Regional REIT confirms dividend, future payouts on review

Regional REIT confirmed its dividend for the fourth quarter of 2.55p a share but warned that future payouts would be subject to review in light of the Covid-19 pandemic.

Since the period end, £30.7m of available borrowing headroom had been drawn down, ensuring “ample liquidity”, with a cash balance post dividend of £58.1m, the company said. The company pulled an equity raise last month.

As at 6 April, Regional REIT had collected 81.6% of rent due, in comparison to 83.1% on the same date in 2019. Another 4.8% of tenants had switched to monthly payments, and had either paid or agreed to pay.

Additionally, the board said it expected another 2.3% of tenants to settle within seven days, which in aggregate would amount to 88.7% of rents to be collected.

“Our market fundamentals to date remain robust, however, we will inevitably be impacted by Covid-19 and though we are committed to paying a regular quarterly dividend to our shareholders this will be subject to market conditions, the company's performance, its financial position and business outlook,” said Stephen Inglis, chief executive of Regional REIT’s asset manager, London and Scottish Property Investment Management.

The London-listed real estate investment trust said income remained stable in the 12 months to December 31 at £75.6m, compared to £74.0m a year earlier.

EPRA adjusted earnings per share totalled 7.8p, up from 7.5p in 2018, while its EPRA adjusted earnings per share including realised disposal proceeds were 8.2p, down from 13.7p.

The EPRA net asset value per share slipped to 112.7p from 115.5p, while the group cost of debt decreased to 3.5% from 3.8%.

Regional REIT said it maintained its net loan-to-value ratio below its target of 40% at 38.9%, which was up slightly from the 38.3% it reported at the end of 2018.

It said lease renewals for office and industrial assets achieved a 9.8% increase in the rent roll year-on-year, and added that EPRA occupancy rates remained “robust” due to “active and intensive” asset management at 89.4%, precisely in line with the figure reported a year earlier.

At 1502 BST, shares in Regional REIT were up 5.26% at 86.1p.