Demand for office space boosts rent roll for property group
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Salford property group Regional REIT reported a ‘robust performance’ as workers returned to the office.
The regional real estate investment specialist, which has a diversified portfolio including offices, industrial units and residential, said rent roll remained stable at £61.1m for the six months to the end of June 2021.
Total rent collection for the period was 99% of rent due, ahead of the 93.7% of rent collected for the equivalent period in 2020
Operating profit before gains and losses on property assets and other investments for the period amounted to £19.9m compared to £18.1m for the same period last year.
Stephen Inglis, CEO of London and Scottish Property Investment Management, the Asset Manager, said the company was now “poised to benefit” from an anticipated change in sentiment as employees return to their offices.
“The Company continued to execute on its strategic objective of focusing on regional office assets with a number of significant non-core disposals providing considerable uplifts from valuation.
“Capital was swiftly redeployed into value accretive acquisition opportunities in line with the renewed objectives.
“This culminated, post period end, in the purchase of a portfolio of 31 high quality, predominately multi-let office assets from Squarestone Growth LLP.
“The Company is in a strong financial position. It has produced a total shareholder return of 7.9% for the period, whilst maintaining its record of quarterly dividends. Furthermore, the strong rent collections have resulted in EPRA earnings of 3.0 pence per share for the six months to 30 June 2021.
“We would like to thank our shareholders for their continued support as we look forwards with renewed optimism as the full return to the office becomes ever more evident.”
Regional REIT declared a first half dividend of 3.2pps, targeting an expected full year dividend of 6.5pps.