18 May 2022

REGIONAL REIT Limited

("Regional REIT", the "Group" or the "Company")

Positive Portfolio Update

£48.2m Acquisitions yielding 8.7%

Regional REIT Limited (LSE: RGL), the regional office specialist, is pleased to announce the acquisition of three separate office investments in Derby, Milton Keynes and Crawley for £19.8m, £15.9m, and £12.5m respectively, reflecting net initial yields of 8.6%, 8.9% and 8.4%, with an overall blended net initial yield of 8.7%. In addition, since the 31 March 2022 a number of smaller vacant and non-core assets have been sold for £35.1m at a net initial yield of 6.6%, and broadly in line with their 31 December 2021 book value, taking the overall disposals this year to £68.6m.

Orbis 1-3, Derby (totalling 122,153 sq. ft.), are situated on a 7.54 acre site on the prime Pride Park business park. The offices (EPC B) are currently 100% let to the DHU Healthcare C.I.C.,which provides partner services to the NHS, Firstsource Solutions UK Ltd., and Tentamus Pharma (UK), a specialist pharmaceutical company, with a contracted rent of £1.8m per annum (pa) (£14.93 psf.).

Linford Wood Business, Milton Keynes, (totalling 115,315 sq. ft.) is set in 8.4 acres, in close proximity to Central Milton Keynes, with extensive parking. Milton Keynes is in the 'UK Growth Corridor' between Oxford and Cambridge, the UK Government's vision for maximising population growth, business expansion and economic output. It comprises one single-let and four multi-let office buildings, all of which are rated EPC C, and are let to a range of high quality tenants, including Kantar Consulting and IM Serve Europe, producing an income of £1.5m pa (£14.53 psf.).

Origin 1 (EPC B) & 2 (EPC C), Crawley (totalling 45,855 sq. ft.) comprises two office buildings, which are situated on a 1.9 acre corner site on Crawley High Street. The three and four storey offices being fully let generate in aggregate a rent of £1.1m pa (£24.34 psf.) from high quality tenants.

In line with its strategy, the Company has been disposing of non-core and vacant assets, as well as assets that are at the end of their business plans, and promptly recycling capital into higher yielding properties with asset management opportunities for long term shareholder value.

Stephen Inglis, CEO of London & Scottish Property Investment Management, the Asset Manager of Regional REIT commented:

"We are delighted that the Company has made further accretive office acquisitions supported by high quality tenants in regions which we have identified as future growth areas. We believe all three acquisitions have considerable potential to drive further value for our shareholders through our active asset management approach and we look forward to providing shareholders with further progress on our ongoing programme of capital recycling in due course."

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About Regional REIT

Regional REIT Limited ("Regional REIT" or the "Company") and its subsidiaries (the "Group") is a United Kingdom ("UK") based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and Toscafund Asset Management LLP, the Investment Manager.

Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly of offices located in the regional centres outside of the M25 motorway. The portfolio is geographically diversified, with 168 properties, 1,077 occupiers as at 31 December 2021, with a valuation of c.£906.1m.

Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects.

The Company's shares were admitted to the Official List of the UK's Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015. For more information, please visit the Group's website at www.regionalreit.com.

ESMA Legal Entity Identifier ("LEI"): 549300D8G4NKLRIKBX73