Regional REIT (RGL) 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.
The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles while income returns have been significantly more stable. Commercial property has the potential to offer a degree of inflation hedging but rising government bond yields have begun to weigh on asset valuations across the main sectors.
Adam Dickinson
Head of IR
Daniel Taylor
Non Executive Director
Kevin McGrath
Chairman
Stephen Inglis
Non Executive Director
Tim Bee
Non Executive Director
William D. Eason
Non Executive Director
Forecast net debt (£m)
395.9
Forecast gearing ratio (%)
84
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (1.5) | (9.9) | (34.6) |
Relative | (5.2) | (18.5) | (36.2) |
52 week high/low | 90.4p/56.5p |
Regional REIT’s (RGL) Q322 DPS declared of 1.65p is in line with its target of 6.6p for the year (+3%). Despite a deteriorating economic environment, Q322 operational progress included strong leasing activity, good tenant retention, an increase in occupancy and continuing strong rent collection. With all debt fixed/hedged for almost five years, interest costs are unaffected by rising interest rates, although higher bond yields are having a negative impact on asset values across the broad UK market.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2020A | 53.3 | 42.0 | (31.2) | 6.5 | 9.0 | 5.3 |
2021A | 55.8 | 45.2 | 28.8 | 6.6 | 8.9 | 4.7 |
2022E | 62.3 | 50.7 | 0.7 | 6.5 | 9.0 | 5.7 |
2023E | 64.3 | 52.0 | 34.2 | 6.7 | 8.7 | 5.7 |
Get access to the very latest content matched to your personal investment style.