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. Income returns have been significantly more stable. Across all main sectors the market is continuing to adjust to the end of the low interest rate environment with investment activity remaining subdued.
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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
Forecast net cash (£m)
386.3
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (25.8) | (47.7) | (68.7) |
Relative | (28.1) | (49.0) | (70.7) |
52 week high/low | 58.2p/14.1p |
The Q423 DPS was confirmed at 1.2p and the Q125 DPS is scheduled to be declared in May, following the FY23 results scheduled for 26 March. Mirroring market trends, the portfolio valuation was 5.9% lower on a like-for-like basis in H223, increasing LTV to 55.1%. H223 asset sales were £11.5m, and there has been good progress in FY24 to date (£5m completed and £22m in solicitors’ hands), but the investment market remains weak. Asset sales alone may be insufficient to fund the repayment of the £50m 4.5% unsecured bond that matures in August, particularly not on value-creating terms. RGL says that it is actively exploring a range of refinancing options for the retail bond. H223 lettings secured £1.3m of new rental income (£1.2m in H1), on average above estimated rental value but end-FY23 EPRA occupancy of 80% was down on H123 (82.5%).
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 | 3.1 | N/A |
2022A | 62.6 | 51.2 | (65.2) | 6.6 | 3.1 | N/A |
2023E | 54.2 | 43.3 | (42.1) | 5.3 | 3.8 | N/A |
2024E | 53.8 | 42.7 | 24.8 | 4.8 | 4.2 | N/A |