Regional REIT H1 2026 slides show debt reduction, shares slip 8.3%

Regional REIT Limited released its half-year 2026 financial results on September 14, 2026, highlighting advancements in debt reduction while shares declined by 8.33% to $0.011. The company reported a decline in EPRA earnings per share from £5.20 to £4.20 and net asset value decreased to £305.8 million from £315.2 million. Despite a challenging market for regional offices, Regional REIT managed to reduce gross borrowings to £243.8 million from £266.2 million and increased annualized rent by £1.9 million.

The company continues to pursue a strategic pivot towards income-focused assets, with 26 disposals amounting to £21.5 million and targeted value-added opportunities. Chief Executive Stephen Inglis emphasized steady progress in reducing debt and leasing up vacant space ahead of refinancing in December 2027. The portfolio now comprises 106 properties valued at £526.7 million, with a primary focus on four segments: Core, Capex to Core, Value Add, and Strategic Sales.

During the half-year, the company successfully sold assets worth £21.5 million, with transactions occurring below pre-sale valuations to prioritize debt reduction. Notable lettings included a 20-year lease for 146,262 square feet of previously vacant space at Newstead Court in Nottingham to a specialist electronics manufacturer, generating £1.9 million in annualized rental income.

Despite softer occupancy rates and anticipated refinancing costs, Regional REIT maintains a full-year dividend target of 8 pence per share.