Regional REIT Portfolio Value Falls 5.1% to £526.7 Million in First Half

Fiona Craig

LSE:RGL

08 September 2026

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Regional REIT (LSE:RGL) reported a 5.1% decline in portfolio value to £526.7 million for the first half of 2026, reflecting property revaluations and £21.5 million of asset disposals.

EPRA net tangible assets declined 3% to £305.8 million, while EPRA earnings per share fell to 4.2 pence. The company reported rent collection of 99.7% during the period.

Regional REIT reduced its dividend to 4.0 pence per share for the half year and continues to target a total dividend of 8 pence per share for 2026.

Asset Disposals Reduce Loan-to-Value Ratio

The REIT continued to dispose of non-core properties as part of its strategy to reduce borrowings and reposition its portfolio.

These transactions contributed to a reduction in net loan-to-value to 38.5%, alongside a decline in gross borrowings.

Regional REIT completed 26 new lettings during the period, generating £1.9 million of annual rent at an average of 2% above estimated rental value.

The company also completed a £1.1 million letting in Nottingham, which reduced vacancy-related costs at the property.

Regional REIT Invests £1.4 Million in Portfolio Upgrades

Regional REIT invested £1.4 million in capital expenditure during the first half, with spending focused partly on improving the energy performance of its properties.

At the end of the period, 87% of the portfolio was rated EPC C or better.

The company’s repositioning strategy involves retaining and upgrading core assets while preparing non-core and value-add properties for disposal. Regional REIT said it has additional assets either under offer or in negotiations.

Management said leasing decision cycles remain extended and investment market activity subdued. The company is continuing its disposal and capital expenditure programmes while managing its regional office portfolio.

Second-Quarter Dividend Set at 2.0 Pence Per Share

Regional REIT declared a second-quarter dividend of 2.0 pence per share, payable in October 2026. The distribution will be classified entirely as a property income distribution.

Shareholders will also have the option to participate in a dividend reinvestment plan.

Management said low levels of regional office development, construction costs and government support for devolution could support demand and rental growth. These remain management’s expectations rather than established future outcomes.

More about Regional REIT Limited

Regional REIT Limited is a London-listed real estate investment trust focused primarily on commercial office properties in regional U.K. markets outside London.

The company manages a diversified portfolio of regional properties and uses asset management, capital expenditure and disposals as part of its portfolio strategy.

Its investment programme includes property upgrades intended to improve occupier appeal and energy performance, while its disposal programme is used to reduce exposure to non-core assets and manage leverage.

This article was written by the editorial team at InvestorsHub/ADVFN and is provided for informational purposes only.