Regional REIT Limited (LSE: RGL), the UK regional commercial property specialist, has published its Q3 2026 trading update and declared a dividend of 2.00 pence per share for the period from 1 July to 30 September 2026, payable on 15 January 2027. The company completed £8.9m of strategic disposals during the quarter, reducing gross borrowings to £233.1m and net loan-to-value to approximately 38.5%. With year-to-date disposals reaching £32.2m and 41 lease renewals completed above pre-renewal estimated rental value, investors will be watching whether the balance sheet repositioning can support a fully covered full-year dividend target of 8.0 pence per share.

Key Points

  • Regional REIT Limited (LSE: RGL) — UK-listed REIT focused on regional office assets outside the M25
  • Q3 2026 dividend declared at 2.00pps, paid entirely as a REIT property income distribution (PID), with an ex-dividend date of 19 November 2026
  • Gross borrowings reduced to £233.1m; net LTV at c.38.5%; year-to-date disposals total £32.2m, averaging 11.0% below pre-sale book value
  • Investors should watch Q4 disposal progress, refinancing of the December 2027 banking facility, and the full-year 2026 results due 23 March 2027

Q3 2026 Dividend Set at 2.00pps as Regional REIT Targets 8.0pps Full-Year Coverage

Regional REIT has declared a third-quarter dividend of 2.00 pence per share, down from 2.50pps paid for the equivalent period in 2025. The entire distribution will be made as a property income distribution in accordance with UK REIT requirements. The record date is 20 November 2026, with payment scheduled for 15 January 2027. Shareholders may participate in the company's Dividend Reinvestment Plan, with the last election date set for 23 December 2026. The company targets a fully covered full-year dividend of 8.0pps for 2026, which at the closing share price of 87.5p on 11 November 2026 represents a yield of approximately 9.1%.

£32.2m of Year-to-Date Disposals Drive Gross Borrowings Down to £233.1m

The company's disposal programme continued to reshape its balance sheet during the third quarter. Strategic asset sales during Q3 2026 amounted to £8.9m before costs, at a net initial yield of 8.3%. A further two disposals completed after the quarter end totalled £1.7m, bringing year-to-date disposals to £32.2m, averaging 11.0% below pre-sale book value. Gross borrowings fell to £233.1m from £266.2m a year earlier, with net LTV declining to approximately 38.5% from 40.4%. The forecast earnings enhancement from these disposals is expected to be approximately £1.4m, described in the announcement as in line with current market expectations.

101-Property Portfolio Records EPRA Occupancy of 74.1% with 41 Renewals Above ERV

At 30 September 2026, Regional REIT's portfolio comprised 101 properties, 963 units and 579 tenants, with gross property assets valued at approximately £516.6m, down from £526.7m at 30 June 2026 reflecting disposals in the period. EPRA occupancy by ERV stood at 74.1%. The rent roll was £47.2m, with an ERV of £69.9m. During the first three quarters, 41 lease renewals were completed at 5.6% above pre-renewal ERV, and 26 new lettings secured at broadly ERV levels. Tenant retention reached 71.8% of leases up for renewal, ahead of both the June 2026 and December 2025 levels.

Refinancing of December 2027 Banking Facility Targeted Well Ahead of Maturity

The announcement states that Regional REIT is making good progress on refinancing its banking facility, which matures in December 2027, with completion targeted well ahead of that date. The group's cost of debt, including hedging, stands at 4.1% per annum, compared with 3.3% a year earlier, with 97.1% of debt fixed or hedged. Cash and cash equivalents were £34.2m at the period end. The company has indicated it expects to complete further disposals during Q4 2026 to continue balance sheet strengthening, with structural demand for EPC A- and B-rated regional office space cited as a longer-term opportunity as economic conditions stabilise.