A reduction in the fair value of Regional Reit’s (RGL) investment properties meant the commercial landlord’s operating profits fell by almost two-thirds during the first half. Meanwhile, net rental income also took a small hit due to disposals in the prior year.
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House broker Peel Hunt estimates that the like-for-like valuation of the retail assets declined by 15 per cent, offsetting a 1 per cent rise for the core office and industrial properties. However, the 39 new lettings were signed at 5.2 per cent above estimated rental value at December 2018, equivalent to £1.6m in annual rental income.
