TIDMRGL
RNS Number : 1341I
Regional REIT Limited
31 March 2020
31 March 2020
REGIONAL REIT Limited
("Regional REIT", the "Group" or the "Company")
TRADING UPDATE & DIVIDEND CONFIRMATION
Regional REIT (LSE: RGL), the regional real estate investment
specialist focused on building a diverse portfolio of income
producing regional UK core and core plus office and industrial
property assets, today provides the following trading update and
confirms that its dividend for Q4 2019 of 2.55 pence per share,
declared on 27 February 2020, will be paid to shareholders on the 9
April 2020.
Trading Update
As at 31 December 2019, the Group had a highly diversified
portfolio of 160 properties with 904 tenants, which include
essential services ranging from the NHS, ambulance service, power
utilities, manufacturing to food and logistic related tenants and
other government departments.
Q1'20 rent collected to date is only 139bps reduced from our
position as at the same date in Q1'19. Additionally, a proportion
of tenants settle their rental invoice via their scheduled monthly
payment run on either 31 March or 1 April, hence we expect the
monthly rental collection to increase in due course.
The granular asset management approach employed by the highly
experienced and adaptable property management team of the Asset
Manager, has navigated property management through previous
economic downturns, and it is this approach which is proving
invaluable in supporting our tenants through this unprecedented
period.
Corporate Update
Regional REIT has a strong and defensive balance sheet, which
has been further enhanced in the short-term by drawing down the
GBP30.7m of available borrowing headroom on 26 March 2020, from the
Santander and Royal Bank of Scotland facilities, ensuring ample
liquidity.
As at 30 March 2020, the Company had:
-- Cash c.GBP68.8m*
-- LTV c.39%**
Confirmation of the Dividend
The Company confirms its intention to pay its 2.55 pence per
share Q4 2019 dividend on 9 April 2020 .
*Pre Q4'19 dividend payment of c. GBP11.0m.
**Gross property assets based upon 31 December 2019 Cushman
& Wakefield valuation.
Stephen Inglis, CEO of London & Scottish Property Investment
Management, the Asset Manager of Regional REIT commented:
"We live in very uncertain times. However, the diversity of our
property assets and our income streams, together with our
singularly focussed, highly experienced and adaptable management
team will see us weather the current COVID-19 disruption.
Our historically close relationships with our tenants have been
an invaluable partnership during the recent events, and our income
collection to date and further income to be collected over the next
few days, further underpins our view that our collaborative and
pragmatic approach works well both in good and turbulent times. We
expect to have greater visibility on the extent of the disruption
to our operations in due course.
With great thanks to my team, tenants, and all our stakeholders,
for their ongoing efforts, I am delighted to confirm our quarterly
dividend will be distributed to our shareholders on the 9 April
2020 as usual."
Forthcoming Events
Further to the joint statement by the Financial Conduct
Authority, Financial Reporting Council, and Prudential Regulation
Authority on 26 March 2020, ending the requested moratorium on the
publication of results, the Company will publish its audited 2019
financial results on 9 April 2020, subject to any further guidance
from the regulators.
A meeting for analysts will be held via a conference call
facility at 9.30am (London time, BST) on Thursday, 9 April 2020 .
If you would like the conference call details please contact Henry
Wilson on +44 (0) 207 466 5000 or henryw@buchanan.uk.com .
- 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 / Victoria Hayns / Henry
Wilson
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 and industrial units located in the regional centres
outside of the M25 motorway. The portfolio is highly diversified,
with 160 properties, 904 tenants as at 31 December 2019, with a
valuation of GBP787.9m.
Regional REIT pursues its investment objective by investing in,
actively managing and disposing of regional core and core plus
property assets. It aims to deliver an attractive total return to
its Shareholders, targeting greater than 10% per annum, with a
strong focus on income supported by additional capital growth
prospects.
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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END
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