Regional REIT (LSE: RGL)

Last close As at 27/03/2024

GBP0.20

2.07 (11.39%)

Market capitalisation

GBP94m

Regional REIT (RGL) owns a highly diversified commercial property portfolio located in the regional centres of the UK.

The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles. Income returns have been significantly more stable. Across all main sectors the market is continuing to adjust to the end of the low interest rate environment with investment activity remaining subdued.

Latest Insights

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Sector

Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Adam Dickinson

    Head of IR

  • Daniel Taylor

    Senior independent non-executive director

  • Frances Daley

    Independent non-executive director

  • Kevin McGrath

    Chairman

  • Massy Larizadeh

    Independent non-executive director

  • Stephen Inglis

    Non Executive Director

Balance Sheet

Forecast net cash (£m)

386.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (25.8) (47.7) (68.7)
Relative (28.1) (49.0) (70.7)
52 week high/low 58.2p/14.1p

Financials

The Q423 DPS was confirmed at 1.2p and the Q125 DPS is scheduled to be declared in May, following the FY23 results scheduled for 26 March. Mirroring market trends, the portfolio valuation was 5.9% lower on a like-for-like basis in H223, increasing LTV to 55.1%. H223 asset sales were £11.5m, and there has been good progress in FY24 to date (£5m completed and £22m in solicitors’ hands), but the investment market remains weak. Asset sales alone may be insufficient to fund the repayment of the £50m 4.5% unsecured bond that matures in August, particularly not on value-creating terms. RGL says that it is actively exploring a range of refinancing options for the retail bond. H223 lettings secured £1.3m of new rental income (£1.2m in H1), on average above estimated rental value but end-FY23 EPRA occupancy of 80% was down on H123 (82.5%).

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 55.8 45.2 28.8 6.6 3.1 N/A
2022A 62.6 51.2 (65.2) 6.6 3.1 N/A
2023E 54.2 43.3 (42.1) 5.3 3.8 N/A
2024E 53.8 42.7 24.8 4.8 4.2 N/A

Research

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Regional REIT – executive interview

Flash note

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Regional REIT — Maintaining high dividend distribution

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Regional REIT – executive interview

Regional-REIT_resized

Update

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Regional REIT — Covered dividend with a 12% yield

Regional-REIT_resized

Update

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Regional REIT — FY22 DPS covered and yields c 11% yield

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Regional REIT — Operational progress supports DPS

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Regional REIT – executive interview

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