Regional REIT (LSE: RGL)

Currency in GBP

Last close As at 26/01/2023

GBP0.59

0.80 (1.39%)

Market capitalisation

GBP298m

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.

Sector

Real Estate

Equity Analyst

Martyn King

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 debt (£m)

395.9

Forecast gearing ratio (%)

84

Share Price Performance

Price Performance
% 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

Financials

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

Thematics

Consumer

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TMT

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