Regional REIT Limited Portfolio Valuation and Dividend Declaration (5975X)

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RNS Number : 5975X

Regional REIT Limited

23 February 2017

Regional REIT Limited

Full Year 2016 Properties Valuation, Q4 2016 Dividend

and Change to Preliminary Results Date

Regional REIT Limited (LSE: RGL) ("Regional REIT", "the Group" or "the Company") today announces its Full Year 2016 Gross Investment Properties Valuation and Q4 2016 Dividend.

Full Year 2016 Gross Investment Properties Valuation

The Group's gross investment valuation of its property portfolio as at 31 December 2016 was GBP502.4m (31 December 2015: GBP403.7m). There was an increase of 2.25% on a like-for-like basis from the 31 December 2015 value. During 2016 the Group completed property acquisitions totalling GBP133.6m and disposals (net of costs) of GBP44.9m.

The Group's net loan-to-value ratio was c. 41% as at 31 December 2016.

Fourth Quarter 2016 Dividend Declaration

The Company will pay a dividend of 2.40 pence per share for the period 1 October 2016 to 31 December 2016. The dividend payment will be made on 13 April 2017 to shareholders on the register as at 3 March 2017. The ex-dividend date will be 2 March 2017.

In respect of the financial year 2016 Regional REIT has declared dividends amounting to 7.65 pence per share, at the higher end of its targeted dividend yield at the time of its Initial Public Offering (November 2015) of a dividend of 7-8% (based on the original offer price of 100 pence per share) and in line with the current analyst consensus.

Stephen Inglis, Group Property Director and Chief Investment Officer of London & Scottish Investments Limited, the Asset Manager, commented: "In the course of a challenging year for the UK commercial property market I am extremely pleased that we have delivered steady progress with the portfolio and, much as we anticipated, that the valuation has been sustained in the aftermath of the referendum vote. This performance has underpinned our confidence in the robustness of the UK's office and light industrial property markets and in our active asset management."

"Our dividend establishes us as one of the highest yielding REIT shares and delivers on a key commitment we made with the IPO. The dividend is underpinned by the income strength of the business."

The Group confirms that its 2016 Preliminary Results Announcement will take place on Thursday, 23 March, 2017 (previously announced as 30 March, 2017). For its full year 2016 results the Group will initiate an accrual for the Managers' Performance Fee (for the initial Performance Period ending 31 December 2018) and will undertake a partial impairment of goodwill.

- ENDS -

Note: Regional REIT Limited was incorporated on 22 June 2015 but did not begin trading until 6 November 2015 when an acquisition was completed and its shares were admitted to trading on the premium segment of the London Stock Exchange.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation that came into effect on 3 July 2016.

Enquiries:

 
Regional REIT Limited 
Press enquiries through Headland 
 
Toscafund Asset Management                                  Tel: +44 (0) 20 7845 6100 
Investment Manager to the Group 
James S Johnson, Investor Relations, Regional REIT Limited 
 
London & Scottish Investments                               Tel: +44 (0) 141 248 4155 
Asset Manager to the Group 
Stephen Inglis 
 
Headland                                                    Tel: +44 (0) 20 7367 5222 
Financial PR 
Francesca Tuckett

About Regional REIT

Regional REIT Limited (LSE: RGL) is a London Stock Exchange Main Market traded specialist real estate investment trust focused on office and industrial property interests in the principal regional locations of the United Kingdom outside of the M25 motorway.

Regional REIT is managed by London & Scottish Investments, the Asset Manager, and Toscafund Asset Management, the Investment Manager, and was formed by the combination of two existing funds previously created by the Managers as a differentiated play on the expected recovery in UK regional property, to deliver an attractive total return to Shareholders and with a strong focus on income.

The Group's investment portfolio, as at 30 June 2016, was spread across 128 regional properties, 974 units and 719 tenants. As at 30 June 2016, the investment portfolio had a value of GBP501.3m and a net initial yield of 7.1%. The weighted average unexpired lease term to first break was approximately 3.6 years.

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 announcement 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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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February 23, 2017 02:00 ET (07:00 GMT)

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