Regional Reit Regulatory News (RGL)

20 July 2016

Regional REIT Limited

Interim Portfolio Valuation and Comment on Recent Events

Regional REIT Limited (LSE: RGL) ("Regional REIT", "the Group" or "the Company") today announces that the gross asset valuation of its property portfolio as at 30 June 2016 was £501.3m. This is an increase of 1.8%, on a like-for-like basis, from the 31 December 2015 value of £403.7m, and 7.7% on the 30 June 2015 valuation. During the first half of 2016 the Group completed property acquisitions totalling £131.1m and disposals of £41.2m.

Stephen Inglis, Group Property Director and Chief Investment Officer of London & Scottish Investments Limited, the Asset Manager, commented: "The Group remains confident as to its business outlook for 2016. Our capacity to continue to grow rental income, which supports the dividend to Shareholders, reflects both the experience of the management team and the value that can be achieved by its active and intensive asset management approach and in-house capacity. In addition, the Group's recent refinancing exercises have reduced the cost of funding and extended loan terms."

"Regional REIT has an extensive property portfolio focused on offices and light industrial sites in the UK's regions outside of the M25 motorway, a large tenant base with a diverse business mix and with no exposure to speculative development. At the same time, the supply of new property in the regions remains limited whilst a broad spread of occupier demand continues despite the result of the recent EU referendum."

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Cautionary Statement

This announcement 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 announcement should not be relied upon by any other party or for any other reason. Any forward looking statements made in this announcement 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 announcement. 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.

This announcement contains inside information concerning Regional REIT Limited or its securities.

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About Regional REIT

Regional REIT Limited (LSE: RGL) is a London Stock Exchange Main Market listed specialist real estate investment trust focused on office and industrial property interests in the principal regional locations of the United Kingdom outside of the M25 motorway.

Regional REIT is managed by London & Scottish Investments, the Asset Manager, and Toscafund Asset Management, the Investment Manager, and was formed by the combination of two existing funds previously created by the Managers as a differentiated play on the expected recovery in UK regional property, to deliver an attractive total return to shareholders and with a strong focus on income.

The Group's investment portfolio, as at 31 December 2015, was spread across more than 120 regional properties, in excess of 710 units and over 530 tenants. As at 31 December 2015, the investment portfolio had a value of £403.7m and a net initial yield of 7.6%. The weighted average unexpired lease term was approximately six years.

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