Yesterday afternoon, Region Group Ltd (ASX: RGN) announced its investment property portfolio grew to $4.5 billion as at 31 December 2025, up $129.2 million since June. The group's Net Tangible Assets (NTA) per unit also increased by 8 cents to $2.55.
What did Region Group report?
- Total investment property portfolio valuation increased from $4,374.1 million to $4,503.3 million.
- "Like-for-like" portfolio valuation rose by $95.7 million over the half.
- Weighted average capitalisation rate improved by 0.10% to 5.87%.
- Pro forma gearing sits at 32.6%, within management's 30%–40% target range.
- NTA per unit increased by 8 cents to $2.55, assuming no other balance sheet changes.
What else do investors need to know?
A total of 21 properties, or just over a quarter of the Region Group portfolio by value, were externally valued. This resulted in a $30.6 million valuation increase for these assets. The remainder of the properties were internally valued, contributing an additional $98.6 million increase.
Management said the updated valuations provide greater confidence in the group's balance sheet strength and help support prudently-managed gearing. The group continues to focus on disciplined capital expenditure and maintaining a diverse property base.
What's next for Region Group?
Looking ahead, Region Group is maintaining its focus on portfolio quality and conservative gearing. With a target gearing range of 30% to 40% and a capitalisation rate now at 5.87%, the company is well positioned to respond to future changes in market conditions.
The group indicated it will continue investing strategically in its existing properties to drive incremental value over time. Shareholders can expect ongoing updates on valuations and the group's approach to capital management.
Region Group share price snapshot
Over the past 12 months, Region Group shares have risen 12%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen around 3% over the same period.
