Business
Q1 2026 Trading Update & Dividend Declaration
Regional REIT Limited reported its Q1 2026 trading update, announcing a dividend of 2.0 pence per share, a decrease from 2.50 pence in the prior year's quarter. The company completed six sales totalling £12.6 million in Q1 2026, with an additional £2.5 million in disposals post-quarter end, reducing its loan-to-value ratio to 39.4% from 40.4%. Regional REIT secured 26 new lettings and renewals, adding £1.1 million to its rent roll at 9.8% above estimated rental value, and its portfolio's gross property asset value stood at approximately £543.1 million. The company noted a continued "flight to quality" in the regional office market, with 61.1% of its portfolio already meeting EPC B or better standards. Disclaimer*
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n\n19 May 2026\nREGIONAL REIT Limited\n(\"Regional REIT\", the \"Group\" or the \"Company\")\nQ1 2026 Trading Update & Dividend Declaration\n \nRegional REIT Limited (LSE: RGL), the regional commercial property specialist, announces the following trading update for the period from 1 January 2026 to 31 March 2026 and a dividend declaration for the first quarter of 2025 of 2.0 pence per share.\n \nStephen Inglis, Head of ESR Europe LSPIM Ltd., Investment Adviser commented:\n \n\"Market conditions remain challenging, but we continue to deliver on our repositioning strategy, executing targeted disposals to strengthen the balance sheet while further improving the quality of our portfolio via our capex programme.\n \nDuring Q1 2026, we undertook six sales generating proceeds of £12.6m, with a further three disposals totalling £2.5m completed post quarter end, all were close to their 31 December 2025 valuations and in aggregate c. 90% vacant. These disposals were largely from the sales segment of the portfolio where refurbishment would not have generated sufficient returns on the capital deployed. The LTV was further reduced at the end of Q1 2026 to 39.4% (2025: 40.4%).\n \nThe company completed 26 new lettings and renewals in the quarter, adding £1.1m to the rent roll. These lettings were secured at 9.8% above ERV, building on the 9.0% above ERV delivered in Q4 2025, underscoring rental growth created by continued demand for well-located, high-quality space and the effectiveness of our active asset improvement plan.\n \nThe increase in rents being achieved is indicative of our view in respect of the structural supply and demand imbalance in the provision of high quality and well-located regional office space that conform to EPC A and B, and this will become increasingly evident.\n \nOur portfolio is currently well positioned with 61.1% already EPC B or better. Grade A vacancy across key UK regional markets remains tight at c.3-5%, with a constrained development pipeline and best‑in‑class space accounting for the majority of leasing activity*. This dynamic continues to support a broader 'flight to quality' and underpins our medium-term outlook.\"\n \n* Knight Frank Office Market Annual Review 2025\n \nPortfolio update\n· 110 properties, 1,075 units and 653 tenants, tot...