REG - Regional REIT Ltd - Dividend Declaration

Regional REITAnnouncement

25/02/2021 07:00

RNS Number : 2583Q
  
Regional REIT Limited
  
25 February 2021
  
 

25 February 2021
REGIONAL REIT Limited
("Regional REIT", the "Group" or the "Company")
 
2020 Year-End Valuation, Q4 Dividend Confirmation and Positive Rent Collection Update
97.8% Portfolio Rent Collection for 2020
Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a portfolio of income producing regional UK core and core plus office property assets, today announces its portfolio valuation as at 31 December 2020, Q4 2020 dividend confirmation and a positive rent collection update.
Full Year 2020 Portfolio Valuation
·    Portfolio valuation £732.4m (2019: £787.9m)
·    The like-for-like value of the portfolio decreased in H2 2020 by 2.9%, a like-for-like decrease of 7.2% for the year, after adjusting for capital expenditure and disposals during the period
·    Gross rent roll £64.2m (2019: £64.3m)
·    153 assets (2019: 160); 898 occupiers (2019: 904)
·    Offices (by value) were 83.5% of the portfolio (2019: 79.9%), industrials 11.1% (2019: 13.7%), retail 4.1% (2019: 5.0%), and Other 1.3% (2019: 1.4%)
·    England & Wales (by value) represented 82.7% (2019: 82.0%) of the portfolio with the remainder in Scotland
·    EPRA Occupancy (by ERV) 89.4% (2019:89.4%) 
·    Average lot size c. £4.8m (2019: c. £4.9m)
·    Net loan-to-value ratio was 40.8% (2019: 38.9%)
 
 
Rent Collection - Update
As at 19 February 2021, rent collections continued to strengthen, with Q1 collections increasing to 99.4%, Q2 to 97.9% and Q3 to 97.8%. Currently, Q4 rent collection, adjusting for monthly rent and agreed collection plans, stands at 96.1%, which is in line with the equivalent period in 2019 when 95.2% had been collected. The total rent collection for 2020 is currently at 97.8% compared with 98.6% at this time last year.
 



%


Q1 2020


Q2 2020


Q3 2020


Q4 2020


YTD 




Rent paid


98.1


95.1


96.5


91.2


95.2




Adjusted for monthly rents


0.2


0.2


0.2


2.3


0.8




Agreed collections plans


1.0


2.6


1.0


2.6


1.8








99.4


97.9


97.8


96.1


97.8



Table may not sum due to roundings.
 
Quarterly rental collection refers to all invoices issued during the calendar quarters:
Q1: 1 January 2020 to 31 March 2020
Q2: 1 April 2020 to 30 June 2020
Q3: 1 July 2020 to 30 September 2020
Q4: 1 October 2020 to 31 December 2020
 
The Company remains in supportive and ongoing discussions with occupiers regarding the remainder of the outstanding rent and expects to collect the vast majority in due course. 
Q4 2020 Dividend
As previously indicated the Company will pay a dividend of 1.50 pence per share ("pps") for the period 1 October 2020 to 31 December 2020 (1 October 2019 to 31 December 2019: 1.90pps), which amounts to a total dividend of 6.4pps for 2020. The dividend payment will be made on 9 April 2021 to shareholders on the register as at 5 March 2021. The ex-dividend date will be 4 March 2021. The entire dividend will be paid as a REIT property income distribution ("PID").
 
 
Stephen Inglis, CEO of London and Scottish Property Investment Management, the Asset Manager, commented:
"In very uncertain times for many businesses, created not just by the ongoing pandemic but also by Brexit, our active portfolio management approach and unique platform continues to deliver. We have collected 97.8% of our rent roll for 2020, which is broadly in-line with 2019, despite 2020 having brought considerable challenges for owners of commercial property assets. It is a clear testament to the strength and specialist expertise of our management team. 
We look forward to 2021 as we progress our strategy of re-focusing our portfolio solely on the highly attractive regional office market. We have confidence in the office sector and believe through careful asset selection and our asset management skills, we will continue to deliver a high yield and capital value growth to our shareholders over the long-term."
Forthcoming Events
25 March 2021            Full year 2020 Preliminary Results Announcement
19 May 2021               May 2021 Trading Update and Outlook Announcement
                                    Q1 2021 Dividend Declaration Announcement
TBC*                          Annual General Meeting 
 
*The Board has made the decision to delay the Company's 2021 Annual General Meeting until later in the year with the hope that shareholders will be able to attend in person.
 
- ENDS - 
Enquiries:



Regional REIT Limited
























Toscafund Asset Management


Tel: +44 (0) 20 7845 6100




Investment Manager to the Group








Adam Dickinson, Investor Relations, Regional REIT Limited


















London & Scottish Property Investment Management


Tel: +44 (0) 141 248 4155




Asset Manager to the Group








Stephen Inglis


















Buchanan Communications


Tel: +44 (0) 20 7466 5000




Financial PR


regional@buchanan.uk.com




Charles Ryland / Henry Wilson / George Beale







 
About Regional REIT                                                            
Regional REIT Limited ("Regional REIT" or the "Company") and its subsidiaries (the "Group") is a United Kingdom ("UK") based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and Toscafund Asset Management LLP, the Investment Manager.
Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly, offices located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 153 properties, 898 occupiers as at 31 December 2020, with a valuation of £732.4m.
Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects.
The Company's shares were admitted to the Official List of the UK's Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015. For more information, please visit the Group's website at www.regionalreit.com.
Cautionary Statement
This document has been prepared solely to provide additional information to Shareholders to assess the Group's performance in relation to its operations and growth potential. The document should not be relied upon by any other party or for any other reason. Any forward looking statements made in this document are done so by the Directors in good faith based on the information available to them up to the time of their approval of this document. However, such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.
ESMA Legal Entity Identifier ("LEI"): 549300D8G4NKLRIKBX73
 

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