Regional REIT (RGL) Q3 2022 TU earnings summary

Executive summary

• 83 leases exchanged since January 2022, totaling 221,446 sq. ft. and £3.8m annual rental income; 36 leases exchanged in Q3 2022 for £1.2m pa rental income.

• EPRA occupancy increased to 84.6% from 83.8% at June 2022; rent roll rose to £72.2m.

• Q3 2022 dividend declared at 1.65 pence per share, up 3% year-over-year; full-year dividend target of 6.6 pence per share.

• GRESB ESG score improved to 60 from 52, achieving Green Star status.

Financial highlights

• Portfolio: 156 properties, 1,556 units, 1,042 tenants, valued at c. £914.9m.

• Rent roll at £72.2m (30 June 2022: £72.0m); ERV at £93.3m (30 June 2022: £94.1m).

• Cash and cash equivalents at £48.4m (31 Dec 2021: £56.1m); gross borrowings £442.7m (31 Dec 2021: £439.9m).

• Net loan-to-value ratio at 43.1% (31 Dec 2021: 42.4%).

• Group cost of debt 3.5% pa, 100% fixed and hedged.

Outlook and guidance

• Full-year 2022 dividend target of 6.6 pence per share, annualized yield of 10.5% at current share price.

• Positive outlook despite economic uncertainty, supported by robust rent collections and increased occupancy.