Up­date: Re­gional Reit

The Daily Telegraph - Business - - Business -

Re­gional’s share price has been very dis­ap­point­ing in re­cent weeks: it ini­tially re­cov­ered well, to about 87p, from Covid-in­spired panic but has now slipped back to just 65.6p. This puts its yield too into the dou­ble-digit club at 12.6pc. Should we fear a cut in the divi this time?

On Mon­day the trust said it had col­lected 91.4pc of rents due for the sec­ond quarter, in­clud­ing those ex­pected un­der monthly or other pay­ment agree­ments. It said: “We an­tic­i­pate col­lect­ing the vast ma­jor­ity of the bal­ance of out­stand­ing sec­ondquar­ter rent in due course as usual.”

Stephen Inglis, chief ex­ec­u­tive of the firm that runs the trust, Lon­don & Scot­tish, said: “The rental col­lec­tions con­tinue to un­der­pin our con­fi­dence in our ro­bust quar­terly div­i­dend pay­ments and we look for­ward to an­nounc­ing our sec­ond-quarter div­i­dend on Aug 26.”

That doesn’t strike Questor as the lan­guage of some­one who is soft­en­ing in­vestors up for a div­i­dend cut, although the de­ci­sion is of course the board’s and not his.

Even if a cut were to ma­te­ri­alise next month, which we do not ex­pect, the trust has a re­silient in­come stream if those rent col­lec­tion fig­ures are any guide and any re­duced div­i­dend, bar­ring a (most un­likely) se­vere re­duc­tion, would still rep­re­sent a high and sus­tain­able yield. The shares there­fore look over­sold. Hold.

Read Questor’s rules of in­vest­ment be­fore you fol­low our tips: tele­graph.co.uk/go/ questor­rules; twit­ter.com/DTquestor

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