**SummaryRegional REIT Limited Q4 2025 Update**
**Financial Performance & Portfolio Valuation:**
**Portfolio Valuation** Declined by 5.0% in 2025 to £555.2m (from £622.5m in 2024), primarily due to successful disposals and tenant breaks.
**Disposals** Completed £51.6m in disposals, 1.3% above book value, reducing loan-to-value (LTV) to 40.4% (39.9% post-period disposals).
**Rent Roll** Gross annualised rent roll decreased to £50.4m (from £60.7m in 2024) due to disposals, with total rent collection at 99.1%.
**Dividend** Declared Q4 2025 dividend of 2.5p per share, totaling 10p for 2025 (fully covered). Targeting 8p per share for 2026, reflecting a prudent approach.
**Strategic Initiatives**
**Debt Refinancing** Successfully refinanced £72.4m of debt due in August 2026 to 2029, lowering the cost of debt to 3.3% p.a.
**Management Contract** Restructured to save £0.9m annually and improve alignment with shareholders.
**Portfolio Repositioning** Continued investment in capital expenditure to enhance property quality, targeting occupier demand for Grade A, EPC A/B spaces.
**Disposal Program** Aiming to exceed 2025 disposal volumes in 2026 to reduce debt and improve portfolio quality.
**Market Outlook & Challenges**
**Leasing Market** Remains subdued due to macroeconomic uncertainty, with void costs impacting net income. Focus on reducing voids through sales, cost savings, and leasing up high-quality spaces.
**Regional Office Fundamentals** Limited new supply and diminishing stock of Grade A EPC A/B spaces expected to drive higher occupancy and rents in the medium term.
**Portfolio Segmentation**
**Core (62.7%)** Well-positioned for sustainable long-term income.
**Capex to Core (18.7%)** Targeted upgrades to secure lettings.
**Value Add (10.2%)** Repositioning and planning gains potential.
**Sales (8.5%)** Assets targeted for disposal.
**Post-Period Highlights**
Completed £5.1m in disposals post-December 2025, further reducing borrowings to £261.7m and LTV to 39.9%.
Achieved 3 notable lettings and renewals post-period end, totaling £0.2m in rent, 5.3% above ERV.
**Management Commentary**
**David Hunter (Chair)** Emphasized progress in sales, debt refinancing, and portfolio repositioning, with a focus on long-term shareholder value.
**Stephen Inglis (ESR Europe)** Highlighted stabilisation in property values despite income-driven valuation declines, with a focus on reducing voids and driving leasing activity.
**Outlook**
The company remains confident in its strategy, leveraging prudent leverage and stabilising market conditions to enhance portfolio quality and deliver long-term value.
**Key Dates**
2025 Preliminary Results24 March 2026
Q1 2026 Trading Update19 May 2026
2026 Interim Results8 September 2026
**Disclaimer** Dividend targets are not guarantees and depend on future performance and market conditions.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Portfolio Valuation (£m) | 622.5 | 555.2 | -10.8% |
| Net Loan-to-Value Ratio (%) | 41.8% | 40.4% | -3.4% |
| Gross Annualised Rent Roll (£m) | 60.7 | 50.4 | -17.0% |
| ERV (£m) | 83.2 | 77.0 | -7.5% |
| Total Rent Collection (%) | 98.1% | 99.1% | +1.0% |
| EPRA Occupancy (by ERV) (%) | 77.5% | 75.9% | -2.1% |
| Gross Borrowings (£m) | 316.7 | 266.2 | -15.9% |
| Cash and Cash Equivalents (£m) | 56.7 | 41.9 | -26.1% |
| Group Cost of Debt (incl. hedging) (%) | 3.4% | 3.3% | -2.9% |
| Weighted Average Debt Duration (years) | 2.9 | 2.6 | -10.3% |
| Capital Expenditure (£m) | 8.2 | 11.8 | +43.9% |
| Dividend per Share (pence) | 7.80 | 10.0 | +28.2% |