Regional REIT reports 9.6% shareholder return amid office market challenges

Published 09/09/2025, 07:08
Regional REIT reports 9.6% shareholder return amid office market challenges

LONDON - Regional REIT Limited (LSE:RGL), a UK regional office specialist, reported a 9.6% total shareholder return for the first half of 2025 despite challenging investment market conditions, according to a press release statement issued Tuesday.

The company declared a fully covered dividend of 5.0 pence per share for the period, compared to 3.4 pence in the first half of 2024. EPRA earnings per share stood at 5.2 pence, down from 13.5 pence in the same period last year.

The property portfolio was valued at £608.3 million as of June 30, representing a 2.0% like-for-like decline from £622.5 million at the end of 2024 after adjusting for disposals and capital expenditure.

Regional REIT reported EPRA occupancy of 78.6%, up from 77.5% at year-end 2024, with rent collection remaining strong at 97.7%. The company completed 20 new lettings during the period, generating £1.4 million in rental income at rates 4.2% above 2024 estimated rental values.

The company has reduced its gross borrowings to £310.0 million from £316.7 million at the end of 2024, while maintaining cash and cash equivalents of £47.1 million. Net loan-to-value ratio increased slightly to 43.2% from 41.8%.

As part of its strategic repositioning, Regional REIT has categorized its portfolio into four segments: Core assets (58.4%), Capex to Core (17.0%), Value Add (9.3%), and Sales (15.3%). The company completed £7.8 million in property sales before costs during the period, with an additional £93.2 million of sites identified for potential disposal.

For the second quarter of 2025, the company declared a dividend of 2.50 pence per share, payable on October 17 to shareholders of record as of September 19.

Following the reporting period, Regional REIT completed four additional property disposals totaling £6.8 million and one strategic acquisition for £1.1 million, further reducing group borrowings by £6.4 million to £303.6 million.

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