Regional REIT (RGL) H1 2025 earnings summary

Executive summary

• Portfolio repositioning and strategic transition advanced, focusing on core assets, targeted capex, asset sales, and new lettings above ERV to drive long-term value and maintain a fully covered dividend.

• Dividend of 5.00p per share declared for H1 2025, fully covered by earnings, with full-year guidance reaffirmed at 10p.

• Market conditions are stabilizing, with yields flat, valuations bottoming out, and optimism for future rental growth and occupancy due to supply constraints and improving demand.

• Commitment to ongoing refurbishment, ESG initiatives, and flexible workspace rollout to strengthen core assets and support long-term growth.

• Total Shareholder Return for H1 2025 was +9.6%, outperforming the index.

Financial highlights

• EPRA NTA at £328.7m (202.8p/share), down from £340.7m (210.2p/share) at year-end 2024; IFRS NAV at £335.9m (207.2p/share).

• EPRA earnings per share at 5.2p for H1 2025; IFRS EPS at -4.9p, a significant improvement from -33.3p.

• Net rental and property income was £29.8m (H1 2024: £32.2m); operating profit before property gains/losses was £14.1m.

• Net loan-to-value ratio increased to 43.2% (from 41.8%); gross borrowings reduced to £310.0m.

• EPRA cost ratio (including vacancy costs) rose to 52.6% (H1 2024: 40.6%).

Outlook and guidance

• Full-year dividend guidance reaffirmed at 10p, with income guidance revised down due to tenant breaks but dividend remains covered.

• Strategic sales programme targets £40m–£50m annual disposals to reduce debt and LTV below 40% over the medium term.

• Significant new lettings expected to benefit 2026 results, not 2025.

• Ongoing focus on increasing occupancy, rental growth, and EPC improvements.

• Board confident in ability to deliver long-term value and well positioned for emerging opportunities.