Regional REIT (RGL) H1 2026 earnings summary

Executive summary

• Advanced repositioning strategy with focus on income growth, asset disposals, and reduced leverage, achieving £21.5m in disposals and reducing net LTV to 38.5% as of 30 June 2026.

• 26 new lettings generated £1.9m in rental income, offsetting expiries and breaks, and supporting a fully covered 4p interim dividend, with a target of 8p for 2026.

• Portfolio valuation at £526.7m, reflecting disposals and a 1.3%–5.1% like-for-like reduction; EPRA NTA at £305.8m.

• Strategic repositioning continues, focusing on high-quality, income-focused assets and value-add opportunities.

• Operational performance remained resilient despite challenging macroeconomic and market conditions.

Financial highlights

• Rental and property income for H1 2026 was £26.5m, with operating profit before property gains/losses at £11.7m.

• EPRA EPS at 4.2p (HY 2025: 5.2p); EPRA earnings for H1 2026 at £6.8m.

• Gross borrowings reduced to £243.8m; net LTV at 38.5% (2025: 40.4%).

• Rent collection rate at 99.7% in period, expected to reach 100% for full year.

• Portfolio value at £526.7m across 106 properties.

Outlook and guidance

• On track to achieve £50m–£60m of asset sales for the full year, with £58m likely by year-end and targeting at least the same level of disposals in 2026 as in FY25.

• Full-year 2026 dividend target of 8p, fully covered by earnings, despite higher refinancing costs.

• LTV expected to reach 35% by year-end, with board comfortable at this level.

• Ongoing discussions with lenders for refinancing facilities maturing in December 2027 and 2028.

• Board confident in strategy, expecting repositioning benefits as market stabilizes.