Regional REIT (LSE: RGL)

Last close As at 20/06/2024

GBP0.21

0.30 (1.43%)

Market capitalisation

GBP111m

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 while income returns have been significantly more stable. Office valuations are significantly down from the 2022 peak, while rents have increased, and may benefit from the expected decline in interest rates.

Latest Insights

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Real Estate | Flash note

Regional REIT — Q124 DPS unchanged ahead of refinancing

Real Estate | Flash note

Regional REIT — Performing as expected ahead of refinancing

Real Estate | Update

Regional REIT — Lancing the boil?

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)

406.5

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (14.8) 27.4 (55.1)
Relative (12.7) 20.3 (58.4)
52 week high/low 47.9p/14.1p

Financials

The Q124 DPS was maintained at 1.2p but full year DPS will partly depend on Regional REIT’s chosen route for refinancing the £50m 4.5% unsecured bond maturing in August and its broader LTV reduction plans. It continues to make good progress with asset disposals, but these are unlikely to be sufficient to fund repayment of the bond. Q1 sales were £15.0m (before costs) with sales of £1.1m completed since. The disposal programme includes 59 properties totalling £111m. Strong rent collection and leasing momentum was maintained, at rent levels above ERV, and EPC ratings strengthened further. EPRA occupancy was little changed at 79.9%, but allowing for expiries and including asset sales (we estimate £1.4m pa of rental income), rent roll was £2.3m lower at £65.5m. Borrowings reduced by c £8m to c £413m with cash and equivalents of £33.5m little changed. Pro-forma LTV was 55.2%.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 62.6 51.2 (65.2) 6.6 3.2 N/A
2023A 53.7 43.1 (67.4) 5.2 4.1 N/A
2024E 53.5 43.4 24.8 4.8 4.4 N/A
2025E N/A N/A N/A N/A N/A N/A

Research

edison tv

Real Estate

Regional REIT – executive interview

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

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