Regional REIT announced it has grown its annual rental income by £2.2m so far this year through new leasing deals, during a third quarter trading update.
The company, which is focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, exchanged on 50 leases to new tenants since 1 January 2019, totalling 239,374 sq ft, of which 15 leases were exchanged since 30 June 2019, totalling 151,995 sq ft.
When fully occupied, the 50 new leases will provide an additional £2.2m a year of rental income. The 15 leases acquired since 30 June 2019 will provide £1.1m of rental income per annum. The group also completed a number of lease renewals during the quarter.
In the quarter to 30 September 2019, the group acquired seven properties for an aggregate value of £28.4m (before costs), disposed of one unit for £1m (net of costs), and capital expenditure amounted to £0.8m.
Its portfolio now stands at 156 properties, totalling 1,224 units and 864 tenants, and is valued at £749.7m with a gross rent roll of £60.2m a year.
Offices (by value) were 78.5% of the portfolio, industrial sites 14.1%, retail 6.0% and Other 1.4%. Occupancy increased to 88.5% versus 87.5% at 30 June 2019.
Dividend declaration
The company announced it will pay a dividend of 1.9p per share for the period 1 July 2019 to 30 September 2019, an increase of 3% on the same period last year (1.85p). The dividend payment will be made on 19 December 2019 to shareholders on the register as at 22 November 2019. The ex-dividend date will be 21 November 2019.
RGL : Regional REIT adds £2.2m to rental income so far this year