Regional REIT has posted a portfolio value of £505m in the third quarter to 30 September, up from £501.3m at the end of Q2.
Offices made up 63% of the portfolio and industrial sites made up 28.6%.
The company has generated income through asset management such as the letting of Tay House in Glasgow to Regus, which will occupy 29,020 sq ft from February next year.
After acquiring the Wing Portfolio in March it is 85.2% let from 78.2% at acquisition.
The Rainbow Portfolio, also acquired in March, has seen occupancy increase to 78.2% at 30 September, from 77.2% at acquisition.
Total occupancy stands at 83%, up from 81% in the second quarter, and is expected to increase to 85% by the end of the year.
The loan-to-value ratio is around 40%.
Stephen Inglis, group property director and chief investment officer at London & Scottish Investments, said: “The group has continued to deliver on its strategy and the commitments that were made with the IPO last year. The business has maintained its progress in the third quarter of 2016 as occupancy in the UK’s principal regional office and industrial markets has proved to be positive. Most evidently we can see this progress with the Wing and Rainbow Portfolios, which were acquired by the group in the first quarter.
“The key focus for our business remains income – and the ability to pay dividends – underpinned by occupancy and rental growth. While well positioned for organic development, the company remains opportunistic and will continue to explore opportunities to further exploit the strong presence we have in the regions.”
• To send feedback, e-mail shekha.vyas@estatesgazette.com or tweet @ShekhaV or @estatesgazette
