Regional Reit Regulatory News (RGL)

26 August 2020

REGIONAL REIT Limited

("Regional REIT", the "Group" or the "Company")

Q2 2020 Dividend Declaration

Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, today declares its Q2 2020 dividend.

The Company continues to pay a quarterly dividend, which will be in the amount of 1.50 pence per share for the period 1 April 2020 to 30 June 2020. This is in acknowledgement to our shareholders of the importance of regular scheduled income distributions and the continued strength of the Group's balance sheet. Rent collection has remained as high as expected, despite the unfolding uncertain economic backdrop. However, given the challenging environment, the Board has adopted a conservative approach and continues to hold more cash than it would normally, which impacts on current income.

The dividend will be payable on 16 October 2020 to shareholders on the register as at 4 September 2020. The ex-dividend date will be 3 September 2020. The entire dividend will be paid as a REIT property income distribution ("PID").

For the remainder of the financial year, the Board is aiming to maintain the dividend at the level announced today, which is expected to be fully covered by EPRA earnings. Whilst also having regard to, among other things, future rental collections, occupancy levels (taking into account of our ongoing value adding refurbishment programme), the financial position and performance of the Group at the relevant time, UK REIT requirements and the interests of shareholders.

Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager commented:

"I am pleased to confirm our scheduled quarterly dividend distribution. We are aiming to maintain this level as a minimum for the remainder of 2020, though we are conscious of the uncertain economic backdrop. The Board's continued commitment to paying a dividend has been made as the Group's investment strategy and strong asset management approach has continued to perform well."

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About Regional REIT

Regional REIT Limited ("Regional REIT" or the "Company") and its subsidiaries (the "Group") is a United Kingdom ("UK") based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and Toscafund Asset Management LLP, the Investment Manager.

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly, offices and industrial units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 151 properties as at 30 June 2020, with a valuation of £742.3m.

Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects.

The Company's shares were admitted to the Official List of the UK's Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015. For more information, please visit the Group's website at www.regionalreit.com. 

Cautionary Statement

This document has been prepared solely to provide additional information to Shareholders to assess the Group's performance in relation to its operations and growth potential. The document should not be relied upon by any other party or for any other reason. Any forward looking statements made in this document are done so by the Directors in good faith based on the information available to them up to the time of their approval of this document. However, such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

ESMA Legal Entity Identifier ("LEI"): 549300D8G4NKLRIKBX73