9 June 2023

REGIONAL REIT Limited

("Regional REIT" or the "Company")

Update on Office Occupancy

Tenants are now at an average of 4.2 days a week in the office

99% of tenants have returned to the office

Regional REIT, the regional office specialist, is pleased to provide an update on the return to the office, based on a survey of the occupiers across 106 of the buildings in the Company's office portfolio.

The survey's results are based on an 82.2% response rate from the Company's office tenants across a wide geographic spectrum of the main regional centres of the UK and in aggregate account for over 24,000 employees. The key survey findings were:

·    Employees have returned to the office for an average of 4.2 days per week

o The survey highlighted that of the employees who confirmed they are back in the office, now attend for an average of 4.2 days per week.

·    99% of companies confirm their return to the office

o Having previously reported that 99% of companies were back in some form last November, the Company is pleased to report that this position remains unchanged according to the new survey, with 99% of tenants back in the Company's buildings.

·    65% occupancy vs 70% pre-pandemic

o Pre-pandemic actual occupation is estimated at 70%¹, for example if a company had 100 desks then on average during business hours 70 desks would be occupied, with the balance unoccupied due to absences from holidays, illness, or out of the office on business. The Regional REIT study of the portfolio shows that current occupancy is 65%, which is 93% of the pre-pandemic occupancy levels and is expected to grow further.

1 Savills, European Office Occupancy March 2023

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

"This latest survey demonstrates clearly that 'the office' is an integral part of business life, particularly in the regional markets of the UK. 93% of employees have returned to the office when compared with pre-pandemic times, and have returned on average 4.2 days per week. This is a clear indication of how far the situation has improved in a short space of time. Further, we continue to witness a steadily improving environment with more people back in the office.

"I continue to hold the view that it will be the end of 2023 before we really see new trends becoming established but as I look at the data, indications clearly point to an average of more than four days in the office and less than one from home, which is very encouraging for the regional office market."

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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 154 properties, 1,080 occupiers as at 31 March 2023, with a valuation of c.£792.4m.

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 .

Cautionary Statement

This document has been prepared solely to provide additional information to Shareholders to assess the Group's performance in relation to its operations and growth potential. The document should not be relied upon by any other party or for any other reason. Any forward looking statements made in this document are done so by the Directors in good faith based on the information available to them up to the time of their approval of this document. However, such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

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