Regional REIT has disposed of sites totalling £88.65m, it revealed in its trading update for the period from 1 July to 14 November.
The company reported gross assets of £723.2m, with a contracted rent roll of £59.4m pa at 30 September.
After a substantial shed sell off this year, it reported that offices now make up 75% of its portfolio (by value), followed by industrial (16.2%), retail (7.4%) and other (1.4%). Sales up to September generated £79.15m – with the disposal of sites including Wardpark Industrial Estate in Cumbernauld for £26.4m and Turnford Place in Cheshunt for £17.25m.
Since 30 September it has sold £9.5m of property across three sites in Walsall, Bolton and Manchester. There has been just one major acquisition during this period. In August, it completed the purchase of a £31.4m portfolio comprising 275,000 sq ft of offices in eight regional locations.
Regional REIT reported a net loan-to-value ratio of 37.1%, gross borrowings of £360.3m and cash and cash equivalent balances of £92m.
It will pay a dividend of 1.85 pence per share for the period 1 July to 30 September, an increase of 35 on the same period last year. The dividend payment will be made on 21 December to shareholders on the register as at 23 November. Regional REIT reported capital expenditure of £5.7m gross, £5.4m net of recoveries and dilapidations, up to 30 September.
Buyer’s market
Stephen Inglis, chief executive of Regional REIT’s asset manager London and Scottish Investments, said: “Having undertaken the majority of our trading in the first three quarters, we benefitted from substantial gains over valuation.
“As we recycle the remaining sale proceeds, we are able to take advantage of an investment market that has slightly softened ahead of the outcome of the Brexit negotiations, creating a buyer’s market.
“These developments once again demonstrate our strategy of refreshing the portfolio to ensure robust and diverse income streams, with which to pay and enhance dividend returns to investors.”
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