Regional REIT (RGL) is focused on investment in offices in regional centres across the UK, outside the M25. It is actively managed, with a strong focus on income returns that have been a consistent contributor to across-cycle UK commercial property total returns compared with more cyclical changes in capital values. Active asset management and capital recycling are key elements in sustaining asset yields, the basis on which RGL has consistently provided one of the highest yields in the sector since listing in November 2015. Dividends have contributed all of the average 5.7% accounting return over the same period. Despite a continuing challenging environment, recent interim results to 30 June 2022 (H122) show good operational progress with more than 99% of tenants back in occupation of their properties, a strong uplift in new lettings, and increased EPRA occupancy. Dividends declared leave the company on track to meet its 6.6p target for the year.
In this interview, Stephen Inglis, CEO of the asset manager to RGL, London & Scottish Property Investment Management, discusses the results in more detail and the outlook for the company, including the positive indicators for a continuing post-pandemic recovery in the regional office market.