Rent Collection and Lettings Update

RNS Number : 8315M

Regional REIT Limited

26 January 2021

 

26 January 2021

REGIONAL REIT Limited

("Regional REIT", the "Group" or the "Company")

Positive Rent Collection and Lettings Update

Regional REIT (LSE: RGL), the regional office specialist focused on building a portfolio of income producing regional UK core and core plus office property assets, is pleased to announce that as at 22 January 2021, the Company had continued to achieve strong rental collection with 95.5% of rent due for 2020 having been already collected. This is in-line with the 96.9% of rent collected for the equivalent period in 2019. The Company continues to be pleased with this level of collection.

Rent Collection

As at 22 January 2021, the rent collections continued to strengthen, with Q1 collections increasing to 99.2%, Q2 to 97.4%, Q3 to 97.2%. Currently, Q4 rent collection, adjusting for monthly rent and agreed collection plans, stands at 88.7%, which is in line with the equivalent date in 2019 when 88.8% had been collected.

%	Q1 2020	Q2 2020	Q3 2020	Q4 2020	YTD
Rent paid	98.1	95.0	96.3	81.0	92.4
Adjusted for monthly rents	0.2	0.2	0.3	4.7	1.4
Agreed collections plans	0.9	2.2	0.6	3.0	1.7
	99.2	97.4	97.2	88.7	95.5

Quarterly rental collection refers to all invoices issued during the calendar quarters:

Q1: 1 January 2020 to 31 March 2020

Q2: 1 April 2020 to 30 June 2020

Q3: 1 July 2020 to 30 September 2020

Q4: 1 October to 31 December 2020

The Company remains in supportive and ongoing discussions with tenants regarding the remainder of the outstanding rent, and expects to collect the vast majority of it in due course.

Active asset management activity highlights:

The group continues to focus on its successful active asset management strategy securing some £1.0m lettings to date with the highlights below:

Commercial Road, Bromborough - An agreement to a new lease (117,523 sq.ft.) with Albea Creative UK Ltd. will crystallise on completion of works. The works are currently underway and are expected to complete in Q2 2021. The new ten year lease, with a five year break option, has been agreed for a rent of £543,720 pa (£4.63/sq.ft.).

Oakland House, Talbot Road, Old Trafford, Manchester - AM London Ltd. has taken two new leases (16,390 sq.ft.) for ten years with a five year break option; Please Hold (UK) Ltd. has taken a new lease (10,926 sq. ft.) for four years with no break option. In aggregate the rent amounts to £281,529 pa (£10.31/sq.ft.).

Finneston Business Park - Three new leases (4,919 sq.ft.) have been agreed with :   Scottish News and Sport Ltd. for five years with a four year break option; Advantage Accounting Ltd. for ten years with five year break option; and Appleton Computer Ltd. for five years with an option to break in three years.   The aggregate rent amounts to £84,171 (£17.11/sq.ft.).

Southview Southstar, Altens Industrial Estate, Aberdeen - A new five year (9,653 sq.ft) lease has been agreed with NXG Drilling Services Ltd. for a rent of £65,000 pa (£6.73/sq.ft.).

Arena Point, Merrion Way, Leeds - A new five year ( 4,067 sq. ft.) lease has been agreed with ABC Exams Ltd. with a break option in 2023 at a rental income of £61,050 (£15.01/sq. ft.).

Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager commented:

"We are pleased to provide shareholders with a further positive rent collection update today with total rents received across 2020 amounting to 95.5% of rents invoiced, and we anticipate collecting the vast majority of the outstanding balance in due course. We believe this achievement to be exceptional in our sector in light of the ongoing Covid-19 pandemic and it strongly illustrates the close relationships that we hold with our valued tenants. Our Q4 rent collections of 88.7% are just 0.1% behind the same figure for the equivalent date last year. Meanwhile the strength of our proactive asset management platform continues to drive further value for shareholders, whilst also directly responding to the changing needs of our clients."

- ENDS - 

Enquiries:

Regional REIT Limited
Toscafund Asset Management	Tel: [phone]
Investment Manager to the Group
Adam Dickinson, Investor Relations, Regional REIT Limited
London & Scottish Property Investment Management	Tel: [phone]
Asset Manager to the Group
Stephen Inglis
Buchanan Communications	Tel: [phone]
Financial PR	[e-mail]
Charles Ryland /Henry Wilson / George Beale

About Regional REIT  

Regional REIT Limited ("Regional REIT" or the "Company") and its subsidiaries (the "Group") is a United Kingdom ("UK") based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and Toscafund Asset Management LLP, the Investment Manager.

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly, offices and industrial units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 150 properties, 857 tenants as at 30 September 2020, with a valuation of 739.9m.

Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects.

The Company's shares were admitted to the Official List of the UK's Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015. For more information, please visit the Group's website at  www.regionalreit.com .

Cautionary Statement

This document has been prepared solely to provide additional information to Shareholders to assess the Group's performance in relation to its operations and growth potential. The document should not be relied upon by any other party or for any other reason. Any forward looking statements made in this document are done so by the Directors in good faith based on the information available to them up to the time of their approval of this document. However, such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

ESMA Legal Entity Identifier ("LEI"): 549300D8G4NKLRIKBX73

 

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