Regional REIT, which specialises in regional core and core-plus office and industrial investments, has reported a 9.7% year-on-year rise in portfolio value.
The like-for-like value of the group’s core office and industrial segment (93.6% of the portfolio by value) also grew by 1.4% during the year ending 31 December, after adjusting for capital expenditure and disposals during the period.
However, the company said that on a like-for-like basis it was broadly static, dipping by 0.1%. Overall valuation reached £787.9m, compared with £718.4m at the end of December, comprising 160 properties (up by 7%) containing 904 tenants (up by 3%).
Net loan-to-value ratio stood at around 38.9% at the end of the year.
Stephen Inglis, chief executive of London and Scottish Property Investment Management, the asset manager, said: “Excluding retail, which only represents 5% of our portfolio, our like-for-like valuation increases were strong, and are likely to increase further still, due to the uplift the markets have witnessed following the General Election result.
“We expect industrial assets to continue to perform well and we also expect a substantial increase in enquiries during 2020/21 for regional offices, given the positive supply/demand dynamics, attractive yields and positive rental growth story. We expect this to drive strong returns in this sector.”
He added that the company’s portfolio is “ideally positioned to benefit from increasing interest and commitments in investment in the regions by the new government.”
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