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REGION GROUP Capital/Financing Update 2024
65695_rns_2024-12-09_00795c04-879d-43e9-945c-f082e08bd23a.pdf
Capital/Financing Update
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10 December 2024
ASX Announcement
Region Group (ASX: RGN) announces an update on recent transactional activity and the property valuations as at 31 December 2024.
Metro Fund 2
In late November 2024, RGN completed the establishment of Metro Fund 2, a fund owned 20% by RGN and 80% by a global institutional investor. The Fund consists of six new centres totalling $385.8m, with RGN appointed as investment and property manager.
Property Divestment Program
The three assets held for sale as at 30 June 2024 have settled. RGN has also contracted to sell East Warrnambool Shopping Centre, at an 8.5% premium to the 30 June 2024 book value, with settlement expected in December 2024. Following the completion of this sale, our targeted capital recycling program will be complete with a total of $196.8m divestments at an average passing yield of 5.3%.
December 2024 Property Valuations
The total value of RGN's investment properties has increased by $34.1m, from $4,282.3m as at 30 June 2024 to $4,316.4m as at 31 December 2024.
This movement in valuations is comprised of:
- An increase in 'like-for-like' properties of $39.9m (0.9%);
- Development capital expenditure related to Stage 2 of Delacombe Town Centre and other centre repositioning projects of $12.7m; and
- Divestment of East Warrnambool Shopping Centre for $18.5m
| Investment Property Portfolio Summary | $m |
|---|---|
| June 2024 Portfolio Valuation | 4,282.3 |
| Add: 'like-for-like' valuation increase | 39.9 |
| Add: Development capital expenditure | 12.7 |
| Less: Disposals | (18.5) |
| December 2024 Portfolio Valuation | 4,316.4 |
Level 6, 50 Pitt Street Sydney NSW 2000 regiongroup.au
The weighted average capitalisation rate (WACR) is 6.08%, an increase of 0.01% since 30 June 2024.
Across the portfolio, 20 properties (25.6% by book value) were valued externally resulting in a $2.1m (-0.2%) decrease in valuation. The remaining properties were internally valued and resulted in a $42.0m (1.3%) valuation increase.
Proforma gearing post the transactional activity and movement in property valuations is 33.0%, comfortably within our target gearing range of 30% to 40%.
Proforma Net Tangible Assets (NTA) has increased by three cents to $2.45, assuming no other balance sheet movements since 30 June 2024.
This document has been authorised to be released to the ASX by the Board of RGN.
ENDS
Media, Institutional investor and analysts, contact:
Evan Walsh Nicolette Brice Region Group Region Group (02) 8243 4900 (02) 8243 4900
Chief Financial Officer General Manager – Investor Relations
Security holders should contact the RGN Information Line on 1300 318 976 with any queries.