Regional REIT - Q1 DPS growth confirmed

With FY17 results in March, Regional REIT (RGL) reiterated its commitment to a progressive dividend, and has now declared a Q118 DPS of 1.85p (Q117: 1.80p). Management reports a good pace of lettings year to date, which it says reinforces its confidence in the prospects for increasing occupancy and income. We make no change to our estimates for a continued good level of total return, substantially income based. The yield remains the highest in the sector, with a highly diversified portfolio mitigating economic and sector-specific risks.