Regional tenant demand has held up in the UK regions although letting decisions are taking longer, Regional REIT has said in its full-year results.
The company, which invests in regional office and industrial property, said it would continue to look for acquisition and disposal opportunities given its optimistic outlook for the UK regions.
EPRA NAV was down marginally from 106.9p to 105.9p per share, which the company said was due to two new issuances of equity and debt refinancing costs.
The total investment portfolio grew by 46.7% to £737.3m, or 2.6%, on a like-for-like basis. Growth came largely from the acquisition of the £129m Conygar portfolio and two portfolios bought in December for £88.3m after the company’s £73m capital raise.
It also made £16.9m of non-core disposals last year.
Kevin McGrath, chairman and independent non-executive director, said: “The regional property markets have remained in good health, and while letting decisions are taking longer to execute in some instances, we have nonetheless experienced increased tenant demand.”
Stephen Inglis, chief executive of Regional REIT’s asset manager London & Scottish Investments, added that the company had had a “very active” year in what was a difficult market. “This momentum demonstrates our commitment and belief in the strategy laid out at IPO. While we remain alert to increasing economic uncertainty, we remain confident in the strength of our business model,” he said.
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