Acquisition & Positive Rent Collection Update

3 November 2020

REGIONAL REIT Limited

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

8.9% Yielding £8.4m Office Acquisition

&

Positive Rent Collection Update

Regional REIT (LSE: RGL), the regional real estate investment specialist focused on building a diverse portfolio of income producing regional UK core and core plus office and industrial property assets, is pleased to announce that it has completed the acquisition of a modern Grade A flagship office building in Cardiff for £8.4m. In addition, Regional REIT is delighted to report that rent collection across the portfolio has continued to increase with Q3 collections further increasing to 93.5% from 90.8% as previously announced on 14 October 2020.

£8.4m Office Acquisition Yielding 8.9%

The four-floor Grade A office asset (61,641 sq. ft.) is set in a 6.0 acre site with some 200 dedicated car parking spaces and is located in Global Reach, Cardiff. It benefits from excellent transport links, being within a five-minute drive to Cardiff city centre as well as the M4 motorway.

It is fully let to Relx UK Ltd, NFU Mutual Insurance, The British Diabetic Association, Active Quote Ltd, Source Insurance Ltd and Wilmott Dixon Construction Ltd with a rent of £803,000 (£13.02 sq.ft.) per annum, reflecting a net initial yield of 8.9%, and a weighted average unexpired lease term of 5.0 years to expiry, and 2.6 years to the first break.

Rent Collection Update

Rent collection across the portfolio has continued to strengthen with Q1 amounting to 99.2% and Q2 at 97.0%. Currently, Q3 rent collection, adjusting for monthly rent and agreed collection plans, stands at 93.5%, at the equivalent date in 2019 94.2% had been collected.

The table below sets out the status of the rent collection for Q1, Q2 and Q3 as at 30 October 2020:

Table may not sum due to rounding.

Quarterly rental collection refers to all invoices issued during the calendar quarters:

Q1: 1 January 2020 to 31 March 2020

Q2: 1 April 2020 to 30 June 2020

Q3: 1 July 2020 to 30 September 2020

As at 30 October 2020, the Company had collected 96.6% of rent due for the year to date, adjusting for monthly rent and agreed collection plans, which compares with the 98.1% of rent collected for the equivalent period in 2019.

The Company remains in supportive and ongoing discussions with occupiers regarding the remainder of the outstanding rent and expects to collect the vast majority of the total in due course.

Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management Limited, the Asset Manager commented:

"We are pleased to announce the acquisition of this Grade A flagship office property and further positive rent collection details from across the Company's portfolio. The acquisition benefits from being fully let to high quality occupiers, coupled with the potential for our asset management platform to instigate bespoke property initiatives for the benefit of our tenants and increase the income yield still further from the already high 8.9%, unlocking long term capital value accretion.

Our close working relationships with the Company's highly diversified tenant base continues to be reflected by ongoing strong rent collection progress with year to date collection currently amounting to 96.6%. We anticipate these receipts will continue to increase in line with our expectations with the vast majority of the balance expected to be received 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, offices and industrial units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 151 properties, 876 tenants as at 30 June 2020, with a valuation of £742.3m.

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