Regional REIT (RGL) has published 2025 results. With much of the key data having been contained in the February trading update, this placed the spotlight on the continuing progress with the company’s strategic portfolio repositioning and the expected benefits. The external leasing environment remains challenging, with global geopolitical and macroeconomic developments creating a new level of uncertainty. While this is outside RGL’s control, the profitable disposal of underperforming assets, reinvestment to enhance retained assets, debt refinancing and the amended management fee arrangements are all self-help measures that will support RGL’s performance. The 2025 results were in line with consensus and there is no change to our 2026 and 2027 forecasts, recently reduced to reflect the impact of three large, unexpected lease breaks in H225.

Regional REIT (RGL) has released a 2025 year-end trading update and will publish its full results on 24 March. Alongside the strategic progress that the company has recently reported (profitable disposals, portfolio investment, debt refinancing and amended management fee arrangements), earnings and DPS are in line with expectations. However, the leasing market has remained subdued and the full impact of 2025 lease breaks will be felt in 2026. FY26 earnings will be lower than in FY25 and RGL is targeting a reduced, but fully covered, FY26 DPS of 8.0p. Much of this appears to be anticipated in the share price, which reflects a prospective yield of 7.5% and c 50% discount to NAV.

Recent announcements from Regional REIT (RGL) include further progress on asset disposals, with the total for 2025 ending a little above the £40–50m range targeted by management; a successful refinancing of the debt maturing in August 2026; and amendments to management fees, with the basis of calculation migrating in phases to an equal weighting of net assets and market cap by FY27. At the current discount to NAV, the fee change indicates a FY27 cost saving of c £0.9m. Our forecasts are unchanged as we await an update on lettings experience. FY25 results will be released in March. Ahead of that, in February, RGL will declare the Q425 DPS, which we expect will be in line with the annual 10p target, well covered by EPRA earnings and reflecting a yield of more than 9%.