Last close As at 06/08/2026
GBP0.99
▲ 1.00 (1.02%)
Market capitalisation
GBP159m
Research: Real Estate
With FY17 results in March, Regional REIT (RGL) reiterated its commitment to a progressive dividend, and has now declared a Q118 DPS of 1.85p (Q117: 1.80p). Management reports a good pace of lettings year to date, which it says reinforces its confidence in the prospects for increasing occupancy and income. We make no change to our estimates for a continued good level of total return, substantially income based. The yield remains the highest in the sector, with a highly diversified portfolio mitigating economic and sector-specific risks.
Regional REIT |
Q1 DPS growth confirmed |
Q1 DPS and trading update |
Real estate |
21 May 2018 |
Share price performance
Business description
Analysts
Regional REIT is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||||||||
With FY17 results in March, Regional REIT (RGL) reiterated its commitment to a progressive dividend, and has now declared a Q118 DPS of 1.85p (Q117: 1.80p). Management reports a good pace of lettings year to date, which it says reinforces its confidence in the prospects for increasing occupancy and income. We make no change to our estimates for a continued good level of total return, substantially income based. The yield remains among the highest in the sector, with a highly diversified portfolio mitigating economic and sector-specific risks.
Year end |
Net rental |
Adj. EPRA |
EPRA NAV/ |
DPS |
P/EPRA |
Yield |
12/16 |
38.1 |
7.8 |
106.9 |
7.65 |
0.94 |
7.7 |
12/17 |
45.8 |
8.6 |
105.9 |
7.85 |
0.94 |
7.9 |
12/18e |
56.4 |
8.4 |
112.3 |
8.05 |
0.89 |
8.1 |
12/19e |
58.2 |
9.2 |
116.8 |
8.25 |
0.86 |
8.3 |
Note: *Adj. EPRA EPS excludes exceptional expenses and estimated performance fees.
As previously, the company intends to pay three quarterly dividends at a similar level to Q118, and a fourth quarterly dividend that will at least ensure compliance with the REIT distribution rules. In 2017, the Q4 DPS was 2.45p per share, following three quarterly payments of 1.80p each.
At 31 March, occupancy (by value) was 85.7% versus 85.0% at end-FY17. Adjusting for portfolio changes, like-for-like occupancy was unchanged, with a contracted rent roll of c £61.7m (end-FY17: £61.9m). Several disposals, amounting to c £18m (net of costs) by value were completed in Q118. All had been agreed in H217, with sales prices averaging 19.3% above the H117 valuations. As previously reported, the £4.9m acquisition of a fully let office building at Port Solent was completed, adding c £0.4m to annualised rent income. Since 31 March, RGL has announced the acquisition of a £35.2m portfolio comprising five regional offices, and an office/distribution property, expected to provide net income of £3.1m pa, representing an 8.4% net initial yield.
Loan-to-value was c 44% at 31 March, down from 45% at end-FY17, with debt of c £379m and cash balances of c £60m. LTV will increase with completion of the £35.2m portfolio acquisition but we expect net sales during the balance of the year, including completion of the £10.5m sale (subject to planning consent) of the Leeds development asset agreed last year to support LTV reduction over the year as a whole.
|
Disclaimer
|
|
Disclaimer
|
Research: Investment Companies
Witan Investment Trust (WTAN) has employed an active multi-manager strategy since 2004, offering investors diverse exposure to global equities. In 2017, the trust delivered another year of outperformance versus its composite benchmark, which it has surpassed over the last one, three, five and 10 years. WTAN’s investment director, James Hart, believes that equities can continue to offer attractive returns for the patient investor, although he notes that stock market volatility is now higher than the benign levels experienced in 2017. In this environment, he believes that active stock picking, rather than blanket equity exposure, should produce better returns for investors. WTAN has a progressive dividend policy; its annual distribution has increased for the last 43 consecutive years.