Regional Reit Ltd. · LSE:RGL

Regional Reit — FY2024 Earnings Presentation

48 slides from Regional Reit's earnings presentation, March 2025

Slide 1: Investor Presentation Year End to 31 December 2024
Investor Presentation Year End to 31 December 2024 Transformed balance sheet unlocks opportunities to create value regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved.
Slide 2: Introduction
Introduction Stephen Inglis Simon Marriott Chief Executive Officer Property Fund Director Alistair Hewitt Adam Dickinson Finance Fund Director Investor Relations Director regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved.
Slide 3: FY 2024: On the pathway to recovery
FY 2024: On the pathway to recovery • Transformed balance sheet unlocks opportunities to create value – Gross borrowings reduced to £316.7m (2023: £420.8m); cash and cash equivalents £56.7m (2023: £34.5m) – Net LTV 41.8% (2023: 55.1%) following successful £110.5m capital raise, supported by Bridgeme
Slide 4: Diversified portfolio – delivering income
Yields (31 Dec 24) Diversified portfolio – delivering income 20% 18% 16% • Active occupation - back in the office 4 days a • Focus on regional properties outside M25 14% week on average 12% 10% 11.6% • Current active office occupation has increased • Offices 90.7% (by value) (2023: 92.1%) 8% to 75.3
Slide 5: De-risking through diversification
De-risking through diversification Occupier base with blue chip tenants Professional, scientific and technical activities Administrative and support service • Diversified income - large tenant mix across activities £622.5m of assets (2023: £700.7m) 11.8% Information and communication 18.2% • Spread
Slide 6: Debt facilities 31 December 2024
Debt facilities 31 December 2024 • Transformed balance sheet post equity raise with manageable debt profile following £104m borrowings repaid YE ‘23 YE ‘24 Change YE ‘24 Maturity Gross loan Annual Swaps\Caps: Swap Rates Outstanding Outstanding Facility Date to value** Interest Rate Notional Blend De
Slide 7: Positive office sentiment returns
Positive office sentiment returns Total return forecast (2024 - 2029) for UK Offices ahead of other • Total return for UK offices → 13.0% pa over the next 5 years property sectors at 13.0% pa expected to outperform UK - Offices 13.0% • KPMG CEO Outlook → c. 87% of CEOs more inclined to reward those
Slide 8: ESG – Focused on delivering sustainability – good progress continues
ESG – Focused on delivering sustainability – good progress continues Environment • On target to achieve current guidelines of EPC B rating by 2030 Rating 31-Dec-23 31-Dec-24 Movement Excelsior House, Ashby De La Zouch, EPC A B plus and exempt 42.1% 57.7% +15.6ppts C 31.6% 25.0% (6.6) ppts D 15.7% 11
Slide 9: Portfolio segmentation: from Core to Sales
Portfolio segmentation: from Core to Sales Core Capex to core Value add Sales Non accretive assets and non- Income and value accretive Requiring capital expenditure Alternative use value potential office to become core greater than capex to core 3.2m sq. ft. of high-quality office Disposals to reduc
Slide 10: Portfolio - Segmentation
Portfolio - Segmentation Gross % by Occupancy WAULT to Average Capital Segmentation Valuation Sq. ft. rental ERV Yield (%) valuation (EPRA) first break rent rate income (£m) (mil) (%) (yrs) (£m) (£psf) (£m) (£psf) Net initial Equivalent Reversionary Core 371.2 59.6 3.2 88.1 3.2 39.7 14.36 44.8 114.5
Slide 11: Operational Strategy 2025 – CAPEX to core & value add
Operational Strategy 2025 – CAPEX to core & value add CAPEX to Core c. £28m Accretive Value Add CAPEX Increase occupancy Feasibility studies Undertake planning initiatives for Increased rent roll change of use Increased valuation Increased valuation Reduce LTV Disposal realisation regionalreit.com |
Slide 12: Capex to Core
Capex to Core • Acquired in March 2017 • Ashby de la Zouch refurbishment – 100% occupied • c. £2.6m refurbishment Before • A 1990’s office building, which was being utilised by the former tenant as a hybrid unit with light industrial on ground floor and offices on first floor. The refurbishment conv
Slide 13: Clearblue Innovation Centre & Linford Wood
Clearblue Innovation Centre & Linford Wood • Capex to Core Clearblue Innovation Centre, Bedford Linford Wood – Libra House, Milton Keynes Total cost: £0.7m Total cost: £0.7m Detail of ongoing works: Detail of ongoing works: • EPC improvement works • General site improvements to improve rents • Agree
Slide 14: Trueman House, Capitol Park, Leeds
Trueman House, Capitol Park, Leeds • Capex to Core • Capex – £1.2m (material & fees) • Project – refurbishment of 10,297 sq. ft. a 2-storey office being 1 of 4 offices owned by the Company on an out-of-town business park – total ownership extends to 86,758 sq. ft. • Dilapidations claim ongoing with
Slide 15: Oakland House, Trafford
Oakland House, Trafford • Value Add • 401 units • A new 15 storey building containing 205 units, with undercroft car parking Plus • Current property repurposed into 196 units • Current status – the design have been finalised, which takes into consideration the layouts, daylight/sunlight, cost analys
Slide 16: The Lighthouse, Salford Quays
The Lighthouse, Salford Quays • Value Add • 825 units • 10 & 20 storey buildings connected by a 9-storey building containing 363 units And • 39 storeys with 462 units • Current status – the design have been finalised, which takes into consideration the layouts, daylight/sunlight, cost analysis and w
Slide 17: Strategic priorities – the pathway to recovery
Strategic priorities – the pathway to recovery 1 Remain committed to reducing debt through targeted disposals programme 2 Drive increases in occupancy and rental growth across core portfolio 3 Improve EPC spaces and strengthen core portfolio 4 Pursue opportunities to add value ahead of disposals 5 C
Slide 18: Appendix
Appendix • ESG (continued) • Equity capital raise summary • Property portfolio • Disposals • Financial information regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 18
Slide 20: ESG – Focused on delivering sustainability – Good progress across portfolio
ESG – Focused on delivering sustainability – Good progress across portfolio Social • Committed to making a positive difference in society with charitable donations; ESR Europe match funding for good causes and encouraging staff to be active in their local communities • ESR LSPIM’s dedication to supp
Slide 22: Use of the capital raise £110.5m gross proceeds
Use of the capital raise £110.5m gross proceeds Repaid £50m retail bond £54m to reduce bank Significantly reduce c. £28m for accretive August 2024 borrowings - resulting the LTV 41.8% Capex and expenses in greater covenant headroom regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved
Slide 23: Key highlights of the £110m fully underwritten capital raise
Key highlights of the £110m fully underwritten capital raise Structure • Fully pre-emptive → 15 new ordinary shares for every 7 existing ordinary shares • Open offer • Fully underwritten Underwriter • Bridgemere Group → Founder Steve Morgan CBE • A board position appointment → Companies include: hou
Slide 25: Overview – Specialised platform and geographically diverse portfolio
Overview – Specialised platform and geographically diverse portfolio UK property locations Portfolio details as at 31 December 2024 as at 31 December 2024 Valuation % Capital Values Sector Properties (£m) by valuation (£psf) Office 107 564.7 90.7 110.99 Retail 13 22.6 3.6 85.10 Industrial 4 23.1 3.7
Slide 26: Regional Split (% by value)
£622.5m Property portfolio (2023: £700.7m) IPO – November 2015 31 December 2023 31 December 2024 Sector Split (% by value) 25.3% 3.7% Office 3.2% 3.1% 3.6% Industrial £386.1m £700.7m 1.7% £622.5m 2.0% 58.4% 92.1% 90.7% Retail 11.3% Other 5.0% Regional Split (% by value) 13.3% Midlands 16.0% 13.9% 15
Slide 27: Diversified income stream
Diversified income stream Portfolio details at 31 December 2024 Gross % by Occupancy WAULT to Average Sector Properties Valuation Sq. ft. rental ERV Capital rate Yield (%) valuation (EPRA) first break rent income (£m) (m il) (%) (yr s) (£m) (£psf) (£m) (£psf) Net initial Equivalent Reversionary Offi
Slide 28: Top 15 Investments (market value)
Top 15 Investments (market value) % of Market Lettable EPRA Annualised WAULT to % of Gross Property Sector Anchor tenants value area Occupancy gross rent first break portfolio rental (£m) (Sq. Ft) (%) (£m) (years) income Glasgow Tay House Centre Ltd, University of Glasgow, 300 Bath Street, Glasgow O
Slide 29: Top 15 Occupiers (share of rental income)
Top 15 Occupiers (share of rental income) WAULT to Lettable Annualised % of Tenant Property Sector first break area gross rent Gross rental (years) (Sq. Ft) (£m) income 800 Aztec West, Bristol EDF Energy Limited Electricity, gas, steam and air conditioning supply 4.5 109,114 1.7 2.8 Endeavour House,
Slide 30: Investment property activity
Investment property activity Investment properties bridge 31 December 2024 (£m) 720 700.7 700 680 8.2 0.0 (28.6) (3.2) 660 640 622.5 620 (54.7) 600 Valuations Disposals Acquisitions Gain/(Loss) on Capex Valuation Change Valuations 31 Dec 23 (net of costs) (incl. costs) disposal of properties 31 Dec
Slide 31: Geographically diversified office led portfolio focused on the UK regions
Geographically diversified office led portfolio focused on the UK regions Gross office assets by value % Office WAULT years Office average rent & capital rate £psf 5 £16 £160 100% £14.72 £14.97 £14.50 90% £14 £140 4.6 £125.88 80% 4.5 4 4.4 £12 £117.14 £120 £110.99 70% £10 £100 60% 50% 3 £8 £80 91.8%
Slide 32: FY 2024 portfolio highlights
FY 2024 portfolio highlights Major lettings and renewals successfully secured across the regions Lightyear, Glasgow Airport, Glasgow Oakland House, Manchester Heathrow Airport Ltd. has let 15,154 sq. ft. of office space to Please Hold (UK) Ltd. has let 10,926 sq. ft. of office space to March 2039, w
Slide 33: Rent collections – remain strong
Rent collections – remain strong Rent collected vs invoiced (%) 2023 2024 2023 2024 (%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Total Rent Paid 99.9 98.5 98.4 98.7 98.9 99.2 99.5 97.9 97.3 98.6 As at 14 Match 2025 regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. Quarterly rental invoices
Slide 35: Summary – disposal programme update
Summary – disposal programme update FY 2024 Disposals by Sector • Disposals totalled £28.6m (net of costs) • Reflecting an average net initial yield of 8.3% (10.6% excluding vacant assets) Office 2.6% • 18 assets and 3-part sales in total during FY 2024 97.4% Retail • Disposals of non–core assets an
Slide 36: Miller Court, Tewkesbury
Miller Court, Tewkesbury • Acquired in December 2017 for £7.0m • Sold for £5.7m. This represents a substantial uplift of 5.6% against the most recent valuation at 31 December 2023 • The 48,090 sq. ft. of business park office space comprising of 20 individual units let on 17 separate leases. The prop
Slide 37: Milburn House, Newcastle
Milburn House, Newcastle • Acquired in June 2013 for £3.0m • The 112,124 sq. ft. office property was multi-let to 34 tenants at time of disposal • Over the period of ownership of this property, the asset manager completed a number of new lettings and lease renewals • The site was sold in February 20
Slide 39: Key metrics overview
Key metrics overview Dec 2023 Dec 24 Change Investment Property £700.7m £622.5m (£78.2m) Acquisitions before costs - - - Portfolio – Acquisition Net Initial Yield - - - Active management Disposals net of costs £25.0m £28.6m £3.6m Disposal Net Initial Yield 4.5% 8.3% 3.8ppt Capex £10.2m £8.2m (£2.0m)
Slide 40: Financial – Statement of comprehensive income
Financial – Statement of comprehensive income Year ended Dec 2023 Year ended Dec 2024 Change (£'000) (£’000) (£’000)* Rental and property income 91,880 90,981 (899) Property costs (38,161) (45,021) (6,860) Net rental and property income 53,719 45,960 (7,759) Administrative & other expenses (10,626)
Slide 41: Financial – Statement of financial position
Financial – Statement of financial position Year end Year end Year end Year end Dec 2023 Dec 2024* Change Dec 2023 Dec 2024* Change (£'000) (£’000) (£’000) (£’000) Assets Non-current Assets Liabilities Investment properties 687,695 607,458 (80,237) Current liabilities (99,251) (46,752) 52,499 Right
Slide 42: Cash flow
Cash flow Cash bridge 31 December 2024 (£m) 175 105.7 155 135 115 95 28.6 2.7 75 33.1 56.7 55 (11.8) (0.3) (22.3) (105.2) (8.2) 34.5 35 15 31 Dec 2023 Cash from Net interest, SolarCo Acquisitions & Net disposals Derivative Dividends Share Borrowings 31 Dec 2024 Cash balance operations tax & costs in
Slide 43: Income and cost focused
Income and cost focused Year ending Year ending Change* 31 Dec 2023 31 Dec 2024** Net rental and property income £53.7m £46.0m (£7.7m) Operating profit before gains/losses on property assets/other investments £43.1m £36.1m (£7.0m) IFRS EPS (2023 restated) (82.9p) (33.5p) 49.4p EPRA EPS (2023 restate
Slide 44: Financial position
Financial position Year ending Year ending Change 31 Dec 2023 31 Dec 2024* Investment Property £700.7m £622.5m (£78.2m) IFRS NAV (fully diluted, 2023 restated) 376.2p 216.9p (159.3p) EPRA NTA** (fully diluted, 2023 restated) 357.4p 210.2p (149.2p) Borrowings (incl. retail eligible bond) £420.8m £316
Slide 45: FY 2024 – EPRA earnings
FY 2024 – EPRA earnings EPRA earnings bridge 31 December 2024 (£m) versus 31 December 2023 (£m) 30 27.0 25 1.0 22.7 1.3 (4.8) 1.2 20 (2.9) 15 10 5 0 31 Dec 2023 EPRA Rental and Property Property costs Administrative and Finance Income Finance expenses 31 Dec 2024 EPRA Earnings income other expenses
Slide 46: EPRA NTA Bridge
EPRA NTA Bridge EPRA Net Tangible Asset – Bridge (£million) 31 December 2024 500 • EPRA NTA: £340.7m (210.2p basic and diluted) (31 Dec ‘23: £290.8m, restated 357.4p basic diluted)* 450 46.0 • IFRS: £351.6m (216.9p basic and diluted) (9.9) (31 Dec ‘23: £306.1m, restated 376.2p basic and diluted) 400
Slide 47: Cost focused
Cost focused EPRA cost ratio excl. direct costs EPRA cost ratio incl. direct costs Peer X 35% Peer R 69% Peer Y 22% Peer S 59% Regional REIT Ltd 17% Regional REIT Ltd 45% Peer Z 15% Peer T 38% Peer U 32% Peer V 23% Peer W 19% Average 22% Average 41% Source: Peel Hunt Research regionalreit.com | © 20
Slide 48: Disclaimer
Disclaimer This document (“Document”) (references to which shall any liability whatsoever (in negligence or otherwise) for They speak only as at the date of this Document and be deemed to include any information which has been any loss however arising from any use of this Document, actual results, p

Regional REIT — FY2024 Earnings Presentation on 6ix

Regional Reit — FY2024 Earnings Presentation

Slide 1: Investor Presentation Year End to 31 December 2024

Slide 2: Introduction

Slide 3: FY 2024: On the pathway to recovery

Slide 4: Diversified portfolio – delivering income

Slide 5: De-risking through diversification

Slide 6: Debt facilities 31 December 2024

Slide 7: Positive office sentiment returns

Slide 8: ESG – Focused on delivering sustainability – good progress continues

Slide 9: Portfolio segmentation: from Core to Sales

Slide 10: Portfolio - Segmentation

Slide 11: Operational Strategy 2025 – CAPEX to core & value add

Slide 12: Capex to Core

Slide 13: Clearblue Innovation Centre & Linford Wood

Slide 14: Trueman House, Capitol Park, Leeds

Slide 15: Oakland House, Trafford

Slide 16: The Lighthouse, Salford Quays

Slide 17: Strategic priorities – the pathway to recovery

Slide 18: Appendix

Slide 19: ESG

Slide 20: ESG – Focused on delivering sustainability – Good progress across portfolio

Slide 21: Equity capital raise summary

Slide 22: Use of the capital raise £110.5m gross proceeds

Slide 23: Key highlights of the £110m fully underwritten capital raise

Slide 24: Property portfolio

Slide 25: Overview – Specialised platform and geographically diverse portfolio

Slide 26: Regional Split (% by value)

Slide 27: Diversified income stream

Slide 28: Top 15 Investments (market value)

Slide 29: Top 15 Occupiers (share of rental income)

Slide 30: Investment property activity

Slide 31: Geographically diversified office led portfolio focused on the UK regions

Slide 32: FY 2024 portfolio highlights

Slide 33: Rent collections – remain strong

Slide 34: Disposals

Slide 35: Summary – disposal programme update

Slide 36: Miller Court, Tewkesbury

Slide 37: Milburn House, Newcastle

Slide 38: Financial information

Slide 39: Key metrics overview

Slide 40: Financial – Statement of comprehensive income

Slide 41: Financial – Statement of financial position

Slide 42: Cash flow

Slide 43: Income and cost focused

Slide 44: Financial position

Slide 45: FY 2024 – EPRA earnings

Slide 46: EPRA NTA Bridge

Slide 47: Cost focused

Slide 48: Disclaimer