Regional REIT Limited has announced its results for the six months ended 30 June 2016.
Financial Highlights for the half year to 30 June 2016: (unaudited)
- Gross value of property assets up 1.8% like-for-like, to GBP501.3m (31 Dec 2015: GBP403.7m).
- Acquisitions of GBP128.1m were successfully completed, including 2 major portfolios; Wing with a net initial yield of 8.5% and Rainbow at 8.2%. Disposals of GBP41.2m of mature and non-core assets.
- Gross bank borrowings increased, to fund property acquisitions, to GBP217.8m (31 Dec 2015: GBP128.6m), with an LTV of 38.1% broadly in-line with our long-term aim (35%). Borrowings and refinancings reduced the cost of debt to 3.8% and extended loan terms.
- EPRA NAV of 108.0p per share (31 Dec 2015: 107.8p per share), after accounting for 2.5p of acquisition costs and the increase in Stamp Duty.
- Operating profit of GBP13.436m and PBT of GBP5.947m; EPRA EpS of 3.3p; declared DpS of 3.50p.
Operational Highlights included:
- Group continued its approach of active asset management to improve and generate additional income through lease renewals, re-gears and new lettings.
- Occupancy amounted to 81.8% (31 Dec 2015: 83.9%), increasing from 80.9% at 31 Mar 2016 following the portfolio acquisitions in the first quarter.
- The Group further rebalanced its portfolio towards offices (62.5% by value) and industrial sites (29.1%) across the UK and increased the share in England & Wales (to 73.5%).
- A diversified portfolio of 128 properties (31 Dec 2015: 123), 974 (31 Dec 2015: 712) units and 719 (31 Dec 2015: 531) tenants.
- Joined FTSE All-Share Index (Mar 2016) and the FTSE EPRA/NAREIT Developed Europe Index (Jun 2016).
Since 30 June 2016:
- Major new letting secured at Tay House, Glasgow effective in the second half of 2016. Significant regear of One Newstead Court, Nottingham. Other significant lettings expected to be completed in the near future.
- Acquisition of the Wallace Portfolio, an office park of 6 buildings for GBP5.5m. The portfolio totals 0.09m sq. ft., providing a net income of GBP0.8m per annum with a net initial yield of 12.0%.
- Capital expenditure year to date of GBP7.8m net, investing in our asset quality enhancement programme.
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