Regional REIT (LSE: RGL)

Last close As at 24/02/2024

GBP0.23

1.40 (6.36%)

Market capitalisation

GBP121m

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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Regional REIT — Dividend rebase pragmatic and sustainable

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Regional REIT – executive interview

Real Estate | Flash note

Regional REIT — Maintaining high dividend distribution

Regional-REIT_resized

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)

368.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (21.21) (23.03) (61.64)
Relative (23.03) (25.33) (60.47)
52 week high/low 61.9p/20.1p

Financials

The Q423 DPS declaration (Q3: 1.2p) and portfolio valuation update is scheduled for 22 February. In Q323, leasing continued at rents ahead of market levels, but with the balance of occupiers remaining cautious, as economic prospects are assessed, rent roll and occupancy weakened. Supported by the strong ‘return to the office’, RGL said it expected an acceleration in leasing, including the previously reported £0.5m letting at Norfolk House. Market-wide valuation data indicate that regional office valuations continued to weaken through Q423, which, if reflected in RGL’s portfolio, will put downward pressure on our NAV forecast and upwards pressure on LTV (52.6% in Q3 based on the H1 valuation). Encouragingly, reported disposals of more than £8.1m during H223 were at an average premium to book value of more than 20%, but the pace will need to pick up for RGL to move towards its 40% medium-term LTV target.

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 3.5 N/A
2022A 62.6 51.2 (65.2) 6.6 3.5 N/A
2023E 54.2 43.3 2.3 5.3 4.4 N/A
2024E 53.8 42.7 40.8 4.8 4.9 N/A

Research

Flash note

Real Estate

Regional REIT — Maintaining high dividend distribution

edison tv

Real Estate

Regional REIT – executive interview

Regional-REIT_resized

Update

Real Estate

Regional REIT — Covered dividend with a 12% yield

Regional-REIT_resized

Update

Real Estate

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

Update

Real Estate

Regional REIT — Operational progress supports DPS

edison tv

Real Estate

Regional REIT – executive interview

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