Regional REIT Reports H1 Progress on Debt Reduction and Leasing Activity
Regional REIT Limited (RGL.L) reported progress in reducing debt during the first half of 2026, having sold £21.5 million worth of properties to bring borrowings down to £243.8 million and lower its loan-to-value ratio to 38.5%. The company aims for further sales that could total around £58 million by year-end, potentially reducing LTV to approximately 35%. Despite a subdued leasing market, the firm secured 26 lettings generating £1.9 million in annualized rental income and reduced void costs. The half-year dividend of 4 pence per share was maintained at full coverage, with management targeting an 8-pence-per-share annual payout. However, upcoming refinancing is expected to raise borrowing costs into the low 6% range, which Regional REIT plans to offset through additional lettings and lower voids. The company’s portfolio valuation stood at £526.7 million as of June 30, with ongoing negotiations for further asset sales. Chief Executive Officer Stephen Inglis highlighted that disposals are part of a strategy aimed at reducing debt ahead of refinancing in late 2027 and early 2028.
Topics: debt reduction dividend maintenance occupancy rates real estate