Regional REIT

LN: RGL

£440.1m market cap

102p last close

Regional REIT owns a highly diversified commercial property portfolio of predominantly offices and light industrial units located in the regional centres of the UK. It is actively managed and targets a total shareholder return of at least 10% with a strong focus on income.

Investment summary

Regional REIT (RGL) provides investors with highly diversified exposure to UK commercial property (predominantly office and industrial property) in the main regional centres of the UK, effectively outside the M25 motorway. It aims to deliver an attractive total return to investors of at least 10% over the long term, with a strong focus on income plus capital growth. The shares provide one of the highest yields in the REIT sector and, barring unforeseen circumstances the company expects to pay aggregate dividends of 8.25p per share for 2019 (+2.5% versus 2018).

In this interview, Stephen Inglis, Group Property Director and Chief Investment Officer of London & Scottish Property Investment Management, the asset manager of RGL, discusses the recently released half-year results, the successfully completed £62.5m equity raise and the plans for accretive new investment.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 45.8 36.4 25.8 8.6 11.9 N/A
2018A 54.4 36.8 28.5 7.5 13.6 N/A
2019E 54.7 44.2 31.1 7.8 13.1 N/A
2020E 61.4 49.1 36.5 8.5 12.0 N/A
Last updated on 13/09/2019
Industry outlook

The supply demand balance for regional office and industrial property remains generally firm, and a positive yield spread between the regions and London offers potential for further narrowing. Parts of the retail sector are displaying clear signs of stress.

Last updated on 13/09/2019
Share price graph
Balance sheet
Forecast net debt (£m) 304.1
Forecast gearing ratio (%) 62
Price performance
%
1m
3m
12m
Actual (1.9) (6.2) 6.2
Relative* (4.2) (6.9) 5.5
52-week high/low 109.6p/89.9p
*% relative to local index
Key management
Kevin McGrath Chairman
Adam Dickinson Head of IR
Daniel Taylor Non Executive Director
Stephen Inglis Non Executive Director
Tim Bee Non Executive Director
William D. Eason Non Executive Director

Content on Regional REIT