Regional REIT (RGL) Q4 2025 earnings summary

Executive summary

• Delivered £51.6m in asset sales, exceeding target, to reduce debt and void costs, enhancing financial flexibility.

• Refinanced main banking facility early, improving cash flow and extending maturity to December 2028.

• Dividend of 10p per share fully covered by EPRA EPS of 11.8p for 2025; targeting 8p per share in 2026 to retain cash for reinvestment.

• Strategic repositioning focused on long-term growth, with further strategy advancement planned for 2026.

• Faced headwinds from higher interest rates, government initiatives, and macroeconomic/geopolitical uncertainty, impacting leasing activity.

Financial highlights

• EPRA EPS at 11.8p, fully covering the 10p dividend for 2025; down from 19.2p in 2024.

• Gross borrowings reduced to £266.2m, with £50.5m of debt repaid in 2025.

• LTV managed down to just over 40% from 42% year-over-year.

• Portfolio value at year-end £552.2m, down 5% like-for-like, mainly due to tenant losses.

• 64 new lettings achieved at rents 3.9% ahead of ERV, generating £3.2m in annual rent.

Outlook and guidance

• Prudent dividend of 8p per share targeted for 2026, with retained cash to fund accretive CapEx.

• CapEx program for 2026 expected to remain in line with 2025 at £10–12m, focusing on high-quality, let-ready space.

• Continued focus on reducing LTV below 40%, increasing occupancy, and improving EPC ratings.

• Targeting a similar quantum of disposals in 2026 as in 2025.

• Market uncertainty from geopolitical events and energy costs remains a risk.