RGL has an active asset management strategy, built on detailed plans for each property and targeting a 10-15% pa return to shareholders, including a 7-8% pa dividend return on the IPO price of 100p. The existing portfolio assets are relatively high yielding (H116 net initial yield 7.1%), capable of supporting a fully covered 2016e dividend yield of 7.3%, and well-diversified by property, region and tenant. The asset manager, LSI, brings a well-resourced and dedicated team, with cross-cycle experience, essential to exploit the opportunity provided by significant lease breaks and expiries over the next three years to grow income and valuation.
In this interview Stephen Inglis, the chief investment officer of RGL’s asset manager, LSI, discusses the company’s history and its portfolio, including the opportunity for regional commercial property and how the detailed approach to asset management adds value for shareholders in RGL. He also sets out his view on the impact of the EU referendum so far and explains how the asset manager plans to grow the portfolio.