Business
May 2017 Trading Update and Outlook Statement
May 2017 Trading Update and Outlook Statement.
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n \nRNS Number : 1622G Regional REIT Limited 25 May 2017 \n\n25 May 2017\n \nRegional REIT Limited\nMay 2017 Trading Update and Outlook Statement\nStrong pace of lettings. Good progress with recent property portfolio acquisition\n \nRegional REIT Limited (LSE: RGL) (\"Regional REIT\", \"the Group\" or \"the Company\"), the UK regional office and industrial property focused REIT, in advance of its Annual General Meeting today, announces its Trading Update as at 25 May 2017 and provides a statement on the Group's Outlook for the full year 2017.\n \nStephen Inglis, Group Property Director and Chief Investment Officer of London & Scottish Investments Limited, commented: \"We have maintained a strong pace of lettings year-to-date, picking up on the second-half of 2016, with both industrial units and regional offices performing well.\" \n \n\"Our active asset management has been reinforced by selective capital expenditure as we continue to enhance our properties to build organic growth. The acquisition and embedding of the new investment properties has gone well and we are achieving good progress with prospective lettings. At present regional property is tempered by more limited investment activity, however, we continue to consider a number of opportunities.\"\n \n \nMay 2017 Trading Update\n \nThe Group has continued to pursue its strategy of providing investors with an attractive return on a sustained and consistent basis from investing in and managing, predominantly, offices and light industrial properties, as well as opportunistic acquisitions, in the main regional centres of the UK outside of the M25 motorway. \n \nSince 1 January 2017 to date, the Group has exchanged on 26 new leases, totaling 113,651 sq. ft.; when fully occupied these are expected to provide approximately £0.6m pa of rental income. In addition, the Group has completed a number of regears, achieving an average c. 2.8% uplift on the headline rent. The occupier market remains robust at this time and the pace of enquiries and lettings has strengthened over the past year.\n \nRegional REIT has also been active and opportunistic with acquisitions through 2017 to date. On 24 March 2017 the Group completed the acquisition of c. £129m UK regional office, industrial and retail & retail distribution investme...