REGIONAL REIT Limited
(“Regional REIT”, the “Group” or the “Company”)
Q3 2024 Trading Update and Dividend Declaration
9.3% Uplift in New Letting Income in 2024
Regional REIT Limited (LSE: RGL), the regional property specialist, is pleased to announce a trading update for the three-month period from 1 July 2024 to 30 September 2024 and a dividend declaration for the third quarter of 2024. Additionally, the Group provides an update on its positive ESG progress, with a continued strengthening of its EPC and GRESB rating.
The Company is now on a much stronger financial footing, following the successful £110.5m equity fund raise, which was completed in Q3 2024 and strongly supported by shareholders. Proceeds were used for the repayment of the £50m retail bond, and of the remaining net proceeds: £26.3m is in the process of being used to reduce bank facilities; and £28.4m will be used in repositioning the portfolio to capture the accretive opportunities from capital expenditure, enhancing earnings in the near term and value in the mid to long-term, further underpinning dividend payments going forward.
Q3 2024 Trading Update
The Group traded well during the period under review and made good progress, completing a number of lease renewals during Q3 2024. Retention remained high with 77.7%* of rent roll up for renewal remaining let.
* Includes tenants that are currently holding over, lease renewals, and the acquisition of new replacement tenants.
Rental uplift of 9.3% against December 2023 ERVs has been achieved. Since 1 January 2024, the Group has exchanged on 55 leases to new tenants totalling 161,668 sq. ft. providing £2.6m per annum (“pa”) of rental income when fully occupied. Of this total, 11 leases have been exchanged since 30 June 2024, totalling 39,536 sq. ft. and will provide £0.5m pa of additional rental income.
Capital expenditure programme highlights
The deployment of the capital raise proceeds into capital accretive projects has commenced with eight projects in course for a total investment of £15.0m.
A full refurbishment of Ashby Park, Ashby De La Zouch has recently completed at a cost of £2.7m. These works have already led to a new 10-year lease with Ashfield Healthcare Ltd. and Q Collection (UK) Ltd. generating an aggregate £0.5m pa rental income.
Q3 2024 Dividend Declaration
As previously indicated, the Company is pleased to declare that it will pay a dividend of 2.20 pence per share (“pps”) for the period 1 July 2024 to 30 September 2024. The entire dividend will be paid as a REIT property income distribution (“PID”).
The key dates relating to this dividend are:
| Ex-dividend date | 21 November 2024 |
| Record date | 22 November 2024 |
| Last day for DRIP election | 17 December 2024 |
| Payment date | 10 January 2025 |
Prior to the capital raise and share consolidation** the Company declared a Q1 2024 dividend of 1.2pps. Post the capital raise and subsequent share consolidation the Company declared a Q2 2024 dividend of 2.2pps on 10 September 2024 and is now declaring a Q3 2024 dividend of 2.2pps. The Board will target a dividend of 2.2pps for Q4 2024.
**On 29 July 2024, the shares in issue were consolidated by ratio of 1 new share for every 10 shares.
The level of future payment of dividends will be determined by the Board having regard to, among other factors, the financial position and performance of the Group at the relevant time, UK REIT requirements, the interest of shareholders and the long-term future of the Company.
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