Regional REIT (LSE: RGL)

Currency in GBP

Last close As at 22/09/2023

GBP0.32

−1.30 (−3.90%)

Market capitalisation

GBP166m

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

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Regional REIT – executive interview

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Regional REIT — Maintaining high dividend distribution

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Regional REIT – executive interview

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Regional REIT — Covered dividend with a 12% yield

Regional-REIT_resized

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 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.

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 4.9 2.6
2022A 62.6 51.2 (65.2) 6.6 4.9 3.4
2023E 62.8 52.0 34.0 6.6 4.9 2.8
2024E 64.7 53.6 34.5 6.7 4.8 3.1

Research

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

Outlook

Real Estate

Regional REIT — Return to the office gathers momentum

Update

Real Estate

Regional REIT — Well positioned for an office recovery

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