Regional REIT (RGL) H2 2024 earnings summary

Executive summary

• Balance sheet transformed with £110.5m capital raise, reducing gross borrowings to £316.7m and net LTV to 41.8% (2023: 55.1%).

• Portfolio valuation declined 8.2% year-over-year to £622.5m, with a slower 3.1% decrease in H2.

• Dividend declared of 7.8p (2023: 5.25p), fully covered by earnings; targeting 2.5p per quarter in 2025.

• EPRA EPS at 19.2p (2023 restated: 33.1p) post share issuance and consolidation.

• High rent collection at 98.6% and robust EPRA occupancy at 77.5%.

Financial highlights

• Rental and property income £91.0m (2023: £91.9m); net rental and property income £46.0m (2023: £53.7m).

• Operating loss reduced to £23.9m (2023: £44.1m); loss before tax £39.5m (2023: £67.5m).

• Cash and cash equivalents increased to £56.7m (2023: £34.5m).

• Net assets per share (diluted) 216.9p (2023 restated: 376.2p); EPRA NTA per share 210.2p (2023 restated: 357.4p).

• EPRA cost ratio (excl. direct vacancy costs) 17.4%; (incl. direct costs) 44.7%.

Outlook and guidance

• Targeting quarterly dividend of 2.5p for Q1–Q3 2025, with Q4 top-up.

• Strategic focus on reducing debt, increasing occupancy, and enhancing portfolio quality.

• Positive office sentiment with UK regional office total return forecast at 13% p.a. (2024–2029), outpacing other property sectors.