Regional office investor Regional REIT has boosted the value of its portfolio to £906.1m, up from £732.4m in 2020.
The hike follows its acquisition of a £236m portfolio of 31 assets from Squarestone Growth in August last year.
On a like-for-like basis, the value of the REIT’s portfolio nudged up by 1.1%.
Rent roll increased by almost £10m, from £64.2m to £72.1m, with occupancy dipping from 89.4% to 81.8%.
The group said rent collection for the final quarter of 2021 was currently standing at 96.6%, which was in line with Q4 2020. Total rent collection for 2021 stands at 98.6%, against 97.7% in 2020.
Stephen Inglis, chief executive of London and Scottish Property Investment Management, Regional REIT’s asset manager, described the figures as a “very robust performance” in an “unsettled environment for the office sector”.
He added: “We believe the office is an essential aspect of the working infrastructure and that the sector is poised for a recovery. We have therefore rotated the portfolio to have a higher percentage of assets invested in regional offices. We expect future office trends to include a de-densification of office space and increasing demand for quality regional space, all of which should benefit the company’s portfolio.”
Some 89.8% of Regional REIT’s portfolio is now offices, up from 83.5% in 2020. Industrial makes up 5.1% and retail 3.7%.
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