In QuotedData’s morning briefing 12 September 2023:
- Regional REIT (RGL) reported a 9.0% drop in EPRA net tangible assets (NTA) to 66.9p per share for the six months to 30 June 2023 (Dec 2022: 73.5p). The value of the group’s portfolio of 150 regional offices fell 3.8% on a like-for-like basis to £752.2m (Dec 2022: £789.5m), with a slight uptick in the net initial yield to 6.1% (Dec 2022: 6.0%). Earnings per share was down from 2.9p in the same period last year to 2.5p this year, with rent down from £72.0m in the same period to £69.8m. EPRA occupancy rate dropped to 82.5% (Dec 2022: 83.4%). The company has cut its dividend in light of the weakened earnings and “challenging macroeconomic conditions” to 2.85p (June 2022: 3.30p). The fall in value has seen the group’s LTV tick over 50% to 51.9% at 30 June 2023 (Dec 2022: 49.5%). The company said that a programme of asset management initiatives and disposals are in train to reduce LTV to the long term target of 40%. Group’s cost of debt (including hedging) remained at 3.5% per annum, with 100% fixed, swapped or capped. The weighted average debt duration was 4.0 years.