Q3 2026 Trading Update and Dividend Declaration
Summary by AI BETAClose X
12 November 2026
REGIONAL REIT Limited
(“Regional REIT”, the “Group” or the “Company”)
Q3 2026 Trading Update and Dividend Declaration
Regional REIT Ltd (LSE: RGL), the regional commercial property specialist, today announces a trading update for the three-month period from 1 July 2026 to 30 September 2026 and a dividend declaration for the third quarter of 2026.
Stephen Inglis, CEO of ESR Europe LSPIM, Investment Adviser commented:
"We remain focused on repositioning our portfolio and executing targeted disposals to reduce leverage, strengthen our balance sheet and reduce void costs. We continued to make progress in this regard in the quarter, with disposals of £8.9m (before costs) reducing gross borrowings to £233.1m (2025: £266.2m) and net loan-to-value to c.38.5% (2025: 40.4%). Since the quarter end, we have completed a further two disposals totalling £1.7m (before costs), bringing year-to-date disposals to £32.2m averaging 11.0% below pre-sale book value. Following these disposals the forecasted earnings enhancement is expected to be some £1.4m, which is in line with current market expectations.
"Our active asset management continues to deliver, with 41 renewals completed year to date at 5.6%* above pre-renewal ERV. Encouragingly, retention remained high, with 71.8% of leases up for renewal retained, ahead of the levels at 30 June 2026 and 31 December 2025. Though economic uncertainty continues to weigh on the leasing market, significantly lengthening the time from enquiry to legal commitment.
"In parallel, we continue to make good progress on refinancing the banking facility maturing in December 2027, and targeted to complete well ahead of its maturity.
"Fundamentally, there remains a structural supply and demand imbalance for attractive, sustainable office space with EPC A and B ratings in the regions. With EPRA occupancy of 74.1% and 61.9% rated EPC B or better (or exempt), Regional REIT remains well positioned to capture this demand as economic confidence returns."
*Excludes car parking at 800 Aztec West, which has no ERV ascribed to it.
Portfolio update
101 properties, 963 units and 579 tenants, totalling c.£516.6m of gross property assets value (30 June 2026: £526.7m) - portfolio reduction due to disposals in the quarter
Strategic disposals in Q3 2026 amounted to £8.9m (before costs), net initial yield of 8.3% (11.3% excluding vacant properties) and a further 2 disposals completed post quarter end totalling £1.7m
Year-to-date disposals amount to £32.2m (before costs), averaging 11.0% below pre-sale book value
Q3 CAPEX spend £1.2m; Q1-Q3 £2.6m
EPC ratings B or better and exempt continued to rise to 61.9% (30 June 2026: 60.0%); 86.9% of the portfolio rated EPC C or better (30 June 2026: 87.0%)
Targeted fully covered dividend of 8.0pps for the full year 2026, representing a dividend yield of c.9.1%**
**Based on the closing share price of 87.5p on 11 November 2026
Continued operational delivery
During the quarter, the programme of strategic asset disposals and the net movement in lettings together influenced the rent roll.
Rent roll of £47.2m (30 June 2026: £48.4m); ERV £69.9m (30 June 2026: £72.6m)
EPRA occupancy (by ERV) 74.1% (30 June 2026: 74.3%)
During the first three quarters to 30 September 2026, 41 renewals completed amounting to £2.4m pa, 5.6%* above pre-renewal ERV, alongside 26 new lettings secured amounting to £2.0m pa, broadly in line with ERV. Retention remained high, with 71.8% of leases up for renewal retained.
These figures reflect the Group’s commitment to improving occupancy through tenant retention and leasing of vacant accommodation while driving rental growth through proactive asset management.
Maintaining balance sheet discipline while delivering on strategy
Cash and cash equivalent balances £34.2m (2025: £37.7m)
Net loan-to-value ratio reduced to c.38.5%*** (2025: 40.4%)
Gross borrowings reduced by £33.1m to £233.1m (2025: £266.2m) - following post period end disposals, borrowings amount to £232.2m
Group cost of debt (incl. hedging) 4.1% pa (2025: 3.3% pa); 97.1% fixed and hedged. Good progress on refinancing the banking facility; completion targeted well ahead of maturity of December 2027
Expect to complete further disposals during Q4 ahead of year-end, supporting the on-going portfolio repositioning and balance sheet strengthening
*** LTV at the portfolio level. Gross property assets value based upon Colliers valuations as at 30 June 2026, adjusted for subsequent acquisitions, disposals and capital expenditure in the period.
Q3 2026 Dividend Declaration
As previously indicated, the Company will pay a dividend of 2.00 pence per share (“pps”) for the period 1 July 2026 to 30 September 2026 (1 July 2025 to 30 September 2025: 2.50pps). The entire dividend will be paid as a REIT property income distribution ("PID").
Shareholders have the option to invest their dividend in a Dividend Reinvestment Plan (“DRIP”), and more details can be found on the Company’s website https://www.regionalreit.com/investors/investors-dividend/dividend-reinvestment-plan.
The key dates relating to this dividend are:
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Ex-dividend date |
19 November 2026 |
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Record date |
20 November 2026 |
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Last day for DRIP election |
23 December 2026 |
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Payment date |
15 January 2027 |
The level of future payment of dividends will be determined by the Board having regard to, among other factors, the financial position and performance of the Group at the relevant time, UK REIT requirements, the interest of shareholders and the long-term future of the Company.
Outlook
Near-term conditions remain challenging, with economic uncertainty lengthening leasing decision timescales and dampening the investment market. Longer term, high construction costs and planning hurdles continue to constrain the development pipeline. With occupiers increasingly demanding high-quality, EPC-compliant space at competitive pricing, Regional REIT is well positioned to benefit as market conditions ease.
Additional Background Information
Forthcoming Events
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19 February 2027 |
Q4 2026 Dividend Declaration and Portfolio Valuation |
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23 March 2027 |
Full year 2026 Preliminary Results Announcement |
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May 2027 |
May 2027 Trading Update and Outlook Announcement |
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Q1 2027 Dividend Declaration Announcement |
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May 2027 |
Annual General Meeting |
Note: All dates are provisional and subject to change
- ENDS -
Enquiries:
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Regional REIT Ltd. |
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Press enquiries through FTI Consulting |
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ESR Europe LSPIM Ltd. |
Tel: +44 (0) 203 831 9776 |
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Investment Adviser to the Group |
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Adam Dickinson, Investor Relations, Regional REIT Ltd. |
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Stephen Inglis, CEO of ESR Europe LSPIM Ltd. |
Tel: +44 (0) 141 248 4155 |
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FTI Consulting |
Tel: +44 (0)20 3727 1000 |
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Financial Communications |
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Dido Laurimore, Giles Barrie, Bryn Woodward |
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About Regional REIT
Regional REIT Ltd ("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 ESR Europe LSPIM Ltd, the Investment Adviser, and ESR Europe Investment Management Ltd, the AIFM.
Regional REIT's commercial property portfolio is comprised of income producing UK assets, predominately offices located in the regional centres outside of the M25 motorway. The portfolio is geographically diversified, with 101 properties, 963 units and 579 tenants as at 30 September 2026, with a valuation of c.£516.6m.
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, 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.
LEI: 549300D8G4NKLRIKBX73
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