Regional REIT


Market Cap£447m

Last Close 86.7p

Regional REIT owns a highly diversified commercial property portfolio of predominantly offices 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.

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Investment summary

The substantial acquisition of a £236m portfolio of predominantly regional office assets is a further significant step in repositioning the portfolio, which Regional REIT (RGL) expects to be earnings enhancing, with medium-term opportunities to add significant additional value through active asset management. The office portfolio acquired is highly complementary to RGL’s existing portfolio and provides additional diversification and scale. We will review our forecasts following interim results on 16 September.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 55.0 44.1 30.6 7.8 11.1 N/A
2020A 53.3 42.0 27.7 6.5 13.3 N/A
2021E 53.6 42.8 28.9 6.7 12.9 N/A
2022E 55.3 44.5 30.4 7.0 12.4 N/A
Industry outlook

The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles while income returns have been more stable. While the pandemic has created significant economic and market uncertainty, the rebound in GDP, continuing low interest rates, and lockdown easing are supporting a broadening of positive commercial property returns, still led by the industrial sector.

Last updated on 21/09/2021
Content on Regional REIT
Regional REIT – Advancing strategy and enhancing earnings
Real Estate | Flash note | 1 September 2021
Regional REIT – Quarterly DPS increased by 7%
Real Estate | Update | 20 May 2021
Regional REIT – Fully covered high-yielding dividend
Real Estate | Outlook | 12 April 2021
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Share price graph
Balance sheet
Forecast net debt (£m) 301.6
Forecast gearing ratio (%) 71
Price performance
Actual (2.5) (0.3) 28.3
Relative* (1.2) (0.4) 3.1
52-week high/low 92.0p/59.8p
*% 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