Encouraging progress

Regional REIT (RGL) has published an update on Q126 trading to accompany its AGM. While market conditions remain challenging, it has continued to make good progress on its portfolio repositioning strategy. We expect the sale of predominantly vacant, non-core assets will reduce property costs by more than rental income, while the proceeds are funding debt reduction and interest cost savings. It is particularly encouraging that new leases continue to be agreed at a strong premium to estimated rental value (ERV) and that, adjusted for disposals, underlying rent roll was broadly stable versus end-FY25. A Q1 DPS of 2.0p has been declared, in line with the previously declared FY26 target of 8.0p.