Regional property markets have performed well in Q3 and market growth expectations favour the provinces over London, with initial concerns following the EU referendum abating slightly. This supports Regional REIT’s (RGL’s) fundamental investment case. RGL invests mainly in office and light industrial assets outside the M25 and pursues an active asset management strategy to improve income and capital value growth, which has increased occupancy and headline rents in Q3. The diverse portfolio supports a 7.2% prospective dividend yield, among the highest of UK REITS, while the shares trade at an undemanding 0.97x EPRA NAV.
