Regional REIT downgrades value of property portfolio
Property firm Regional REIT has downgraded the value of its UK regional property portfolio by £116m.
The firm, which has offices in Old Trafford overseeing properties throughout the North West, has reported healthy rent collections on its extensive regional office estate, but blamed the macro economic environment for a likely squeeze on rents in the future.
The portfolio valuation stands at £789.5m down from £906.1m in 2021.
Stephen Inglis, chief executive of London and Scottish Property Investment Management, the Asset Manager, said: “2022 was operationally strong, with the company delivering on its targeted distribution of 6.6 pence per share, equating to a yield of 11% on the share price as at 22 February 2022. The full year 2022 dividend is expected to be covered by earnings, which will be confirmed when the 2022 annual results are announced.
“Although, as elsewhere in the commercial real estate sector, property valuations were impacted negatively during the period by the macroeconomic environment, operationally the Company has performed well. We have continued to focus on providing vibrant spaces to help our customers to thrive and in-turn to collect the rents. This has allowed the dividend to be increased to 6.6 pence per share for 2022 from 6.5 pence per share for 2021. Additionally, while the Company’s LTV has increased, we are encouraged by the ample headroom available across the debt facilities and the fixed nature of the Company’s debt at 3.5%.
“There is an air of optimism as we progress into the new year, with our 30 November 2022 internal data showing that 99% of our tenants had returned to the office in some form, with only 12 of our 1,076 tenants yet to do so.”
