Regional Reit Ltd. · LSE:RGL

Regional Reit — Q2 2025 Earnings Presentation

48 slides from Regional Reit's earnings presentation, Sep 30, 2025

  1. Slide 1: Investor Presentation: Half Year to 30 June 2025

    Investor Presentation Half Year to 30 June 2025 Strategic Repositioning for Long Term Value regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved.

  2. 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.

  3. Slide 3: HY 2025: Key Highlights

    HY 2025: Key Highlights Driving strategic repositioning for long term growth Progression of the new strategy Portfolio Repositioning portfolio Committed to income-focused portfolio with targeted value add £608.3m 300 Bath Street, enhancement opportunities Glasgow 123 properties Re-positioning portfo

  4. Slide 4: Portfolio – repositioning for long term growth

    Portfolio – repositioning for long term growth Average Rent (£psf) Yields £15.50 £15.25 £14.97 20% £15.00 £14.74 15% £14.50 £14.13 11.2% 11.6% 11.8% £13.92 10% £14.00 £13.77 10.2% 10.4% 10.5% £13.50 5% 6.1% Trueman House, Leeds 5.9% 5.8% £13.00 0% 30-Jun-24 31-Dec-24 30-Jun-25 30-Jun-24 31-Dec-24 30

  5. Slide 5: HY 2025 portfolio highlights

    HY 2025 portfolio highlights Major lettings and renewals successfully secured across the regions Newburn & Gateway House, Newcastle Please True Potential LLP has let 22,363 sq. ft. of office 133 Finnieston Street, Glasgow space to June 2030, at a rental income of £245,993 pa Horiba Jobin Yvon IBH Lt

  6. Slide 6: Macro picture and trends for regional office supply & demand

    Macro picture and trends for regional office supply & demand Demand side • The Big Nine regional markets recorded 3.7 million sq ft of office take-up Rental Value Growth (vs previous 12 months) in H1 2025, the highest since H1 2019, signalling strong occupier demand Growth in Rest of UK office outpa

  7. Slide 7: Strategy: Portfolio segmentation evolution

    Strategy: Portfolio segmentation evolution Core Capex to core Value add Sales Valuation 31 Dec 24 £371.2m £126.5m £93.9m £31.0m Disposals (£6.3m) £356.7m £0.0m £103.2m £0.0m (£1.1m) Revaluations (£3.9m) (£1.4m) (£1.6m) £0.2m Reclassification (£5.9m) (£21.9m) (£35.4m) £63.1m Valuation 30 Jun 25 £355.

  8. Slide 8: Strategic sales programme update

    Strategic sales programme update HY 2025 Disposals by Sector Rationale for sale: • Reduce debt • Reduce costs associated with non-core and non-performing assets • Recycle funds into accretive opportunities, where optimal 13.8% Office Retail Strategic sales in the six months to 30 June 2025 86.2% • D

  9. Slide 9: Operational Review

    Operational Review regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 9

  10. Slide 10: Operational Capex Strategy

    Operational Capex Strategy 2025 Completed 9 projects: £5.2m Targeted CAPEX: On site 5 projects: £22.9m £5.0m 18 projects identified for the next stage: c. £12.7m regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 10

  11. Slide 11: Operational Capex Strategy

    Operational Capex Strategy Value Add Templeton on the Green, Glasgow Feasibility studies Undertake planning initiatives for change of use Newstead Court, Nottingham Increased valuation Disposal realisation The Lighthouse, Manchester regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserve

  12. Slide 12: Case study progress: Capex to Core

    Case study progress: Capex to Core Clearblue Innovation Centre & Linford Wood Clearblue Innovation Centre, Bedford Linford Wood – Libra House, Milton Keynes Work undertaken total cost: £0.7m Work undertaken total cost: £0.7m • EPC improvement works; agreed terms for 10-year lease extension • General

  13. Slide 13: Case study progress: Capex to Core

    Case study progress: Capex to Core Trueman House, Leeds Post works Work undertaken total cost: £1.2m • Refurbishment throughout HY Update • 10yr lease agreed with Harron Homes • Rental improvement from £17.31 to rent of £23/sq ft. Rental uplift 33% • EPC improvement D to B • Valuation improvement £1

  14. Slide 14: Case study progress: Capex to Core

    Case study progress: Capex to Core 3200 Century Way, Thorpe Park, Leeds Post works Work undertaken total cost: £0.8m • Refurbishment of first floor (10,705 sq ft) HY Update • Rental improvement from £22 to £24/sq ft Rental uplift 18.5% • 8,177 sq ft in legals £196,248 (£24). Strong interest in remai

  15. Slide 15: Case study progress: Capex to Core

    Case study progress: Capex to Core Felaw Maltings, Ipswich Post works Work undertaken total cost: £0.5m • Refurbishment of first & second floors, South Kiln floor (10,850/ sq ft) HY Update • Rental improvement from £17 to £20/sq ft; Rental uplift 18% • £108,760 headline rent (£20) • Lease of first f

  16. Slide 16: Case study progress – Value Add

    Case study progress – Value Add Central Park, Leeds  Strategically significant 7-acre island site situated south of the river within 5 min walk of Leeds Station  3 x 2 storey pavilion offices providing 57,674 sq ft – current vacancy 64%  Site establishment completed by the acquisition of the “Ken

  17. Slide 17: ESG and New Initiatives

    ESG and New Initiatives regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 17

  18. Slide 18: ESG – Focused on delivering sustainability

    ESG – Focused on delivering sustainability EPC opportunity in the regions Environment • Regulatory tightening driving opportunity 3200 Century Way, Thorpe Park Leeds • From April 2025, all let commercial properties must be EPC E EPC improved from a B to an A • Future targets remain: EPC C by 2027, E

  19. Slide 19: ESG – Sustainability new initiatives

    ESG – Sustainability new initiatives Solar, 4D, and car charging point installation updates Solar Portfolio-wide impact Linford Wood, Milton  Signed leases and installation underway on 12 properties (3,026kW) Keynes  In progress on a further installations on 12 properties (2,299 kW)  In aggregate

  20. Slide 20: Introducing reflex

    Introducing reflex Pilot Site From startup to scale-up: flexible spaces designed to grow with you • The reflex brand launch allows Regional REIT to deliver flexible space for: B2B (Business-to-Business) • Startups & SMEs: need cost-effective, short-term office solutions • Large corporations: scalabl

  21. Slide 21: Financial Review

    Financial Review regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 21

  22. Slide 22: Key metrics overview

    Key metrics overview Jun 25 Dec 24 Change Investment Property £608.3m £622.5m (£14.2m) Acquisitions before costs - - - Portfolio – Acquisition Net Initial Yield - - - Active management Disposals net of costs £7.3m £28.6m (£21.3m) Disposal Net Initial Yield 10.4% 8.3% 2.1ppt Capex £6.0m £8.2m (£2.2m)

  23. Slide 23: Debt: maturities and financing

    Debt: maturities and financing Well progressed refinancing of RBS, Bank of Scotland & Barclays facility in advance of August 2026 Summary Conservative hedging strategy • Bank borrowings reduced by £6.7m • 100% hedged portfolio • Discussions well progressed for the August 2026 facility • 2.4 years we

  24. Slide 24: Strategic Priorities

    Strategic Priorities regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 24

  25. Slide 25: Strategic priorities – the pathway to repositioning the portfolio

    Strategic priorities – the pathway to repositioning the portfolio 1 Remain committed to reducing debt through targeted disposals programme 2 Driving income: increasing occupancy increase and rental growth across portfolio 3 Continue to improve EPC ratings and strengthen core portfolio 4 Pursue oppor

  26. Slide 26: Appendix

    Appendix • ESG (continued) • Property Portfolio • Financial Information regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 26

  27. Slide 27: ESG – Good progress across portfolio

    ESG – Focused on delivering sustainability – Good progress across portfolio Social • Committed to promoting diversity in the workplace • 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 thei

  28. Slide 28: Property portfolio

    Property portfolio regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 28

  29. Slide 29: Overview – Specialised platform and geographically diverse portfolio

    Overview – Specialised platform and geographically diverse portfolio UK property locations Portfolio details as at 30 June 2025 as at 30 June 2025 Valuation % Capital rate Sector Properties (£m) by valuation (£psf) Office 105 550.2 90.4 109.45 Retail 12 22.8 3.8 92.66 Industrial 4 23.1 3.8 55.14 Oth

  30. Slide 30: Diversified income stream

    Diversified income stream Portfolio details at 30 June 2025 Gross % by Occupancy WAULT to Average Sector Properties Valuation Sq. ft. rental ERV Capital rate Yield (%) valuation (EPRA) first break rent income (£m) (mil) (%) (yrs) (£m) (£psf) (£m) (£psf) Net initial Equivalent Reversionary Office 105

  31. Slide 31: Strategy: Portfolio - segmentation

    Strategy: 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 355.1 58.4% 2.9 87.7% 3.0 36.8 14.7

  32. Slide 32: 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, Fairhurst 300 Bath Street,

  33. Slide 33: Top 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 EDF Energy Limited 800 Aztec West, Bristol Electricity, gas, steam and air conditioning supply 4.0 109,114 1.7 3.0% Endeavour House

  34. Slide 34: Portfolio: diversified occupier base with blue chip tenants

    Portfolio: diversified occupier base with blue chip tenants Administrative and support service activities Professional, scientific and technical activities • 740 tenants (Dec 2024: 780) across 1,248 Information and communication units (Dec 2024: 1,271) 11.5% 18.9% Wholesale and retail trade • Spread

  35. Slide 35: Investment property activity

    Investment property activity Investment properties bridge 30 June 2025 (£m) Investment properties bridge 30 June 2025 (£m) 630 625 622.5 6.0 620 0.0 615 (7.3) (0.6) 610 608.3 (12.3) 605 600 Valuations Disposals Acquisitions Gain/(loss) on CAPEX Valuation Valuations 31Dec24 (Net of costs) (Incl. cost

  36. Slide 36: Income overview

    Income overview EPRA earnings bridge H1 2024 (£m) versus H1 2025 (£m) 12.0 11.0 10.0 2.0 8.5 (2.4) 8.0 0.5 6.0 (2.1) (0.5) 4.0 2.0 0.0 30Jun2024 Rental and Property Admin and Finance Finance 30Jun2025 EPRA earnings property income costs other expenses income expenses EPRA Earnings regionalreit.com |

  37. Slide 37: Balance sheet - overview

    Balances sheet - overview EPRA Net Tangible Asset bridge (£million) 30 June 2025 380 • EPRA NTA: £328.7m (202.8p basic and diluted) (31 Dec ‘24: £340.7m, 210.2p basic diluted)* 370 • IFRS: £335.9 m (207.2p basic and diluted) 19.3 (31 Dec ‘24: £351.6m, 216.9p basic and diluted) 360 (5.2) 350 (6.2) 34

  38. Slide 38: 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 £14.97 £15.25 100% £14.74 90% £14 £140 4.6 80% 4 4.4 4.3 £12 £114.02 £120 £110.99 £109.45 70% £10 £100 60% 3 £8 £80 50% 91.5%

  39. Slide 39: Rent collections – remain strong

    Rent collections – remain strong Rent collected vs invoiced (%) 2024 2025 2024 2025 (%) Q1 Q2 Q3 Q4 Q1 Q2 Total Total Rent collected 99.2 99.5 98.9 98.8 98.6 98.7 96.7 97.7 regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. As at 3 September 2025 quarterly rental invoices include

  40. Slide 40: ESR Europe LSPIM

    ESR Europe LSPIM Strength and depth of a vertically integrated multi-disciplined platform What does the platform deliver: • Multiple touch points with the tenants from the asset and property managers, to the finance department and credit control • Over 70 experienced staff dedicated to Regional REIT

  41. Slide 41: Financial Information

    Financial Information regionalreit.com | © 2025 Regional REIT Limited. All Rights Reserved. 41

  42. Slide 42: Financial – Statement of comprehensive income

    Financial – Statement of comprehensive income H1 2025 H1 2024 Change (£’000) (£'000) (£’000)* Rental and property income 39,919 44,232 (4,313) Property costs (20,588) (20,403) (185) Net rental and property income 19,331 23,829 (4,498) Administrative & other expenses (5,207) (4,724) (483) Operating p

  43. Slide 43: Financial – Statement of financial position

    Financial – Statement of financial position H1 YE H1 YE 2025 2024* Change 2025 2024 Change (£’000) (£’000) (£’000) (£’000) Assets Non-current Assets Liabilities Investment properties 593,487 607,458 (13,971) Current liabilities (46,998) (46,752) (246) Right of use assets 10,780 10,849 (69) Other non

  44. Slide 44: Cash flow

    Cash flow Cash bridge 30 June 2025(£m) 70.0 9.2 7.3 60.0 (4.6) 56.7 (6.0) (7.1) (1.4) 50.0 47.1 (6.9) 40.0 30.0 20.0 10.0 - 31 Dec 2024 Cash from Net interest, Acquisitions Net Dividends Share Borrowings and 30 Jun 2025 Cash balance operations tax & costs & Capex disposals issuance costs leases repa

  45. Slide 45: Income and cost focused

    Income and cost focused HY HY Change* 2025 2024** Net rental and property income £29.8m £32.2m (£2.4m) Operating profit before gains/losses on property assets/other investments £14.1m £19.1m (£5.0m) IFRS EPS (2024 restated**) (4.9p) (33.3p) 28.4p EPRA EPS (2024 restated**) 5.2p 13.5p (8.3p) EPRA cos

  46. Slide 46: Financial position

    Financial position HY YE Change 2025* 2024* Investment Property £608.3m £622.5m (£14.2m) IFRS NAV (fully diluted, 2024 restated) 207.2p 216.9p (9.7p) EPRA NTA** (fully diluted, 2024 restated) 202.8p 210.2p (7.4p) Borrowings (incl. retail eligible bond) £310.0m £316.7m (£6.7m) Weighted average cost o

  47. Slide 47: Cost focused

    Cost focused EPRA cost ratio excl. direct costs EPRA cost ratio incl. direct costs Peer 10 52% Peer 1 73% Peer 11 24% Peer 2 62% Peer 12 22% Regional REIT Ltd 52% Peer 13 20% Peer 3 42% Regional REIT Ltd 19% Peer 4 35% Peer 5 33% Peer 6 31% Peer 7 31% Peer 8 26% Peer 9 24% Average 29% Average 40% So

  48. 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

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