Business
Trading Update, Dividend and Outlook Statement
Trading Update, Dividend and Outlook Statement.
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n \nRNS Number : 3977H Regional REIT Limited 15 November 2018 \n\n15 November 2018\nREGIONAL REIT Limited\n \nQ3 2018 Trading Update, Outlook Statement and Dividend Announcement\n \nRegional REIT Limited (LSE: RGL) (\"Regional REIT\", \"the Group\" or \"the Company\"), the UK regional office and industrial property focused REIT, today announces its trading update for the period from 1 July to 14 November 2018, and its dividend declaration for the third quarter of 2018.\n \nStephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, commented: \"We are extremely pleased with the REIT's continued progress in 2018. Having undertaken the majority of our trading in the first three quarters, we benefitted from substantial gains over valuation. \n \nAs we recycle the remaining sale proceeds, we are able to take advantage of an investment market that has slightly softened ahead of the outcome of the Brexit negotiations, creating a buyer's market. Contrastingly we continue to see little change in occupational demand for our assets and we are undertaking a number of lettings across the country at good rental levels.\n \nThese developments once again demonstrate our strategy of refreshing the portfolio to ensure robust and diverse income streams, with which to pay and enhance dividend returns to investors.\n \nQ3 2018 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 and asset managing, in predominantly, offices and light industrial property in the main regional centres of the UK outside of the M25 motorway. \nFrom 1 January 2018 to date, the Group has exchanged on 54 leases to new tenants, including 21 since 30 June 2018, totalling 195,005 sq. ft. When fully occupied these will provide approximately £2.4m pa of headline rental income. In addition, the Group has completed a number of lease re-gearings in the quarter. The acquisition of replacement tenants and existing tenants, who continue to hold over in the properties for which the leases have come up for renewal, has resulted in c. 84% of headline rent being retained and c. 89% of the units with lease renewals remaining occupied.\nCapital expenditure to 30 September 2018 was £5.7m gross (£5.4m net of recov...