Update: Regional Reit
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