Full Year 2018 Properties Valuation

18 February 2019

REGIONAL REIT Limited

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

Full Year 2018 Properties Valuation

Regional REIT (LSE: RGL), the regional real estate investment specialist, is pleased to announce the valuation of the Group's property portfolio as at 31 December 2018 which achieved an increase of 4.5% on a like-for-like basis from the prior year, adjusting for capital expenditure and disposals during the period. The overall valuation was £718.4m (31 December 2017: £737.7m).

During 2018 successful property transactions realised a £23.1m gain on disposals. The Group completed property acquisitions totaling £73.3m (before costs) and disposals of £152.5m (before costs).

The Group's net loan-to-value ratio was c.38.3% as at 31 December 2018. (31 December 2017: 45.0%)

Stephen Inglis, Chief Executive Officer of London & Scottish Investments, the Asset Manager, commented:

"We are extremely pleased with the progress achieved during the year where our asset management initiatives and strong letting performance have resulted in a noticeable increase in the capital value of the portfolio.

"It is particularly pleasing to report that our opportunistic approach to sales and acquisitions, combined with our active asset management initiatives, have resulted in an overall increase in the value of the portfolio whilst realising substantial profits for shareholders from the proactive sales programme."

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About Regional REIT

Regional REIT Limited (LSE: RGL) is a London Stock Exchange Main Market traded specialist real estate investment trust focused on office and industrial property interests in the principal regional locations of the United Kingdom outside of the M25 motorway.

Regional REIT is managed by London & Scottish Investments, the Asset Manager, and Toscafund Asset Management, the Investment Manager, and was formed by the combination of two existing funds previously created by the Managers as a differentiated play on the expected recovery in UK regional property, to deliver an attractive total return to Shareholders and with a strong focus on income.

The Group's investment portfolio, as at 30 June 2018, was spread across 151 regional properties, 1,294 units and 950 tenants. As at 30 June 2018, the investment portfolio had a value of £758.7m and a net initial yield of 6.4%. The weighted average unexpired lease term to first break was 3.5 years.

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)