Regional REIT returned 13.2% to shareholders in 2016 as its portfolio grew by 24% to £502.4m in the first full-year results since its IPO one year ago.
The EPRA NAV fell 0.8% to 106.9p per share, which the company said came from stamp duty charges and acquisition costs from the Wing and Rainbow portfolios.
It completed £133.6m in acquisitions, with an average net initial yield of 8.6%, and made £44.9m in disposals.
In a statement this morning, the company said it expects positive occupancy trends in the regional office and light industrial markets in the UK, adding that occupier demand has changed little outside the M25.
Infrastructure spending and development in the Northern Powerhouse and Midlands Engine have created opportunities in the regions despite wider uncertainties surrounding Brexit negotiations.
Stephen Inglis, group property director at Regional REIT, said: “It has been a very active year for Regional REIT with significant acquisitions, continuing our strategy of non-core disposals, increasing our geographic spread of properties and growing the number and diversity of our tenants.
“We remain optimistic in respect of our strategy in the strength of our core regional office and light industrial property markets.”
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