Regional REIT has dipped into the red, with a £31m pre-tax loss as property values slid in 2020.
The REIT incurred a £54.8m loss in the value of its investments, with a further £1.1m loss in disposals.
The portfolio valuation fell 6.9% to £732m in the year to 31 December 2020. This comprises 153 assets: predominantly offices (84%), with industrials (11%) and retail (4%) by value.
The REIT is pursuing a strategy to exit all industrial and retail holdings to focus entirely on core regional offices.
Regional REIT’s NTA per share dropped 12.4% to 98.6p. However, rent roll remained stable at £64,2m, with 98% collected during the year.
Chief executive Stephen Inglis said: “We have taken significant steps to capitalise on the changing landscape in our market by tilting the group’s focus to take full advantage of the mispricing that we are seeing in quality regional offices.”
Chairman Kevin McGrath added: “We remain mindful of the challenges to be faced in a structurally evolving property market, which will inevitably continue to be impacted by the Covid-19 pandemic and the aftermath of Brexit.
“However, our confidence for the long-term remains. It is underpinned by the group’s focus on asset management initiatives to promptly recycle underperforming capital into office opportunities that continue to de-risk the portfolio, while increasing the number, quality and quantum of income streams.”
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