RDI.L Regulatory News (RDI)

RDI REIT P.L.C.

("RDI" or the "Company")

(Registered number 010534V)

LSE share code: RDI

JSE share code: RPL

ISIN: IM00B8BV8G91

LEI: 2138006NHZUMMRYQ1745

RDI completes three retail park lettings to strong covenants on favourable terms

RDI, the income focused UK-REIT, has agreed three new high quality lettings at two of its retail parks delivering an average uplift of 40% on gross annualised rents reported for the year ending 31 August 2018. The three leases were previously let to retailers subject to recent CVA's or administrations, however each lease was agreed well in advance of the previous tenants vacating and at rents ahead of the pre-CVA gross annualised rent. The new lettings comprise a total of 37,850 sq ft of space and will generate £1.0 million of gross annualised rental income.

Aldi supermarket and The Gym Group have signed at Priory Retail Park in Merton, South West London on long leases of 20 years and 15 years respectively. The new lettings have been agreed at more attractive terms with no void period in the interim. Priory Retail Park remains fully occupied and the new tenants complement the current mix of bulky goods retailers and F&B operators, continuing to drive footfall at the well-located asset.

Bargain Buys, a new concept from the team behind Poundstretcher, has increased its unit size at Banbury Cross Retail Park in Oxfordshire, signing a seven year term on the 7,477 sq ft vacant adjoining unit, taking its total holding at the estate to 17,533 sq ft.

Elsewhere across RDI's six retail parks, the gross annualised rent on a 10,000 sq ft unit at Queens Drive Retail Park in Kilmarnock, which was previously subject to a CVA, has been reinstated to the previous passing rent, meaning a 33% increase on gross annualised rent to £0.2 million.

RDI's entire retail park portfolio is currently 96.2% occupied, a 140bps improvement on the last reported figures. Recent leasing activity clearly demonstrates the resilient demand for high quality and well-located retail assets that continue to attract customers and deliver strong sales performance.

Adrian Horsburgh, Property Director at RDI, commented:

"These three new lettings, to strong covenants, on long leases with favourable terms resulted in a 40% increase on the previously reported gross rental income and is marginally ahead of pre-CVA rents. Our ability to proactively secure tenants and avoiding any vacancies in the current challenging market, is a credit to both the underlying assets' quality and our asset management team's hard work. In the current market environment our focus remains on driving value from our existing assets and leveraging opportunities to generate income, maintain high occupancy levels and boost footfall."

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About RDI

RDI is a UK Real Estate Investment Trust (UK-REIT) committed to becoming the UK's leading income focused REIT. The Company's income-led business model and strategic priorities are designed to offer shareholders superior, sustainable and growing income returns, with a target growth in underlying earnings per share of 3%-5% across the medium term.

Income sustainability is underpinned by a diversified portfolio and tenant base, with no overreliance on any one sector or tenant, together with an efficient capital structure. The secure and growing income stream is 27.0% indexed and has a WAULT of 7.0 years to first break (8.4 years to expiry). This is complemented by an average debt maturity of 6.7 years of which over 95% of interest costs are either fixed or capped. The Company is focused on all aspects impacting shareholder distributions and reports one of the lowest cost ratios in the industry whilst maintaining a low cost of debt.

The Company owns properties independently valued at £1.6bn in the United Kingdom and Germany, Europe's two largest, liquid and transparent property markets. RDI invests in assets with strong property fundamentals spread across UK offices (including London serviced offices), UK logistics, UK shopping centres, UK retail parks, UK hotels and German retail. RDI is well placed to take advantage of the increasing occupier requirement for real estate owners to become high quality service providers, given its scalable operational platforms and nearly a third of the portfolio invested in hotels and London serviced offices.

RDI holds a primary listing on the London Stock Exchange and a secondary listing on the JSE and is included within the EPRA, GPR, JSE All Property and JSE Tradeable Property indices.

For more information on RDI, please refer to the Company's website www.rdireit.com

All figures as at 31 August 2018.