Business
Annual Financial Report 2025 Full Year Results
Regional REIT Limited reported a resilient operational performance in 2025 despite challenging market conditions, with a portfolio valuation of £555.2m and EPRA NTA of £315.2m. The company strengthened its balance sheet through a £72.4m debt refinancing and £51.6m in disposals, reducing its Loan-to-Value ratio to 40.4%. They secured 64 new lettings at 3.9% above ERV, though EPRA occupancy decreased slightly to 75.9%. For 2026, Regional REIT is targeting an 8p dividend per share and plans to distribute a minimum of 90% of property rental profits, while continuing its capital expenditure program to enhance asset quality and benefit from occupier demand for energy-efficient spaces. Disclaimer*
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n\n \n24 March 2026\n \nRegional REIT Limited\n(\"Regional REIT\", the \"Group\" or the \"Company\")\n \n2025 Full Year Results\n \nResilient operational performance in challenging market in 2025\n \nPositioning the business for the future in 2026\n \nRegional REIT (LSE: RGL), the regional commercial property specialist, today announces its full year results for the 12 months to 31 December 2025.\n \nStephen Inglis, Head of ESR Europe LSPIM, Investment Adviser, said:\n \n\"Regional REIT delivered good progress last year against its main targets despite continued challenging market conditions. We strengthened the balance sheet with a successful multi-bank refinancing of £72.4m of debt, completed £51.6m of disposals at 1.3% above book value and reduced the LTV to 40.4% at the end of the year. In addition, in a testing letting market the company secured 64 new market lettings at 3.9% above 2024 ERV. We are focussed on continuing this progress in 2026.\n \nHowever, against a prolonged downturn in the property cycle and with the war in the Middle East adding to geopolitical and economic uncertainty, the leasing market remains subdued, with some tenants taking longer to make decisions, and often choosing not to move at all. While this backdrop continues to temper near‑term activity, emerging supply constraints for quality, energy‑efficient space across key UK regional markets provide a supportive medium‑term outlook.\n \nIn this context, the Board feels it is right to act with increased prudence, targeting* an 8p dividend per share for 2026; distributing a minimum 90% of the profit from the property rental business going forward in alignment to the REIT regulation. This will give the Company additional flexibility as we continue our accretive and essential capital expenditure programme to improve our assets and benefit from increasing occupier demand for quality space.\n \nAlong with our key objectives to maximise leasing activity and reduce void costs, we remain focused on strengthening the balance sheet further. We are aiming to achieve disposals at a similar level in 2026 as they were in 2025, while progressing targeted asset repositioning to drive long‑term value.\n \nThe investment case for regional offices remains clear. There is an increasing supply and demand imbalan...