plc Victory House Meeting House Lane, Medway Financial and insurance activities 1.0 48,372 0.5 1.0%
Elior UK Services Ltd The Courtyard, Macclesfield Administrative and support service activities 1.2 17,184 0.5 1.0%
Total 3.8 877,308 13.4 23.7%
Table may not sum due to rounding
Property Portfolio Sector and Region Splits by Valuation and Income as at 30
June 2025
By Valuation
As at 30 June 2025, 90.4% (30 June 2024: 91.5%; 31 December 2024: 90.7%) of
the portfolio by market value was offices and 3.8% (30 June 2024: 3.1%; 31
December 2024: 3.6%) was retail. The balance was made up of industrial, 3.8%
(30 June 2024: 3.4%; 31 December 2024: 3.7%) and other, 2.0% (30 June 2024:
1.9%; 31 December 2024: 2.0%). By UK region, as at 30 June 2025, Scotland
represented 15.9% (30 June 2024: 16.7%; 31 December 2024: 16.6%) of the
portfolio and England 77.5% (30 June 2024: 77.5%; 31 December 2024: 77.1); the
balance of 6.6% (30 June 2024: 5.8%; 31 December 2024: 6.3%) was in Wales. In
England, the largest regions were the Midlands, the South East and the North
East.
By Income
As at 30 June 2025, 90.7% (30 June 2024: 90.9%; 31 December 2024: 90.5%) of
the portfolio by income was offices and 4.2% (30 June 2024: 4.3%; 31 December
2024: 4.4%) was retail. The balance was made up of industrial, 3.1% (30 June
2024: 3.0%; 31 December 2024: 3.2%), and other, 2.0% (30 June 2024: 1.8%; 31
December 2024: 1.9%). By UK region, as at 30 June 2025, Scotland represented
15.6% (30 June 2024: 16.3%; 31 December 2024: 16.0%) of the portfolio and
England 78.3% (30 June 2024: 77.9%; 31 December 2024: 78.0%); the balance of
6.1% was in Wales (30 June 2024: 5.8%; 31 December 2024: 6.0%). In England,
the largest regions were the Midlands, the South East and the North West.
Lease Expiry Profile
The WAULT on the portfolio is 4.4 years (30 June 2024: 4.7; 31 December 2024:
4.6); WAULT to first break is 2.8 years (30 June 2024: 3.0; 31 December 2024:
2.9). As at 30 June 2025, 11.9% (30 June 2024: 12.1%; 31 December 2024: 13.8%)
of income was from leases, which will expire within one year, 10.5% (30 June
2024: 13.1%; 31 December 2024: 10.5%) between one and two years, 40.7% (30
June 2024: 35.7%; 31 December 2024: 39.7%) between two and five years and
37.0% (30 June 2024: 39.1%; 31 December 2024: 36.1%) after five years.
Tenants by Standard Industrial Classification as at 30 June 2025
As at 30 June 2025, 11.5% of income was from tenants in the administrative and
support service activities sector (30 June 2024: 10.9%; 31 December 2024:
11.2%), 11.2% from the professional, scientific and technical activities
sector (30 June 2024: 11.5%; 31 December 2024: 11.8%), 11.1% from the
information and communication activities sector (30 June 2024: 11.6%; 31
December 2024: 10.5%), 8.7% from the wholesale and retail trade sector (30
June 2024: 8.1%; 31 December 2024: 8.7%) and 6.5% from the education sector
(30 June 2024: 6.2%; 31 December 2024: 5.9%). The remaining exposure is
broadly spread.
No tenant represents more than 3.0% of the Group's rent roll as at 31 December
2024, the largest being 3.0% (30 June 2024: 2.7%; 31 December 2024: 2.8%).
Tenants by SIC Codes (% of gross rent)
SIC Code % of Headline Rent
Administrative and support service activities 11.5%
Professional, scientific and technical activities 11.2%
Information and communication 11.1%
Wholesale and retail trade 8.7%
Education 6.5%
Human health and social work activities 6.2%
Manufacturing 6.2%
Financial and insurance activities 5.9%
Public Sector 4.8%
Not specified 4.5%
Electricity, gas, steam and air conditioning supply 4.5%
Other* 18.9%
Total 100.0%
Source: ESR Europe LSPIM Ltd
Charts may not sum due to rounding.
* Other - Construction, Transportation and storage, Other service activities,
Real estate activities, Registered Society, Water supply, sewerage, waste
management and remediation activities, Accommodation and food service
activities, Activities of extraterritorial organisations and bodies, Arts,
entertainment and recreation, Activities of households as employers, Public
administration and defence; compulsory social security, Charity, Mining and
Quarrying, N/A, Sole Trader, Overseas company.
Financial Review
Net Asset Value
Between 1 January 2025 and 30 June 2025, the EPRA NTA* of the Group decreased
to £328.7m (IFRS NAV: £335.1m) from £340.7m (IFRS NAV: £351.6m) as at 31
December 2024, equating to a decrease in the diluted EPRA NTA of 7.4pps to
202.8.pps (IFRS: 207.2pps). This is after the dividends declared in the period
amounting to 4.7pps.
In the six months to 30 June 2025, the investment property revaluation
decrease amounted to £12.1m, for the properties held as at 30 June 2025.
The investment property portfolio was valued at £608.3m (30 June 2024:
£647.9m; 31 December 2024: £622.5m). The decrease of £14.2m since the
December 2024 year-end is a reflection of revaluation movement loss of
£12.1m, £7.3m of net property disposals and £0.6m loss on the disposal of
investment properties, offset by subsequent expenditure of £6.0m. Overall, on
a like-for-like basis, the portfolio value decreased by 2.0% during the
period.
The table below sets out the acquisitions, disposals and capital expenditure
for the respective periods:
Six months to 30 June 2025 Six months to 30 June 2024 Year ended
31 December 2024
(£million) (£million) (£million)
Acquisitions
Net (after costs) 0.0 0.0 0.0
Gross (before costs) 0.0 0.0 0.0
Disposals
Net (after costs) 7.3 20.7 28.6
Gross (before costs) 7.8 21.9 30.8
Capital Expenditure
Net (after dilapidations) 6.0 5.2 8.2
Gross (before dilapidations) 6.0 5.2 8.5
The diluted EPRA NTA per share decreased to 202.8pps (31 December 2024:
210.2pps). The EPRA NTA is reconciled in the table below:
Six months to 30 June 2025
£m Pence per Share
Opening EPRA NTA (31 December 2024) 340.7 210.2
Net rental and property income 19.3 11.9
Administration and other expenses (5.2) (3.2)
Loss on the disposal of investment properties (0.6) (0.4)
Change in the fair value of investment properties (12.1) (7.4)
Change in value of right of use (0.1) (0.0)
EPRA NTA after operating profit 342.1 211.0
Net finance expense (5.6) (3.5)
Realised gain on derivative financial instruments 0.1 0.1
EPRA NTA before dividends paid 336.6 207.7
Dividends paid** (7.6) (4.7)
EPRA NTA before capital raise costs 329.0 203.0
Capital raise expenses (0.3) (0.2)
Closing EPRA NTA (30 June 2025) 328.7 202.8
Tables may not sum due to rounding
* The Group has determined that EPRA net tangible assets (NTA) is the most
relevant measure. Further detail on the new EPRA performance measures can be
found in the full Annual Report.
**As at 30 June 2025, there were 162,088,483 Shares in issue.
Income Statement
Operating profit before gains and losses on property assets and other
investments for the six months ending 30 June 2025 amounted to £14.1m (six
months to 30 June 2024: £19.1m). Loss after finance and before taxation was
£7.9m (six months to 30 June 2024: £27.1m). The six months to 30 June 2025
included a full rent roll for the portfolio of properties held as at 30 June
2025, plus the partial rent roll for properties disposed of during the period.
The decrease includes the loss in the fair value of investment properties in
the six months to June 2025 of £12.1m (six months to 30 June 2024: loss
£37.9m), the loss on the disposal of investment properties of £0.6m, and the
change in the value of right of use asset of a loss of £0.1m.
Rental and property income amounted to £29.8m, excluding recoverable service
charge income and other similar items (six months to 30 June 2024: £32.2m).
The decrease was primarily the result of the decrease in the rent roll being
held over the six months to 30 June 2025.
Currently more than 80% of the rental income is collected within 30 days of
the due date and the bad debts provision in the period amounted to £0.3m (30
June 2024: £0.2m).
Non-recoverable property costs, excluding recoverable service charge income
and other similar costs, amounted to £10.5m (six months to 30 June 2024:
£8.4m), and the rent roll decreased to £56.7m (six months to 30 June 2024:
£63.5m).
Realised loss on the disposal of investment properties amounted to £0.6m (six
months to 30 June 2024: loss £1.2m). The disposal losses were from the
aggregate disposal of three assets and two-part sales in the period, on which
individual asset management plans had been completed. The change in the fair
value of investment properties amounted to a loss of £12.1m (six months to 30
June 2024: loss of £37.9m). Net capital expenditure amounted to £6.0m (six
months to 30 June 2024: £5.2m). The change in value of right of use asset
amounted to
a charge of £0.1m (six months to 30 June 2024: charge £0.1m).
Interest income amounted to £0.6m six months to 30 June 2025 (2024: £0.1m).
Finance expenses amount to £6.2m (six months to 30 June 2024: £8.2m). The
six months to 30 June 2025 was lower due to the repayment of the £50m Retail
Bond in August 2024 and subsequent bank borrowing repayments.
The EPRA cost ratio, including direct vacancy costs, was 52.6% (30 June 2024:
40.6%). The EPRA cost ratio, excluding direct vacancy costs was 19.4% (30 June
2024: 13.4%). The ongoing charges for the year ending 30 June 2025 were 9.1%
(30 June 2024: 9.1%) and excluding direct vacancy costs 3.4% (30 June 2024:
3.0%).
The EPRA Total Return from Listing to 30 June 2025 was 5.0% (30 June 2024:
7.5%), with an annualised rate of 0.5% pa (30 June 2024: 0.8% pa).
Dividend
For the period from 1 January 2025 to 30 June 2025, the Company declared
dividends totalling 5.00pps (six months to 30 June 2024: 3.4pps) *. A schedule
of dividends can be found in the full Annual Report.
Debt Financing and Gearing
Borrowings comprise third-party bank debt which is secured over properties
owned by the Group and repayable over the next one to four years. The weighted
average maturity of the bank debt is 2.4 years (including the retail bond 30
June 2024: 3.0 years; 31 December 2024: 2.9 years).
The Group's borrowing facilities are with the Royal Bank of Scotland, Bank of
Scotland and Barclays, Scottish Widows Limited & Aviva Investors Real
Estate Finance, Scottish Widows Limited and Santander UK. The total bank
borrowing facilities at 30 June 2025 amounted to £310.0m (30 June 2024:
£353.3m; 31 December 2024: £316.7m) (before unamortised debt issuance
costs), with nil available to be drawn. Prior to the £96.4m facility with the
Royal Bank of Scotland, Bank of Scotland and Barclays, maturing in August
2026, the Directors are in the process of considering the refinancing options
which are at an advanced stage. The Board's selection of the most appropriate
banking facility offered is still subject to commercial and practical
considerations.
At 30 June 2025, the Group's cash and cash equivalent balances amounted to
£47.1m (30 June 2024: £25.7m; 31 December 2024: £56.7m), of which £42.7m
(30 June 2024: £21.8m; 31 December 2024: £55.9m) was unrestricted cash.
The Group's net loan to value ("LTV") ratio stands at 43.2% (30 June 2024:
58.3%; 31 December 2024: 41.8%) before unamortised costs. The Group remains
committed to further strengthening its balance sheet, with a target to reduce
the net loan to value ratio to below 40% over the medium term.
* During 2024 the Company offered 15 new ordinary shares for every 7 existing
shares. This resulted in an increase of 1,105,149,821 Ordinary Shares being
issued. Subsequently there was a 10 for 1 split with the resulting Ordinary
Shares in issue being 162,088,483.
Debt Profile and LTV Ratios as at 30 June 2025
Facility Outstanding debt* Maturity Gross loan to value** Annual interest rate
amount
Lender £'000 £'000 date % %
Royal Bank of Scotland, Bank of Scotland & Barclays 96,382 96,382 Aug-26 48.9 2.40 over 3 months
£ SONIA
Scottish Widows Ltd. and Aviva Investors Real Estate Finance 131,335 131,335 Dec-27 52.2 3.28 Fixed
32,542 32,542 Dec-28 45.8 3.37 Fixed
Scottish Widows Ltd.
Santander UK 49,757 49,757 Jun-29 51.0 2.20 over 3 months
£ SONIA
310,016 310,016
Table may not sum due to rounding.
* Before unamortised debt issue costs
** Based on Colliers International Property Consultants Ltd.
The Manager is active in managing the borrowing profile of the Group. As at 30
June 2025, the Group had headroom against its borrowing covenants.
The net gearing ratio (net debt to Ordinary Shareholders' equity (diluted) of
the Group was 78.3% as at 30 June 2025 (30 June 2024: 141.6%; 31 December
2024: 73.9%).
Interest cover, excluding amortised costs, stands at 2.7 times (30 June 2024:
2.6 times; 31 December 2024: 2.7 times) and including amortised costs, stands
at 2.3 times (30 June 2024: 2.3 times; 31 December 2024: 2.4 times).
Hedging
The Group applies an interest hedging strategy that is aligned to the property
management strategy and aims to mitigate interest rate volatility on at least
90% of the debt exposure.
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
% % %
Borrowings interest rate hedged 100.0 100.0 100.0
Thereof:
Fixed 52.9 57.9 52.7
Swap 29.9 28.9 30.4
Cap 17.2 13.4 16.9
WACD(1) 3.4 3.5 3.4
Table may not sum due to rounding
(1) WACD - Weighted Average Effective Interest Rate including the cost of
hedging
Tax
The Group entered the UK REIT regime on 7 November 2015 and all of the Group's
UK property rental operations became exempt from UK corporation tax from that
date. The exemption remains subject to the Group's continuing compliance with
the UK REIT rules.
On 9 January 2018, the Company registered for VAT purposes in England.
As at 30 June 2025, the Group recognised a tax charge of nil (30 June 2024:
nil tax charge).
PRINCIPAL RISKS AND UNCERTAINTIES
For Regional REIT, effective risk management is a cornerstone of delivering
our strategy and integral to the achievement of our objective of delivering
long term value through active asset management across the portfolio. The
principal risks and uncertainties the Group faces are summarised below and
described in detail on pages 60 to 72 of the 2024 Annual Report, which is
available on the Group's website: www.regionalreit.com - Annual Report 2024.
The Audit Committee, which assists the Board with its responsibilities for
managing risk, regularly reviews the risk appetite of the Company. Taking into
consideration the latest information available, the Company is able to assess
and respond quickly to new and emerging risks.
Despite continued improvement in the operating environment, the UK real estate
sector remains exposed to elevated macroeconomic and geopolitical risks.
Inflation has moderated but interest rates remain high, sustaining pressure on
investor sentiment. Global instability, including ongoing conflicts in Ukraine
and the Middle East, continues to weigh on capital markets and supply chains.
These factors, alongside tightening sustainability standards, require ongoing
strategic agility and disciplined risk management across the portfolio.
A summary of the Group's principal risks for the first half of 2025 is
provided here.
Strategic risk
Investment decisions could result in lower dividend income and capital returns
to our Shareholders.
Valuation risk
The valuation of the Group's portfolio, undertaken by the external valuer,
Colliers International Property Consultants Ltd could impact the Group's
profitability and net assets.
Healthcare risk
The economic disruption after-effects resulting from public health issues,
could impact rental incomes, the Group's property portfolio valuations, the
ability to access funding at competitive rates and maintain a progressive
dividend policy.
Economic and Political risk
Significant domestic and international political and economic events could
impact the health of the UK economy, resulting in changes in demand by tenants
for suitable properties, the quality of the tenants, borrowing constraints and
ultimately the property portfolio valuation.
Funding risk
The Group may not be able to secure funding on acceptable terms, which could
impinge upon investment opportunities and the ability to grow the Group. Bank
reference rates may remain heightened or rise due to wider economic
challenges. Breach of covenants within the Company's funding structure could
lead to a cancellation of debt funding if the Company is unable to service the
debt.
Tenant risk
Type and concentration of tenants could result in a lower rental income. A
higher concentration of lease term maturity and/or break options could result
in a more volatile rental income.
Financial and Tax Change risk
Changes to UK financial legislation and the tax regime could result in lower
earnings.
Operational risk
Business disruption could result in lower rental income. Information security,
cyber threats, and technology outages could result in data loss, or negative
regulatory, reputational, operational (including GDPR), or financial impacts.
Accounting, Legal and Regulatory risk
Changes to accounting, legal and regulatory requirements could affect current
operating processes and the Board's ability to achieve the investment
objectives and provide favourable returns to our Shareholders. Potential loss
of REIT status.
Environmental and Energy Efficiency Standards
Changes to the environment could impact upon the Group's cost base, operations
and legal requirements which need to be adhered too. All of these risks could
impinge upon the profitability of the Group. An Energy Performance Rating of E
and below may impact the Company's ability to sell/lease an asset.
INTERIM MANAGEMENT REPORT AND DIRECTORS' RESPONSIBILITY STATEMENT
Interim Management Report
The important events that have occurred during the period under review, the
principal risks and uncertainties and the key factors influencing the
financial statements for the remaining six months of the year are set out in
the Chairman's Statement and the Asset and Investment Managers' Report.
The principal risks and uncertainties faced by the Group are substantially
unchanged since the date of the Annual Report and Accounts for the year ended
31 December 2024 and are summarised above.
The condensed consolidated financial statements for the period from 1 January
2025 to 30 June 2025 have not been audited or reviewed by auditors pursuant to
the Financial Reporting Council guidance on Review of Interim Financial
Information and do not constitute annual statutory accounts for the purposes
of the Law.
Going Concern
The Directors have made an assessment of the Group's ability to continue as a
going concern. This assessment included consideration of the Group's cash
resources, borrowing facilities, rental income, acquisition and disposals of
investment properties, elective and committed capital expenditure and dividend
distributions. The Group ended the period under review with £47.1m of cash
and cash equivalents, of which £42.7m was unrestricted cash. Borrowing
facilities decreased from £316.7m at 31 December 2024 to £310.0m as at 30
June 2025, with an LTV of 43.2%, based upon the value of the Group's
investment properties as at 30 June 2025.
Prior to the £96.4m facility with the Royal Bank of Scotland, Bank of
Scotland and Barclays maturing in August 2026, the Directors are in the
process of considering the refinancing options which are at an advanced stage.
The Board's selection of the most appropriate banking facility offered is
still subject to commercial and practical considerations.
Based upon the above, the Board are satisfied that the Group has adequate
resources to continue in operational existence for a period of at least 12
months from the date these Financial Statements are approved. This is
underpinned by the robust rent collections and the level of committed capital
expenditure in the forthcoming 12 months.
Responsibility Statement of the Directors in respect of the Half-Yearly Report
In accordance with Disclosure Guidance and Transparency Rule 4.2.10R we, the
Directors of the Company (whose names are listed in full at the end of this
report), confirm that to the best of their knowledge:
· the condensed set of consolidated financial statements has been
prepared in accordance with International Accounting Standard (IAS) 34,
"Interim Financial Reporting", as contained in UK-adopted International
Accounting Standards, as required by Disclosure Guidance and Transparency Rule
DTR 4.2.4R, and gives a true and fair view of the assets, liabilities,
financial position and profit of the Group;
· this Half-Yearly Report includes a fair review, required under DTR
4.2.7R, of the important events that have occurred during the first six months
of the financial year, their impact on the condensed set of consolidated
financial statements and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
· this Half-Yearly Report includes a fair review, required under DTR
4.2.8R, of related party transactions that have taken place in the first six
months of the current financial year and that have materially affected the
financial position and or performance of the Group during that period; and any
changes in the related party transaction described in the last Annual Report
that could do so.
This Half-Yearly Report was approved and authorised for issue by the Board of
Directors on 8 September 2025 and the above responsibility statement was
signed on its behalf by:
David Hunter
Chairman
8 September 2025
Condensed Consolidated Statement of Comprehensive Income
for the Six Months Ended 30 June 2025
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Continuing Operations
Revenue
Rental and property income 5 39,919 44,232 90,981
Property costs 6 (20,588) (20,403) (45,021)
Net rental and property income 19,331 23,829 45,960
Administrative and other expenses 7 (5,207) (4,724) (9,851)
Operating profit before gains and losses on property assets and other 14,124 19,105 36,109
investments
Loss on disposal of investment properties 13 (578) (1,156) (3,180)
Change in fair value of investment properties 13 (12,144) (37,858) (56,732)
Share of losses of associate companies (8) - -
Change in fair value of right of use assets (69) (69) (138)
Operating profit/(loss) 1,325 (19,978) (23,941)
Finance income 8 616 134 1,394
Finance expenses 9 (6,240) (8,229) (15,224)
Net movement in fair value of derivative financial instruments 16 (3,569) 962 (1,703)
Loss before tax (7,868) (27,111) (39,474)
Taxation 10 - - (65)
Total comprehensive loss for the period (attributable to owners of the parent
Company)
(7,868) (27,111) (39,539)
Loss per Share - basic and diluted (June 2024: restated) 11 (4.9)p (33.3)p (33.5)p
Total comprehensive loss arises from continuing operations.
The notes below are an integral part of these condensed consolidated financial
statements.
Condensed Consolidated Statement of Financial Position
as at 30 June 2025
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Assets
Non-current assets
Investment properties 13 593,487 633,166 607,458
Right of use assets 10,780 10,918 10,849
Investments in associates 268 - 276
Non-current receivables on tenant loan 48 337 144
Derivative financial instruments 16 7,911 15,704 11,608
612,494 660,125 630,335
Current assets
Trade and other receivables 41,054 43,887 35,079
Cash and cash equivalents 47,117 25,690 56,719
88,171 69,577 91,798
Total assets 700,665 729,702 722,133
Liabilities
Current liabilities
Trade and other payables (32,327) (38,071) (31,647)
Deferred income (13,930) (14,452) (14,364)
Retail eligible bonds - (49,984) -
Deferred tax liabilities (741) (708) (741)
(46,998) (103,215) (46,752)
Non-current liabilities
Bank and loan borrowings 14 (306,360) (348,427) (312,323)
Lease liabilities (11,428) (11,460) (11,444)
(317,788) (359,887) (323,767)
Total liabilities (364,786) (463,102) (370,519)
Net assets 335,879 266,600 351,614
Equity
Stated capital 17 618,016 513,762 618,266
Accumulated losses (282,137) (247,162) (266,652)
Total equity attributable to owners of the parent Company
335,879 266,600 351,614
Net asset value per Share - basic and diluted (June 2024: restated)
18 207.2p 327.7p 216.9p
The notes below are an integral part of these condensed consolidated financial
statements.
Condensed Consolidated Statement of Changes in Equity
for the Six Months Ended 30 June 2025
Attributable to owners of the parent company
Stated Accumulated
capital losses Total
Notes £'000 £'000 £'000
Balance at 1 January 2025 618,266 (266,652) 351,614
Total comprehensive loss - (7,868) (7,868)
Dividends paid 12 - (7,617) (7,617)
Issue costs relating to prior period (250) - (250)
Balance at 30 June 2025 618,016 (282,137) 335,879
For the six months ended 30 June 2024
Attributable to owners of the parent company
Stated Accumulated losses
capital £'000 Total
Notes £'000 £'000
Balance at 1 January 2024 513,762 (207,673) 306,089
Total comprehensive income - (27,111) (27,111)
Dividends paid 12 - (12,378) (12,378)
Balance at 30 June 2024 513,762 (247,162) 266,600
For the year ended 31 December 2024
Attributable to owners of the parent company
Stated Accumulated losses
capital £'000 Total
Notes £'000 £'000
Balance at 1 January 2024 513,762 (207,673) 306,089
Total comprehensive loss - (39,539) (39,539)
Dividends paid 12 - (19,440) (19,440)
Shares Issued 110,515 - 110,515
Cost of Shares Issued (6,011) - (6,011)
Balance at 31 December 2024 618,266 (266,652) 351,614
The notes below are an integral part of these condensed consolidated financial
statements.
Condensed Consolidated Statement of Cash Flows
for the Six Months Ended 30 June 2025
30 June 30 June 2024 31 December
2025 (unaudited) 2024
(unaudited) £'000 (audited)
£'000 £'000
Cash flows from operating activities
Loss for the year before taxation (7,868) (27,111) (39,474)
Change in fair value of investment properties 12,144 37,858 56,732
Change in fair value of financial derivative instruments 3,569 (962) 1,703
Share of losses of associate companies 8 - -
Loss on disposal of investment properties 578 1,156 3,180
Change in fair value of right of use assets 69 69 138
Finance income (616) (134) (1,394)
Finance expense 6,240 8,229 15,224
Increase in trade and other receivables (5,855) (10,997) (2,027)
Increase in trade and other payables 1,376 4,997 295
Decrease in deferred income (434) (1,145) (1,233)
Cash generated from operations 9,211 11,960 33,144
Finance costs (5,200) (7,236) (13,229)
Taxation received (27) (5) (4)
Net cash flow generated from operating activities 3,984 4,719 19,911
Investing activities
Investments in associates - - (276)
Purchase of investment properties and subsequent expenditure (6,020) (5,200) (8,249)
Sale of investment properties 7,268 20,715 28,574
Interest received 619 134 1,391
Net cash flow generated from investing activities 1,867 15,649 21,440
Financing activities
Proceeds received on derivative financial instruments 128 1,267 2,698
Dividends paid (7,139) (12,342) (22,301)
Proceeds from share issue - - 110,515
Share issue costs (1,424) - (4,837)
Bank borrowings advanced - - -
Bank borrowings repaid (6,718) - (54,016)
Bank borrowing costs paid (83) (17,437) (761)
Repayment of retail eligible bonds - (453) (50,000)
Lease repayments (217) (218) (435)
Net cash flow used in financing activities (15,453) (29,183) (19,137)
Net (decrease)/increase in cash and cash equivalents (9,602) (8,815) 22,214
Cash and cash equivalents at the start of the period 56,719 34,505 34,505
Cash and cash equivalents at the end of the period 47,117 25,690 56,719
The notes below are an integral part of these condensed consolidated financial
statements.
Notes to the Condensed Consolidated Financial Statements
for the Six Months Ended 30 June 2025
1. Corporate information
The condensed consolidated financial statements of the Group for the six
months ended 30 June 2025 comprise the results of the Company and its
subsidiaries (together constituting the "Group") and were approved by the
Board and authorised for issue on 8 September 2025.
The Company is a company limited by shares incorporated in Guernsey under The
Companies (Guernsey) Law, 2008, as amended (the "Law"). The Company's Ordinary
Shares are admitted to the Official List of the Financial Conduct Authority
("FCA") and traded on the London Stock Exchange ("LSE").
The Company was incorporated on 22 June 2015 and is registered with the
Guernsey Financial Services Commission as a Registered Closed-Ended Collective
Investment Scheme pursuant to The Protection of Investors (Bailiwick of
Guernsey) Law, 2020, as amended, and the Registered Collective Investment
Scheme Rules & Guidance 2021.
The Company did not begin trading until 6 November 2015 when its shares were
admitted to trading on the LSE. The nature of the Group's operations and its
principal activities are set out in the Chairman's Statement.
The registered office address is: Mont Crevelt House, Bulwer Avenue, St.
Sampson, Guernsey, GY2 4LH.
2. Basis of preparation
The condensed consolidated financial statements for the six months ended 30
June 2025 have been prepared on a going concern basis in accordance with the
Disclosure Guidance and Transparency Rules of the FCA and with IAS 34, Interim
Financial Reporting, as contained in UK-adopted International Accounting
Standards.
The condensed consolidated financial statements have been prepared on a
historical cost basis, as modified for the Group's investment properties and
certain financial assets and financial liabilities (including derivative
instruments) at fair value through profit or loss.
The condensed consolidated interim financial information should be read in
conjunction with the Group's audited financial statements for the year ended
31 December 2024, which have been prepared in accordance with UK-adopted
International Accounting Standards. The results presented in this report have
not been audited or reviewed in accordance with International Standard on
Review Engagements (UK) 2410.
2.1 Comparative period
The comparative financial information presented herein for the year ended 31
December 2024 do not constitute full statutory accounts within the meaning of
the Law. The Group's Annual Report and Accounts for the year ended 31 December
2024 were delivered to the Guernsey Financial Services Commission. The Group's
independent Auditor's report on those Accounts was unqualified and did not
include reference to any matters to which the Auditor drew attention by way of
emphasis without qualifying their report.
2.2 Functional and presentation currency
The consolidated financial information is presented in Pounds Sterling, which
is also the Group's functional currency, and all values are rounded to the
nearest thousand (£'000s) pounds, except where otherwise indicated.
2.3 Going concern
The Directors have assessed the Group's ability to continue as a going
concern. This assessment included consideration of the Group's cash resources,
borrowing facilities, rental income, acquisition and disposals of investment
properties, elective and committed capital expenditure and dividend
distributions.
The Group ended the period under review with £47.1m of cash and cash
equivalents, of which £42.7m was unrestricted cash. Borrowing facilities
decreased from £316.73m at 31 December 2024 to £310.0m as at 30 June 2025,
with an LTV of 43.2%, based upon the value of the Group's investment
properties as at 30 June 2025. Prior to the £96.4m facility with the Royal
Bank of Scotland, Bank of Scotland and Barclays maturing in August 2026, the
Directors are in the process of considering the refinancing options which are
at an advanced stage. The Board's selection of the most appropriate banking
facility offered is still subject to commercial and practical considerations.
Based on the above, the Directors are satisfied that the Group has adequate
resources to continue in operational existence for a period of at least 12
months from the date these interim Financial Statements are approved. This is
underpinned by the robust rent collections and the level of committed capital
expenditure in the forthcoming 12 months. Furthermore, the Directors are not
aware of any material uncertainties that may cast significant doubt upon the
Group's ability to continue as a going concern. Accordingly, the Directors
consider that it is appropriate to prepare the Financial Statements on a going
concern basis.
3. Significant accounting judgements, estimates and assumptions
The preparation of the condensed consolidated financial statements requires
management to make judgements, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities at the reporting date. However,
uncertainty about these assumptions and estimates could result in outcomes
that require a material adjustment to the carrying amount of the asset or
liability affected in future periods.
3.1 Critical accounting estimates and assumptions
The principal estimates that may be material to the carrying amount of assets
and liabilities are as follows:
3.1.1 Valuation of investment properties
The fair value of investment property is determined by independent property
valuation experts to be the estimated amount for which a property should
exchange on the date of the valuation in an arm's length transaction, less the
value of assets arising from rent smoothing. Properties have been valued on an
individual basis. The valuation experts use recognised valuation techniques
applying the principles of both IAS 40 Investment Property and IFRS 13 Fair
Value Measurement.
The value of the properties has been assessed in accordance with the relevant
parts of the current RICS Red Book. In particular, we have assessed the fair
value as referred to in VPS4 item 7 of the RICS Red Book. Under these
provisions, the term "Fair Value" means the definition adopted by the
International Accounting Standards Board ("IASB") in IFRS 13, namely "The
price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement
date". Factors reflected include current market conditions, annual rentals,
lease lengths and location. The significant methods and assumptions used by
the valuers in estimating the fair value of investment property are set out in
note 13 below.
The fair value of investment property is equal to the independent property
valuer's valuation of £608,330,000 (31 December 2024: £622,480,000). This is
presented net of the prepayment arising from rent smoothing of £14,843,000
(31 December 2024: £15,022,000). This is detailed in note 13 below and is in
accordance with IAS 40 paragraph 50, recognising the prepayment cannot be
recovered when the investment properties are sold.
3.2. Critical judgements in applying the Group's accounting policies
In the process of applying the Group's accounting policies, management has
made the following judgements, which have the most significant effect on the
amounts recognised in the condensed consolidated financial statements:
3.2.1 Operating lease contracts - the Group as lessor
The Group has acquired investment properties that are subject to commercial
property leases with tenants. The Group has determined, based on an evaluation
of the terms and conditions of the arrangements, particularly the duration of
the lease terms and minimum lease payments, that it retains all the
significant risks and rewards of ownership of these properties and so accounts
for the leases as operating leases.
3.2.2 Recognition of income
Service charges and other similar receipts are included in net rental and
property income gross of the related costs as the Directors consider the Group
acts as principal in this respect.
The companies acquired in the year have comprised portfolios of investment
properties and existing leases with multiple tenants over varying periods,
with little in the way of processes acquired. It has therefore concluded in
each case that the acquisitions did not meet the criteria for the acquisition
of a business as outlined above.
3.2.3 Consolidation of entities in which the Group holds less than 50%
Management considered that up until 9 November 2018, the Group had de facto
control of View Castle Limited and its 27 subsidiaries (the "View Castle Sub
Group") by virtue of the amended and restated Call Option Agreement dated 3
November 2015. Following a restructure of the View Castle Sub Group, the
majority of properties held within the View Castle Sub Group were transferred
into two new special purpose vehicles ("SPVs") with two additional properties
to be transferred into these SPVs at a later date. A new call option was
entered into dated 9 November 2018 with View Castle Limited and five of its
subsidiaries (the "View Castle Group"). As per the previous amended and
restated Call Option Agreement, under this new option the Group may acquire
any of the properties held by the View Castle Group for a fixed nominal
consideration. Despite having no equity holding, the Group is deemed to have
control over the View Castle Group as the Option Agreement means that the
Group is exposed to, and has rights to, variable returns from its involvement
with the View Castle Group, through its power to control.
4. Summary of significant accounting policies
With the exception of new accounting standards listed below, the accounting
policies adopted in this report are consistent with those applied in the
Group's statutory accounts for the year ended 31 December 2024 and are
expected to be consistently applied for the current year ending 31 December
2025. The changes to the condensed consolidated financial statements arising
from accounting standards effective for the first time are noted below:
Amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates'
(effective for periods beginning on or after 1 January 2025) provides
clarification upon treatment for transactions in a foreign currency that is
not exchangeable into another currency at the measurement date. The amendments
have not had a material impact on the financial statements.
5. Rental and property income
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Rental income - freehold property 24,767 26,250 53,406
Rental income - long leasehold property 5,049 5,940 11,833
Recoverable service charge income and other similar items 10,103 12,042 25,742
Total 39,919 44,232 90,981
6. Property costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Other property expenses and irrecoverable costs 10,485 8,361 19,279
Recoverable service charge expenditure and other similar costs 10,103 12,042 25,742
Total 20,588 20,403 45,021
Property costs represent direct operating expenses which arise on investment
properties generating rental income.
7. Administrative and other expenses
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Investment management fees 1,053 720 1,362
Property management fees 1,094 1,161 2,541
Asset management fees 1,053 719 1,360
Directors' remuneration 157 132 265
Administration fees 288 313 679
Legal and professional fees 1,095 1,360 2,509
Marketing and promotion 37 37 71
Other administrative costs 105 94 186
Allowance for doubtful debts 319 181 454
Abortive refinancing costs - - 412
Bank charges 6 7 12
Total 5,207 4,724 9,851
8. Finance income
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Interest income 616 134 1,394
Total 616 134 1,394
9. Finance expense
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Interest payable on bank borrowings 5,201 6,107 11,881
Amortisation of loan arrangement fees 838 714 1,497
Bond interest - 1,125 1,344
Bond issue costs amortised - 77 93
Bond expenses - 4 5
Lease interest 201 202 404
Total 6,240 8,229 15,224
10. Taxation
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Corporation tax charge - - 32
Decrease in deferred tax liability - - 33
Total - - 65
The Group elected to be treated as a UK REIT with effect from 7 November 2015.
The UK REIT rules exempt the profits of the Group's UK property rental
business from corporation tax. Gains on UK properties are also exempt from
tax, provided that they are not held for trading or sold in the three years
after completion of development. The Group is otherwise subject to UK
corporation tax.
Income tax, corporation tax and deferred tax above arise on entities which
form part of the Group's condensed consolidated accounts but do not form part
of the REIT group.
Due to the Group's REIT status and its intention to continue meeting the
conditions required to obtain approval in the foreseeable future, no provision
has been made for deferred tax on any capital gains or losses arising on the
revaluation or disposal of investments held by entities within the REIT group.
No deferred tax asset has been recognised in respect of losses carried forward
due to unpredictability of future taxable profits.
As a REIT, Regional REIT Ltd is required to pay PIDs equal to at least 90% of
the Group's exempted net income. To retain UK REIT status, there are a number
of conditions to be met in respect of the principal company of the Group, the
Group's qualifying activity and its balance of business. The Group continues
to meet these conditions.
11. Earnings per Share
Earnings per share ("EPS") amounts are calculated by dividing profits for the
period attributable to ordinary equity holders of the Company by the weighted
average number of Ordinary Shares in issue during the period.
In accordance with IAS 33 "Earnings per Share", the weighted average number of
shares have been calculated as though the bonus issue and share consolidation
were in place from 1 January 2024.
The weighted average number of Ordinary shares in issue for the half year
ended June 2024 has been restated to 81,376,206. It was previously stated at
515,736,583. This figure has been multiplied by a bonus factor of 1.5777
representing the bonus issue and 0.1 representing the share consolidation
which took place during 2024.
The calculation of basic and diluted earnings per share is based on the
following:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Calculation of earnings per Share
Net loss attributable to Ordinary Shareholders (7,868) (27,111) (39,539)
Adjustments to remove: 12,144 37,858 56,732
Changes in value of investment properties 69 69 138
Changes in fair value of right of use assets 578 1,156 3,180
Loss on disposal of investment properties 3,569 (962) 1,703
Change in fair value of interest rate derivates and financial assets - - 412
Deferred tax charge - - 33
EPRA net profit attributable to Ordinary Shareholders 8,492 11,010 22,659
Weighted average number of Ordinary Shares 162,088,483 81,376,206 118,199,045
Loss per Share - basic and diluted (June 2024: restated) (4.9)p (33.3)p (33.5)p
EPRA earnings per Share - basic and diluted (June 2024: restated) 5.2 p 13.5p 19.2p
12. Dividends
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Dividends
Dividend of 2.20 (2024: 1.20) pence per Ordinary Share for the period 1 3,565 6,189 6,188
October - 31 December
Dividend of 2.50 (2024: 1.20) pence per Ordinary Share for the period 1 4,052 6,189 6,189
January - 31 March
Dividend of nil (2024: 2.20) pence per Ordinary Share for the period 1 April - - - 3,566
30 June
Dividend of nil (2024: 2.20) pence per Ordinary Share for the period 1 July - - - 3,567
30 September
Unpaid dividends held by Registrar - - (70)
Total 7,617 12,378 19,440
On 20 February 2025, the Company announced a dividend of 2.20 pence per Share
in respect of the period 1 October 2024 to 31 December 2024. The dividend was
paid on 4 April 2025 to Shareholders on the register as at 27 February 2025.
On 15 May 2025, the Company announced a dividend of 2.50 pence per Share in
respect of the period 1 January 2025 to 31 March 2025. The dividend was paid
on 11 July 2025 to Shareholders on the register as at 22 May 2025.
13. Investment properties
In accordance with International Accounting Standard, IAS 40, 'Investment
Property', investment property has been independently valued at fair value by
Colliers International Property Consultants Ltd, a Chartered Surveyor who is
an accredited independent valuer with recognised and relevant professional
qualifications and with recent experience in the locations and categories of
the investment properties being valued. The valuation has been prepared in
accordance with the Red Book and incorporates the recommendations of the
International Valuation Standards Committee which are consistent with the
principles set out in IFRS 13.
Investment property valuations in comparative periods were carried out by
Colliers.
The valuation is the ultimate responsibility of the Directors. Accordingly,
the critical assumptions used in establishing the independent valuation are
reviewed by the Board.
Group Movement in investment properties for the Freehold Long Leasehold Total
six months ended 30 June 2025 (unaudited) property property £'000
£'000 £'000
Valuation at 1 January 2025 492,896 129,584 622,480
Property additions - acquisitions - - -
Property additions - subsequent expenditure 5,627 392 6,019
Property disposals (7,268) - (7,268)
Loss on disposals of investment properties (578) - (578)
Change in fair value during the period (9,531) (2,792) (12,323)
Valuation at 30 June 2025 (unaudited) 481,146 127,184 608,330
Less adjustment for rent smoothing assets (11,267) (3,576) (14,843)
Fair Value at 30 June 2025 (unaudited) 469,879 123,608 593,487
Change in fair value during the period (9,531) (2,792) (12,323)
Adjustment for rent smoothing assets at 30 June 2025 (11,267) (3,576) (14,843)
Adjustment for rent smoothing assets at 31 13,371 1,651 15,022
December 2024
Change in fair value of investment properties (7,427) (4,717) (12,144)
Group Movement in investment properties for the six months ended 30 June 2024 Freehold Long Leasehold Total
(unaudited)
property property £'000
£'000 £'000
Valuation at 1 January 2024 562,395 138,325 700,720
Property additions - acquisitions - - -
Property additions - subsequent expenditure 4,274 926 5,200
Property disposals (20,715) - (20,715)
Loss on disposals of investment properties (1,156) - (1,156)
Change in fair value during the period (28,198) (7,926) (36,124)
Valuation at 30 June 2024 (Unaudited) 516,600 131,325 647,925
Less adjustment for rent smoothing assets (10,590) (4,169) (14,759)
Fair Value at 30 June 2024 (Unaudited) 506,010 127,156 633,166
Group Movement in investment properties for the year ended 31 December 2024
Valuation at 1 January 2024 562,395 138,325 700,720
Property additions - acquisitions - - -
Property additions - subsequent expenditure 7,286 963 8,249
Property disposals (28,574) - (28,574)
Loss on the disposal of investment properties (3,180) - (3,180)
Change in valuation during the period (45,031) (9,704) (54,735)
Valuation at 31 December 2024 (audited) 492,896 129,584 622,480
Less adjustment for rent smoothing assets (13,371) (1,651) (15,022)
Fair Value at 30 June 2024 (unaudited) 479,525 127,933 607,458
The total change in fair value during the period was a decrease of
£12,144,000 (30 June 2024: £37,858,000; 31 December 2024: £56,732,000).
The historic cost of the properties is £830,501,000 (30 June 2024:
£857,120,000; 31 December 2024: £850,152,000).
The net book value of properties disposed of during the period amounted to
£7,846,000 (30 June 2024: £21,871,000; 31 December 2024: £31,754,000).
Bank borrowings are secured by charges over investment properties held by
certain asset-holding subsidiaries.
The banks also hold charges over the shares of certain subsidiaries and any
intermediary holding companies of those subsidiaries. The independent valuer's
assessment of the value of investment properties secured at 30 June 2025 was
£608,330,000 (30 June 2024: £647,925,000; 31 December 2024 £622,480,000).
The following table provides the fair value measurement hierarchy for
investment properties:
Significant observable inputs Significant unobservable inputs
Quoted (level 2) (level 3)
active prices £'000 £'000
Total (level 1)
Date of valuation: £'000 £'000
30 June 2025 593,487 - - 593,487
30 June 2024 647,925 - - 647,925
31 December 2024 607,458 - - 607,458
The hierarchy levels are defined in note 16 below.
It has been determined that the entire investment properties portfolio should
be classified under the level 3 category.
There have been no transfers between levels during the period.
The determination of the fair value of the investment properties held by each
consolidated subsidiary requires the use of estimates such as future cash
flows from investment properties, which take into consideration lettings,
tenants' profiles, future revenue streams, capital values of fixtures and
fittings, any environmental matters and the overall repair and condition of
the property, and discount rates applicable to those assets. Future revenue
streams comprise contracted rent (passing rent) and estimated rental value
after the contract period. In calculating ERV, the potential impact of future
lease incentives to be granted to secure new contracts is taken into
consideration. All these estimates are based on local market conditions
existing at the reporting date.
As at 30 June 2025, the estimated fair value of each property has been
primarily derived using comparable recent market transactions on arm's length
terms and assessed in accordance with the relevant parts of the RICS Red Book.
Techniques used for valuing investment properties
The following descriptions and definitions relate to valuation techniques and
key significant inputs made in determining the fair values:
Valuation technique: market comparable method
Under the market comparable method (or market approach), a property fair value
is estimated based on comparable transactions in the market.
Significant input: market rental
The rent at which space could be let in the market conditions prevailing at
the date of valuation £16,200-£3,512,800 per annum (30 June 2024:
£16,200-£3,247,200 per annum; 31 December 2024: £14,200-£3,715,000 per
annum).
Significant input: rental growth
The decrease in rent is based on contractual agreements: 2.48% (30 June 2024:
5.42%; 31 December 2024 8.64%). There is a gross contracted rent reduction, as
per normal operations it is a combination of property disposals, space under
refurbishment and lease expiries.
The time-weighted average return that a property will produce including
purchase costs. The equivalent yield generally sits between the net initial
yield and reversionary yield. See below table.
Unobservable inputs:
The significant unobservable inputs (level 3) are sensitive to the changes in
the estimated future cash flows from investment properties such as increases
and decreases in contract rents, operating expenses and capital expenditure,
plus transactional activity in the real estate market.
Geographical and sector specific market evidence reviewed in the course of
preparing the June 2025 valuation had an initial yield range of 3.84% to
18.00% (30 June 2024: 2.83% to 17.41%; 31 December 2024: 6.00% to 25.19%).
As set out within the significant accounting estimates and judgements above,
the Group's property portfolio valuation is open to judgement and is
inherently subjective by nature, and actual values can only be determined in a
sales transaction.
Equivalent yield range by sector:
Fair value Significant Unobservable Inputs
ERV Range (per sq ft per annum)
Sector £'000 Equivalent Yield Range
As at June 2025
Industrial £23,125 £4.00 - £9.49 6.37% - 22.95%
Retail £22,825 £2.07 - £45.02 6.00% - 30.96%
Alternatives £12,150 £5.00 - £13.50 4.78% - 9.69%
Office by Region
Office South East £105,575 £5.00 - £29.01 8.28% - 32.55%
Office South West £57,175 £12.28 - £23.00 9.77% - 14.40%
Office Midlands £114,400 £3.01 - £35.04 9.57% - 12.92%
Office North West £82,775 £6.61 - £29.59 8.55% - 13.14%
Office North East £93,425 £8.29 - £37.13 8.12% - 12.19%
Office Wales £18,350 £10.01 - £13.50 8.86% - 11.00%
Office Scotland £78,530 £4.50 - £23.84 9.39% - 42.55%
Portfolio £608,330 £2.07 - £45.02 4.78% - 42.55%
The impact of changes to the significant unobservable inputs:
30 June 2025 30 June 2025 31 December 2024 31 December 2024
Impact on Impact on Impact on Impact on
statement of statement of statement of statement of
comprehensive financial position comprehensive financial position
income £'000 income £'000
£'000 £'000
Improvement in ERV by 5% 27,343 27,343 27,490 27,490
Worsening in ERV by 5% (27,002) (27,002) (27,009) (27,009)
Improvement in yield by 0.125% 8,946 8,946 9,064 9,064
Worsening in yield by 0.125% (8,709) (8,709) (8,792) (8,792)
14. Bank and loan borrowings
Bank borrowings are secured by charges over individual investment properties
held by certain asset-holding subsidiaries. The banks also hold charges over
the shares of certain subsidiaries and any intermediary holding companies of
those subsidiaries.
Any associated fees in arranging the bank borrowings unamortised as at the
period end are offset against amounts drawn on the facilities as shown in the
table below:
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Bank borrowings drawn at start of period 316,734 370,750 370,750
Bank borrowings drawn - - -
Bank borrowings repaid (6,718) (17,437) (54,016)
Bank borrowings drawn at end of period 310,016 353,313 316,734
Less: unamortised costs at start of period (4,411) (5,147) (5,147)
Less: loan issue costs incurred in the period (83) (453) (761)
Add: loan issue costs amortised in the period 838 714 1,497
At end of period 306,360 348,427 312,323
Maturity of bank borrowings
Repayable within 1 year - - -
Repayable between 1 to 2 years 96,382 - 99,789
Repayable between 2 to 5 years 213,634 353,313 216,945
Repayable after more than 5 years - - -
Unamortised loan issue costs (3,656) (4,886) (4,411)
306,360 348,427 312,323
As detailed in note 15 below, the Group has £nil (30 June 2024: £50,000,000;
31 December 2024: £nil) retail eligible bonds in issue.
The table below lists the Group's borrowings.
Gross
Facility Outstanding debt* Maturity loan to value** Annual interest rate Amortisation
Lender Amount date
£'000 £'000
Royal Bank of Scotland, Bank of Scotland and Barclays 96,382 96,382 August 2026 48.9% 2.40% over 3 months £ SONIA Mandatory prepayment
Scottish Widows Ltd & Aviva Investors Real Estate Finance 131,335 131,335 December 2027 52.2% 3.28% Fixed None
Scottish Widows Ltd 32,542 32,542 December 2028 45.8% 3.37% Fixed None
Santander UK 49,757 49,757 June 2029 51.0% 2.20% over 3 months £ SONIA Mandatory prepayment
Total bank borrowings 310,016 310,016
SONIA = Sterling Over Night Indexed Average
* Before unamortised debt issue costs.
** Based upon Colliers International Property Consultants limited property
valuation
The percentage of borrowings at variable rates of interest was 47.1% (30 June
2024: 42.1%; 31 December 2024: 47.2%).
The weighted average term to maturity of the Group's debt at the period end
was 2.4 years (30 June 2024: 3.0 years; 31 December 2024: 2.9 years).
The weighted average interest rate payable by the Group on its debt portfolio,
excluding hedging, as at the period end was 4.9% per annum (30 June 2024: 5.2%
per annum; 31 December 2024: 5.2% per annum).
The Group weighted average interest rate, including the retail eligible bonds
and hedging activity at the period end, amounted to 3.4% per annum (30 June
2024: 3.5%; 31 December 2024: 3.4% per annum).
The Group has complied with all the financial covenants of the above
facilities as applicable throughout the period covered by these condensed
consolidated financial statements. Each facility has distinct covenants which
generally include: historic interest cover, projected interest cover,
loan-to-value cover and debt to rent cover. A breach of agreed covenant levels
would typically result in an event of default of the respective facility,
giving the lender the right, but not the obligation, to declare the loan
immediately due and payable. Where a loan is repaid in these circumstances,
early repayment fees will apply, which are generally based on percentage of
the loan repaid or calculated with reference to the interest income foregone
by the lenders as a result of the repayment.
As shown in note 16 below, the Group uses a combination of interest rate swaps
and fixed rate bearing loans to hedge against interest rate risks. The Group's
exposure to interest rate volatility is minimal.
15. Retail eligible bonds
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Bond principal at start of period - 50,000 50,000
Unamortised issue costs at start of period - (93) (93)
Amortisation of issue costs - 77 93
Maturity - - (50,000)
At end of period - 49,984 -
16. Derivative financial instruments
Interest rate caps and swaps are in place to mitigate the interest rate risk
that arises as a result of entering into variable rate borrowings.
During the period the notional amount on derivative instruments was reduced
with a cash amount realised of £128,000 (30 June 2024: £1,267,000; 31
December 2024: £2,698,000).
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Fair value at start of period 11,608 16,009 16,009
Proceeds received from a reduction in notional amounts (128) (1,267) (2,698)
Revaluation in the period (3,569) 962 (1,703)
Fair value at end of year 7,911 15,704 11,608
The calculation of fair value of interest rate caps and swaps is based on the
following calculation: the notional amount multiplied by the difference
between the swap rate and the current market rate and then multiplied by the
number of years remaining on the contract and discounted.
The fair value of interest rate caps and swaps represents the net present
value of the difference between the cash flows produced by the contracted rate
and the current market rate over the life of the instrument.
The table below details the hedging and swap notional amounts and rates
against the details of the Group's loan facilities.
Facility Outstanding debt* Notional amount
amount £'000 Maturity Annual interest rate £'000 Rate
Lender £'000 date
Royal Bank of Scotland, Bank of Scotland and Barclays 96,382 96,382 August 2026 2.40% over 3 months £ SONIA swap £51,420 0.97%
cap £44,961
0.97%
Scottish Widows Ltd. & Aviva Investors Real Estate Finance 131,335 131,335 December 2027 3.28% Fixed n/a n/a
Scottish Widows Ltd 32,542 32,542 December 2028 3.37% Fixed n/a n/a
Santander UK 49,757 49,757 June 2029 2.20% over 3 months £ SONIA swap £41,319 1.39%
cap £8,529 1.39%
Total 310,016 310,016
SONIA = Sterling Over Night Indexed Average
* Before unamortised debt issue costs
As at 30 June 2025, the notional amounts of swap arrangements were £92.7m (30
June 2024: £116.5m; 31 December 2024: £96.1m) and the cap notional
arrangements amounted to £53.5m (30 June 2024: £53.5m; 31 December 2024:
£53.5m).
The Group weighted average cost of debt of 3.4% (including the Retail Eligible
Bond 30 June 2024: 3.5%; 31 December 2024: 3.4%) is inclusive of hedging
costs.
The maximum exposure to credit risk at the reporting date is the fair value of
the derivative liabilities.
It is the Group's target to hedge at least 90% of the total loan portfolio
using fixed-rate facilities or interest rate derivatives. The hedging on all
of the facilities matches the term. As at the period end date, the total
proportion of hedged debt equated to 100.0% (30 June 2024: 100.1%; 31 December
2024: 100.0%), as shown below.
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Total bank borrowings 310,016 353,313 316,734
Notional value of interest rate caps and swaps 146,139 170,012 149,637
Value of fixed rate debts 163,877 183,500 167,097
310,106 353,512 613,734
Proportion of hedged debt 100.0% 100.1% 100.0%
Fair value hierarchy
The following table provides the fair value measurement hierarchy for interest
rate derivatives. The different levels are defined as follows.
· Level 1: Quoted (unadjusted) market prices in active markets for
identical assets or liabilities.
· Level 2: Valuation techniques for which the lowest level input that
is significant to the fair value measurement is directly or indirectly
observable.
· Level 3: Valuation techniques for which the lowest level input that
is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the condensed consolidated
financial statements on a recurring basis, the Group determines whether
transfers have occurred between levels in the hierarchy by reassessing
categorisation at the end of each reporting period.
Significant observable inputs Significant unobservable inputs
Quoted active prices (level 2) (level 3)
(level 1) £'000 £'000
Total £'000
Date of valuation: £'000
30 June 2025 7,911 - 7,911 -
30 June 2024 15,704 - 15,704 -
31 December 2024 16,009 - 16,009 -
The fair values of these contracts are recorded in the Condensed Consolidated
Statement of Financial Position and are determined by forming an expectation
that interest rates will exceed strike rates and by discounting these future
cash flows at the prevailing market rates as at the period end.
There have been no transfers between levels during the period.
The Group has not adopted hedge accounting.
17. Stated capital
Stated capital represents the consideration received by the Company for the
issue of Ordinary Shares.
During the previous year the Company offered 15 new ordinary shares for every
7 existing shares. This resulted in an increase of 1,105,149,821 Ordinary
Shares being issued.
Subsequently, there was a 10 for 1 split with the resulting Ordinary shares in
issue being 162,088,483.
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Issued and fully paid Shares of no par value 618,266 513,762 513,762
At start and end of period
Shares issued - - 110,515
Share issue costs (250) - (6,011)
At end of year 618,016 513,762 618,266
Number of Shares in issue 162,088,483 515,736,583 515,736,583
At start and end of period
Shares issued - - 1,105,149,821
Share reduction - - (1,458,797,921)
At end of the year 162,088,483 515,736,583 162,088,483
18. Net asset value per Share (NAV)
Basic NAV per share is calculated by dividing the net assets in the Condensed
Consolidated Statement of Financial Position attributable to ordinary equity
holders of the parent by the number of Ordinary Shares in issue at the end of
the period.
The number of shares has been recalculated as though the bonus issue and share
consolidation that took place in 2024 were in place throughout that year.
The number of Ordinary shares in issue at 30 June 2024 was previously stated
at 515,736,583. This figure has been multiplied by a bonus factor of 1.5777
representing the bonus issue and 0.1 representing the share consolidation.
Prior to this restatement the NAV and EPRA NTA were previously stated at 51.7p
and 48.8p respectively.
EPRA net asset value is a key performance measure used in the real estate
industry which highlights the fair value of net assets on an ongoing long-term
basis. Assets and liabilities that are not expected to crystallise in normal
circumstances such as the fair value of derivatives and deferred taxes on
property valuation surpluses are therefore excluded.
Net asset values have been calculated as follows:
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Net asset value per Condensed Consolidated Statement of Financial Position 335,879 266,600 351,614
Adjustment for calculating EPRA net tangible assets:
Derivative financial instruments (7,911) (15,704) (11,608)
Deferred tax liability 741 708 741
EPRA Net Tangible Assets 328,709 251,604 340,747
Number of Ordinary Shares in issue 162,088,483 81,367,206 162,088,483
Net asset value per Share - basic and diluted (June 2024: restated) 207.2p 327.7p 216.9p
EPRA Net Tangible Assets per Share - basic and diluted (June 2024: restated) 202.8p 309.2p 210.2p
19. Segmental information
After a review of the information provided for management purposes, it was
determined that the Group had one operating segment and therefore segmental
information is not disclosed in these condensed consolidated financial
statements.
20. Transactions with related parties
The Company's related party transactions are disclosed in its 2024 Annual
Report. There has been no material changes in the related party transactions
described in the last annual report.
21. Subsequent Events
There are no subsequent events to report.
EPRA Performance Measures
The Group is a member of the European Public Real Estate Association ("EPRA").
EPRA has developed and defined the following performance measures to give
transparency, comparability and relevance of financial reporting across
entities which may use different accounting standards. The Group is pleased to
disclose the following measures which are calculated in accordance with EPRA
guidance:
EPRA Performance Measure EPRA Performance Measure Period ended 30 June Period ended 31 December
2025 2024
Definition
EPRA Earnings Earnings from operational activities. £8,492,000 £22,659,000
EPRA Earnings
5.2p 19.2p
EPRA Earnings per Share (basic and diluted)
The EPRA NAV set of metrics make adjustments to the NAV per the IFRS financial
statements to provide stakeholders with the most relevant information on the
fair value of the assets and liabilities of a real estate investment company,
under different scenarios.
EPRA Net EPRA Net Reinstatement £368,926,000 £381,885,000
Reinstatement Value EPRA NAV metric which assumes that entities never sell assets and aims to Value
represent the value
required to rebuild the entity.
EPRA Net Reinstatement 227.6p 235.6p
Value per Share (diluted)
EPRA Net Tangible Assets £340,747,000
EPRA NAV metric which assumes that entities buy and sell assets, thereby £328,709,000
crystallising certain levels of unavoidable deferred tax.
EPRA Net Tangible Assets
EPRA Net Tangible 202.8p 210.2p
Assets per Share
(diluted)
EPRA Net Disposal Value EPRA NAV metric which represents the £342,429,000 £362,644,000
Shareholders' value under a disposal scenario, where deferred tax, financial EPRA Net Disposal Value
instruments and certain other adjustments are calculated to the full
extent of their liability, net of any resulting tax.
EPRA Net Disposal Value per Share (diluted) 211.3p 223.7p
EPRA Net Initial Yield (NIY) Annualised rental income based on the cash rents passing at the balance sheet EPRA Net Initial Yield 6.2% 6.3%
date, less non-recoverable property operating expenses, divided by the market
value of the property with (estimated) purchasers' costs.
EPRA 'Topped up' NIY This measure incorporates an adjustment to the EPRA 'Topped up' Net Initial Yield
EPRA NIY in respect of the expiration of rent-free-periods 6.8% 7.3%
(or other unexpired lease incentives such as discounted rent periods and
stepped rents).
EPRA Vacancy Rate Estimated Market Rental Value (ERV) of vacancy space divided by ERV of the EPRA Vacancy Rate 22.5%
whole portfolio.
21.4.%
EPRA Costs Ratio Administrative and operating costs (including and excluding costs of direct
vacancy) divided by gross rental income.
EPRA Costs Ratio 44.7%
52.6%
17.4%
EPRA Costs Ratio
(excluding direct 19.4%
vacancy costs)
EPRA LTV Debt divided by the market value of property EPRA LTV
45.4% 44.8%
Notes to the Calculation of EPRA Performance Measures
1. EPRA earnings and Company Adjusted Earnings
For calculations, please refer to note 11 to the financial statements above.
2. EPRA Net Reinstatement Value
30 June 31 December
2025 2024
£'000 £'000
NAV per the financial statements 335,879 351,614
Fair value of derivative financial instruments (7,911) (11,608)
Deferred tax liability 741 741
Purchase costs 40,217 41,138
EPRA Net Reinstatement Value 368,926 381,885
Dilutive number of Shares 162,088,483 162,088,483
EPRA Net Reinstatement Value per share 227.6p 235.6p
Comparatives have been updated for purchaser costs.
3. EPRA Net Tangible Assets
30 June 31 December
2025 2024
£'000 £'000
NAV per the financial statements 335,879 351,614
Fair value of derivative financial instruments (7,911) (11,608)
Deferred tax liability 741 741
EPRA Net Tangible Assets 328,709 340,747
Dilutive number of Shares 162,088,483 162,088,483
EPRA Net Tangible Assets per Share 202.8p 210.2p
4. EPRA Net Disposal Value
30 June 31 December
2025 2024
£'000 £'000
NAV per the financial statements 335,879 351,614
Adjustment for the fair value of bank borrowings 6,550 11,030
EPRA Net Disposal Value 342,429 362,644
Dilutive number of Shares 162,088,483 162,088,483
EPRA Net Disposal Value per Share 211.3p 223.7p
5. EPRA Net Initial Yield
Calculated as the value of investment properties divided by annualised net
rents:
30 June 31 December
2025 2024
£'000 £'000
Investment properties 608,330 622,480
Purchaser costs 40,217 41,138
648,547 663,618
Annualised cash passing rental income 52,504 53,840
Property outgoings (12,476) (11,901)
Annualised net rents 40,048 41,939
Add notional rent expiration of rent-free periods or other lease incentives 4,365 6,604
Topped-up net annualised rent 44,392 48,543
EPRA NIY 6.2% 6.3%
EPRA topped up NIY 6.8% 7.3%
6. EPRA Vacancy Rate
Six months ended Year ended 31 December
30 June 2024
2025 £'000
£'000
Estimated Market Rental Value (ERV) of vacant space 15,340 17,303
Estimated Market Rental value (ERV) of whole portfolio 71,804 77,029
EPRA Vacancy Rate 21.4% 22.5%
7. EPRA Cost Ratios
Six months ended 30 June Year ended 31 December
2025 2024
£'000 £'000
Property costs 20,588 45,021
Less recoverable service charge income and other similar costs (10,103) (25,742)
Add administrative and other expenses 5,207 9,851
EPRA costs (including direct vacancy costs) 15,692 29,130
Direct vacancy costs (9,920) (17,791)
EPRA costs (excluding direct vacancy costs) 5,772 11,339
Gross rental income 39,919 90,981
Less recoverable service charge income and other similar items (10,103)
(25,742)
Gross rental income less ground rents 29,816 65,239
EPRA Cost Ratio (including direct vacancy costs) 52.6% 44.7%
EPRA Cost Ratio (excluding direct vacancy costs) 19.4% 17.4%
The Group has not capitalised any overhead or operating expenses in the
accounting years disclosed above.
8. EPRA LTV
30 June 31 December
2025 2024
£'000 £'000
Borrowings from financial institutions 310,016 316,734
Net payables 6,784 12,460
Cash and cash equivalents (47,117) (56,719)
EPRA Net debt 269,683 272,475
Investment properties at fair value 593,487 607,458
Financial Assets - loans 241 337
Total property value 593,728 607,795
EPRA LTV 45.4% 44.8%
Property Related Capital Expenditure Analysis
Six months ended 30 June Year ended 31 December
2025 2024
£'000 £'000
Acquisitions - -
Development - -
Investment properties - -
Incremental lettable space - -
Enhancing lettable space 6,019 8,262
Tenant incentives - -
Other material non-allocated types of expenditure - -
Capitalised interest - -
Total Capital Expenditure 6,019 8,262
Conversion from accruals to cash basis - -
Total Capital Expenditure on cash basis 6,019 8,262
Acquisitions - this represents the purchase cost of investment properties and
associated incidental purchase expenses such as stamp duty land tax, legal
fees, agents' fees, valuations and surveys.
Subsequent capital expenditure - this represents capital expenditure which has
taken place post the initial acquisition of an investment property.
Alternative Performance Measures
Net LTV
30 June 31 December
2025 2024
£'000 £'000
Borrowings from financial institutions 310,016 316,734
Bond loans - -
Cash and cash equivalents (47,117) (56,719)
Net debt 262,899 260,015
Investment properties at fair value 608,330 622,480
Net LTV 43.2% 41.8%
Shareholder Information
Share register enquiries: MUFG Corporate Markets Limited
Please phone: 0371 664 0300 for any questions about:
• changing your address or other details
• your Shares
• buying and selling Shares.
Calls are charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable
international rate. The Registrar is open between 9.00 and - 17.30, Monday to
Friday excluding public holidays in England and Wales. For Shareholder
enquiries please email shareholderenquiries@cm.mpms.mufg.com
(mailto:shareholderenquiries@cm.mpms.mufg.com) .
Company Information
Forthcoming events
October 2025 Q2 2025 Dividend Payment
November 2025 Q3 2025 Trading Update and Dividend Declaration
February 2026 Q4 2025 Dividend Declaration
March 2026 2025 Full Annual Results
May 2026 Q1 2026 Trading Update and Dividend Declaration
Note: all future dates are provisional and subject to change.
Other Information
Listing (ticker): LSE Main Market (RGL)
Date of listing: 6 November 2015
Joint Brokers: Peel Hunt LLP and Shore Capital Limited
Financial PR: FTI Consulting
Incorporated: Guernsey
ISIN: GG00BSY2LD72
SEDOL: BSY2LD7
Legal Entity Identifier: 549300D8G4NKLRIKBX73
Website: www.regionalreit.com (http://www.regionalreit.com)
Directors
David Hunter (Chairman and Independent Non-Executive Director)
Massy Larizadeh (Senior Independent Director, Management Engagement &
Remuneration Committee and Nomination Committee Chair)
Nicole Burstow (Non-Executive Director)
Frances Daley (Independent Non-Executive Director, Audit Committee Chairman)
Stephen Inglis (Non-Executive Director)
Sarah Whitney (Independent Non-Executive Director)
Registered Office Legal Adviser to the Company Depositary
Regional REIT Limited Macfarlanes LLP Ocorian Depositary (UK) Limited
Mont Crevelt House 20 Cursitor Street 20 Fenchurch Street
Bulwer Avenue London London
St. Sampson EC4A 1LT EC3M 3BY
Guernsey
GY2 4LH
Company Secretary Administrator Public Relations
MUFG Corporate Governance Ltd Orbitus Fund Services FTI Consulting
51 Lime Street (Guernsey) Limited 200 Aldersgate
London Mont Crevelt House Aldersgate Street, London
EC3M 7DQ Bulwer Avenue, St. Sampson EC1A 4HD
Guernsey, GY2 4LH
Asset Manager Sub-Administrator Property Valuer
ESR Europe LSPIM Limited Waystone Administration Solutions (UK) Limited Colliers International Property
300 Bath Street Broadwalk House Consultants Limited
Glasgow Southernhay West 95 Wigmore Street
G2 4JR Exeter, EX1 1TS London
W1U 1FF
Investment Manager Registrar Tax Adviser
ESR Europe Private Markets Ltd MUFG Corporate Markets (Guernsey) Limited KPMG LLP
Ferguson House Mont Crevelt House 319 St Vincent Street
15 Marylebone Road Bulwer Avenue, St Sampson Glasgow
London Guernsey, GY2 4LH G2 5AS
NW1 5JD
Financial Adviser and Joint Broker Financial Adviser and Joint Broker Independent Auditor
Peel Hunt LLP Shore Capital RSM UK Audit LLP
7th Floor Cassini House Third Floor, Centenary House
100 Liverpool Street London 57 St James's Street 69 Wellington Street Glasgow
EC2M 2AT London, SW1A 1LD G2 6HG
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of this announcement.
National Storage Mechanism
A copy of the Half-Year Report will be submitted shortly to the National
Storage Mechanism ("NSM") and will
be available for inspection at the NSM, which is situated at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
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