19th Apr 2016 07:28
LONDON (Alliance News) - Regional REIT Ltd on Tuesday said it has increased the value of its portfolio since listing on the London Stock Exchange in November, and said it believes the UK regional commercial property market is "in the midst of an upturn".
Regional REIT was incorporated on June 22, combining the underlying Toscafund Asset Management LLP property funds, creating the company and converting to REIT status. However, Regional REIT did not begin trading until November 6.
In the period from November 6 to December 31, Regional REIT reported operating profit of GBP3.3 million before gains, losses on property assets and other exceptional items. Its revenue was GBP5.3 million and pretax profit GBP21.1 million.
Regional REIT said its dividend for 2015 was 1.00 pence per share.
The regional commercial property investor said, as at December 31 its property portfolio was valued at GBP403.7 million, compared to a valuation of GBP386.1 million at June 30. It said it has GBP403.7 million gross property assets, with a net initial yield of 7.6%.
Occupancy at its 120 properties was 83.9%, and its net asset value was 107.7 pence per share, Regional REIT said.
Regional REIT added, since the year-end, it has purchased another 10 properties, and its property assets totalled GBP500.0 million. At March 31, its contracted rent roll was GBP43.4 million.
"The group believes that the UK regional commercial property market is in the midst of an upturn. Early in 2016, the evidence is that, although growth in the property market as a whole may have paused, the market's weakness is in London and funds have continued to flow towards the UK's regions with rising interest from institutional and international investors," the company said.
Shares in Regional REIT were down 2.9% at 103.90 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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