Business
2019 Valuation Increase/ Asset Management Update
2019 Valuation Increase/ Asset Management Update.
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n \nRNS Number : 2220B Regional REIT Limited 29 January 2020 \n\n29 January 2020\nREGIONAL REIT Limited\n(\"Regional REIT\", the \"Group\" or the \"Company\")\n \n2019 Portfolio Valuation Increase\nand \nPositive 2020 Asset Management Update\nRegional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, is pleased to announce the valuation of the Group's 2019 property portfolio, and asset management update.\nAs at 31 December 2019 the portfolio valuation increased by 9.7% from the prior year. The like-for-like value of the Group's core office and industrial segment (93.6% by value) also increased in 2019 by 1.4%, after adjusting for capital expenditure and disposals during the period. Overall, on a like-for-like basis it was broadly unchanged with a 0.1% decrease. The overall valuation was £787.9m (31 December 2018: £718.4m), consisting of 160 properties (31 December 2018: 150), an increase of 7% and 904 tenants (31 December 2018: 874) an increase of 3%. These increases were achieved following the deployment in the period of the successful £62.5m equity raise.\nThe Group's net loan-to-value ratio was c.38.9% as at 31 December 2019 (31 December 2018: 38.3%).\n2019 Calendar Year - Highlights and Outperformance\n· Total shareholder return* during the year of 32.5% significantly outperforming the FTSE EPRA NAREIT UK Index which was at 30.6%\n· Dividends paid of 8.20p, a dividend yield of 7.2%, based on the price of 113.2pps as at 31 December 2019\n· The successful capital raise of £62.5m in July, was followed by the acquisition of 11 attractive office assets for £63.9m, with a combined net initial yield of 8.7%, and transacted on target by the end of December 2019\n \n*Source: Datastream: Includes dividends reinvested\n2020 Asset Management Update - Continued positive momentum\nDisposals\n· Dysart Way, Leicester: The sale of a petrol filling station on Dysart Way, Leicester, for £1.8m, was 38.5% above the previous valuation of the asset, as at 30 June 2019. This follows the re-gearing of the asset's tenancy agreement to Rontec Service Station 1A Limited on a 20-year lease from October. The sa...