Regional REIT

LN: RGL

£448.8m market cap

103.8p 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) recently completed a £62.5m equity raise, the proceeds of which will be directed at a strong pipeline of investment opportunities. Once the proceeds are deployed RGL expects the acquired assets to be earnings accretive and provide further opportunities for active asset management and value creation. Increased scale and income diversity are also positive factors while trading liquidity may also benefit.

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 12.1 N/A
2018A 54.4 36.8 28.5 7.5 13.9 N/A
2019E 54.7 44.2 31.1 7.8 13.3 N/A
2020E 61.4 49.1 36.5 8.5 12.2 N/A
Last updated on 14/08/2019
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 14/08/2019
Share price graph
Balance sheet
Forecast net debt (£m) 304.1
Forecast gearing ratio (%) 62
Price performance
%
1m
3m
12m
Actual (1.9) (4.9) 9.3
Relative* 4.3 (1.7) 16.6
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

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