Regional REIT

LN: RGL

£386.2m market cap

103.6p 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) will report its FY18 results on 28 March 2018. Several recent updates provide us with comfort that the company is on track to meet our unchanged expectations for strong total returns in FY18, and for income growth in FY19. We expect the latter to be driven by the reinvestment of disposal proceeds, occupancy and rental growth, and interest savings from the repayment of higher-cost debt.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2016A 38.1 29.9 13.4 7.8 13.3 N/A
2017A 45.8 36.4 28.7 8.6 12.0 N/A
2018E 53.5 38.0 64.7 7.3 14.2 N/A
2019E 56.0 44.1 42.5 8.6 12.0 N/A
Last updated on 20/03/2019
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 20/03/2019
Share price graph
Balance sheet
Forecast net cash (£m) 298.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 1.0 13.1 4.3
Relative* 0.1 3.8 2.1
52-week high/low 105.8p/90.1p
*% 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

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