Regional REIT Ltd on Tuesday shares plunged, after it confirmed it is mulling ‘a range of refinancing options’ in respect to an existing £50 million retail bond which matures in August.

The commercial property investor noted that options include a debt or equity raise.

‘The company confirms that significant preparatory work has been undertaken to date in respect of both the debt and equity options, which remain under active consideration,’ it added.

In a statement ahead of the equities open, Regional REIT said that any equity issue would likely be ‘at a material discount’ to its share price. Regional REIT shares had closed at 20.15 pence on Monday.

On Tuesday morning, its shares fell 33% to 13.45p each in London. Over the last 12 months, the stock is down 75%.

Regional REIT has more recently documented a difficult time for the company.

In February, it said its portfolio valuation was £700.7 million as at December 31, down 11% from £789.5 million a year ago.

At the time, Chief Executive Officer Stephen Inglis said: ‘2023 was one of the most challenging years for REITs in recent memory, and Regional REIT was not immune from the macroeconomic difficulties faced by the sector. Whilst valuations have been impacted, the asset manager’s active asset management initiatives continued to mitigate some of the impact on the portfolio. The leasing market was slower than anticipated, largely due to the uncertainty around working patterns and the geopolitical situation impacting inflation and interest rates, but with some stability we are witnessing increasing numbers of enquiries for our assets.’

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