Regional REIT

Regional REIT (LSE: RGL)

Currency in GBP

Last close As at 22/09/2023

GBP0.32

▲ −1.30 (−3.90%)

Market capitalisation

GBP166m

Overview
Price performance
Financials
Research
Thematics

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. Income returns have been significantly more stable. Across all main sectors, the significant negative end-2022 adjustment to higher bond yields and economic uncertainty is showing increased stability in 2023 year to date, although investment activity is weak.

Latest Insights

Real Estate |
edison tv

25.09.23

Regional REIT – executive interview

Real Estate |
Flash note

25.05.23

Regional REIT — Maintaining high dividend distribution

Real Estate |
edison tv

03.05.23

Regional REIT – executive interview

Real Estate |
Update

17.04.23

Regional REIT — Covered dividend with a 12% yield

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Sector

Real Estate

Equity Analyst

Martyn King

Director, Financials

Key Management

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

Balance Sheet

Forecast net cash (£m)

391.8

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(24.0)	(31.5)	(53.6)
Relative	(27.9)	(32.4)	(55.8)
52 week high/low	68.5p/32.0p

Financials

Results for the six months to 30 June (H123) will be published on 12 September. For Q123 an unchanged DPS of 1.65p was declared, supported by continuing strong rent collection and further leasing progress, albeit at a more moderate pace following very strong new leasing activity in FY22. Q123 new lettings and renewals were both at rents above estimated rental values. EPRA occupancy of 83.3% was unchanged on Q422, with a gross annualised rent roll of £71.0m (Q422: £71.8m). Based on the end-FY22 portfolio valuation, Q123 LTV increased to 50.5% from 49.5%, but the balance sheet remains liquid and all the cost of debt is fixed at 3.5%. While uncertainties remain about future office use, Regional REIT’s leasing activity and its comprehensive tenant survey are encouraging indicators that the return to the office continues and that tenant demand will remain robust.