Last close As at 05/08/2026
GBP0.98
▲ 2.00 (2.08%)
Market capitalisation
GBP159m
Research: Real Estate
For Q124, Regional REIT (RGL) has maintained the rate of quarterly DPS at 1.2p. We expect DPS for the year will partly depend on RGL’s chosen re-financing route. Meanwhile, RGL’s asset disposal programme continues to progress. Portfolio EPC ratings have continued to show good improvement and, adjusted for disposals, rent roll and occupancy were robust. We have made no changes to our forecasts.
Regional REIT |
Q124 DPS unchanged ahead of refinancing |
Q124 trading update |
Real estate |
22 May 2024 |
Share price performance
Business description
Analyst
Regional REIT is a research client of Edison Investment Research Limited |
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For Q124, Regional REIT (RGL) has maintained the rate of quarterly DPS at 1.2p. We expect DPS for the year will partly depend on RGL’s chosen re-financing route. Meanwhile, RGL’s asset disposal programme continues to progress. Portfolio EPC ratings have continued to show good improvement and, adjusted for disposals, rent roll and occupancy were robust. We have made no changes to our forecasts.
Year end |
Net rental income (£m) |
EPRA earnings* (£m) |
EPRA EPS* |
NAV**/ |
DPS |
P/NAV |
Yield |
12/22 |
62.6 |
34.1 |
6.6 |
73.5 |
6.60 |
0.34 |
26.4 |
12/23 |
53.7 |
27.0 |
5.2 |
56.4 |
5.25 |
0.44 |
21.0 |
12/24e |
53.5 |
25.0 |
4.8 |
56.4 |
4.80 |
0.44 |
19.2 |
Note: *EPRA earnings exclude revaluation movements, gains/losses on disposal and other non-recurring items. EPRA EPS is fully diluted. **NAV is EPRA net tangible assets per share.
The Q124 DPS will be paid on 12 July to shareholders on the register at 31 May. The company remains focused on reducing LTV back towards its 40% long-term target and finding the most appropriate solution for the £50m 4.5% unsecured retail bond, which is due to mature in August. RGL says that it is continuing to make progress on the debt and equity refinancing options alongside its disposal programme. Based on the end-FY23 external portfolio valuation, adjusted for subsequent disposals and capex, end-Q124 LTV is little changed at 55.2%, although gross borrowings were reduced by c £8m to c £413m. Cash and equivalents of £33.5m were also little changed in the period.
Q1 property sales amounted to £15.0m (before costs) at a blended net initial yield of 9.2%. Further sales of £1.1m (before costs), above valuation, have been completed since, and the updated disposal programme now includes 59 properties totalling £111m. Of this, 11 properties (£24m) are under offer or in legal due diligence, four (£9m) are in negotiation, 12 (£15m) are being marketed, and 32 potential disposals (£63m) are being prepared for market.
Rent collection continues to be strong and Q1 was above the prior year level at the same stage. Positive leasing momentum was maintained, with notable new lettings amounting to £1.2m pa of rental income when fully occupied, at blended average rental uplift of 9.1% to December’s ERV, and £1.2m of notable lease renewals at a 4.4% uplift to ERV. EPRA occupancy was 79.9% (end-FY23: 80.0%) 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.
Providing support for leasing, the portfolio sustainability metrics continued to improve after strong gains in FY23. The proportion of the portfolio rated EPC C or better (a 2027 minimum regulatory requirement) is now 82%, up from 73% in December. RGL is confident of meeting EPC targets through a combination of its rolling capex programmes, aligned with leasing events, and the disposal of remaining EPC D and E rated properties.
We have made no changes to EPRA earnings or DPS forecasts, and external valuations of RGL’s portfolio occur on a six-monthly basis. Most importantly, we await details of RGL’s refinancing plans.
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Research: TMT
4imprint’s AGM trading update indicates a solid start to the year against a challenging market backdrop, with full-year expectations (and therefore our forecasts) unchanged. Group revenue growth of 6% over the prior year for the four months to end April is clearly ahead of the North American market, where Q124 industry revenue indications range from broadly flat to a small decline, indicating that the group is continuing to build market share. 4imprint is the largest distributor in North America, yet still only has a market share of around 5%, giving plenty of further runway for growth. CFO David Seekings has announced his intention to retire before the end of 2025, giving ample time for a suitable succession to be arranged.