Regional REIT’s performance has remained stable as it seeks to de-risk its portfolio.
The regional office investor said its valuation had increased by 1% to £918m, with operating profit nudging up to £23.4m. Collection for its £72m rent roll now stands at 98.7%.
The REIT has been pursuing a strategy of exiting all other property sectors in favour of core and core-plus offices, while increasing the tenant and geographical spread. Some 92% of its 159 properties are now offices.
Stephen Inglis, chief executive of the REIT’s asset manager, London and Scottish Property Investment Management, said: “Capital continues to be recycled from non-core assets and properties where asset management plans have been completed to secure a net initial yield enhancement of some 290bps between sales and acquisitions.
“The acquired high-quality properties also present additional attractive asset management opportunities to further drive shareholder value over the medium term.”
The REIT disposed of £71.4m of assets during the period, yielding 5.5%, which was recycled into £78.9m of assets at a yield of 8.4%.
Chair Kevin McGrath added: “Though we remain mindful of the current macroeconomic challenges to be faced, the company is confident of maintaining high rent collections and accelerating the momentum of the asset management initiatives for the remainder of 2022. The board believes this will result in the continued de-risking of the portfolio, while continuing to deliver income and long-term total returns for our shareholders.”
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